Loading...
HomeMy WebLinkAboutSS3 - Initial Draft of the General Plan Housing Element Update (PA2017-141)Q SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report April 27, 2021 Agenda Item No. SS3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Benjamin M. Zdeba, AICP, Senior Planner, bzdeba@newportbeachca.gov PHONE: 949-644-3253 TITLE: Study Session — Initial Draft of the General Plan Housing Element Update (PA2017-141) ABSTRACT: The Housing Element is a mandatory element of the City of Newport Beach (City) General Plan that requires periodic review and updating. It is a comprehensive statement of housing goals and policies that are closely correlated with other elements of the General Plan. The next update to the Housing Element must be adopted by mid-October of 2021. Once adopted, it will apply for the upcoming eight-year planning cycle (October 2021 - October 2029). The draft update provides for the City's 4,845 -unit allocation of the 6t" Cycle of the Regional Housing Needs Assessment (RHNA), a State of California (State) mandate, as well as relevant supporting policies consistent with State Housing Element laws. This item is a study session presentation and discussion of the initial draft of the General Plan Housing Element Update, which was released to the community on March 10, 2021, and recently updated for this agenda item. RECOMMENDATION: Provide comments to the initial draft of the Housing Element. DISCUSSION: Backaround and Introduction On January 22, 2019, the City Council acted to initiate a General Plan review and update process. A City Council -appointed seven -resident Steering Committee was formed to prepare a request for proposals for consultant assistance. The City retained Kearns & West to prepare and execute an open and transparent public outreach effort to be guided by the Steering Committee. The "Listen and Learn" outreach process was launched in late 2019; however, during the effort, the Regional Housing Needs Assessment (RHNA) allocation process was being conducted by the Southern California Association of Governments (SCAG). Early methodology estimates showed between approximately 2,000 and 5,000 new housing units required for the City of Newport Beach's 6t" Cycle RHNA. The Listen and Learn effort was then shifted to focus specifically on RHNA and updating the Housing Element. SS3-1 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 2 On January 14, 2020, City staff reviewed the progress of the update with the City Council at the direction of the Steering Committee, given that much of the context surrounding the potential comprehensive update of the General Plan had changed due to the housing crisis. The City Council directed staff to focus efforts on primarily updating the Housing Element for compliance with State law, along with preparing a simultaneous update to the Circulation Element to ensure adequate mobility for the community. Due to the January 2020 direction to focus on updating the Housing Element, the 10 -member Housing Element Update Advisory Committee (HEUAC) was formed and the prior Steering Committee was dissolved. The HEUAC is purposed with ensuring there is adequate public outreach regarding the update, reviewing the responses received to the request for proposals for consultant assistance, reviewing and selecting adequate sites for housing, and reviewing goals and policies. In April 2020, the City Council authorized a professional services agreement with Kimley-Horn and Associates, Inc. (Kimley-Horn) for the preparation of the more focused updates. With the onset of the COVID-19 pandemic, the HEUAC did not meet until July 2020. City staff has worked alongside the HEUAC and consultant team to engage the community through virtual public workshops and online activities throughout the process and is committed to working with the State's Department of Housing and Community Development (HCD) to submit a compliant, adopted Housing Element by the October 2021 deadline. For a mostly complete summary of the engagement efforts to date, please review Appendix C (Summary of Outreach) of the initial draft Housing Element update (Attachment A). Organization of the Draft Housing Element Section 1: Introduction The Introduction provides a summary of the statutory authority of the Housing Element, discussion of the RHNA, relationship to other Elements of the General Plan, and data sources used in the analyses. It also provides a summary of the content of the Housing Element. Section 2: Community Profile The Community Profile provides a description of the demographic and housing characteristics of Newport Beach. All statutory requirements for analyzing the characteristics of residents and housing units are summarized in this Chapter. Emphasis is provided showing housing trends, areas where overpayment is occurring, areas where overconcentration of units is occurring, and the status of existing housing stock. The analysis contained in this section uses the most currently available data from a variety of Federal, State and local sources. SS3-2 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 3 Section 3: Housing Resources, Constraints and Affirmatively Further Fair Housing This Section analyzes governmental and non-governmental constraints in the production of housing in the City. It also describes market conditions and land use controls governing the development of residential lands. Constraints related to infrastructure and environmental issues are also described. A summary of housing resources, including a summary of sites available, financial resources and opportunities for energy conservation, is also included. Pursuant to Assembly Bill AB 686 (Chapter 958, Statutes 2018), a needs assessment for affirmatively furthering fair housing is provided. The new statute requires analysis of disparities and dissimilarities in the provision of housing being accessible to all persons regardless of racial, ethnic or economic status. The section evaluates local and regional policies and evaluates resources to address fair housing issues. Section 4: Housing Plan The Housing Plan represents the City's official policies related to housing. Due to the unique requirements in Housing Element law, these policies may be more detailed and prescriptive than other policies in the General Plan. It also describes overall housing goals, supported by policies and program actions. Each action includes a description of the action, a timeline for its implementation, the party responsible for implementation, and an assumed funding source. The Housing Plan has the following eight goals: Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA. Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock. Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments. Housing Goal #4: Housing opportunities households as possible in response to the housing in the city. for as many renter- and owner -occupied market demand and RHNA obligations for Housing Goal #5: Preservation of the city's housing stock for extremely low-, very low-, low-, and moderate -income households. Housing Goal #6: Housing opportunities for special needs populations. Housing Goal #7: Equal housing opportunities in the city for all people. Housing Goal #8: Effective and responsive housing programs and policies. SS3-3 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 4 Policies and policy actions follow and are summarized in the next subsection (see "Policy Actions Summary"). Appendix A — Review of Past Performance The Review of Past Performance evaluates 5t" Cycle Housing Element programs by describing accomplishments and summarizing its status for the 6t" Cycle. Many of the existing 5t" Cycle programs are continued in the 6t" Cycle to provide continuity and consistency with the General Plan and to preserve active and currently funded programs or policies. Appendix 8 — Adequate Sites Analysis This Appendix provides a detailed summary of focus areas and a complete list of sites to accommodate the City's 2021-2029 RHNA allocation of 4,845 units. The analysis includes mapping and identification of sites that will constitute the inventory of sites available for residential uses during the upcoming 2021-2029 planning period. Table B-1 on Page B-3 (excerpted below) provides a summary of the RHNA allocation and demonstrates how the City is meeting the required need. Table B-1: Summary of RHNA Status and Sites Inventory Extremely Low/ Very Low Income Low Income Moderate Income Above Moderate Income Total 2021-2029 RHNA 1,456 930 1,050 1,409 4,845 RHNA Credit (Units Built) TBD TBD TBD TBD TBD Total RHNA Obligations 1,456 930 1,050 1,409 4,845 Sites Available Projects in the Pipeline 130 0 2,164 2,294 Accessory Dwelling Units 228 100 6 334 5t" Cycle Sites 0 348 40 388 Remaining RHNA 2,028 602 -- 2,630 Airport Area Environs Rezone 904 301 755 1,960 West Newport Mesa Rezone 381 117 80 578 Dover -Westcliff Rezone 49 8 100 158 Newport Center Rezone 587 196 1,140 1,923 Coyote Canyon Rezone 308 0 572 880 Banning Ranch Rezone 275 207 893 1,375 Total Potential Capacity of Rezones 2,504 829 3,540 6,873 Total Potential Development Capacity 2,862 1,248 5,750 9,889 Sites Surplus/Shortfall (+/-) +476 +227 +4,341 +5,044 Percentage Buffer 20% 22% 308% 104% The top three rows identify the RHNA breakdown by income category. SS3-4 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 5 The next three rows under "Sites Available" indicate what the City currently has in the development pipeline. This includes projects that are entitled and not yet built or projects that have been applied for, as well as those sites that were previously identified as housing opportunity sites within the 5th Cycle Housing Element. Also included in this section is the City's accessory dwelling unit (ADU) strategy of 334 units. This amount is twice the accepted methodology for identifying ADUs prescribed by HCD (i.e., the "safe harbor" approach), which uses past development trends for ADU production and projects the average out over the eight-year period. The safe harbor approach generates 167 units based on the City's past performance. The unit counts in those three rows are deducted from the "Total RHNA Obligations" and result in the "Remaining RHNA." The next six rows identify focus areas for residential rezoning to help meet the remaining, unmet need. The "Total Potential Development Capacity" row is the sum of the three development pipeline rows and the six rezoning rows. The resultant surpluses are shown in the row below and translate to the buffer percentages. For more information on why maintaining a minimum buffer of 20 percent is important, please see the "No Net Loss" section below. Please note, this table correlates to all tables in Appendix B, including Table B-10, which starts on Page B-19 and expands on the individual sites. Appendix C — Community Engagement Summary This Appendix provides a summary of all community engagement activities, including meetings, workshops, HEUAC Meetings and other print and digital engagement with the community and stakeholders. Policy Actions Summary While there are many carryover policies from the current 5th Cycle Housing Element, there are also newly required updates and changes in policy for compliance with State law and new legal requirements. Most of the updates relate to demonstrating adequate sites to accommodate the 6th Cycle RHNA allocation and to meet the State's housing goals expressed through Housing Element and related laws. Several of the key policy actions are summarized below and all the actions can be found in Section 4 of the draft update (Attachment A). Policy Actions 1A — 1 G (Pages 4-4 to 4-6) The initial draft provides several key focus areas for housing production and indicates those areas will be subject to rezoning for, by -right housing development, using housing opportunity overlays or similar rezoning strategies. Those focus areas include Airport Area Environs, West Newport Mesa, Dover/Westcliff, Newport Center, Banning Ranch, Coyote Canyon, and remaining 51h Cycle Housing Element Sites. The unit targets included in each of these draft policy actions are subject to change based upon City Council and community input, but likely will not result in a material change to policy actions. SS3-5 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 6 Each of the focus areas, except for Banning Ranch, include sites that are not presently designated for housing. The Airport Area Environs focus area is noteworthy as the inventory includes sites that are within the 65 dBA CNEL noise contour from John Wayne Airport where the City has not envisioned new housing previously. The proposed sites are not within the more restrictive safety zones established by the Airport Environs Land Use Plan (AELUP). Creating these opportunity sites will require an amendment of the Noise Element and possibly an override of the Airport Land Use Commission should it find the change inconsistent with the AELUP. Policy Actions 1H — 1 J (Page 4-7) In addition, the initial draft provides policies to encourage the production of accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs). These policies aim to support an aggressive approach for construction of at least 336 ADUs or JADUs and include incentives for development, a monitoring program, and an amnesty program for existing unpermitted units to become legal. Policy Action 1K (Page 4-8) An inclusionary housing program is also proposed to require the production of affordable housing for new residential development projects. This policy is seen as imperative to meeting the higher affordability required in the 6t" Cycle RHNA allocation. It should be noted that the Affordable Housing Subcommittee of the Housing Element Update Advisory Committee explored affordable housing and the challenges of production. Inclusionary housing is discussed as a potential part of a policy program to help the City meet its affordable housing requirement. The Subcommittee's final memo is attached to this report as Attachment D. Policy Actions 3A — 3B (Page 4-10) These new policies are required for compliance with State law. They discuss the creation of objective design standards for projects with affordable housing, as well as streamlining residential projects under Senate Bill SB 35, and limit the City's local review authority under certain conditions. Policy Action 4A (Page 4-14) This new policy is required under Assembly Bill AB 686, which requires the City take steps to affirmatively further fair housing. Affirmatively furthering fair housing intends to resist discrimination by overcoming patterns of segregation and foster inclusive communities that are free from barriers that restrict access to opportunity based on protected classes. SS3-6 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 7 Policy Action 7A — 7D (Pages 4-24 to 4-25) In response to recent changes in State law, the City must address supportive housing and low -barrier navigation centers for people who are experiencing homelessness. These policies include by -right zoning for centers meeting certain criteria, maintaining an inventory of adequate sites for supportive housing facilities, and providing regulatory incentives for housing for persons with developmental disabilities. Revised Housing Production Scenario The initial draft of the Housing Element update was published online for the community's review on March 10, 2021. Since that time, the initial draft was discussed at the March 17, 2021, Housing Element Update Advisory Committee (HEUAC) meeting and at a virtual public workshop held on March 22, 2021. During the discussions, comments were made regarding the total number of units included and concentration of affordable housing units within the Airport Area. Based on these comments, staff and Kimley-Horn reviewed the assumptions used for each focus area and prepared a revised scenario. The revision was intended to reduce the overall numbers and to better distribute the affordable units within the various focus areas identified. The revised scenario was presented to the HUEAC on March 31, 2021, and the Planning Commission on April 8, 2021. Minutes for both meetings are attached as Attachments B and C, respectively. Both bodies generally agreed with the revised scenario in that it creates a better distribution of affordable units. April 8 Planning Commission Study Session The Planning Commission and the community provided feedback to staff on the initial draft, including the revised scenario. Highlighted discussion topics included: • Increasing and monitoring accessory dwelling unit (ADU) production. • The importance of overlays and educating the community on how they work. • Greater development potential at Coyote Canyon Landfill and Banning Ranch. • Further distribution of lower-income housing citywide. • The importance of meeting the October 2021 statutory deadline for adoption. • Putting greater emphasis on senior, age -restricted housing. • Possible reduction of the number of units being planned for and the buffer or surplus of units created (see the section below entitled "No Net Loss"). Updated Draft Housing Element The initial draft has been updated since its publication and the attached draft reflects the following changes: • Corrections to grammar, spelling, and punctuation. • Edits suggested by the HEUAC to Section 4 and Appendix B. SS3-7 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 8 • Revised focus area assumptions noted above (Revised Housing Production Scenario) with two changes that modified unit totals: o Formula calculation errors in the Sites Inventory table have been eliminated o Staff increased the redevelopment percentages for both the Airport Area Environs and Newport Center focus areas from 25 percent to 27 percent to maintain a 20 -percent buffer or surplus of below market -rate units. OrIVOIRMWAIM There has been some discussion about the surplus units indicated at the bottom of draft Table B1 (Summary of RHNA Status and Sites Inventory). HCD guidelines recommend a 20- to 30 -percent surplus of units (or a "buffer") to avoid a net loss of opportunity sites during the 2021-2029 planning period. Housing Element law requires the City maintain adequate sites to accommodate the remaining RHNA allocation throughout the eight-year planning cycle. The buffer allows the City to ensure that the City has adequate sites to accommodate the RHNA over time, and specifically accounts for sites that may not be developed consistent with the planning assumptions for those individual sites. If the City does not provide a buffer, then the City is required to find a replacement site and rezone it to accommodate the housing opportunities lost within 180 days. Should that site be a sizable difference, a vote of the electorate could be required as per the City's Charter Section 423. Failure to accommodate that replacement site within 180 days could render the City's Housing Element out of compliance thus exposing the City to enforcement activities and potential litigation. Staff and the consultant recommend planning for a buffer of 20 percent. Next Steps and Summary During the study session, staff and the consultants request Council review and comment on the revised draft Housing Element. All public comments should also be considered. All comments during the process will inform and guide further refinement of the draft. Staff has requested that all comments on the draft be submitted by April 30, 2021. Comments can be submitted by emailing GPUpdate(a)_newportbeachca.gov. Comments received by the publishing of this staff report are included as Attachment E. Following the study session and after the April 30, 2021, public comment deadline, staff will direct the consultant to incorporate necessary final edits to the draft. With the City Council's consent, staff will submit the revised draft to HCD for a mandatory 60 -day review period. During the review period, City staff will coordinate with HCD staff to clarify any issues with the draft document. HCD will also review comments from the public and stakeholders. At the end of the 60 -day review period, HCD will provide a Letter of Substantial Compliance or a review letter with findings that detail needed changes to comply with applicable law. It is expected that revisions will be required. SS3-8 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 9 In August 2021, the HEUAC will review HCD's comments and will prepare a revised draft of the update that incorporates HCD's findings. In September 2021, the Planning Commission will review the revised draft and provide a recommendation to the City Council. Subsequently, the City Council will review and adopt a final document for submission to HCD by October 15, 2021, in compliance with the statutory deadline. Should the City delay adoption for any reason, it would extend uncertainty in the City's policy but there is no real penalty until February 15, 2022. The penalty by statute would be two, four-year Housing Element update cycles instead of the current eight-year cycle. After adoption of the Housing Element update, the City would then need to implement the policies approved in the document. The City would have three years to complete the requisite land use changes, including updating the Land Use Element for consistency and rezoning sites through housing opportunity overlays or similar zoning strategy. The City Council may also consider creating new design standards or developing specific plan areas that address mixed use opportunities. Additionally, the City would need to adopt an interim inclusionary ordinance within six months of adoption the Housing Element to implement the minimum requirement for affordable housing units in a development project. Section 4 of the draft includes a complete list of policy actions and their timeframe for implementation. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: This is a discussion item. No action will be taken and, as a result, it is not subject to the California Environmental Quality Act (CEQA). The City will prepare an environmental impact report for both the Housing and Circulation Element updates that will be certified prior to the adoption of either update. The process will include a traffic study that will examine the impact of the housing plan using the traditional level of service (LOS) analysis and the new vehicle miles traveled (VMT) metric. The analysis will inform the City Council and community of the impact to mobility and assist in future transportation planning. Lastly, the analysis could prompt additional changes to the housing plan and the draft Circulation Element update that will be reviewed by the City Council at a later date. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). In addition to the minimum requirements of the Newport Beach Municipal Code, the availability of the draft and its schedule was also advertised through utility bill mailers, social media, City email blasts, and City website updates. SS3-9 Initial Draft of the General Plan Housing Element Update (PA2017-141) April 27, 2021 Page 10 ATTACHMENTS: Attachment A — Initial Draft of the General Plan Housing Element Update Attachment B — Draft Minutes from the March 31, 2021, Housing Element Update Advisory Committee Meeting Attachment C — Draft Minutes from the April 8, 2021, Planning Commission Study Session Attachment D — Housing Element Update Advisory Committee's Affordable Housing Subcommittee Final Memo, dated February 17, 2021 Attachment E — Public Correspondence Received Prior to Publishing SS3-10 Attachment A Initial Draft of the General Plan Housing Element Update SS3-11 DRAFT City of Newport 2021-2029 HOUSING VP() low r each ch�ENT City of Newport Beach 2021-2029 HOUSING ELEMENT SECTION 1: INTRODUCTION A. Role of the Housing Element.....................................................................................................1-2 B. State Policy and Authorization...................................................................................................1-2 1. Background..........................................................................................................................................................1-2 2. State Requirements.............................................................................................................................................1-2 3. Regional Housing Needs Assessment................................................................................................................1-4 4. Relationship to Other Community Plan Elements.............................................................................................1-5 5. Public Participation.............................................................................................................................................1-5 6. Data Sources (To be updated in final draft)......................................................................................................1-6 7. Housing Element Organization...........................................................................................................................1-7 SECTION 2: COMMUNITY PROFILE Students.............................................................................................................................................................2-28 A. Population Characteristics.......................................................................................................2-2 F. Housing Stock Characteristics..................................................................................................2-28 1. Population Growth.............................................................................................................................................. 2-2 2. Age Characteristics.............................................................................................................................................. 2-3 3. Race/Ethnicity Characteristics............................................................................................................................ 2-4 B. Economic Characteristics.........................................................................................................2-6 3. 1. Employment and Wage Scale.............................................................................................................................2-6 C. Household Characteristics......................................................................................................2-10 Housing Age and Condition..............................................................................................................................2-32 1. Household Type and Size..................................................................................................................................2-10 5. 2. Household Income.............................................................................................................................................2-12 D. Housing Problems................................................................................................................2-15 Extremely Low-income Households.......................................................................................................................2-35 1. Overcrowding.................................................................................................................................................... 2-16 2. Overpayment (Cost Burden) In Relationship to Income.................................................................................2-18 E. Special Needs Groups............................................................................................................2-19 Low-income Households.........................................................................................................................................2-35 1. Seniors................................................................................................................................................................2-20 2. Persons with Physical and Developmental Disabilities .............. 3. Large Households......................................................................... 4. Single -Parent Households............................................................ 5. Farmworkers................................................................................. 6. Extremely Low-income Households and Poverty Status............ .................................................................. 2-20 ..................................................................... 2-23 ..................................................................... 2-24 .......... 2-24 .......... 2-25 7. Persons Experiencing Homelessness................................................................................................................2-27 8. Students.............................................................................................................................................................2-28 F. Housing Stock Characteristics..................................................................................................2-28 1. Housing Growth.................................................................................................................................................2-29 2. Housing Type.....................................................................................................................................................2-29 3. Housing A vailability and Tenure.......................................................................................................................2-30 4. Housing Age and Condition..............................................................................................................................2-32 5. Housing Costs and Affordability.......................................................................................................................2-34 Extremely Low-income Households.......................................................................................................................2-35 Very Low-income Households................................................................................................................................2-35 Low-income Households.........................................................................................................................................2-35 Moderate income Households...............................................................................................................................2-35 Table of Contents (DRAFT APRIL 2021) SS3-13 City of Newport Beach 2021.2029 HOUSING ELEMENT SECTION 3: HOUSING CONSTRAINTS. RESOURCES. AND AFFIRMATIVELY FURTHERING FAIR HOUSING A. Nongovernmental Constraints...................................................................................................3-2 1. Land Costs and Construction Costs.................................................................................................................... 3-2 2. Availability Financing.......................................................................................................................................... 3-3 3. Economic Constraints.......................................................................................................................................... 3-5 B. Governmental Constraints........................................................................................................3-5 1. Land Use Controls................................................................................................................................................ 3-6 Local Coastal Program and Land Use Plan............................................................................................................. 3-7 John Wayne Airport Environs Land Use Plan(Aa up) ............................................................................................3-8 OverlayDistricts........................................................................................................................................................ 3-8 StateDensity Bonus Law........................................................................................................................................3-10 Residential Develop men t Standards .....................................................................................................................3-13 Varietyof Housing Types Permitted......................................................................................................................3-19 Growth Management Measures...........................................................................................................................3-26 SpecificPlans...........................................................................................................................................................3-27 Housing for Persons with Disabilities....................................................................................................................3-29 DevelopmentFees..................................................................................................................................................3-31 On/Off -Site Improvements....................................................................................................................................3-35 Local Processing and Permit Procedures...............................................................................................................3-35 2. Infrastructure Constraints.................................................................................................................................3-40 DryUtilities..............................................................................................................................................................3-41 WaterSupply...........................................................................................................................................................3-43 Fire and Emergency Services..................................................................................................................................3-46 PoliceServices......................................................................................................................................................... 3-48 3. Environmental Constraints...............................................................................................................................3-48 CoastalHazards...................................................................................................................................................... 3-48 GeologicHazards....................................................................................................................................................3-50 SeismicHazards...................................................................................................................................................... 3-50 FloodHazards.........................................................................................................................................................3-51 FireHazards............................................................................................................................................................3-52 C.Affirmatively Furthering Fair Housing(AFFH)...............................................................................3-52 1. Affirmatively Furthering Fair Housing..............................................................................................................3-52 2. Needs Assessment.............................................................................................................................................3-53 FairHousing Issues................................................................................................................................................. 3-53 Fair Housing Enforcement and Outreach Capacity..............................................................................................3-54 3. Analysis of Federal, State, and Local Data and Local Knowledge..................................................................3-55 Integration and Segregation Patterns and Trends...............................................................................................3-55 Racially or Ethnically Concentrated Areas of Poverty(R/ECAP).......................................................................... 3-56 Disparities in Access to Opportunity......................................................................................................................3-59 Discussion of Disproportionate Housing Needs....................................................................................................3-65 DisplacementRisk................................................................................................................................................... 3-66 Assessmentof Contributing Factors to Fair Housing Issues in Newport Beach ................................................. 3-67 4. Analysis of Sites Pursuant to AB 686................................................................................................................3-68 5. Analysis of Fair Housing Priorities and Goals.................................................................................................. 3-72 D. Housing Resources...............................................................................................................3-72 1. Regional Housing Needs Allocation.................................................................................................................3-72 Table of Contents (DRAFT APRIL 2021) iii SS3-14 City f Newport Beath 2021-2029 HOUSING EL ,. Residential Sites Inventory............ .............................................................................................................. 3-72 Above Moderate -and Moderate -Income Sites....................................................................................................3-72 Development of Non-VacantSites and Converting to Residential Uses.............................................................3-75 Sites Suitable for Lower Income Housing..............................................................................................................3-76 Summary of Sites Inventory and RHNA Obligations.............................................................................................3-82 2. Financial Resources...........................................................................................................................................3-82 Section 8 Housing Choice Voucher........................................................................................................................3-82 Community Development Block Grants(CDBG)...................................................................................................3-83 HOME Investment Partnership Program (HOME)................................................................................................3-83 3. Opportunities for Energy Conservation...........................................................................................................3-84 SECTION 4: HOUSING PLAN A. Regional Housing Needs Assessment..........................................................................................4-2 A. Housing Goals...................................................................................................................................................... 4-2 B. Housing Policies and Program Actions..............................................................................................................4-3 Summary of Quantified Objectives........................................................................................................................4-26 APPENDICES Appendix A: Reviewof Past Performance.......................................................................................................................A-1 AppendixB: Adequate Sites Analysis...............................................................................................................................B-1 AppendixC: Summaryof Outreach ..................................................................................................................................0-1 Table of Contents (DRAFT APRIL 2021) iv 7,, _ Z-=1- SS3-15 �Y I 11 - yM--_y r'• "Sr --ter -a A� i ��• � - 'arm` ti ,.t= LV }o. City of Newport Beach 2021-2029 HOUSING ELEMENT The Housing Element of the Newport Beach General Plan identifies and analyzes the City's existing and projected housing needs and contains a detailed outline and work program of the City's goals, policies, quantified objectives, and programs for the preservation, improvement, and development of housing for a sustainable future. The Housing Element is one of the seven mandatory elements to be included in a city's General Plan. The Housing Element identifies ways in which housing needs of current and future residents can be met. The Housing Element ensures that the City establishes policies, procedures and incentives in its land use planning and development activities to ensure the maintenance and expansion of the housing supply to adequately accommodate households currently living and expected to live in Newport Beach. The Housing Element institutes policies that will guide City decision-making and establishes an implementation program to achieve the City's housing goals for the 2021-2029 period. 1. Background The Housing Element identifies and analyzes the City's existing and projected housing needs. The Housing Element contains a detailed outline and work program of the City's goals, policies, and quantified objectives for the preservation, improvement, and development of housing for a sustainable future. This includes timelines for the Cityto accomplish each identified action within the Housing Plan. e. State Requirements California State Housing Element Law (California Government Code Article 10.6) establishes the requirements for the Housing Element. California Government Code Section 65588 requires that local governments review and revise the Housing Element of their comprehensive General Plans not less than once every eight years. The California Legislature has determined that a primary housing goal for the State is ensuring every resident has a decent home and suitable living environment. Section 655880 of the California Government Code states: a. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order. b. The earlyattainment of this goal requires cooperative participation of government andthe private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians in all economic levels. c. The provisions of housing affordable to low- and moderate -income households requires the cooperation of all levels of the government. d. Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for housing needs of Section 1: Introduction (DRAFT APRIL 2021) 1-2 SS3-17 City of Newport Beach 2021-2029 HOUSING ELEMENT all economic segments of the community. The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. Table 1-1 summarizes State requirements for Housing Element and identifies the applicable sections in the 2021-2029 Housing Element where these requirements are addressed. Table 1-1: Housing Element Requirements Reference in Issues Requiring Analysis Gov. Code Section Housing Element Analysis of employment trends. Section 65583.a Section 2.13.1 Projection and quantification of existing and projected housing needs for all income groups. Section 65583.a Section 3.D.1 Analysis and documentation of the City's housing characteristics, including cost for housing compared to Section 65583.a Section 2.D, F ability to pay, overcrowding, and housing condition. An inventory of land suitable for residential development including vacant sites and sites having redevelopment Section 65583.a Section 3.1) potential. Analysis of existing and potential governmental constraints upon the maintenance, improvement or Section 65583.a Section 3.13 development of housing for all income levels. Analysis of existing and potential nongovernmental (private sector) constraints upon maintenance, improvement or development of Section 65583.a Section 3.A housing for all income levels. Analysis concerning the needs of the homeless. Section 65583.a Section 2.E.7 Analysis of special housing needs: handicapped, elderly, large families, farmworkers, and female -headed Section 65583.a Section 2.E households. Analysis of opportunities for energy conservation Section 65583.a Section 3.7 with respect to residential development. Identification of Publicly Assisted Housing Section 65583.a Section 3.C.3 Developments. Identification of Units at Riskof Conversionto Section 65583.a Section 3.C.3 Market Rate Housing. Identification of the City's goal relative to the maintenance, improvement, and development of Section 65583.a Section 4 housing. Analysis of quantified objectives and policies Section 65583.b Section 4.13 relativeto the maintenance, improvement, and Section 1: Introduction (DRAFT APRIL 2021) 1-3 SS3-18 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 1-1: Housing Element Requirements Reference in Issues Requiring Analysis Gov. Code Section Housing Element development of housing. Identification of adequate sites that will be made available through appropriate action with Section 65583.c(1) Appendix B required public services and facilities for a variety of housing types for all income levels. Identification of strategies to assist in the development of adequate housing to meet the Section 65583.c(2) Section 4 needs of low and moderate -income households. Description of the Public Participation Program in the formulation of Housing Element Goals, Policies, Section 65583.d Appendix C and Programs. Description of the Regional Housing Needs Assessment (RHNA) prepared bytheSouthern Section 65583.e Section 1.0 California Association of Governments. Analysis of Fair Housing, including Affirmatively Furthering Section 8899.50 Section 3.0 Fair Housing. Review of the effectiveness of the past Element, including the City's accomplishments during the Section 65583.f Appendix A previous planning period. Source: State of California, Department of Housing and Community Development. The City's Housing Element was last updated in September 2013 for the 51h cycle from years 2014to 2021, as part of the new update cycle for jurisdictions within the SCAG (Southern California Association of Governments) region to allow for synchronization with the Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS). The Element sets forth an 8 -year strategy to address the City's identified housing needs, including specific implementing programs and activities. Amendments have been made to Housing Element law since the adoption of the City's 5th Cycle Housing Element; such amendments and subsequent housing laws change the required analysis, reporting and policies contained in the Housing Element. The contents of this updated Housing Element comply with these amendments to state housing law and all other federal, state and local requirements. 3. Regional Housing Needs Assessment Section 65583 of the Government Code sets forth the specific content requirements of a jurisdiction's housing element. Included in these requirements are obligations on the part of local jurisdictions to provide their "fair share" of regional housing needs. Local governments and Councils of Governments (COGS) are required to determine existing and future housing need and the allocation of this need must be approved by the California Department of Housing and Community Development (HCD). Newport Beach is a member agency of the Southern California Association of Governments (SCAG). SCAG is Section 1: Introduction (DRAFT APRIL 2021) 1-4 SS3-19 City of Newport Beach 2021-2029 HOUSING ELEMENT responsible for preparing the Regional Housing Needs Assessment (RHNA) for all jurisdictions withint he SCAG region. HCD established the planning period for the current Regional Housing Needs Assessment (RHNA) from October 15, 2021 to October 15, 2029. For the 2021-2029 planning period the City was allocated a total of 4,845 units, including 1,456for very low-income, 930for low-income, 1,050for moderate -income, and 1,409 for above -moderate income households. 4. Relationship to Other Community Plan Elements The Housing Element is one element of the City of Newport Beach General Plan. The goals, policies, actions, and programs within the Housing Element relate directly to, and are consistent with, all other elements in the Newport Beach General Plan. The City's Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected needs of its population. The Housing Element works in tandem with development policies contained in the Land Use Element, most recently amended in 2013. The Land Use Element establishes the location, type, intensity and distribution of land uses throughout the City, and defines the land use build -out potential. By designating residential development, the Land Use Element places an upper limit on the densities and types of housing units constructed in the City. The Land Use Element also identifies lands designated for a range of other uses, including employment creating uses, open space, and public uses. The presence and potential for jobs affects the current and future demand for housing at the various income levels in the City. The Circulation Element of the General Plan alsoaffects the implementation of the Housing Element. The Circulation Element establishes policies for a balanced circulation system in the City. Consequently, the Housing Element must include policies and incentives that consider the types of infrastructure essential for residential housing units in addition to mitigating the effects of growth in the City. The Housing Element has been reviewed for consistencywith the City's other General Plan components, and the policies and programs in this Element are consistent with the policy direction contained in other parts of the General Plan. As portions of the General Plan are amended in the future, the Housing Element will be reviewed to ensure that internal consistencyis maintained. 5. Public Participation (UPDATED AS WE PROCEED) Section 65583 of the Government Code states that, "The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." Meaningful community participation is also required in connection with the City's Assessment of Fair Housing (AFH). A discussion of citizen participation is provided below. As part of the 6t" Cycle Housing Element Update process, the Cityof Newport Beach conducted extensive public outreach activities beginning in 2019. Section 1: Introduction (DRAFT APRIL 2021) 1-5 SS3-20 City of Newport Beach 2021-2029 HOUSING ELEMENT Outreach for the 6th Cycle Housing Element to the community, includes the following actions: • Community Workshop #1 (October 20, 2020) — Provided an overview of the Housing Element Update process, community and housing characteristics, and engagement activities. • Community Workshops #2 and #3 (November 16 and 17, 2020) — Engaged participants in a suitability analysis for housing types and densities for focus areas in Newport Beach. Community Workshop #4 (February 24, 2021) — Discussion of opportunity sites and policy strategies. • Community Workshop #5 (March 22, 2021) — Presented the initial draft of the Housing Element. • Online Community Survey — Participants considered potential policies and programs to include in the Housing Element, as well as potential housing types and opportunities for housing. The survey also solicited feedback regarding potential barriers to housing access and constraints to the development of housing. • Planning Commission Study Session - Provided a presentation with an overview of the Public Review Draft Housing Element and Housing Element update process to date. Community members had the opportunity to give public comments. • Housing Element Update Advisory Committee (HEUAC) Meetings — Tracked and provided feedback on outreach efforts, made recommendations and provided guidance on policies and programs, provided general comments and feedback. • Housing Element Update Website - Provided relevant information about the update process, key features of the housing element, project timeline and a calendar of events for outreach activities. The website also provided a link to the community survey tool, past recorded meetings and summaries, as well as the contact information of the Cityfor residents and community members to send additional comments or request additional information. • Listen & Learn—Series of community workshops in each Council Districtto guide and inform the General Plan Update in 2019. As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element made by the public will be provided to each memberof the City Council. Appendix C will contain a summaryof all public comments regarding the Housing Element received by the City during the update process. 6. Data Sources (To be updated in final draft) The data used for the completion of this Housing Element comes from a variety of sources. These include, but are not limited to: ■ 2010 Census ■ American Community Survey ■ Regional Analysis of Impediments to Fair Housing (AI) ■ Point -in -Time Homeless Census bythe Regional Task Force on the Homeless, 2019 ■ Home Mortgage Disclosure Act (NMDA) lending data ■ California Department of Economic Development Section 1: Introduction (DRAFT APRIL 2021) 1-6 SS3-21 City of Newport Beach 2021-2029 HOUSING ELEMENT ■ California Employment Development Division Occupational Wage data, 2002 ■ Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy (CHAS), 2013-2017 ■ California Department of Finance ■ Southern California Association of Governments (SCAG) Local Housing Report The data sources represent the best data available at the time this Housing Element Update was prepared. The original source documents contain the assumptions and methods used to compile the data. 7. Housing Element Organization This Housing Element represents the City's policy program for the 2021-2029 6th Cycle Planning Period. The Housing Element is comprised of the following Chapters: Chapter 1: Introduction contains as summary of the content, organization and statutory considerations of the Housing Element; Chapter2: Community Profile contains an analysis of the City's population, household and employment base, and the characteristics ofthe housing stock; Chapter 3: Housing Constraints and Resources examining governmental and non-governmental constraints on production, maintenance, and affordability of housing and provides a summary of housing resources, including sites identification and funding and financial considerations; Chapter4: Policy Plan addresses the City's identified housing needs, including housing goals, policies and programs. Appendices provides various appendices with supplementary background resources including: • AppendixA—Reviewof Past Performance of 5th Cycle Programs • Appendix B—Summary of Adequate Sites Analysis • Appendix C— Summary of Outreach Section 1: Introduction (DRAFT APRIL 2021) 1-7 SS3-22 Section 2.0 COMMUNITY PROFILE SS3-23 City of Newport Beach 2021-2029 HOUSING ELEMENT The Community Profile for the City of Newport Beach provides an overview of the City's housing and population conditions. The community profile serves as the foundation for the Housing Elements policies by describing and assessing the factors and characteristics that contribute to the supply and demand for housing in Newport Beach. Specifically, the community profile describes the community's population, employment, economics, and household characteristics. Special Needs groups and housing stock characteristics are also described. The community profile develops context for the goals, programs, and policies, established in the Housing Element. The data used for this community profile has been collected using the most current available data from the Southern California Association of Governments (SCAG), 2010 U.S. Census, 2010-2018 American Community Survey, the California Department of Finance, the California Employment Development Department, the California Department of Education and other currently available real estate market data. Data has also been collected from the SCAG Local Housing report for Newport Beach, which provides facts and Figures pre -certified by the California Department of Housing and Community Development (HCD)for use in the 61" Cycle Housing Elements. Population characteristics affect current and future housing demands ina community. Population growth, age compositions and race/ethnicity influence the type and extent of housing needed and the ability of the local population to afford housing costs. The following section describes and analyzes the various population characteristics and local trends in Newport Beach. 1, Population Growth Table 2-1 below displays the forecasted population growth for Newport Beach, as it compares to the County and other surrounding jurisdictions/cities. The U.S. Census reported a population of 85,186 individuals for the City in 2010. This is the second smallest population for this area after Laguna Beach, which has a population of 22,723. The 2010 population of Newport Beach represents about 3 percent of the Orange County total population. The Southern California Association of Government (SCAG) Final Growth Reports calculates estimates for future population counts and economic and housing trends through 2045. The SCAG data shown in Table 2-1 estimates a population growth for Newport Beach of 7,100 individuals, or an 8.4 -percent increase, between 2016 and 2045. The growth calculation is consistent with that expected in Costa Mesa and is double that of Huntington Beach. In comparison, the Cityof Irvine anticipates a population surge of about 25 percent through 2045. Between 2016 and 2045, Newport Beach population is forecasted to grow by about 2 percent less than Orange County. Section 2: Community Profile (DRAFTAPRIL2021) 2-2 SS3-24 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-1: Population Growth Forecast, 2016-2045 Jurisdictions Population Percent Change 2016 Actual 2045 Projected 2016-2045 Costa Mesa 113,900 123,700 8.6% Newport Beach 84,900 92,000 8.4% Huntington Beach 196,900 205,300 4.3% Laguna Beach 23,400 23,500 0.4% Irvine 261,600 327,700 25.3% Orange County 3,180,000 3,535,000 11.2% Represents an estimate from the SCAG Connect SoCal 2016-2045 Demographics and Growth Forecast. Sources: SCAG 2020 Connect SoCal Demographics and Growth Forecast. 2. Age Characteristics The age composition of a community affects housing needs because housing demand within the market is often determined by the preferences of certain age groups. For example, young adults generally favor apartments, low to moderate -cost condominiums, and smaller or more affordable single -unit homes because they tend to live on smaller incomes and have smaller households. As population moves through different stages of life, housing is required to accommodate new or adjusted needs. To produce a well- balanced and healthy community, a community must provide appropriate housing to accommodate needs of all ages. Figure 2-1: Age Distribution in Newport Beach, 2010-2018 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% , 0.0% Under 5 5 to 19 20 to 34 35 to 44 ■2010 4.5% 14.7% 20.8% 13.0% 2014 3.9% 15.6% 18.7% 12.3% 2018 3.9% 14.6% 17.8% 10.7% I III 45 to 64 65 and Above 28.6% 18.3% 29.8% 19.7% 30.2% 22.7% Source: American Community Survey, 5 -Year Estimates, 2010, 2014, and 2018. Newport Beach population that falls within the ages of 45 to 64 represents the largestage group, as shown in Figure 2-1. In 2018, 30.2 percent of the population was between the ages of 45 and 64. Children under 5 years of age make up about 4 percent of the population, and 18.5 percent are 19 years or younger. Adults in the 35 to 44 age group have the second lowest population representation at 10.7 percent. Section 2: Community Profile (DRAFTAPRIL2021) 2-3 SS3-25 City of Newport Beach 2021-2029 HOUSING EL, From 2010 to 2018, Newport Beach shows an aging population trend. All age groups under 45 years have consistently been decreasing. The 20 to 34 age group has experienced the greatest population loss at 3 percent between 2010to 2018. In comparison, seniors over 65 years have increased by4.4 percent during the same time. The middle -age and senior populations both make up the largest age groups and can be expectedto continue increasing given the decreasing distribution of young adults and children. Table 2-2 compares the age distribution of Newport Beach to the rest of the county and surrounding cities. The City has a below average age distribution for those ages 44 and under as compared to Orange County. The City of Laguna Beach and Newport Beach both exceed 22 percent of senior populations, while the surrounding cities and county range from 9 to 16 percent. All municipalities in Table 2-2 have lower distributions of individuals ages 15to 17 and higher distributions of individuals 45 to 64 years of age. Table 2-2: Age Distribution by Jurisdiction Jurisdiction UnderS 5 to 14 15 to 17 18 to 24 25 to 44 45 to 64 65+ years Costa Mesa 5.7% 11.4% 3.2% 9.6% 35.2% 24.3% 10.7% Newport Beach 3.9% 10.0% 3.5% 6.3% 23.4% 30.2% 1 22.7% Huntington Beach 5.2% 10.9% 3.5% 7.6% 27.0% 29.0% 16.9% Laguna Beach 3.4% 8.5% 4.1% 5.9% 16.3% 38.4% 23.3% Irvine 6.4% 12.4% 3.6% 13.0% 30.8% 23.9% 9.9% Orange County 6.0% 1 12.5% 4.0% 9.5% 27.4% 26.6% 13.9% Source: American Community Survey, 5 -Year Estimates, 2018 3. Race/Ethnicity Characteristics Racial and ethnic composition contribute to housing needs due to varying household characteristics, income levels, and cultural backgrounds which may affect their housing needs, housing choice and housing types. Cultural influences may reflect preference for a specific type of housing. As summarized in Figure 2-2, Newport Beach is comprised mainly of White individuals at 85.3 percent of the population in 2018. American Indian/Alaska Natives and Native Hawaiian/other Pacific Islanders comprise the lowest percentage; both populations in Newport Beach and Orange County add up to less than 1 percent of the population. The White population in Newport Beach is 23.6 percent greater than the county and the Hispanic or Latino population is 25.1 percent less than that of the county. The Black population represents 0.8 percent of the Newport Beach population, which is half that of Orange County. The Asian population of Newport Beach is 11.8 percent smallerthanthat of Orange Countyand there are 9.6 percent less individuals in the Citywho identify as some other race than in the County. Section 2: Community Profile (DRAFTAPRIL2021) 2-4 SS3-26 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 2-2: Racial and Ethnic Composition, 2018 90% 80% 70% 60% 50% 40% 30% 20% 10% American Native Black or Indian and Hawaiian Some Two or Hispanic White African Alaska Asian and Other Other more or Latino American Native Pacific Race Race Islander ■ Newport Beach 85.3% 0.8% 0.3% 8.3% 0.2% 2.1% 3.1% 9.0% Orange County 61.7% 1.7% 0.5% 20.1% 0.3% 11.7% 4.1% 34.1% Source: American Community Survey, 5 -Year Estimates, 2018, Table 2-3 shows that all cities around Newport Beach and Orange County have a majority White population. The second largest populationgroup in this area arethosewho identify as Hispanic or Latino. The Black population in Newport Beach and Laguna Beach are both the smallest of the area at 0.8 percent and both cities are below the county percentage by just under 1 percent. Both American Indian/Alaska Native and Native Hawaiian/other Pacific Islanders represent the smallest population groups with neither exceeding 1 percent in any of the listed cities. Tablet -3: Racial and Ethnic Composition, 2018 Native American Indian/ Hawaiian Some Two or Hispanic Jurisdiction White Black Asian /Other Other More Alaska or Latino Pacific Race Races Native Origin Islander Costa Mesa 71.6% 1.9% 0.4% 8.4% 0.7% 13.0% 4.0% 36.1% Newport p 85.3/ 0.8/ 0.3/ 8.3/ 0.2% 2.1% 3.1% 9.0% Beach Huntington 72.4% 1.4% 0.6% 12.1% 0.4% 7.3% 5.4% 20.0% Beach Laguna 90.8% 0.8% 0.1% 3.7% 0.3% 1.5% 2.8% 7.4% Beach Irvine 47.6% 1.9% 0.2% 42.3% 0.2% 2.8% 5.2% 10.3% Orange 61.7% 1.7% 0.5% 20.1% 0.3% 11.7% 4.1% 34.1% County Note: (1) Persons of Hispanic or Latino Origin is an ethnicity that may be included in other racial groups. Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-5 SS3-27 City of Newport Beach 2021-2029 HOUSING EL, Table 2-4 identifies the change in composition of Newport Beach between 2010 to 2018. The population who reported White experienced the greatest population loss between 2010 and 2015 (4 percent), but then increased by just under a percent point between 2015 and 2018. The City's population who identifies as Hispanic or Latino increased by a total of 1.6 percent; this was the greatest population increase between these three survey years. Overall, majority of the different racial and ethnic populations within Newport Beach remained stable in population from 2010 to 2018. Table 2-4: Changes in Racial and Ethnic Composition, 2010-2018 Percent Percent Change Change Race/Ethnicity 2010 2015 2018 2010 to 2015 to 2015 2018 White 88.4% 84.4% 85.3% -4.0% 0.9% Black 0.6% 0.4% 0.8% -0.2% 0.4% American Indian and 0.1% 0.2% 0.3% 0.1% 0.0% Alaska Native Asian 7.2% 8.2% 8.3% 1.0% 0.1% Native Hawaiian or 0.0% 0.2% 0.2% 0.2% 0.0% Other Pacific Islander Some Other Race 1.9% 3.1% 2.1% 1.2% -1.1% Two or More Races 1.7% 3.4% 3.1% 1.7% -0.3% Hispanicor Latino* 7.4% 8.3% 9.0% 0.9% 0.7% *Of any race. Source: American Community Survey, 5 -Year Estimates, 2010, 2015, and 2018. Reporting and analyzing economic characteristics of a community provides valuable information on the community's abilityto access the housing market. Incomes associated with different types ofemployment and the number of workers in a household affect housing affordability and choice. Therefore, to consider a healthy balance between jobs and housing, the employment characteristics of community must be considered. Local employment growth is linked to local housing demand, and the reverse is true with employment contracts. 1. Employment and Wage Scale Employment directly affects housing needs, as employment and income informs a population's ability to purchase housing and the types of housing they would be inclined to purchase. Table 2-5 summarizes projected employment growthfor Newport Beach and its surrounding cities and Orange County between 2012 to 2040. These projections are provided by the Southern California Association of Government's (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS). The report is a long- range plan that considers future mobility and housing needs with economic, environmental, and public health goals and was adopted on April 7, 2016. Section 2: Community Profile (DRAFTAPRIL2021) 2-6 SS3-28 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-5 shows that Newport Beach is estimated to experience an employment growth of 1.8 percent between 2016 to 2045. The total employment growth in the City is significantly less in percentage than the forecast for the surrounding cities. City of Irvine is estimated to experience a 24.5 percent increase through 2045, which is about 10 percent more than the percentage projected for the whole county. While Newport Beach is projected to experience the least employment growth as a percent, the growth represents an increase in 1,500 new employees; this is a greater numeric change than Laguna Beach. The number of new employees projected for Newport Beach represent 0.5 percent of employment growth for the county. Based on data from the United States Census Bureau American Community Survey (ACS) 5 -Year Estimates, the number of employed people in Newport Beach reached 43,892 in 2018. This value is less than the amount projected by the SCAG RTP/SCS. A contributing factor for this may be the increasing amount of the population over the retirement age, as shown in Figure 2-1. Table 2-6 identifies employment sectors in Newport Beach and the changes in employment for each sector between 2010 and 2018. Most employed people in the City work in professional, scientific, management, and administrative services (19.4 percent). The sector with the least amount of residents employed was agriculture, forestry, fishing and hunting, and mining, with only 0.2 percent in 2018. Two other popular sectors inthe Cityin 2018 were finance and insurance, and real estate and rental leasing at 18.7 percent as well as education services, health care, and social assistance at 17.1 percent. None of the employment sectors in Newport Beach have experienced changes in employment greaterthan 1 percent between the two survey years. This has resulted in a decrease of 0.5 percent in total employment, rather than in an increase as forecasted in Table 2-5. Section 2: Community Profile (DRAFTAPRIL2021) 2-7 SS3-29 Table2-5: Employment Growth Trends, 2016-2045 Jurisdiction 2016 2045 % Change 2016-2045 Numeric Change 2016-2045 Costa Mesa 95,700 104,000 8.7% 8,300 Newport Beach 83,400 84,900 1.8% 1,500 Huntington Beach 83,400 90,800 8.9% 71400 Laguna Beach F 5,800 6,100 5.2% 300 Irvine 265,300 3301200 24.5% 64,900 Orange County 1,710,000 1,980,000 15.8% 270,000 Source: SCAG 2020 Connect So Cal Demographics and Growth Forecast. Based on data from the United States Census Bureau American Community Survey (ACS) 5 -Year Estimates, the number of employed people in Newport Beach reached 43,892 in 2018. This value is less than the amount projected by the SCAG RTP/SCS. A contributing factor for this may be the increasing amount of the population over the retirement age, as shown in Figure 2-1. Table 2-6 identifies employment sectors in Newport Beach and the changes in employment for each sector between 2010 and 2018. Most employed people in the City work in professional, scientific, management, and administrative services (19.4 percent). The sector with the least amount of residents employed was agriculture, forestry, fishing and hunting, and mining, with only 0.2 percent in 2018. Two other popular sectors inthe Cityin 2018 were finance and insurance, and real estate and rental leasing at 18.7 percent as well as education services, health care, and social assistance at 17.1 percent. None of the employment sectors in Newport Beach have experienced changes in employment greaterthan 1 percent between the two survey years. This has resulted in a decrease of 0.5 percent in total employment, rather than in an increase as forecasted in Table 2-5. Section 2: Community Profile (DRAFTAPRIL2021) 2-7 SS3-29 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-6: Employment in Newport Beach by Sector, 2018 2010 2018 Percent Change Industry Sector # of people % of City # of people % of City 2010 - employed Employment employed Employment 2018 Agriculture, forestry, fishing 1,324 0.3% 92 ° 0.2/ ° 0.1/ and hunting, and mining Construction 2,118 4.8% 1741 4.0% 0.8% Manufacturing 3,529 8.0% 3929 9.0% -1.0% Wholesale trade 2,074 4.7% 2165 4.9% -0.3% Retailtrade 4,411 10.0% 4149 9.5% 0.6% Transportation and warehousing, and utilities 839 1.9% 1020 ° 2.3/ ° -0.4/ Information 1,059 2.4% 991 2.3% 0.2% Finance and insurance, and real estate and rental 8,072 18.3% 8196 18.7% -0.4% leasing Professional, scientific, management, and 8,999 20.4% 8517 19.4% 1.0% administrative services Education services, health 7,234 16.4% 7507 17.1% -0.7% care, and social assistance Arts, entertainment, recreation, accommodation, 3,353 7.6% 3425 7.8% -0.2% and food services Other services (except 1,324 3.0%° 1472 3.4/ -0.4/ public administration) Public Administration 971 2.2% 688 1.6% 0.7% Total 44,109 100% 43,892 100% -0.5% Source: American Community Survey, 5 -Year Estimates, 2010 and 2018. Table 2-6 shows that employment decreased slightlyfrom 2010 to 2018 despite a projected growth and estimated employment amount much larger than that reached. Nonetheless, unemployment rates displayed in Table 2-7 show a drop by 1 percent during the same period. Unemployment factors into housing needs as the lack of income necessitates the availability of affordable housing. Newport Beach has maintained an unemployment rate of 3.4 percent in 2018 - the lowest unemployment rate for this area, and 1.7 percent below Orange County. Section 2: Community Profile (DRAFTAPRIL2021) W SS3-30 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-7: Unemployment Rate, 2018 Salary Jurisdiction Unemployment Rate* Percent Change 2010-2018 2010 2018 Costa Mesa 7.3% 4.8% -2.5% Newport Beach 4.4% 3.4% -1% Huntington Beach 7% 4.3% -2.7% Laguna Beach 4.4% 6.8% 2.4% Irvine 5.5% 4.9% -0.6% ounty 7.4% 5.1% -2.3% n 16 years and overerican Community Survey, S Year Estimates, 2010 and 2018. E Based on the data in Table 2-7, approximately 2,492 Newport Beach residents were without work in 2018 and would therefore be more likely to require more affordable housing options. For those that are employed, income level further identifies housing types that may need to be provided within the City. According to the SCAG Draft Regional Housing Needs Assessment (RHNA) Methodology, housing needs by income are broken down into four income levels: + Very Low -Income (50 percent or less of the county's median family income) + Low -Income (50-80 percent of the county median family income) + Moderate -Income (80-120 percent of the county median family income) + Above Moderate -Income (120 and above of the county median family income) Orange County's median family income is $85,398 according to the 2018 ACS estimates. The occupations that fall below 50 percent of this amount are Protective Services; Sales; Office and Administration Support; Production; Transportation and Material Moving; Healthcare Support; Building, Grounds Cleaning, and Maintenance; Personal Care and Service; Farming, Fishing and Forestry; and Food Preparation and Serving Related. Most occupations in Orange County have an average income that is either low or very low. Table 2-8: Mean Salary by Occupation in Orange County, 2020 Occupation Salary Management $120,871 Legal $105,406 Healthcare Practitioners and Technical $79,755 Architecture and Engineering $87,635 Computerand Mathematical $92,631 Life, Physical and Social Sciences $67,488 Business and Financial Operations $73,913 Education, Training and Library $52,043 Arts, Design, Entertainment, Sports and Media $47,351 Section 2: Community Profile (DRAFTAPRIL2021) 2-9 SS3-31 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-8: Mean Salary by Occupation in Orange County, 2020 Occupation Salary Construction and Extraction $52,684 Protective Services $37,236 Community and Social Service $48,834 Installation, Maintenance and Repair $48,928 Sales $32,262 Office and Administration Support $38,845 Production $31,669 Transportation and Material Moving $29,254 Healthcare Support $34,397 Building, Grounds Cleaning, and Maintenance $27, 824 Persona I Ca re a nd Service $24,666 Farming, Fishing and Forestry $25,487 Food Preparation and Serving Related $24,841 Source: California Employment Development Division, Occupational Wage data, 2020. A household includes all persons who occupy a housing unit, as defined by the Census. This may include single persons living alone, families related through marriage, blood or adoption, domestic partnerships and unrelated individuals living together. Nursing facilities, residential care facilities, dormitories, and other group living, as well as, the persons living with them are not considered a housing unit. Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single parent households, or low and extremely low-income households. For example, if a city has a prominent aging population who are homeowners but live on fixed incomes, it may consider implementing a home beautification assistance program. 1. Household Type and Size Newport Beach contains 37,870total households, which is the second smallest household amount behind Laguna Beach with 10,542 total households. Female households with no spouse present represent the lowest amount at 4.9 percent and is 6.9 percent below the regional percentage. Orange County has 28.2 percent non -family households, but all cities in this area, including Newport Beach, have percentages that exceed 33 percent. Newport Beach non -family households account for the second largest percentage at 42.5 percent. When combined with senior households over the age of 65 and living alone, as shown in Figure 2-3, it amounts to 56 percent of households in the City. These two groups of people tend to occupy apartments or smaller age centric living areas and would also be considered in determining housing needs. Section 2: Community Profile (DRAFTAPRIL2021) 2-10 SS3-32 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-9: Household Characteristics Married- Female Non - couple %of Total Householder, %of Total %of Total Total Jurisdiction Family Family Households No Spouse Households Households Households Households Present Household Costa Mesa 17,568 42.8% 4,191 10.2% 16,509 40.2% 41,019 Newport 18,965 50.1% 1,870 4.9% 16,088 42.5% 37,870 Beach Huntington 37,588 48.9% 8,263 10.8% 26,961 35.1% 76,821 Beach Laguna 5,116 48.5% 539 5.1% 4,537 43% 10,542 Beach Irvine 51,682 54.2% 8,418 8.8% 31,636 33.2% 95,371 Orange 564,685 o 54.7/ 121,753 11.8% 290 652 28.2% 1 032 ,373 County Source: American Community Survey, 5 -Year Estimates, 2018 Figure 2-3: Newport Beach Household Characteristics in Percent, 2018 50% 40% 30% 20% 10% 0% Married -Couple Male Female Non -Family Householder Family Householder, No Householder, No Household Age 65 or Above Household Spouse Present Spouse Present Newport Beach 50.1% 2.5% 4.9% 42.5% 13.5% Source: American Community Survey, 5 -Year Estimates, 2018. Table 2-10 below illustrates the changes in household types between 2010 and 2018. During these years, Newport Beach experienced a growth in population of married -couple family households (5.3 percent) and of householders 65 years and over who live alone (5.5 percent). Non -family households dropped by 4.2 percent in the same time period, with 3.8 percent occurring between 2010 and 2015. In 2010, non - family households were the largest household type in Newport Beach at 46.7 percent, but in 2018 the married -couple family households became the largest with 47.6 percent of the population. Section 2: Community Profile (DRAFTAPRIL2021) 2-11 SS3-33 City of Newport Beach 2021-2029 HOUSING ELEMENT Tablet -10: Changes in Household Types, 2010-2018 Jurisdiction 2010 Percent 2015 Percent 2018 Percent Married -couple Laguna Beach 2.1 Irvine 2.6 Orange County 3 Source: California Department of Finance— Population and Housing Estimates, 2018. 16,936 44.8% 18,122 47.6% 18,965 50.1% Family Households Female Household, 2,155 5.7% 2,665 7.0% 1,870 4.9% No Spouse Present Male Household, No 1,058 2.8% 990 2.6% 947 2.5% Spouse Present Non -Family 17,654 46.7% 16,332 42.9% 16,088 42.5% Household Householder 65 Years 3,024 8.0% 4,797 12.6% 5,112 13.5% and Over Total Households 37,803 100% 38,071 100% 37,870 100% Source: American Community Survey, 5 -Year Estimates, 2010, 2015 and 2018. Newport Beach represents 1 of the smallest average household sizes in the area, as shown in Table 2-11. The average household size for the region is 3 persons and the average household size for the City is 2.2 persons per home. All the neighboring cities have comparable household sizes underthe regional amount. Table 2-11: Average Household Size Jurisdiction Average Persons per Household Costa Mesa 2.7 Newport Beach 2.2 Huntington Beach 2.6 Laguna Beach 2.1 Irvine 2.6 Orange County 3 Source: California Department of Finance— Population and Housing Estimates, 2018. 2. Household Income Household income is an indicator of housing needs in a community because household income is directly connected to affordability. As household income increases, it is more likely that the household can afford market rate housing units, larger units and/or pursue ownership opportunities. However, as household income decreases, households tend to pay a disproportionate amount of their income for housing. This may influence increased incidences of overcrowding and substandard living conditions. The California State Department of Housing and Community Development (HCD) has identified the following income categories based on the Area Median Family Income (AMFI) of Orange County: + Extremely Low-income: households earning up to 30 percent of the AMFI + Very Low-income: households earning between 31 and 50 percent of the AMFI Section 2: Community Profile (DRAFT APR L 2021) 2-12 SS3-34 City of Newport Beach Wx 2021-2029 HOUSINGELEMENT '. + Low-income: households earning between 51 percent and 80 percent of the AMFI + Moderate Income: households earning between 81 percent and 120 percent of the AMFI + Above Moderate Income: households earning over 120 percent of the AMA Combined, the extremely low, very low, and low-income groups are referred to as lower income.1 Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2006-2017 American Community Survey (ACS) data is used below. Table 2-12 shows a greater percentage of homeowners (57 percent) than renters (43 percent) in Newport Beach. Just under 70 percent of households are estimated to have a moderate or above income and 21.6 percent earn a lower income. A greater number of renters are estimated to earn a lower income than of homeowners. About 60 percent of households in the extremely low-income category identified as renters, as for very low- and low-income households. Homeownership was more likely for households in the moderate or above moderate -income groups. Table 2-12: Households by Income Category, 2013-2017 Income Category (% of County AMI) Owner Renter Households Total Percent Total Percent Total Percent Extremely Low (30% AMFI or less) 1,575 40.8% 2,280 59.2% 3,855 10.15% Very Low (31 to 50%AMFI) 1,310 40.1% 1,960 59.9% 3,270 8.61% Low (51 to 80% AMFI) 1,920 42.9% 2,550 57.1% 4,470 11.77% Moderate or Above (over 80% AMFI) 16,840 63.8% 9,540 36.2% 26,380 69.5 Total 21,645 1 57.0% 1 16,325 1 43.0% 1 37,970 100% Source: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2013- 2017. The ACS 2018 data shown in Figure 2-4 below depicts median household income for Newport Beach, surrounding jurisdictions, and the County of Orange. The figure shows a much higher median household income in the City that exceeds the regional median by $37,311 annually. At $122,709, Newport Beach has the highest median household income than any of the neighboring cities. Laguna Beach is in close second with an annual median household income of $121,474. Costa Mesa is the only nearby city with a median household income below the regional median and $43,502 below Newport Beach. Table 2-13 also compares median household incomes by percent points above or below the regional amount. All cities around Newport Beach, except for Costa Mesa, exceed the Orange County median household income of $85,398. 'Fed era I housing and community development programs typically assist households with incomes up to 80 percent of the AMFI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent AMFI as moderate income (compared to low-income based on State definition). Section 2: Community Profile (DRAFT APRIL 2021) 2-13 SS3-35 City of Newport Beach 2021-2029 HOUSING ELEMENT - -_ Figure 2-4: Median Household Income by City, 2018 $140,000 $120,000 $100,000 $80,000 $7911` $60,000 $40,000 $20,000 $122,709 $121,474 Costa Mesa Newport Beach Huntington Beach Laguna Beach Irvine Median Income Orange County Median Income Source: American Community Survey, 5 -Year Estimates, 2018. Table 2-13: Median Household Income Jurisdiction Median Income Percent Above/Below Regional Median Costa Mesa $79,207 -7.2% Newport Beach $122,709 43.7% Huntington Beach $91,318 6.9% Laguna Beach $121,474 42.2% Irvine $95,371 11.7% Orange County $85,398 100% Source: American Community Survey, 5 -Year Estimates, 2018. W $85,398 Further explaining the income gap between Orange County and Newport Beach is an income breakdown for the City in Figure 2-5. Most employed City residents fall in the high-income category as about 31 percent of residents earn $200,000 per yearand 60 percent earn over $100,000. About 15 percent of the Newport Beach population earns under $35,000 annually. Section 2: Community Profile (DRAFTAPRIL2021) 2-14 SS3-36 City of Newport Beach Figure 2-5: Newport Beach Income Breakdown by Income Category 35% 30% 25% 20% 15% 10% 5°x/0 , ■ , , ' 0% Less $10,000 $15,000 $100,00 $25,000 $35,000 $50,000 $75,000 $150,00 $200,00 than to to to to tot 0 to 0 to 0 or $10,000 $14,999 $24,999 $149,99 $34,999 $49,999 $74,999 $99,999 $199,99 more 9 9 Newport Beach 4.0% 2.6% 4.2% 4.5% 6.0% 9.9% 9.3% 17.6% 11.1% 30.8% Source: American Community Survey, 5 -Year Estimates, 2018, The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census Bureau for the Department of Housing and Urban Development (HUD) provides detailed information on housing needs by income level for different types of households in Newport Beach. The most recent available CHASdata for the City was published in August 2020 and was based on 2006-2017 ACS data. Housing problems considered by CHAS included: + Units with physical defects (lacking complete kitchen or bathroom); + Overcrowded conditions (housing units with more than one person per room); + Housing cost burdens, including utilities, exceeding 30 percent of gross income; or + Severe housing cost burdens, including utilities, exceeding 50 percent of gross income. As is the case with many cities, there is strong variation between homeowners and renters who experience housing problems in the City, as shown in Table 2-14. Of all homeowners in the City, 35.3 percent experience at least one housing problem, while 45.1 percent of renters experience one these problems. Over half of all households in the City have at least one housing problem (58.5 percent). Severe housing problems are comprised of incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and a cost burden greater than 50 percent. The CHAS reports that just under a quarter of Newport Beach households experience at least one of these problems (23 percent). Similarly to general housing problems, renters here are also more likely to be affected; in the City, 27.2 percent of renter -occupied units are subject to at least one severe housing problem. A lower — yet substantial— percentage of homeowners live with at least one severe housing problem (19.8 percent). Section 2: Community Profile (DRAFTAPRIL2021) 2-15 SS3-37 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-14: Housing Problems Overview, 2013-2017 Owner Renter Total Housing ProblemPercent of Percent of Percent of Overview* Count owner Count renter Count total households households households Household has at least 1 7,635 35.3% 7,355 ° 45.1/° 14,990 ° 39.5/° of 4 Housing Problems Household has none of 13,835 63.9% 8,365 51.2% 22,200 58.5% 4 Housing Problems Cost Burden not available, no other 175 0.8% 610 3.7% 785 2.1% problems Total 21,645 57.0% 16,325 43.0% 37,970 100.0% Owner Renter Total Severe Housing 7ount]Problem Percent Percent of Percent of Overview ** owner Count renter Count total households households households Household has at least 1 of 4 Severe Housing 4,285 19.8% 4,435 27.2% 8,720 23.0% Problems Household has none of 4 Severe Housing 17,180 79.4% 11,285 69.1% 28,465 75.0% Problems Cost Burden not available, no other 175 0.8% 610 3.7% 785 2.1% problems Total 21,645 57.0% 16,325 43.0% 37,970 100% *The four housing problems are: incomplete kitchen facilities, incomplete plum bingfacilities, more than 1 person per room, and cost burden greater than 30%. "The four severe housing problems are: incomplete kitchen facilities, incomplete plum bingfacilities, more than 1.5 persons per room, and cost burden greater than 50%. Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017. Overcrowaing "Overcrowding" is generally defined as a housing unit occupied by more than one person per room in house (including living room and dining rooms, but excluding hallways, kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing, which forces more than one household to live together, and/or a lack of available housing units of adequate size. Overcrowding can indicate that a community does not have an adequate supply of affordable housing, especially for large families. However, overcrowding can also be a result of different cultural or demographic housing preferences. For example, the option to live with an existing family member in a new country may be a an opportunity for an immigrant family or person to transitionfrom an old home to a new one securely and help maintain cultural values. Section 2: Community Profile (DRAFTAPRIL2021) 2-16 SS3-38 City of Newport Beach 2021-2029 HOUSING ELEMENT Overcrowded and severely overcrowded households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread geographically and impact the quality of life and the economic value of property and the vitality of commerce within a city. The combination of lower incomes and high housing costs result in many households living in overcrowded housing conditions. Table2-15: Overcrowding by Tenure, 2018 Jurisdiction Overcrowded Housing Units Severely Overcrowded Total Overcrowded Occupied Percent of Total Occupied Units (1.0 to 1.50 persons/room) Housing Units Housing Units Tenure 1.1% (>1.51 persons/room) 7.9% Newport Beach 65 units Percent of 505 units Percent of Nu tuber of Percent of 0.7% Number of TotalOccu ied p Number of TotalOccu ied p Units TotalOccu ied p 1.2% Units 958 units Units 4,921 units 5.2% Orange County 21,800 units 2.1% Housing Units 6.8% Housing Units Housing Units Owner 65 units 0.2% 0 units 0%° 65 units 0.2/ Occupied Renter 252 units 0.7% 253 units 0.7% 505 units 1.3% Occupied Total 317 units 0.8% 253 units 0.7% 570 units 1.5% Source: American Community Survey, 5 -Year Estimates, 2018. Table 2-15 breaks down the severity of overcrowding in Newport Beach by household tenure. As the table shows, there is a very low percentage of units that are overcrowded (1.5 percent). About 80 percent of those overcrowded units are renter -occupied, with 1.3 percent of households being overcrowded and severely overcrowded. Only 0.2 percent of owner -occupied units exceed 1 person per bedroom. In comparison to the surrounding cities, as outlined in Table 2-16, Newport Beach has kept the lowest percentages of overcrowding for both renters and homeowners. Costa Mesa reported the largest total percentage of overcrowded cities (9 percent), which is 7.5 percent over that of Newport Beach. Orange County reported 21,800 overcrowded units and 8.9 percent of total households. Table 2-16: Overcrowded Housing Units by Tenure, 2018 Jurisdiction Owner Occupied Overcrowded Units (>1.0 persons/room) Renter Occupied Overcrowded Units (>1.0 persons/room) Number of Units Percent of Total Occupied Units Number of Units Percent of Total Occupied Units Costa Mesa 435 units 1.1% 3,251 units 7.9% Newport Beach 65 units 0.2% 505 units 1.3% Huntington Beach 557 units 0.7% 2,291 units 3.0% Laguna Beach 62 units 0.6% 127 units 1.2% Irvine 958 units 1.0% 4,921 units 5.2% Orange County 21,800 units 2.1% 69,713 units 6.8% Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-17 SS3-39 City of Newport Beach 2021-2029 HOUSING, ELEMENT 2. Overpayment (Cost Burden) In Relationship to Income State and federal standards indicate that a household paying more than 30 percent of its income for housing is overpaying. Overpayment for housing can cause an imbalance on the remainder of a household's budget. As reported by the CHAS and presented in Table2-18, a large portion of households are subjectto some form of overpayment in Newport Beach. Renters in the City represent a greater portion of the community that is overpaying for housing, but homeowners are 12 percent behind and exceed renters in total count —there are 11,810 homeowners overpaying and 10,880 renters overpaying for housing. Homeowners who earn over 100 percent of the HUD area median family income (AMFI), and are considered high income, make up the largest group experiencing cost burdens greater than 30 percent and 50 percent. For renters, those who experience housing burdens are those who earn a moderate to low income. Table 2-17: Summary of Housing Overpayment, 2013-2017 Owner Renter Income by Cost % of Cost % of Cost % of Cost % of Cost Burden* Burden > Owner Burden > Owner Burden > Renter Burden > Renter 30% HH 50% HH 30% HH 50% HH Household Income is less- 1,335 6.2% 1,225 5.7% 1,485 9.1% 1,455 8.9% than or = 30% Household Income >301/o 1,010 4.7% 820 3.8% 1,696 10.4% 1,350 8.3% toles-thanor = 50% AMFI Household Income >501/o 1,210 5.6% 815 3.8% 1,980 12.1% 910 5.6% to less-tha nor = 80% AMFI Household Income >801/o 615 2.8% 450 2.1% 815 5.0% 170 1.0% toles-thanor = 100%AMFI Household Income 3,420 15.8% 910 4.2% 965 5.9% 55 0.3% >100%AMFI Total 7,590 35.1% 4,220 19.5% 6,940 42.5% 3,940 24.1% *Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. Note: AMFI = Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limitsfor HUD programs. AMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustmentsthat are made. Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013- 2017. Section 2: Community Profile (DRAFTAPRIL2021) 2-18 SS3-40 City of Newport Beach 2021-2029 HOUSING ELEMENT -2.�;__ " State law recognizes that certain households may have more difficulty in finding adequate and affordable housing due to special circumstances. Special needs populations include seniors, persons with disabilities, female -headed households, large households, and farm workers. Special circumstances maybe related to one's employment and income, family characteristics, disability and household characteristics, or other factors. Consequently, certain residents in Newport Beach may experience higher incidences of housing overpayment (cost burden), overcrowding, or other housing problems. The special needs groups analyzed in the Housing Element include the elderly, persons with disabilities (including persons with developmental disabilities), people experiencing homelessness, single parents, large households, and farmworkers (Table 2-18). These groups may overlap, for example elderly people may also have a disability of some type. The majority of these special needs groups could be assisted byan increase in affordable housing. Table 2-18: Special Needs Groups in Newport Beach # of People or Percent of Total Percent of Total Special Needs Groups Households Population Households Senior Headed Households (65 years 12'187 -- 32.2% and over) households Seniors 19,574 persons 22.7% -- 5,119 Seniors Living Alone households 13.5% Persons with Disabilities 6,943 persons 8.1% -- Large Households (5 or more persons per 1,945 households 5.1% household) Single -Parent 1,358 Households households -- 3.6% Single -Parent, Female Headed Households with 936 households -- 2.5% Children (under 18 years) People Living in Poverty 5,670 persons 6.6% -- Farmworkers* 92 persons 0.2% -- Persons Experiencing Homelessness** 64 persons 0.09% -- Student 5,273 persons 6.1% -- *Farmworker data is taken of the population 16 years and over, not total population. **The Everyone Counts report is updated annually, therefore the most recent data is from 2019, and there is no percentage of total population available. Source: American Community Survey, 5 -Year Estimates, 2018 and Orange County Point in Time Count, Everyone Counts Report 2019. Section 2: Community Profile (DRAFTAPRIL2021) 2-19 SS3-41 City of Newport Beach -- 2021-2029 HOUSING E­­_�"��..�`: Seniors The senior population, which is generally defined as those over 65 years of age, has several concerns: limited and fixed incomes, high healthcare costs, higher incidence of mobility and self-care limitations, transit dependency, and living alone. Specific housing needs of the senior population include affordable housing, supportive housing (such as intermediate care facilities), group homes, and other housing that includes a planned service component. Newport Beach has the second largest population of seniors over the age of 65 at 22.7 percent, as shown in Table 2-19. This is 8.8 percent above the percentage for the County. Laguna Beach is reported to have the largest senior population of the area (23.3 percent) and Irvine has the lowest at 9.9 percent of its population. Table 2-19: Persons Age 65 and Over, 2018 Jurisdiction Population Count Percent Costa Mesa 12,138 10.7% Newport Beach 19,574 22.7% Huntington Beach 34,002 16.9% Laguna Beach 5,398 23.3% Irvine 26,228 9.9% Orange County 440,488 13.9% Source: American Community Survey, 5 -Year Estimates, 2018. In addition to overpayment problems faced by seniors due to their relatively fixed incomes, many seniors are faced with various disabilities. In 2018, the American Community Survey (ACS) reported 4,134 seniors with disabilities. Among these disabilities, the most common were ambulatory disabilities, independent living disabilities and hearing disabilities. t. Persons with Physical and Developmental Disabilities Physical and developmental disabilities can hinder access to traditionally designed housing units, as well as potentially limit the ability to earn adequate income. Physical, mental, and/or developmental disabilities may deprive a person from earning income, restrict one's mobility, or make self-care difficult. Thus, persons with disabilities often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher healthcare costs associated with a disability. Some residents suffer from disabilities that require living in a supportive or institutional setting. Although no current comparisons of disabilitywith income, household size, or race/ethnicity are available, it is reasonable to assume that a substantial portion of persons with disabilities would have annual incomes within Federal and State income limits. Furthermore, many lower income persons with disabilities are likely to require housing assistance and services. Housing needs for disabled persons are further compounded by design issues and location factors, whichcan often be costly. Forexample, special needs of households with wheelchair-bound or semi -ambulatory individuals may require ramps, holding bars, special bathroom designs, wider doorways, lower cabinets, elevators, and other interior and exterior design features. Section 2: Community Profile (DRAFTAPRIL2021) 2-20 SS3-42 City of Newport Beach Housing opportunities for persons with disabilities can be add ressedthrough the provision of affordable, barrier -free housing. Rehabilitation assistance can be targeted toward renters and homeowners with disabilities for unit modification to improve accessibility. The 2018 ACS identifies six disability types: hearing disability, vision disability, cognitive disability, ambulatory disability, self-care disability and independent living disability. The Census and the ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population. The ACS defines a disability as a report of one of the six disabilities identified by the following questions: + Hearing Disability: Is this person deaf or does he/she have serious difficulty hearing? + Visual Disability: Is this person blind or do they have serious difficulty seeing even when wearing glasses? + Cognitive Difficulty: Because of a physical, mental, or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions? + Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs? + Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor's office or shopping? Table 2-20: Disability Status, 2018 65 years Percent of Under 18 18 to 64 and Over Population percent of Disability Type with a with a Total Total Disability Disability with a with population Disability Disability Population with a 96 402 1,832 2,330 33.6% 2.7% Hearing Difficulty Population with a 60 561 909 1,530 22% ° 1.8/ Vision Difficulty Population with a 398 962 1,155 2,515 36.2% 2 9°/ Cognitive Difficulty Population with an Ambulatory 72 705 2,411 3,188 45.9% 3.7% Difficulty Population with a 112 406 894 1,412 20.3% 1.6% Self-care Difficulty Population with an independent Living -- 714 1,885 2,599 37.4% 3% Difficulty Total 480 2,329 4,134 6,943 100% 86,015 *This number may double count as some persons report having one or more disabilities, therefore this total number differs from the total number of persons with a disability in Table 2-18. Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-21 SS3-43 City of Newport Beach State law requires that the Housing Element discuss the housing needs of persons with developmental disabilities. As defined by federal law, "developmental disability" means a severe, chronic disability of an individual that: + Is attributable to a mental or physical impairment or combination of mental and physical impairments; + Is manifested before the individual attains age 22; + Is likely to continue indefinitely; + Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self- direction; f) capacityfor independent living; or g) economic self-sufficiency; and + Reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. Per Section 4512 of the Welfare and Institutions Code a "developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disabilityfor that individualwhich includes intellectual disability, cerebral palsy, epilepsy, and autism. This term also includes disabling conditions found to be closely related to intellectual disability or to require treatment like that required for individuals with intellectual disability but shall not include other handicapping conditions that are solely physical in nature. According to the Regional Center of Orange County's (RCOC) Total Annual Expenditures and Authorized Services for Fiscal Year 2019-2020, a total of 25,163 individuals received services. RCOC represents the fifth largest regional center in California and has over 300 service coordinators. Of those who received services, 31.6 percent reported their race as White, 16 percent reported Asian, 16.1 percent reported Other Ethnicityor Race/Multi-Cultural, and 2 percent reporter Black/African American. Approximately 34 percent of those who received services also reported their ethnicity as Hispanic or Latino. Ages of the 25,163 individuals includes 21.1 percent 2 years or younger, 39.9 percent 3 to 21 years, and 39 percent over the age of 22. The majority of those who received services lived at the home of a parent or guardian (82.3 percent), but 6.8 percent live in a Community Care Facility and 5.6 percent live in Independent Living or Supported Living. Diagnosis reported by the individuals who received services include the following: + Intellectual Disability: 37.6% + Autism: 31% + Cerebral Palsy: 2.5.% + Epilepsy: 1% + Category 5: 3.9% + Other: 24.1% Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with Section 2: Community Profile (DRAFTAPRIL2021) 2-22 SS3-44 City of Newport Beach 2021-2029 HOUSING ELEMENT developmental disabilities is the transition from the person's living situation as a child to an appropriate level of independence as an adult. There are several housing types appropriate for people living with a development disability: rent - subsidized homes, licensed and unlicensed single -unit homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, Department of Housing and Urban Development (HUD) housing, and SB 962 (veterans) homes. The design of housing -accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating 'barrier -free' design in all, new multi- unit housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income. 3. Large Households Large households are defined as those consisting of five or more members. These households comprise a special need group because many communities have a limited supply of adequately sized and affordable housing units. To save for other necessities such as food, clothing, and medical care, it is common for lower income large households to reside in smaller units with inadequate number of bedrooms, which frequently results in overcrowding and can contribute to fast rates of deterioration. Securing housing large enough to accommodate all members of a household is more challenging for renters because multi -unit rental units are typically physically smallerthan single -unit ownership homes. While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that large households will experience overcrowding in comparison to smaller households. Additionally, throughout the region, single -unit homes with higher bedroom counts, whether rental or ownership units, are rarely affordable to lower income households. Table 2-21 outlines the number of large households in the City by tenure and household size. As is shown, the vast majority of large households are owner -occupied rather than rented (71.3 percent and 28.7 percent respectively). There are very few households with 7 or more persons in owner -occupied homes and none in rentals. Amongst all rental homes, 2.S percent are S -person households and amongst owned homes 4.4 percent are 5 -person households. Tablet -21: Large Households by Tenure, 2017 Owner Renter Total Household Size Percent of Total Percent of Total Percent of Count Count Count Owner HHs Renter HHs Total HHs 5 -Person 933 4.4% 417 2.5% 1,350 3.6% Household 6 -person 398 1.9% 93 0.6% 491 1.3% Household 7+ person 56 0.3% 48 0.3% 104 0.3% Households Total 1,387 71.3% 558 28.7% 1,945 100% Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-23 SS3-45 City of Newport Beach 2021-2029 HOUSING ELEMENT 4. Single -Parent Households Single -parent households often require special consideration and assistance due totheir greater need for affordable and accessible day care, health care, and other supportive services. Many female -headed households with children are susceptible to having lower incomes than similar two-parent households. Single, female mothers often face social marginalization pressures that often limit their occupational choices and income earning potential, housing options and access tosupportive services Table 2-22 shows there are few single parent households in Newport Beach (3.6 percent) as compared to 7.4 percent in Orange County. Most single -parent households in both the City and Orange County are headed by females without a spouse present -68.9 percent in Newport Beach and 70.5 percent in Orange County. The percentage of single parents living in poverty in the City is half that of the regional percentage. Table 2-22: Single Parent Households Single Parent- Single Parent- Single Parent Single Parent Male, No Spouse Female, No Households Living Households Present Spouse Present in Poverty Jurisdiction % of %of %of Single Single Single %of Total Count Parent Count Parent Count Parent Count Households HH HH HH Newport Beach 422 31.1% 936 68.9% 183 13.5% 1,358 3.6% Orange County 22,456 1 29.5% 1 53,659 1 70.5% 22,999 1 30.2% 76,115 1 7.4% Source: American Community Survey, 5 -Year Estimates, 2018. 5. Farmworkers Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Permanent farm laborers work in the fields, processing plants, or support activities on a generally year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal workers, often supplied by a labor contractor. For some crops, farms may hire migrant workers, defined as those whose travel prevents them from returning to their primary residence everyevening. Farm workers have special housing needs because theyearn lower incomes than many other workers and move throughout the year from one harvest location to the next. The United States Department of Agriculture, National Agriculture Statistics provides data on hired farm labor across the United States. The data is compiled at both a State and County level. Within Orange County, a total of 99 farms reportedly hired 1,772 workers in 2017. Permanent workers, those who work 150 days or more, representthe largest categoryof workers with 1,106 workers (62 percent). A total of 666 workers (38 percent) are considered seasonal and work less than 150 days. Orange County reported 340 migrantworkers (19 percent) with full time hired labor in 2017. In addition, the Countyreported 176 unpaid workers. 2018 ACS 5 -Year Estimates data reports total of 92 Newport Beach residents employed in the agriculture, forestry, fishing, hunting, and mining industry. The median annual wage for these industries is $27,472 and falls below 50 percent of the median income for Orange County (32 percent). Section 2: Community Profile (DRAFTAPRIL2021) 2-24 SS3-46 City of Newport Beach -190 W_ W�'%F' -_ 2021-2029 HOUSING ELEMENT 6. Extremely Low-income Households and Poverty Status The 2013-2017 Comprehensive Housing Affordability Strategy (CHAS) indicates that there are 3,270 low- income households living in Newport Beach. Very low-income households earn 50 percent of less of the area median family income (AMFI) for Orange County. Extremely low-income households earn less than 30 percent of the AMFI. There are approximately 3,855 extremely low-income households in the City, including both renters and homeowners. Table 2-23 below shows a breakdown of housing problems for Newport Beach households by income category. Table 2-23 shows that about 10 percent more renters live with at least one housing problem. More lower income renters report a housing problem — 9.2 percent with extremely low income, 10.6 percent with very low income, and 12.5 percent with low income. About 45 percent of renters experience one or more housing problems. Homeowners typically report less of a cost burden than renters. In Newport Beach, 35.3 percent of homeowners have at least one housing problem. The majority of those are in above - moderate income households (15.9 percent). In total, for both renters and homeowners, 39.5 percent of households have at least one housing problem. While representing only 0.8 percent of the Newport Beach population, people who identify as Black have the highest rates of poverty in the City, as illustrated in Figure 2-6. Similarly, American Indian/Alaska Natives and Native Hawaiian/other Pacific Islanders make up the smallest population percentages (0.3 percent and 0.2 percent, respectively) and together account for over 20 percent of those living below the poverty line. Values in the bar graph below contrasted to racial and ethnic composition of the City illustrate critical differences in housing needs. Figure 2-6: Percent below Poverty Level, by Race and Hispanic or Latino Origin 25% 20% 15% 10% 5% 0% White Black American Asian Native Some Other Two or More Hispanic or Indian and Hawaiian Race Races Latino Alaska and Other Native Pacific Islander Source: American Community Survey, 5 -Year Estimates, 2018. Note: The chart reports percentage of own population who are reported to have incomes below poverty level. Section 2: Community Profile (DRAFTAPRIL2021) 2-25 SS3-4 7 City of Newport Beach 2021-2029 HOUSING ELEMENT Table2-23: Housing Problems for All Households by Income Category, 2013-2017 Owner Household has % of % of Cost Burden not % of Income Cate or g y at least 1 of 4 Owner Household has Owner available, no Owner noneof4Housing Housing HH HH other Housing HH Problems Problems Problem Household Income is less -than or =30% 1,335 6.2% 65 0.3% 175 0.8% Household Income >30% to less -than or 1,020 4.7% 290 1.3% 0 0.0% = 50% AMA Household Income >50% to less-tha nor 1,215 5.6% 705 3.3% 00.0% = 80% AMFI Household Income >80% to less-tha nor 615 2.8% 370 1.7% 0 0.0% = 100%AMFI Household Income 3,450 15.9% 12,405 57.3% 0 0.0% >100%AMFI Total 7,635 35.3% 13,835 63.9% 175 0.8% Renter Household has % of % of Cost Burden not % of Income Category at least 1 of 4 Renter Household has Renter available, no Renter none of4Housing Housing HH HH other Housing HH Problems Problems Problem Household Income 1,500 9.2% 170 1.0% 610 ° 3.7/ is less-thanor=30% Household Income >30% to less -than or 1,725 10.6% 235 1.4% 0 0.0% = 50% AMFI Household Income >50% to less -than or 2,040 12.5% 510 3.1% 0 0.0% = 80% AMFI Household Income >80% to less -than or 885 5.4% 425 2.6% 0 0.0% = 100%AMFI Household Income 1,205 7.4% 7,025 43.0% 0 0.0% >100%AMFI Total 7,355 45.1% 8,365 51.2% 610 3.7% Total Households 14,990 39.5% 22,200 58.5% 785 2.1% (Owner and Renter) * The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%. Section 2: Community Profile (DRAFTAPRIL2021) 2-26 SS3-48 City of Newport Beach "The four severe housing problems are: incomplete kitchen facilities, incomplete pIumbingfaciIities, more than 1.5 persons per room, and cost burden greater than 50%. Note: AMFI = Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents(FMRs) and income limitsfor HUD programs. AMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustmentsthat are made. Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013- 2017. 7, Persons Experiencing Homelessness Throughout the country and Orange County region, homelessness has become an increasingly important issue. Factors contributing to the rise in homelessness include, increased unemployment and underemployment, a lack of housing affordable to lower and moderate -income persons (especially extremely low-income households), reductions in public subsidies to the poor, and the de- institutionalization of the mentally ill. State law mandates that cities address the special needs of persons experiencing homelessness within their jurisdictional boundaries. "Homelessness" as defined by the U.S. Department of Housing and Urban Development (HUD) has recently been updated, the following lists the updated descriptions and the changes in the definition from HUD: + People who are living in a place not meant for human habitation, in emergency shelter, in transitional housing, or are exiting an institution where they temporarily resided. The only significant change from existing practice is that people will be considered homeless if they are exiting an institution where they resided for up to 90 days (it was previously 30 days) and were in shelteror a place not meantfor human habitation immediately prior to enteringthat institution. + People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled -up situation, within 14 days and lack resources or support networks to remain in housing. HUD had previously allowed people who were being displaced within 7 days to be considered homeless. The proposed regulation also describes specific documentation requirements for this category. + Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This is a new category of homelessness, and it applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 or more days, have had 2 or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment. + People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing. This category is similar to the current practice regarding people who are fleeing domestic violence. This definition does not include persons living in substandard housing (unless it has been officially condemned); persons living in overcrowded housing (for example, doubled up with others); persons being discharged from mental health facilities (unless the person was homeless when entering and is considered to be homeless at discharge); or persons who may be at risk of homelessness (for example, living temporarily with family or friends.) The Point in Time Count is conducted by the County of Orange in accordance with the U.S. Department of Housing and Urban Development (HUD) guidelines to provide information on where individuals Section 2: Community Profile (DRAFTAPRIL2021) 2-27 SS3-49 City of Newport Beach 2021-2029 HOUSING ELEMENT experiencing homelessness are in the County. About 1,167 volunteers across the County counted 6,860 individuals experiencing homelessness. Of those, 2,899 were sheltered and 3,961 were unsheltered. The 2020 Count is not yet available online, therefore this data is based on the Count conducted in January 2019 —the individual city results are shown in Table 2-24. Of the nearby cities, Newport Beach had the lowest count and percentage of people experiencing homelessness (64 individuals and 0.9 percent of the County). Huntington Beach recorded the greatest percentage at 5.1 percent. Of all those reported in Orange County, 5 percent wereveterans, 4 percentwere transitional youth ages 18to 24, and 9 percent were seniors over the age of 65. Table 2-24: Homeless Count byJurisdiction, 2019 Jurisdiction Unsheltered Sheltered Total % of County Costa Mesa 187 6 193 2.8% Newport Beach 64 0 64 0.9% Huntington Beach 289 60 349 5.1% Laguna Beach 71 76 147 2.1% Irvine 127 3 130 1.9% Orange County 3,961 2,899 6,860 100% Source: Orange County Point in Time Count, Everyone Counts Report 2019, 8. StudentF Student housing often only produces a temporary housing need based on the duration of the educational institution enrolled in. The impact upon housing demand is critical in areas that surround universities and colleges. Located in Newport Beach is Coastline College, and colleges near the City include University of California, Irvine; Concordia University; Orange Coast College; Vanguard University; Laguna College of Art and Design; SOKA University; and Irvine Valley College. Students enrolled in undergraduate and graduate programs, make upabout 6 percent of the total population of Newport Beach. Typically, students are low- income and are, therefore, affected by a lack of affordable housing, especially within easy commuting distance from campus, therefore it is important for the City to consider and accommodate the student population within the community. They often seek shared housing situations to decrease expenses and can be assisted through roommate referral services offered on and off campus. A lack of affordable housing also influences choices students make after graduating. The characteristics ofthe housing stock, including growth, type, availability and tenure, age and condition, housing costs, and affordability contribute to the housing needs for the community. This section details the housing characteristics of Newport Beach to identify how well the current housing stock meets the needs of its current and future residents. Section 2: Community Profile (DRAFTAPRIL2021) 2-28 SS3-50 City f Newport BeachT!4 SZE 1 ; -_ 2021-2029 HOUSING ELtl', .,v . ;�... 4 Housing Growth According to the American Com munity Survey (ACS), the City's housing stock grew by 1,298 units between 2010 and 2018 (Table 2-25). This 2.9 percent increase was the second largest in this area, behind the City of Irvine which had a dramaticallylargergain of 31 percent. Orange County as a whole experienced a 4.6 percent housing stock increase during this same time period, which is 1.7 percent more than Newport Beach. The City of Costa Mesa had smaller percent change than Newport Beach by 2.3 percent. Tablet -25: Housing Unit Growth Trends, 2010-2018 Jurisdiction 2010 2015 2018 Percent Change2010 to 2015 Percent Change2015 to 2018 Costa Mesa 42,867 43,030 43,100 0.4% 0.2% Newport Beach 43,503 43,690 44,801 0.4% 2.5% Huntington Beach 79,166 78,252 81,396 -1.2% 4.0% Laguna Beach 13,243 13,433 13,487 1.4% 0.4% Irvine 76,184 91,938 101,434 20.7% 10.3% Orange County 1,042,254 1,064,642 1,091,376 2.1% 2.5% Source: American Community Survey, 5 -Year Estimates, 2010, 2015, and 2018. 2- Housing Type Table 2-26 is a breakdown of housing units by type in Newport Beach in contrast to Orange County. The table reflects data from the American Community Survey which is estimates based on the U.S. Census and surveys. A large percentage of housing units in the City come from single unit detached homes (47.8 percent). Single unit attached homes typically do not take up a large portion of the housing stock, but in Newport Beach they account for 16.1 percent of all units. Another 34.5 percent is multi -unit housing, which is the samefor the County as well. Mobile homes arethe smallest categoryof housing types with 1.5 percent of all units. It is important to provide a wide variety of housing types throughout the City in order to ensure all housing needs for the population are met. Table 2-26: Total Housing Units by Type Single -Unit Single -Unit Multi -Unit Mobile Homes Jurisdiction Detached Attached Count Percent Count Percent Count Percent Count Percent Newport 21,399 47.8% 7,234 16.1% 15,437 34.5% 390 1.5% Beach Orange 553,164 50.7% 133,326 12.2% 374,176 34.3% 30,227 2.8% County Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-29 SS3-51 City of Newport Beach -190 W_ W�,%F -_ 2021-2029 HOUSING ELEMENT "'`R'"-�""-`: 3. Housing Availability and Tenure Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure defines if a unit is owner -occupied or renteroccupied. Tenure is an important market characteristic as it relates to the availability of housing product types and length of tenure. The tenure characteristics in a community can indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition, and age of the householder. In 2018, owner -occupied units accounted for 56.5 percent of the Newport Beach housing stockand 43.5 percent were rentals (Table 2-27). Of the owner -occupied units, the large majority were single unit detached homes (71.6 percent) and the smallest percentage was of mobile homes (1.1 percent). As is often the case, multi -unit homes accounted for over half of all rentals (67.9 percent) and only 17 percent of rental units were single unit detached homes. Mobile homes are more likely to be occupied by renters, as the Table 2-8 shows. Table2-27: Occupied Housing Units byTypeand Tenure by Tenure, 2018 Single- Owner Occupied Renter Occupied Total Single -Unit Mobile Jurisdiction Tenure Unit Households (% of Multi -Unit Occupied Total Households) Attached Costa Mesa Homes 2.8 60.9% Detached Newport Beach 56.5% 2.5 Units' Owner Huntington 57.8% 2.6 42.2% 2.6 Beach 71.6% 19.5% 7.8% 1.1% 56.5% Occupied 2.3 39.3% 2 1 rvine 47.3% Renter 52.7% 2.6 Orange County 1 57.4% 1 3 42.6% 17.1% 12.7% 67.9% 2.2% 43.5% Occupied Total 47.9% 1 16.5% 1 34.1% 1.6% 1 100% 'Note: The data shows the percent of total occupied units. Source: American Community Survey, 5 -Year Estimates, 2018. Table 2-28: Average Household Size by Tenure, 2018 Owner Occupied Renter Occupied Average Owner Average Renter Jurisdiction Households (% of Household Size Households (% of Household Size Total Households) Total Households) Costa Mesa 39.1% 2.8 60.9% 2.7 Newport Beach 56.5% 2.5 43.5% 2 Huntington 57.8% 2.6 42.2% 2.6 Beach Laguna Beach 60.7% 2.3 39.3% 2 1 rvine 47.3% 2.8 52.7% 2.6 Orange County 1 57.4% 1 3 42.6% 3.1 Source: American Community Survey, 5 -Year Estimates, 2018. To identify housing trends and potential population needs, Table 2-28 compares average household sizes and tenure amongst the cities surrounding Newport Beach. Renters in the City have one of the lowest average household sizes atjust 2 people per home. Homeowners in Newport Beach also have the second smallest number of people per household after Laguna Beach with 2.3 people per home. The County Section 2: Community Profile (DRAFTAPRIL2021) 2-30 SS3-52 City of Newport Beach 2021-2029 HOUSING F average is 3.1 persons for rentals and 3 persons for owner -occupied homes. Figure 2-7 illustrates vacancy rates by jurisdiction and shows that Newport Beach has the second largest percentage of vacant homes at 15.5 percent. The City's vacancy rate is 3 times that of Orange County. Vacancy rates indicate the degree of choice available. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. Too high of a vacancyrate can be difficult for owners trying tosell or rent. Low vacancyrates usually indicate high demand and/or low supply conditions in the housing market. Too low of a vacancy rate can force prices up making it more difficult for lower and moderate -income households to find housing. Vacancy rates of between 2 to 3 percent are usually considered healthy for single -unit or ownership housing, and rates of5 to6 percent are usually considered healthy for multi -unit or rental housing. Figure 2-7: Vacancy Rate byJurisdiction, 2018 25.0% 20.0% 15.0% 10.0% 5.0 o 0.0 /o Newport Huntington Laguna Orange Costa Mesa Beach Beach Beach Irvine County Vacancy Rate 4.8% 15.5% 5.6% 21.8% 6.0% 5.4% Source: American Community Survey, 5 -Year Estimates, 2018. The most common reasonfor vacancies in Newport Beach is due to homes being used seasonally, or for recreation or occasional use (48.3 percent), as shown in Table 2-29. These 3,350 homes are not permanent residences and remain empty for most of the year. Homes for rent are the second most common reason for vacancies in the City at 22.4 percent. Table 2-29: Type of Vacant Housing Units in Newport Beach Type of Housing Estimate Percent For rent 1,551 22.4% Rented, not occupied 292 4.2% For sale only 370 5.3% Sold, not occupied 499 7.2% For seasonal, recreational, or occasional use 3,350 48.3% Other vacant 869 12.5% Total 6,931 100% Source: American Community Survey, 5 -Year Estimates, 2018. Section 2: Community Profile (DRAFTAPRIL2021) 2-31 SS3-53 City of Newport Beach 2021-2029 HOUSING ELEMENT 4. Housing Age and Condition Housing age can be an indicator of housing condition within a community. For example, housing that is over 30 years old is typically in need of some major rehabilitation, such as a new roof, foundation, plumbing, etc. Many federal and state programs also usethe age of housing as one factor in determining housing rehabilitation needs. In Newport Beach, most homes were built over 30 years ago (Figure 2-8). About 22.3 percent of the housing stock was built between 1970 and 1979, while only 2.7 percent was built after 2010. Another 8 percent of homes were also built prior to 1950. This reflects an aging housing stock that may need certain updates. Figure 2-8: Age Distribution of Housing Stock 25% 20% 15% 10% 5% o 0 /o 1 1 Built Built Built Built Built Built Built Built Built Built 2014 or 2010 to 2000 to 1990 to 1980 to 1970 to 1960 to 1950 to 1940 to 1939 or later 2013 2009 1999 1989 1979 1969 1959 1949 earlier ■ Newport Beach 1.1% 1.6% 10.8% 14.2% 11.2% 22.3% 19.0% 11.7% 3.7% 4.3% Source: American Community Survey, 5 -Year Estimates, 2018, Figure 2-9 below displays the 2018 ACS data for housing units by the year they were built sorted bytenure. According to the data, Newport Beach has mostly had a majority of owner -occupied units. The majority of the City's housing stock was built before 1980 and is home to 32 percent of the City's current homeowners. The greatest number of renters reside in housing units built between 1970 and 1979. Section 2: Community Profile (DRAFTAPRIL2021) 2-32 SS3-54 City of Newport Beach 2021-2029 HOUSING ELEMENT - -_ Figure 2-9: Housing Stock by Age of Structure and Tenure 25% 20% 15% 10% 5% 1.7% Built 1939 or earlier 1.7% Built 1940 to 1949 M 2.2% Built 1940 to 1949 M 1.4% Built 1950 to 1959 6.7% Built 1950 to 1959 4.5% Built 1960 to 1969 10.3% Built 1960 to 1969 • • 0% 11.1% Built 1970 to 1979 12.3% Built 1980 to 1989 5.6% Built 1980 to 1989 5.7% - Built Built Built Built Built Built Built Built Built Built 3.3% 2014 or 2010 to 2000 to 1990 to 1980 to 1970 to 1960 to 1950 to 1940 to 1939 or 10.3% later 2013 2009 1999 1989 1979 1969 1959 1949 earlier ■ Renter 0.3% 0.9% 3.3% 5.1% 5.7% 12.3% 8.5% 4.5% 1.4% 1.7% ■Owner 0.6% 0.7% 8.1% 9.4% 5.6% 11.1% 10.3% 6.7% 2.2% 1.7% ■ Owner ■ Renter Source: American Community Survey, 5 -Year Estimates, 2018 Figure 2-10 displays the 2018 ACS data for housing units by the year they were built for owners (left) and renters (right). That data shows that a greater concentration of renters reside in units built between 1970 and 1979 compared to other years and to homeowners. Less than 2 percent of renters and homeowners reside in units built after 2010. A greater number of homeowners live in units built between 1990 and 2009 than renters (9.1 percent more). Figure 2-10: Housing Units by Year Built Owner (Left) and Renter (Right) Owner Renter Built 1939 or earlier 1.7% Built 1939 or earlier 1.7% Built 1940 to 1949 M 2.2% Built 1940 to 1949 M 1.4% Built 1950 to 1959 6.7% Built 1950 to 1959 4.5% Built 1960 to 1969 10.3% Built 1960 to 1969 8.5% Built 1970 to 1979 11.1% Built 1970 to 1979 12.3% Built 1980 to 1989 5.6% Built 1980 to 1989 5.7% - Built 1990 to 1999 9.4% Built 1990 to 1999 5.1% Built 2000 to 2009 8.1% Built 2000 to 2009 3.3% Built 2010 to 2013 ■ 0.7% Built 2010 to 2013 ■ 0.9% Built 2014 or later 1 0.6% Built 2014 or later 10.3% 0% 4% 8% 12% 0% 4% 8% 12% Source: American Community Survey, 5 -Year Estimates, 2018 Section 2: Community Profile (DRAFTAPRIL2021) 2-33 SS3-55 City of Newport Beach 2021-2029 HOUSING ELEMENT 5. Housing Costs and Affordability Housing costs reflect the supply and demand of housing in a community. This section summarizes the cost and affordability of the housing stock to the City's residents. Home values in Newport Beach are on median $1,787,300, as shown in Table 2-30. This total is 2.7 times the median home value of Orange County and significantly largerthan the nearby cities. Laguna Beach is second behind Newport Beach in home value with a median amount of $1,700,400. Costa Mesa has the lowest median home value of $707,600. Table 2-30: Median Home Value by Jurisdiction Jurisdiction Median Home Value Costa Mesa $707,600 Newport Beach $1,787,300 Huntington Beach $728,200 Laguna Beach $1,700,400 I rvine $797,100 Orange County $652,900 Source: American Community Survey, 5 -Year Estimates, 2018. Table 2-31 outlines the average monthly price of rent in Newport Beach and how it has changed between 2017 and 2020 depending on the number of bedrooms. This data is provided by the Zillow Rent Index Reportfor Newport Beach, and showsthatall units experienced increases in rates in the lastthreeyears. One -bedroom rentals rose by 5.1 percent and the most out of 1 -3 -bedroom units. Two-bedroom units remained the most consistent with a slight increase of 1.4 percent. The price per square foot, however, saw a much greater increase for units with three or more bedrooms (9.8 percent). Zillow reports that one - bedroom units decreased from $3.01 per square foot in 2017 to $3 per square foot in 2020. Table 2-31: Change in Average Monthly Rental Rates, 2017-2020 Unit Type January 2017 January 2018 January 2019 January 2020 %Change 2017-2020 1 Bedroom $2,383 $2,425 $2,408 $2,504 5.1% 2 bedrooms $3,290 $3,291 $3,241 $3,337 1.4% 3 Bedrooms $4,191 $4,218 $4,095 $4,355 3.9% Price per Square Foot Unit Type January 2017 January 2018 January 2019 January 2020 %Change 2017-2020 1 Bedroom $3.01 $2.83 $2.93 $3 -0.3% 2 bedrooms $2.64 $2.65 $2.53 $2.87 8.7% 3+ Bedrooms $2.65 $2.8 $2.81 $2.91 9.8% Source: Zillow Rent Index Report, January 2017-2020, accessed August 25, 2020. Section 2: Community Profile (DRAFTAPRIL2021) 2-34 SS3-56 City of Newport Beach Housing affordability can be inferred by comparing the cost of renting or owning a home in the Citywith the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment. The Federal Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household's eligibility for federal housing assistance. Based on this survey, the California Department of Housing and Community Development (HCD) developed income limits, based on the Area Median Family Income (AMFI), which can be used to determine the maximum price that could be affordable to households in the upper range of their respective income category. Households in the lower end of each categorycan afford less by comparison thanthose at the upper end. The maximum affordable home and rental prices for residents in Orange County are shown in Table 2-32 and Table 2-33. The data shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment). This amount can be compared to current housing asking prices (Table 2-30) and market rental rates (Table2-31) to determine whattypes of housing opportunities a household can afford. Extremely Low-income Households Extremely low-income households earn less than 30 percent of the County AMFI — up to $26,950 for a one-person household and up to $41,550 for a five -person household in 2020. Extremely low-income households cannot afford market -rate rental or ownership housing in Newport Beachwithout assuming a substantial cost burden. Very Low-income Households Very low-income households earn between 31 percent and 50 percent of the CountyAMFI — upto $44,850 for a one-person household and up to $69,200 for a five -person household in 2020. A very low-income household cannot afford market -rate rental or ownership housing in Newport Beach without assuming a substantial cost burden. A very low-income household at the maximum income limit can afford to pay approximately $1,121 to $1,730 in monthly rent, depending on household size. Given the high cost of housing in the City, persons, or households of very low-income could not afford to rent or purchase a home in the City. Low-income Households Low-income households earn between 51 percent and 80 percent of the County's AMFI - up to $71,750 for a one-person household and up to$110,650for a five -person household in 2020. The affordable home price for a low-income household at the maximum income limit ranges from $308,500 to $454,000. Based on the asking prices of homes for sale in 2020 (Table 2-30), ownership housing would not be affordable to low-income households. A one-person low-income household could afford to pay up to $1,794 in rent per month and a five -person low-income household could afford to pay as much as $2,766. Low-income households in Newport Beach would not be able to find adequately sized affordable apartment units (Table 2-31). Moderate income Households Persons and households of moderate income earn between 81 percent and 120 percent of the County's AMFI — up to $133,500, depending on household size in 2020. The maximum affordable home price for a Section 2: Community Profile (DRAFTAPRIL2021) 2-35 SS3-57 City of Newport Beach 2021-2029 HOU""'G ELEMENT moderate -income household is $377,000 for a one-person household and $558,600 for a five -person family. Moderate income households in Newport Beach would not be able to purchase a home in the City. The maximum affordable rent payment for moderate income households is between $2,163 and $3,338 per month. A one-person moderate -income household may be able to find some adequately sized affordable apartment units; larger households would not be able to afford to rent a unit in the City. Table 2-32: Affordable Housing Costsfor Owners in Orange County, 2020 Annuallncome Mortgage Utilities' Taxand Insurance Total Affordable Monthly Housing Cost Affordable Purchase Price Extremely Low-income (30% of AMFI) 1 -Person $26,950 $455 $118 $101 $674 $99,990 2 -Person $30,800 $504 $151 $116 $770 $110,500 3 -Person $34,650 $539 $197 $130 $866 $118,000 4 -Person $38,450 $574 $243 $144 $961 $125,800 5 -Person $41,550 $594 $289 $156 $1,039 $130,200 Very Low -Income (50% of AMFI) 1 -Person $44,850 I $835 $118 $168 $1,121 $183,000 2 -Person $51,250 $938 $151 $192 $1,281 $205,500 3 -Person $57,650 $1,028 $197 $216 $1,441 $225,400 4 -Person $64,050 $1,118 $243 $240 $1,601 $245,000 5 -Person $69,200 $1,182 $289 $260 $1,730 $259,000 Low-income (80% AMFI) 1 -Person $71,750 $1,407 $118 $269 $1,794 $308,500 2 -Person $82,000 $1,592 $151 $308 $2,050 $349,100 3 -Person $92,250 $1,763 $197 $346 $2,306 $386,500 4 -Person $102,450 $1,934 $243 $384 $2,561 $424,000 5 -Person $110,650 $2,062 $289 $415 $2,766 $452,000 Moderate Income (120% AMFI) 1 -Person $86,500 $1,720 $118 $324 $2,163 $377,000 2 -Person $98,900 $1,951 $151 $371 $2,473 $427,800 3 -Person $111,250 $2,167 $197 $417 $2,781 $475,000 4 -Person $123,600 $2,384 $243 $464 $3,090 $522,700 5 -Person $133,500 $2,548 $289 $501 $3,338 $558,600 Source: Orange County Housing Authority, 2020 Utility Allowance Schedule and California Department of Housing and Community Development, 2020 Income Limits and Kim ley Horn and Associates Assumptions: 2020 HCD income limits, -30% gross household income as affordable housing cost; 15% of monthly affordable cost for taxes and insurance,- 10% down payment; and 4.5% interest rotefor a 30 -year fixed-rate mortgogeloon. Utilitiesbased on Orange County Utility Allowance. 1. Utilities includes basic electric, water, sewer/trash, refrigerator, and stove. Section 2: Community Profile (DRAFT APRIL 2021) 2-36 SS3-58 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 2-33: Affordable Monthly Housing Cost for Renters in Orange County, 2020 Annuallncome Rent Utilities' Total Affordable Monthly Housing Cost Extremely Low-income (30% of AMFI) 1 -Person $26,950 $556 $ 118.00 $674 2 -Person $30,800 $619 $ 151.00 $770 3 -Person $34,650 $669 $ 197.00 $866 4 -Person $38,450 $718 $ 243.00 $961 5 -Person $41,550 $750 $ 289.00 $1,039 Very Low-income (50% of AMFI) 1 -Person $44,850 $1,003 $ 118.00 $1,121 2 -Person $51,250 $1,130 $ 151.00 $1,281 3 -Person $57,650 $1,244 $ 197.00 $1,441 4 -Person $64,050 $1,358 $ 243.00 $1,601 5 -Person $69,200 $1,441 $ 289.00 $1,730 Low-income (80% AMFI) 1 -Person $71,750 $1,676 $ 118.00 $1,794 2 -Person $82,000 $1,899 $ 151.00 $2,050 3 -Person $92,250 $2,109 $ 197.00 $2,306 4 -Person $102,450 $2,318 $ 243.00 $2,561 5 -Person $110,650 $2,477 $ 289.00 $2,766 Moderate Income (120% AMFI) 1 -Person $86,500 $2,045 $ 118.00 $2,163 2 -Person $98,900 $2,322 $ 151.00 $2,473 3 -Person $111,250 $2,584 $ 197.00 $2,781 4 -Person $123,600 $2,847 $ 243.00 $3,090 5 -Person $133,500 $3,049 $ 289.00 $3,338 Source: Orange County Housing Authority, 2020 Utility Allowance Schedule and California Department of Housing and Community Development, 2020 Income Limits and Kimley Horn and Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost, Utilities based on Orange County Utility Allowance. 1. Utilities includes basic electric, water, sewer/trash, refrigerator, and stove. Section 2: Community Profile (DRAFTAPRIL2021) 2-37 SS3-59 t•,y � 4 y' -die h WIE1 ....-- Section 3.0 HOUSING CONSTRAINTS, RESOURCES, AND AFFIRMATIVELY FURTHERING FAIR HOUSING SS3-60 y f. Section 3.0 HOUSING CONSTRAINTS, RESOURCES, AND AFFIRMATIVELY FURTHERING FAIR HOUSING SS3-60 City of Newport Beach 2021-2025 HOUSING ELEMENT As common in many communities, a variety of constraints affect the provisions and opportunities for adequate housing in the City of Newport Beach. Housing constraints consist of both governmental constraints, including but not limited to land use controls, development fees and permitting fees, development standards, building codes and permitting processes; as well as, nongovernmental or market constraints, including but not limited to land costs, construction costs, and availability of finances. Combined, these factors create barriers to availability and affordability of new housing, especially for lower and moderate -income households. Nongovernmental constraints largely affect the cost of housing in the City of Newport Beach and can produce barriers to housing production and affordability. These constraints include the availability and cost of land for residential development, the demand for housing, financing, and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing, and especially affordable housing. The following highlights the primary market factors that affect the production of housing in Newport Beach. 1. Land Costs and Construction Costs Construction costs vary widely according to the type of development, with multi -unit housing generally less expensive to construct than single -unit homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I -Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood -frame housing. Estimates are based on "good -quality" construction, providing for materials and fixtures well above the minimum required by state and local building codes. In August 2020, the ICC estimated that the average per square -foot cost for good -quality housing was approximately $118.57for multi -unit housing, $131.24for single -unit homes, and $148.44 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City's adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADLI) or converting a garage using a Type VB wood framed unit would costs about $123.68 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especiallywhen considering land costs, are not considered a major constraint to housing production in Newport Beach. Land costs can also pose a significant constraint to the development of affordable and middle-income housing and represents a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing use that must be removed. Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. There are approximately 6,000 acres of vacant and non -vacant Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-2 (DRAFT APRIL 2021) SS3-61 City of Newport Beach 2021-2025 HOUSING ELEMENT MOM residential land (39.3 percent), out of approximately 15,238 acres of land in Newport Beach, which are not currently subject to land use constraints (airport restrictions, flood zone, fire high severity zone, NCCP conservation area, seismic hazard, and sea level rise). However, majority of the acres are developed and may require rezoning, reuse, and redevelopment due to a lack of vacant sites in the City. Additional costs may be associated with redeveloping and/or converting sites which may influence the cost of the rental units or home value. A September 2020 web search, using the Orange County Market report, for lots for sale in the City of Newport Beach returned less than five vacant lots listed for sale. Of the lots listed, the costs rangedfrom $600,000 for 0.075 acres near Santa Ana Heights (about $183 per squarefoot), to $4,995,0000.27 acres with an ocean view (about $430 per square foot). Larger vacant lots reached as high as $9,995,000 for 0.77 acres inland (about $295 per square foot) to $10,500,000 for 0.51 acres of land (about $474 per square foot) closerto the coast, but not coastal. According to the same report, in September coastal lots listed for sale in the City averaged $8,000,000for 0.6 acres. The cost of land in Newport Beach is higher than neighboring cities, such as Laguna Beach, where the median cost of land is about $115 per square foot. Therefore, land and redevelopment costs in Newport Beach create a significant constraint to the development of housing, specifically affordable housing. 2. Availability Financing The availability of financing in a community depends on several factors, including the type of lending institutions active in a community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person's ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to residents of a community. The data presented in this section include the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in Newport Beach. Table 3-1 below displays the disposition of loan applications for the Anaheim -Santa Ana -Irvine Metropolitan Statistical Area/Metropolitan Division (MSA/MD), per the 2016 Home Mortgage Disclosure Act report. According to the data, applicants in the 120 percent median income or more had the highest rates of loans approved. Of that income category, applicants who reported White had the highest percentage of approval and the number of applications. Applicants in the less than 50 percent of the MSA/MD median income categories were showed higher percentages of denied loans than loans originated. According to the data, applicants who reported white were, on average, more likely to be approved for a loan than another race or ethnicity. Given the relatively high rates of approval for home purchase, improvement, and refinance loans, home financing is generally available and not considered to be a significant constraint to the provision and maintenance of housing in Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-3 (DRAFT APRIL 2021) SS3-62 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-1: Disposition of Loan Applications by Race/Ethnicity-Anaheim-Santa Ana -Irvine MSA/MD Applications by Race/Ethnicity Percent Approved Percent Percent Total Denied Other (Count) LESS THAN 50% OF MSA/MD MEDIAN American Indian and Alaska Native 26.2% 52.3% 23.1% 65 Asian 33.9% 42.5% 26.7% 1,382 Blackor AfricanAmerican 41.6% 33.7% 25.8% 89 Native Hawaiianor other Pacific Islander 25.0% 44.2% 30.8% 52 White 45.6% 31.2% 26.1% 5,240 His panic or Latino 1 37.9% 1 38.2% 26.8% 1,566 50-79% OF MSA/MD MEDIAN American Indian and Alaska Native 38.1% 34.0% 29.9% 97 Asian 53.3% 25.3% 29.4% 3,153 Blackor AfricanAmerican 43.4% 19.1% 41.4% 152 Native Hawaiian or other Pacific Islander 49.4% 39.8% 16.9% 83 White 54.5% 23.3% 27.6% 8,677 His panic or Latino 47.6% 27.7% 29.3% 3,245 80-99% OF MSA/MD MEDIAN American Indian and Alaska Native 51.4% 25.7% 31.4% 35 Asian 59.5% 19.2% 29.3% 1,495 Blackor AfricanAmerican 52.9% 22.1% 30.9% 68 Native Hawaiianor other Pacific Islander 43.5% 13.0% 43.5% 23 White 61.9% 17.2% 26.1% 3,873 His panic or Latino 54.0% 21.4% 29.1% 1,347 100-119% OF MSA/MD MEDIAN American Indian and Alaska Native 48.9% 22.7% 29.5% 88 Asian 62.3% 15.6% 28.8% 4,820 Blackor AfricanAmerican 55.6% 20.1% 28.6% 234 Native Hawaiianor other Pacific Islander 49.4% 27.6% 31.0% 87 White 66.2% 13.8% 25.1% 12,607 His panic or Latino 60.8% 16.4% 1 26.8% 3,398 120% OR MORE OF MSA/MD MEDIAN American Indian and Alaska Native 59.2% 13.0% 32.0% 169 Asian 62.8% 12.9% 29.0% 17,800 Blackor AfricanAmerican 57.7% 17.3% 27.2% 624 Native Hawaiianor other Pacific Islander 64.2% 11.4% 26.8% 254 White 68.3% 11.3% 24.9% 49,811 Hispanic or Latino 64.6% 13.3% 26.7% 6,095 Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2019. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-4 SS3-63 City of Newport Beach 2021-2025 HOUSING ELEMENT 3. Economic Constraints Market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing pricegrowthwill continue in the Cityandthe region for the foreseeable future. Moving into 2020, the economy was growing, California was seeing a 1.6 -percent growth injobs from 2019 and experiencing all-time lows for unemployment rates. COVI D-19 had stalled much of the economy in early 2020, however, as the California economy regains momentum housing stockand prices in the Newport Beach community remain stable. A 2020 California Association of Realtors (CAR) report found that homes on the market in Orange County experienced a nine percent year to year increase and cost an average of $880,000 in February 2020; almost $300,000 higher than the State median home price in the same month ($579,770). According to the CAR First Time Buyer Housing Affordability Index, from 2018 to 2019 the median value of a home in Orange Countywas $703,800with monthly payments (including taxes and insurance) of $3,630, requiring an average qualifying income of $108,900. Homes and cost of living in Newport Beach was reported higher than the State median housing and living costs. According to September 2020 data from Zillow, the median home value of single -unit homes and condos in Newport Beach is $2,407,454. According to Zillow's methodology, this value is seasonally adjusted to remove outliers and only includes the middle price -tier of homes. Newport Beach home values have gone up 0.7 percent over the past year and Zillow predicts they will rise 3.4 percent within the next year. Newport's home value index ($2,407,454) has been on a steep and steady rise since early 2012, and according to a September 2020 forecasts, they are expected to increase slightly (estimated $2,490,000) in 2021. Orange County by comparison has a median home value index of $777,000, according to the same September 2020 report, which is significantly lower than the City of Newport. Forecasted home prices in the County, through 2021 are set to see minor increases ($810,000). The cost of land and home prices in Newport are considered a major constraint to the development of and access to housing, particularlythe development of and access to affordable housing. In addition to market constraints, local policies and regulations also affect the price and availability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region. Regulations related to environmental protection, building codes, and other topics have significant, often adverse, impacts on housing cost and availability. While the City of Newport Beach has no control over State and Federal Laws that affect housing, local laws including land use controls, site improvement requirements, fees and exactions, permit processing procedures, and otherfactors can constrain the maintenance, development, and improvement of housing create barriers to housing. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-5 (DRAFT APRIL 2021) SS3-64 City of Newport Beach... ;­ 2021-2029 HOUSING ELEMENT Land Use Controls In the State of California, cities are required to prepare a comprehensive, long term General Plan to guide future development. The Land Use Element of the General Plan establishes land uses of developments within the Cityof Newport Beach. The Land Use Element sets for policies and regulations for guiding local development. These policies, together with existing zoning regulations, establish the amount and distribution of land to be allocated for different uses within the City. The Land Use Element of the General Plan identifies the following residential and mixed-use categories: + Single Unit Residential Detached (RS -D): The RS -D category a ppIiesto a range of detached single -unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -D category permits a density range from 0.0 to 29.9 DU/AC. + Single Unit Residential Attached (RS -A): The RS -A category applies to a range of attached single -unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -A categorypermits a density range from 0.0 to 29.9 DU/AC. + Two Unit Residential (RT): The RTcategory appliesto a range oftwo-unit residential dwelling units such as duplexes and townhomes. The RT permits a density range from O.Oto 39.9 DU/AC. + Multiple Residential (RM1: The RM designation is intended to provide for multi -unit residential development containing attached dwelling units The RM permits a density range from 0.0 to 52.0 DU/AC. + Multiple Residential Detached (RM -D): The RM-Ddesignation is intended to provide primarilyfor multi- unit residential development exclusivelycontaining detached dwelling units. The RM-Dallows a 1.5 FAR where a minimum FAR 0.35and maximum FAR if.5 may be usedfor nonresidential. + Mixed -Use Vertical (MU -V): The MU -V designation is intended to provide for the development of properties for mixed use structures that vertically integrate housing with retail uses including retail, office, restaurant, and similar nonresidential uses. For mixed-use structures, commercial uses characterized by noise, vibration, odors, or other activities that would adversely impact on-site residential units are prohibited. The MU-Vallows a 1.5 FAR where a minimum FAR 0.35 and maximum FAR of .5 may be used for nonresidential. + Mixed -Use Horizontal (MU -H): The MU -H designation is intended to provide for the development of areas for a horizontally distributed mix of uses, which mayinclude general or neighborhood commercial, commercial office, multi -unit residential, visitor -serving and marine -related uses, and/or buildings that vertically integrate residential with commercial uses. The MU -H allows a maximum FAR of 1.0 for residential. + Mixed -Use Water Related (MU -W): The MU -W designation is intended to provide for commercial developmenton or nearthe bayin a mannerthatwill encourage the continuation of coastal -dependent and coastal -related uses in accordance with the Recreational and Marine Commercial (CM) designation, as well as allowfor the integrated development of residential. The MU -W permits a density range from 0.0 to 29.9 DU/AC. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-6 (DRAFT APRIL 2021) SS3-65 City of Newport Beach 2021-2025 HOUSING ELEMENT These categories accommodate development of a wide range of housing types in Newport Beach. Furthermore, maintaining the existing residential categories is important for ensuring compatibility between the new and existing housing. Local Coastal Program and Land Use Plan The Local Coastal Program (LCP) is a coastal management plan that contains land use, development, public access, and resource protection policies and regulation to implement the California Coastal Act (Coastal Act). The LCP is comprised of a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP serves in conjunction with, and is considered a legislative equivalent to, the City's General Plan Land Use Element to identify land uses in the Coastal Zone. The intent of this plan is to provide for land uses and residential density limits that protect coastal resources and public access. The LUP identifies the residential categories and densities provided in Table 3-2. Table 3-2: Coastal Land Use Plan Densities Land Use Maximum Density Range per Lot Single -Unit Residential Detached— RSD RSD -A 0-5.9 units per acre RSD -B 6 — 9.9 units per acre RSD -C 10-19.9 units per acre RSD -D 20— 29.9 units per acre Single -Unit Residential Attached — RSA RSA -A 0-5.9 units per acre RSA -B 6-9.9 units per acre RSA -C 10-19.9 units per acre RSA -D 20— 29.9 units per acre Two Unit Residential - RT RT -A 0-5.9 units per acre RT -13 6 — 9.9 units per acre RT -C 10— 19.9 units per acre RT -D 20— 29.9 units per acre RT -E 30— 39.9 units per acre Multiple Unit Residential— RM RM -A 0-5.9 units per acre RM -B 6 — 9.9 units per acre RM -C 10-19.9 units per acre RM -D 20— 29.9 units per acre RM -E 30— 39.9 units per acre RM -F 40— 52 units per acre Source: City of Newport Beach Municipal Code The Coastal Act is administered by the California Coastal Commission. Over 63 percent of the City of Newport Beach is within the Coastal Zone and subject to oversight by the Coastal. Although the City retains permit authority in most of the Coastal Zone, development projects located near sensitive coastal Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-7 (DRAFT APRIL 2021) SS3-66 City of Newport Beach 2021-2025 HOUSING ELEMENT resources, such as the bay, ocean, wetlands, and environmentally sensitive habitat areas, require the processing of coastal development permits and are subject to appeal by the California Coastal Commission. This additional level of review and approval process may extend the review period of development projects and increase the application and discretionary review costs. In addition, any request to increase residential densities or allow new residential housing opportunities requires the processing of a Local Coastal Program amendment through the California Coastal Commission. An illustrative example is the Master Development Plan for Banning Ranch, a housing development project that included 1,375 dwelling units, including an affordable housing component, that was adopted by the City in 2012, but denied by the California Coastal Commission in 2016 components but due to potential impacts to environmentally sensitive habitats and coastal resources. The Coastal Land Use Plan and Coastal Commission's additional review mayinhibit development due tothe added reviewtime and costs, and uncertainty of approvals. John Wayne Airport Environs Land Use Plan (AELUP) The City's Airport Area may be considered as an opportunity zone to add residential neighborhoods. However, land located within the Airport Planning Area for John Wayne Airport are subject to the development restrictions of the John Wayne Airport Environs Land Use Plan (AELUP), which limits the ability to develop residential units. Approximately 391 acres are subject to these residential restrictions. An amendment to the City's General Planor rezoning for residential use requires review and approval by the Airport Land Use Commission (ALUC) and extends the total review period of a proposed housing development and subsequently increases the cost of development. The added review time and additional costs maydissuade housing developers, and particularly affordable housing developers, from developing housing in this area. Overlay Districts An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City. An overlay district may be added to a neighborhood or corridor on a map or it may apply to the City as whole and be applied under certain circumstances. An overlay district may be initiated as a Zoning Map amendment. All proposed developments within the overlay district must comply with the district's applicable development standards in addition tothe Zoning Code standards. Overlay Districtswhich affect housing in Newport Beach include the Mobile Home Park (MHP) Overlay Zoning District, Bluff Overlay Zoning District, and the Height Overlay District. Overlay Districts may be a constraint to the development of housing when it sets standards which are more restrictive than the Zoning Code. Overlav Coastal Districts The purposes of the individual overlay coastal zoning districts and the way they are applied are detailed below. An overlay district may be initiated as a CoastalZoning Map amendment in compliance with Chapter21.14of the City's Municipal Code. All development within these zones must comply with the applicable development standards (e.g., setbacks, height) of the underlying coastalzoning district in addition to the standards provided by the respective zone as outline in the Municipal Code, where applicable. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-8 SS3-67 City of Newport Beach 2021-2025 HOUSING ELEMENT Mobile Home Park Overlay Coastal Zoning DlstrlCL The MHP Overlay Coastal Zoning District is intended to establish a mobile home district on parcels of land developed with mobile home parks. The regulations of this district are designed to maintain and protect mobile home parks in a stable environment with a desirable residential character. However, such regulations may pose a constraint to the redevelopment of existing mobile home parks and increasing density. Uses allowed in the MHP Overlay include the following: + Mobile Home Parks + Accessory Structures incidental to the operation of Mobile Home Parks Bluff Overlay District The Bluff (B) Overlay District is intended to establish special development standards for areas of the City where projects are proposed on identified bluff areas. The Bluff Overlay District intends to provide additional regulations and requirements in order to establish safety standards for developments in the overlay District. Specific permitted uses, development standards, and requirements are outlined in the City's Municipal Code, Chapter 21.28.040. Additional regulations and development standards may prevent increased density or intensity in areas within the Bluff Overlay District. Canyon Overlay District The Canyon (C) Overlay District is intended to establish development setbacks based on the predominant line of existing development for areas that contain a segment of the canyon edge of Buck Gully or Morning Canyon. In order to ensure safe development of housing within the Canyon Overlay Districts, development standards and requirements include the following: + Development Stringline Setback: Development may not extend beyond the predominant line of existing developmenton canyon faces by establishing a development stringlinewhere a line is drawn between nearest adjacent corners of existing structures on eitherside of the subject property. + Swimming Pools require double wall construction + Coastal Hazards and Geologic Stability Report + Erosion Control Plan Additional specific development standards and requirements are outlined in the City's Municipal Code, Chapter 21.28.050. The Canyon Overlay District may inhibit added density or intensity of uses to residential properties within the overlay. Height Overlay The Height (H) Overlay District is intended to establish standards for review of increased building height in conjunction with the provision of enhanced project design features and amenities. The Height Overlay District includes properties located in the Multiple Residential (RM) Zoning District within Statistical Area A2. The maximum height limit is 40 feet for a flat roof and 45 feet for a sloped roof with a three-story maximum. Additional standards, regulations, and eligibility requirements are outline the in Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-9 (DRAFT APRIL 2021) SS3-68 City of Newport Beach 2021-2025 HOUSING ELEMENT the City's Municipal Code, Chapter 21.28.060. The Height Overlay District is not considered a constraint to development as it provides for higher height limits. State Density Bonus Law Density bonuses are an additional way to increase the number of dwelling units otherwise allowed in a residentially zoned area. The City's Zoning Ordinance identifies the purpose of the Density Bonus Ordinance is to grant density bonuses and incentives for the development of housing that is affordable to very low-, low-, and moderate -income households and senior citizens. Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low income, low-income, or moderate -income households. Effective January 1, 2021, California State Assembly Bill 2345 amends the Density Bonus Law to expand and enhance development incentives for projects with affordable and senior housing components. AB 2345 amends the Density Bonus Law to increase the maximum density bonus from 35 percent to 50 percent. To be eligible for the maximum bonus, a project must set aside at least (i) 15 percent of total units for very low income households, (ii) 24 percent of total units for low income households, or (iii) 44 percent of for -sale units for moderate income households. Levels of bonus density between 35 percent and 50 percent are granted on a sliding scale. The City's currently adopted Density Bonus Ordinance is no longer consistent with State law and must be amended to comply with new statutory requirement. Implementing Action 3.1.2 of the Section 4: Housing Plan outlines the City's plan to maintain compliance with State legislation. Density Bonus Programs The currently adopted density bonuses are eligible for developments which contain five or more dwelling units and meet the requirements outlined in Chapter20.32 of the Newport Beach Municipal Code. Units which are not eligible for density bonus include developments where affordable housing is required under the provisions of Title 19. When a development which meets the requirements, density bonuses are applicable as shown in Table 3-3 and Table 3-4 below for different income categories. Developments which meet the requirements for Senior housing will be entitled to a density bonus of twenty percent of the number of senior housing units. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-10 (DRAFT APRIL 2021) SS3-69 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-3: Density Bonus Calculations IVery Low Income IPercentage of Base Units Proposed Density Bonus Percentage 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 I 11 35 ILow Income IPercentage of Base Units Proposed Density Bonus Percentage 10 20 11 I 21.5 12 23 13 24.5 14 26 15 27.5 17 30.5 18 32 19 33.5 20 35 Source: City of Newport Beach Municipal Code Chapter 20.32 Table3-4: Density Bonus Calculations Moderate Income Percentageof Base Units Proposed Density Bonus Percentage 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-11 SS3-70 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-4: Density Bonus Calculations I IModerate Income I IPercentage of Base Units Proposed Density Bonus Percentage I 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 Source: City of Newport Beach Municipal Code Chapter 20.32 Additionally, when an applicant for a residential development agrees to donate land to the City for very low-income households, the applicant is then entitled to a density bonus for the entire market rate development, if the conditions specified in the City's Municipal Code Section 20.32.030 are met. An applicant is entitled to an increase above the maximum allowed residential density as outline in Table 3-5. Table 3-5: Density Bonus Calculations IVery Low Income IPercentage of Base Units Proposed I Density Bonus Percentage 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 Source: City of Newport Beach Municipal Code Chapter 20.32 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-12 SS3-71 City of Newport Beach 2021-2025 HOUSING ELEMENT Additional regulations for density Bonuses include the following: + Fractional Units: The calculation ofa density bonus, in compliance with any of the above requirements, that results in fractional units shall be rounded up to the next whole number. + Mixed Income Development: If the applicant desires to develop a density bonus project available to a mix of income levels, the Director determines the amount of density bonus to be granted up to a maximum of 35 percent. Concessions and Incentives When qualified for a density bonus, an applicant may request additional parking incentives beyond those provided above. When requested, the City may grant the following (inclusive of handicap and guest parking): + Zero to one bedroom: one on-site parking space per unit; or + Two or more bedrooms: two on-site parking spaces per unit. In addition to a request for parking incentives, an applicant who meets the density bonus requirements may also submit a proposal for a reduction in the site development standards or architectural design requirements; approval of mixed-use zoning in conjunction with the housing development; other regulatory incentive proposed by the client or the Citythat will result in identifiable, financially sufficient, and actual cost reductions; and/or a direct financial contribution granted by the Council at its sole discretion. Additional Incentives may also apply for developments with a childcare component, requirements and applicable incentives are outlines in detailed in the City's Municipal Code Section 20.32.060. Incentives and density bonuses allow for increased opportunity and feasibility for the production of affordable housing in a community, the City of Newport Beach's Incentives and Density Bonus programs are comparable to similar Southern California communities and are a constraint to the development of housing for all income levels. Residential Development Standards Citywide, outside the specific plan areas, the City regulates the type, location, density, and scale of residential development primarily through the Zoning Code. The following summarizes the City's existing residential zoning districts: + Residential -Agricultural (R -A) — Residential -Agricultural is intended to provide for single lots appropriatefor detached single -unit residential dwellingunits and lightfarming. + Single -Unit Residential (R-1) — Single -Unit Residential is intended to provide for a range of detached single -unit residential dwelling units on single lots. This land use designation does not include condominiums or cooperative housing. + Two -Unit Residential, Balboa Island (R -BI) — Two -Unit Residential Balboa Island is intended to provide for a maximum of two residential dwelling units, or duplexes. This is designation is reserved to single lots on Balboa Island. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-13 SS3-72 City of Newport Beach 2021-2029 HOUSING ELEMENT T it + Two -Unit Residential (R-2)—Two-Un it Residential is intended to provide for single lots appropriate for a maximum of two residential dwellingunits, or duplexes. + Multiple Residential (RM)— Multiple Residential is intended to providefor area appropriate for multi- unit residential developments containing attached or detached dwelling units. + Medium Density Residential (RMD) — Medium Density Residential is intended to provide for areas appropriatefor medium density residential developments containing attachedor detached units. + Mixed -Use Vertical (MIJIM — Mixed -Use Vertical is intended to provide for area appropriate for the development of mixed-use structures that vertically include residential dwelling units. Residential dwelling units are located abovethe ground floor, which includes office, restaurant, retail, and similar nonresidential uses. + Mixed -Use Mariners' Mile (MU -MM) — Mixed -Use Mariners' Mile is intended to provide for areas appropriate for commercial and residential uses. Mariners' Mile is located on the inland side of Coast Highway in the Mariners' Mile Corridor. Properties thatfrontCoast Highway may only be developed for nonresidential purposes. Properties to the rear of the commercial frontage may be developed for freestanding nonresidential uses, multi -unit residential dwelling units, or mixed-use structures that integrate residential abovethe ground floorwith nonresidential uses on the ground floor. + Mixed -Use Cannery Village and 15th Street (MU-CV/151 St.) — Mixed -Use Cannery Village and 151 Street is intended to establish a cohesive district or neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses include multi -unity dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonreside ntial uses along the streetfrontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed -Use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots. + Mixed -Use Water (MU -W1)— Mixed -Use Water is intended to be appliedto waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed.A minimum of 50 percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and victor -serving land uses are mixed. An approved site development review is required prior to any development to ensure uses are fully integrated and that potential impacts from their differing activities are fully mitigated. Design of nonresidential spaceto facilitate marine -related uses is encouraged. + Mixed -Use Water (MU -W2) — This second Mixed -Use Water designation is intended to apply to waterfront properties in which marine -related uses may be intermixed with general commercial, visitor - related commercial and residential dwelling units on the upperfloors. The City's Zoning Code also regulates the development on land through minimum and maximum standards on lot size, lot width and depth, setbacks, and on lot coverage and floor -area ratio (FAR). Table 3-6 below provides the development standards for each residential zoning district in Newport Beach: Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-14 SS3-73 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-6: Development Standards in NewportBeach-Dimensions Dimensions Min. Yard Setbacks Construction Standards Min. Min. Min. Lot Max. Zone Lot Lot Front Rear Max. Site Size Side (feet) Height Max. FAL (squar Width Depth (feet) (feet) (feet)* Coverage (feet) (feet) e feet) Residential Districts R -A 87,120 125 N/A 20 5 25 24,296 N/A 40% 2.0 (Citywide) 6,000, 60, R-1 N/A 20 3,42 10 24,296 1.5 N/A 5,0001 501 (Corona del Mar) R-1- 6,000 60 80 20 6 6 24,296 N/A 60% 6,000 R-1- 7,200 70 90 20 5 20 35,406 N/A 60% 7,200 R-1- 10,000 90 100 15 10 10 24,296 N/A 60% 10,000 1.5 1.5 plus R -131I 2,375 50, N/A 20 See Note 3. 10 ft. 24,296 N/A s q ft. 2.0 (Citywide) 6,000, 60, R-2 N/A 20 See Note 3. 10 ft. 24,296 1.5 N/A 5,0001 501 (Corona del Mar) R-2- 6,000 60 80 ft. 20 6 ft. 6 ft. 24,296 N/A 60% 6,000 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-15 SS3-74 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-6: Development Standards in NewportBeach-Dimensions Dimensions Min. Yard Setbacks Construction Standards Min. Min. Min. Lot Max. Zone Lot Lot Front Rear Max. Site Size Side (feet) Height Max. FAL Width Depth (feet) (feet) Coverage (squar (feet)* (feet) (feet) e feet) 6,000, RM N/A 20 See Note 3. 10 ft. 28,336 1.74 N/A 5,0001 501 RMD 6,000, 60, N/A 20 See note 4. 25 ft. 28,336 N/A N/A 5,0001 501 RM- 60 60 80 20 6 ft. 6 ft. 28,336 N/A 60% 6,000 Mixed -Use Zoning Districts 1.0 (Mixed - MU -V 2,500 25 0 0-55 0-55 26,316 Use) MU- 1.0 (Mixed - 10,000 50 0 0-55 0-55 26, 316 MM Use) MU- 1.0 (Mixed - 40,000 100 0 0-55 0-55 32, 376 DW Use MU- CV/15t 5,000 40 0 0-55 0-55 26,316 1.0, 1.5' 1 St. MU_ 20,000 200 0 0-55 0-55 26,316 1.0, 1.5' W1 MU_ 2,500 25 0 0-55 0-55 26,316 0.75, 0.8' W2 Notes: (1) Corner Lot, Interior Lot respectively (2) lots<40 wide, lots>40 wide respectively (3) 3 ft. for lots> 40ft. wide, 4 ft. for Iots40'1" —49'11" wide, and 8%of Average Lot Width for lots > 50 ft. respectively, (4) N/A for lots > 40ft. wide, 5 ft. for lots 40'1" — 49'11" wide, and N/Afor lots> 50 ft. (5) Adjoining residential district (6) Flat roof, Sloped roof respectively (7) Mixed Use, Residential respectively Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-16 SS3-75 City of Newport Beach 2021-2025 HOUSING ELEMENT Yard Requirements Yards allow for open space, landscaping and greenery, emergency access, and pedestrian and vehicular circulation on a site. Requirements are set in order to ensure there is adequate available space designated to these elements on a property when considering new development or improvements. Included in these requirements are setbacks areas that are located between a setback line and the property line and must remain unobstructed. Setbacks provide the following: + Visibility and traffic safety + Access to and around structures + Access to natural light and ventilation + Separation of incompatible land uses + Space for privacy, landscaping, and recreation + Protection of natural resources + Safety from fire and geologic hazard The City's yard requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Site Coverage and Floor Area Limit Site coverage and Floor Area Limit (FAL) requirements maintain mass and intensityof a use for residential uses. The Newport Beach Zoning Code defines site coverage as the percentage of a site covered by structures and accessory structures, as well as decks that exceed 30 inches in height. Maximum site coverage standards limit the footprint of a building and calculates it as a percentage between the ground floor area of a building and the net area of a lot. The FAL refers to the gross floor area allowed on a residential lot and is determined by multiplying the allowed buildable area of the lot times the applicable multiplier for the lot. FAL requirements limit the total usable floor area to limit the bulk of a building to the land, other buildings, and public facilities. maximum Building Heignt Maximum building heights are set and defined in the City's Zoning Code to maintain symmetry and compatibility between existing and proposed developments. The height is measured as the vertical distance from the grade ofthe pad to the highest part of the structure, including protective guardrails and parapet walls. The height limit may be increased within specific areas through the adoption of a Planned Community Development, a specific plan, a planned development permit, a coastal development permit Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-17 (DRAFT APRIL 2021) SS3-76 City of Newport Beach 2021-2025 HOUSING ELEMENT MOM in the coastal zone, or a site development review. The deviation in maximum height limit requires approval of a discretionary action. • R -A, R-1, R -BI, and R-2 Zoning Districts have height limits of 24 feet for structures with flat roofs (including guard rails and parapet walls) and 29 feet for sloped roofs. A discretionary approval may permit height up to 28 feet for flat roofs and 33 feet for sloped roofs. • RM and RMD Zoning Districts have height limits of 28 feet for structures with flat roofs and 33 feet for sloped roofs. The height of the structure maybe increased to 32 feet for foot roof and 37 feet for sloped roofs through discretionary approval. Properties located in the Height (H) Overlay District may increase height limits to 40 feet for flat roofs and 45 feet for sloped roofs. • Planned Community Districts may also propose and regulate their own height limits. The City's building height requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Usame open apace The City's Zoning Code defines Usable Open Space as an outdoor or enclosed area on the ground, roof, balcony, deck, porch, or terrace, used for outdoor living, active or passive recreation, pedestrian access, or landscaping. This does not include parking facilities, driveways, utility, or service areas, required setbacks, and sloped or submerged land. All residential districts in Newport Beach have a maximum site coverage to allow for open space. Mixed -Use districts require 75 square feet per dwelling unit of common open space and 5 percent of the gross floor area of private open space for each unit. The City's usable open spaces requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. 'arking Ptandard: Adequate off-street parking shall be provided to avoid street overcrowding and maintain parking opportunities for the public to visit the coast. This is maintained through the City's parking requirements for each housing unit type, as shown in Table 3-7. Parking requirements mayadd to the development cost of a property and project as spaces and garage parking create additional costs and remove potentially livable space. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-18 (DRAFT APRIL 2021) SS3-77 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-7: Parking Requirements for Residential Uses Unit Type Number of Spaces Required Accessory Dwelling Unit 1 parking space, with exceptions I�1 Junior Accessory Dwelling Unit No additional parking required Single -Unit Dwellings — Attached 2 per unit in a garage Single -Unit Dwellings — Detached and less than 4,000 sq. ft. of floor 2 per unit in a garage a rea Single -Unit Dwellings — Detached and 4,000 sq. ft. of floor area 3 per unit in a garage Single -Unit Dwellings—Balboa 2 per unit in a garage Island 2 per unit covered, plus guest parking Multi -Unit Dwellings— 3 units 1-2 units, no guest parking required 3 units, 1 guest parking space Multi -Unit Dwellings -4 units or 2 per unit covered, plus 0.5 space per unit for guest parking more Two -Unit Dwellings 2 per unit; 1 in a garage and 1 covered or in a garage Live/Work Units 2 per unit in a garage, plus 2for guest/customer parking Senior Housing— Market Rate 1.2 per unit Senior Housing—Affordable 1 per unit Note: 1. Parking is waived for ADUs if the property is within % mile walking distance to transit (including ferry); within an architecturally or historically significant district; on -street parking permits are required and not provided to the occupant of theADU; orwithin one block ofa car -share vehicle pick-up/drop-off location Source: City of Newport Beach Municipal Code The City's parking requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Variety of Housing Types Permitted Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards in order to facilitate development of a variety of housing types for all socioeconomic levels of the population. Housing types include single -unit dwellings, multi -unit housing, accessory dwelling units, factory -built housing, mobile homes, employee and agricultural work housing, transitional and supportive housing, single -room occupancy units (SROs), and housing for persons with disabilities. Table 3-8 below identifies the various housing types permitted within each residential and Table 3-9 identified housing types permitted in mixed-use zoning district in Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-19 (DRAFT APRIL 2021) SS3-78 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-8: Various Housing Types Permitted in Residential Zones Housing Type Residential Zones Nonresidential Zones I R -A R-1* R -BI R-2 I RM RMD OA PI I Single-UnitDwellings— Attached - - P P P P Single -Unit Dwellings— Detached P P P P P P Multi -Unit Dwellings - - - - P P Two -Unit Dwellings - - P P P P Accessory DwellingUnit(s) P P P P P P Junior Accessory DwellingUnit(s) P P P P P P - - Live -Work Units - - - - -- -- - - Short -Term Lodging - - P P P P - - Residential Care Facilities— P P P P P P - - Limited (6 or fewer) Licensed Residential Care Facilities— CUP- CUP- Limited (6 orfewer) Unlicensed -- -- -- -- HO HO -- -- Residential Care Facilities— CUP- CUP- General (7 or More) Licensed -- -- -- -- HO HO -- -- Residential Care Facilities— CUP- CUP- General (7 or More) Unlicensed -- -- -- -- HO HO -- -- Residential Care Facilities— CUP- CUP- Integral Facilities/Integral Uses -- -- -- -- HO HO -- -- Parolee -Probationer Home - - - - -- -- - - Farmworke r Housing NA NA NA NA NA NA NA NA Supportive Housing NA NA NA NA NA NA NA NA Transitional Housing NA NA NA NA NA NA NA NA EmergencyShelters - - - - -- -- P P Low Barrier Navigation Centers NA NA NA NA NA NA NA NA Notes: P— Permitted by Right A — Allowed MUP — Minor Use Permit CUP -HO — Conditional Use Permit in Residential Zoning Districts (--) - Not Allowed NA—Not Listed/Stated *Located above I,' floor Source: City of Newport Beach Municipal Code Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-20 SS3-79 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-9: Mixed -Use Housing Types Permitted in Mixed -Use Zones Zones Housing Type MU -CV/ MU -V MU -MM MU -DW 15th St. MU -W1 MU -W2 Single -Unit Dwellings— P. (1) -- -- P (3) P. (1) P* (2) Attached Single -Unit Dwellings— -- -- -- -- Detached Multi -Unit Dwellings P. (1) P (1)(2) P (1) P (3) -- -- Two -Unit Dwellings P. (1) -- -- P (3) -- -- Accessory Dwe I ling Un it(s) P P P P P P Junior Accessory Dwelling P P P P P P Unit(s) Live -Work Units P P (1)(2) P P (3) -- -- Notes: *Located above 15tfloor (1) Allowed only as part of a mixed-use development. Refer to Section 20.48.130 (Mixed -Use Projects) for additional development standards. (2) Not allowed to front onto Coast Highway. Not allowed on lots at street intersections unless part of mixed-use or live -work structure. Source: City of Newport Beach Municipal Code Single -Unit Dwelling A Single -Unit Dwelling is defined in the Newport Beach Zoning Code as a structure on a single lot containing one dwelling unit and one housekeeping unit. The structure shall be constructed in compliance with the California Building Code (CBC) and placed on a permanent foundation. Single -Unit Dwellings may be attached or detached. An attached dwelling is owned in fee, located on an individual lot, and shares a wall or roof with another structure. Adetached dwelling is also owned in fee and located on an individual but is not connected to another structure in any way. Multi -Unit uwumng A Multi -Unit Dwelling contains three or more dwellings units within the same structure occupied on a single lot. Each dwelling unit is occupied by separate housekeeping units. This housing type includes triplexes (3 dwelling units in one structure), fourplexes (four dwelling units in one structure), and apartments (5 or more dwelling units in one structure), where each structure is owned by one entity and each dwelling unit is rented out. Condominiums are also multi -unit dwellings, but each individual dwelling unit is owned by separate entities. The structure must be placed on a permanent foundation and constructed in compliance withthe California Building Code (CBC). Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-21 (DRAFT APRIL 2021) SS3-80 City of Newport Beach 2021-2025 HOUSING ELEMENT ..- Two -Unit Dwelling A Two -Unit Dwelling contains two dwelling units, each occupied by their own housekeeping unit, and located within the same structure. This may be referred to as a duplex. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC). ,,,,,.....,...., n...,.I/:...,,. IIv ;4 /An I r An Accessory Dwelling Unit is a secondary dwelling unit, attached or detached, to the primary residence(s) on a single lot. This may be referred to as a "grannyflat", "in-law unit", or "carriage house". An ADU must include a kitchen, a full bathroom, a living area, and a separate entrance.The Newport Beach Zoning Code includes efficiency units and manufactured homes as ADUs. JuniorADUs (JADUs) are defined by the City's Municipal Code as a dwelling unit accessoryto and entirely contained within an existing or proposed single -unit dwelling. A JADU may not be greaterthan 500 square feet, and it must either include its own sanitation facilities or share facilities with the single -unit dwelling. A JADU must also include its own efficiency kitchen. I ivA_Wnrk Ilnit Live -Work Units refer to structures that include both a commercial and a single dwelling unit. Commercial uses are generally located on the ground floor, with the dwelling unit located one to two stories above. Short -Term Lod_gin_q Short -Term Lodging refers to a dwelling unit that is rented or leased as a single housekeeping unit for 30 days or less. Residential Care Facilities - General Licensed (7 or More Persons) General Licensed Residential Care Facilities provide a single housekeeping unit for individuals with a disability who reside at the facility. There may be 7 or more individuals residing at the facility, but they each reside in separate dwelling units. The facility may include a place, site or building, or groups of places, sites, or buildings, licensed by the State. Residential Care Facilities - General Unlicensed (Seven or More Persons) General Unlicensed Residential Care Facilities include a place, site or building, or groups of places, sites, or buildings, which are not licensed by the State and provide housing to 7 or more individuals with disabilities in separate dwelling units. The facility is not required by law to be licenses by the State. Kesiaentlal Care I-acimies — LlmlteCt Licensed p or I -ewer I✓ersons) Limited Licensed Residential Care Facilities provide care, services, and/or treatment in a community residential setting for six or fewer individuals. Individuals may include adults, children, or adults and children. The facility shall be considered a single housekeeping unit and must therefore be in compliance with all land use and property development regulations applicableto single housekeeping units. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-22 (DRAFT APRIL 2021) SS3-81 City of Newport Beach 2021-2029 HOUSING ELEMENT Residential Care Facilities - Small Unlicensed (6 or Fewer Persons) Small Unlicensed Residential Care Facilities include a place, site or building, or groups or places, sites, or buildings in which 6 or fewer individuals with disabilities reside in separate dwelling units. The facility is not required by law to be licensed by the State. Parolee -Probationer Home refers to a structure or dwelling unit which houses 2 or more parolees - probationers who are unrelated by blood, marriage, or legal adoption. The parolees -probationers reside here in exchange for monetary or nonmonetary consideration given and/or paid by the parolee - probationer and/or any public or private entity or person on behalf of the parolee -probationer. The residential structure may be operated by an individual, a for-profit entity, or a nonprofit entity. fi4nhi/P 14nmP Park A Mobile Home refers to transportable trailerthat is certified underthe National Manufactured Housing Construction and Safety Standards Act of 1974. The mobile home is over 8 feet in width and 40 feet in length and may or may not include a permanent foundation. A mobile home on a permanent foundation is considered single -unit dwelling. Convalescent Home Convalescent Home refers to an establishment that provides 24-hour care for persons requiring regular medical attention. Aconvalescent home may be referredto as a "nursing home" or "hospice". This facility does not provide emergency medical services orsurgical services. Common Interest Development Common Interest Developments include community apartment projects, condominium projects, planned developments, and stock cooperative. Farmworker Housing Farmworkers are considered a special needs interest group by HCD. Farmworkers are traditionally defined as people whose primary incomes are earned through permanent or seasonal agricultural labor. Farmworkers are generally considered to have special housing needs due to their limited income and the often -unstable nature of their employment. In addition, farmworker households tend to have high rates of poverty, live disproportionately in housing that is in the poorest condition, have extremely high rates of overcrowding, and have low homeownership rates. There is a total of 1,772 farmworkers in the County of Orange, though few may reside in Newport Beach the City must consider the housing needs of this community. The Newport Beach Municipal Code does not explicitly define Farmworker Housing or outline it as a permitted use in residential or nonresidential zones. Policy Action 30 of the Section 4: Housing Plan outlines the City's strategyto updatethe Municipal Code in accordancewith state legislation. ,supportive Housing California State Assembly Bill 2162 amended Section 65583, Planning and zoning law to specify that supportive housing is a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. The Cityof Newport Beach's Municipal Code does Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-23 (DRAFT APRIL 2021) SS3-82 City of Newport Beach 2021-2025 HOUSING ELEMENT not explicitly define Supportive Housing or identify zones where is it is a permitted use. Policy Action 76 of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. The City of Newport Beach defines Transitional Housing as rental housing operating under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient program at some predetermined future point in time, which shall be no less than six months. Transitional housing that is provided in single-, two- or multi -unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses shall be permitted, conditionally permitted or prohibited in the same manner as the other single-, two-, or multi- unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses under this code. The City of Newport Beach's Municipal Code does not explicitly identify Transitional Housing as a permitted use within the appropriate zones as required by state law. Policy Action 713 of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. -marrrancv ChPItPrc State Law existing law authorizes a political subdivision to allow persons unable to obtain housing to occupy designated public facilities, as defined, during the period of a shelter crisis. Existing law provides that certain state and local laws, regulations, and ordinances are suspended during a shelter crisis, to the extent that strict compliance would in any way prevent, hinder, or delay the mitigation of the effects of the shelter crisis. The City of Newport beach permits Emergency shelters in the OA — Office Airport zoning district and the PI — Private Institutions Coastal zoning district. Properties designated for PI are distributed throughout the City, but primarily located along major transportation corridors and offer easyaccess to public transportation. The PI zoning district is intended to provide for areas appropriate for privately owned facilities that serve the public, including places for assembly/meeting facilities (e.g., religious assembly), congregate care homes, cultural institutions, health care facilities, marinas, museums, private schools, yacht clubs, and comparable facilities. There are over 44 parcels totaling approximately 135 acres in the proposed PI zoning district. Several of the existing uses on these properties are religious assemblyuses, manyof which consist of large campuses. Given the high land costs in the City, these religious assembly facilities could provide the best means to facilitate the development and management of emergency shelters in the City. Additionally, properties designated for OA are located within three large blocks east of John Wayne Airport, west of Birch Street, north of Bristol Street/73 Freeway, and south of MacArthur Boulevard. These properties are also located along major transportation corridors and offer easy access to public transportation. The AO zoning district is intended to provide for areas appropriate for the development of properties adjoining the John Wayne Airport for uses that support or benefit from airport operations. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-24 (DRAFT APRIL 2021) SS3-83 City of Newport Beach 2021-2025 HOUSING ELEMENT These may include corporate and professional offices; automobile sales, rental and service; aviation sales and service; hotels; and accessory retail, restaurant, andservice uses. There are over 56 parcels totaling approximately 54 acres in the AO zoning district. Several of the existing uses on these properties are low and medium density professional office buildings, many of which are aging and offer affordable rents compared to most other parts ofthe City. These properties should provide realistic opportunities for reuse of these structures for the development and management of emergency shelters in the City. Combined, the PI and AO zoning districts consist of over 98 parcels and 189 acres. Byallowing emergency shelters as permitted uses within these districts, adequate sites are available for the potential development of emergency shelters in the City. AB 101 states that "The Legislature finds and declares that Low Barrier Navigation Center developments are essential tools for alleviating the homelessness crisis -." Low Barrier Navigation Centers are defined as a Housing First, low -barrier, service -enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low Barrier Navigation Centers are required as a use by right in areas zoned for mixed uses and nonresidential zones permitting multi -unit uses if it meets specified requirements. The City of Newport Beach's Municipal Code does not address Low Barrier Navigations Centers by definition. A program will be adopted to ensure the City's development standards allow Low Barrier Navigation Centers By -Right in all zones that permit mixed -uses and non-residential uses. Policy Action 7A of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. Plannarl rnmm►Inity 11lictrirrt The Planned Community (PC) District is intended allow for a coordinated variety of uses and allows projects to benefit from large-scale community building. PC Districts allowfor greater flexibility and less restrictive development regulations, while also maintaining compliance with the intent and provisions of the Zoning Code. The Newport Beach Municipal Code states that a PC District may include various types of uses given they are consistent with the General Plan through the adoption of a development plan and text materials that identify land use relationships and associated development standards. PC Districts allowfor large scale housing projects on land areas no less than 25 acres of unimproved land area or 10 acres of improved land area; however, the City Council may waive the minimum acreage requirements. Improved land area refers to parcels of land with existing permanent structures occupying at least 10 percent of the total PC District. The subject property must be reclassified as a PC District and a Development Plan must be filed with the City to initiate the development process. The Development Plans are reviewed by the Director, scheduled for a public hearing before the Planning Commission for a recommendation, and approved by the City Council. A Planned Community District must alsogo through an environmental review. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-25 (DRAFT APRIL 2021) SS3-84 City of Newport Beach 2021-2029 HOUSING ELEMENT The Development Plan must contain: + Aland use map contain ingthe distribution, location, and extent of uses proposed + Land use tables designating permitted uses + Development standards + Protection measures for landforms and publicviews + Sustainable improvement standards + Location and extent of essential facilities including circulation and transportation, drainage, energy, sewage and waste disposal, and water + Development standards forconservation, development, and utilization of natural resources + A program of implementation measures, programs, regulations, and public works projects + A topographical map to illustrate the characterof the terrain and condition of existing vegetation + A summary of the relationship between the proposed development plan and the goals, policies, and actions of the General Plan Growth Management Measures Growth management measures are techniques used by a government to regulate the rate, amount, and type of development. Growth management measures allow cities to grow responsibly and orderly, however, if overly restricted can produce constraints tothe development of housing, including accessible and affordable housing. On November 7, 2000, the Newport Beach electorate approved Measure S. Measure S amended the Newport Beach City Charter byadding Section 423, which requires voter approval of certain amendments of the Newport Beach General Plan. Meaning, an amendment shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it. Charter Section 423 encourages the City Council to adopt implementing guidelines that are consistent with its purpose and intent. I n the case of Charter Section 423, an amendment to the General Plan is defined as any proposed amendment of the General Plan that is first considered and/ or approved by the City Council subsequent to December 15, 2000 and that increases the number of peak hour trips (traffic), floor area (intensity), or dwelling units (density) when compared to the General Plan prior to approval. _ _ adur( The City Council determines if an amendment requires voter approval pursuantto Section 423, based on the following conditions: + The Amendment mod if iesthe a I I owed use(s) of the property or area that is the subject of the Amendment such thatthe proposed use(s)generate(s) more than one hundred morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-26 SS3-85 City of Newport Beach 2021-2025 HOUSING ELEMENT + The Amendment authorizes an increase in floorarea forthe property or area that is the subject of the Amendment that exceeds fortythousand (40,000) square feet when compared to the General Plan before approval of the Amendment; or + The Amendment authorizes an increase in the numberof dwelling units forthe propertyor area that is the subject of the Amendment that exceeds one hundred (100) dwelling units when compared to the General Plan before approval of the Amendment; or + The increase in morning or evening peak hour trips, floor area or dwelIingunits resulting from the Amend mentwhen added to eighty percent (80%)ofthe increases in morning or evening peak hour trips, floor area or dwelling units resulting from Prior Amendments ( see definition in Section( 2)J exceeds one or more of the voter approval thresholds in Section 423 as specified in Subsection 1, 2 or 3. If the City Council determines that the Amendment requires voter approval, the City Council then adopts a resolution calling an election on the Amendment. The City Council schedules the election on the Amendment at the next regular municipal election (as specified by the City Charter) or at a special election if the City and the proponent of the Amendment have entered into a written agreement to share the costs of the special election. The City Attorney then prepares an impartial analysis of the Amendment which contains information about the Amendment, any related project or land use approval, and the environmental analysis conducted of the Amendment that will help the electorate make an informed decision on the Amendment. In the absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code. Charter Section 423 restricts growth throughout the community as it may discourage housing development projects, and particularly affordable housing projects. Projects subject to Charter Section 423 may require significant capital investment which may yield uncertain election results. Specific Plans The purpose of a Specific Plan is to implement the goals and objectives of a city's General Plan in a more focused and detailed mannerthat is area and project specific. The Specific Plan promotes consistence and an enhanced aesthetic level throughout the project community. Specific Plans contain their own development standards and requirements that maybe more restrictive than those defined for the city as a whole. Banta dna 14,oinht- The Santa Ana Heights Community is located to the north of Newport Beach between East Side Costa Mesa and the Upper Newport Bay. The area was previously within County of Orange's permitting jurisdiction and the redevelopment project area was designated to eliminate blight. The land has since been annexed into Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-27 (DRAFT APRIL 2021) SS3-86 City of Newport Beach 2021-2029 HOUSING ELEMENT The principal objectives of the Santa Ana Heights Specific Plan include: + Encourage the upgrading of existing residential neighborhoods and business development areas + Ensure well-planned business parkand commercial developments which are adequately bufferedfrom adjacent residential neighborhoods + Encourage the consolidation of smaller contiguous lots in the business park area + Ensure that business park and residential traffic are separated to the maximum extent possible, while minimizing impact upon existing parcels + Ensure adequate provision of publicworks facilities as development occurs + Enhance equestrian opportunitieswith the residential equestrian neighborhood + Enhance the overall aesthetic character of the community The Santa Ana Heights Specific Plan identifies design and landscaping guidelines in Section 20.90.030 of the Newport Beach Zoning Code; the development standards are provided in Table 3-4. Table 3-6 also identifies the housing types permitted in each zoning district. Zoning district designations within the project area include the following: + Open Space and Recreational District: SP -7 (OS/R- Open Space and Recreational District is intended to establish the long-term use and viability of the Newport Beach Golf Course. + Residential Equestrian District: SP -7 (REQ) Residential Equestrian District is intendedto provideforthe development and maintenance of a single -unit residential neighborhood in conjunction with limited equestrian uses.Thezoning district is intendedto maintain a rural characterwith an equestrian theme. + Residential Kennel District: SP -7 (RK) - Residential Kennel District is intended to provide for the development of a single -unit residential neighborhood in conjunction with commercial kennel businesses. + Residential Single -Family District: SP -7 (RSF) - Residential Single -Family District is intended to provide for the development of medium density single -unit detached residential neighborhoods. Permitted uses should complementand be compatiblewith residential neighborhoods. + Residential Multiple -Family District: SP -7 (RMF) - Residential Multiple -Family District is intended to provide for the development of high-density multi -unit residential neighborhoods with a moderate amount of open space. Permitted uses should complement and be compatible with residential neighborhoods. + Horticultural Nursery District: SP-7(HN) - Horticultural NurseryDistrict is intended to ensurethe long- term use and viability of the horticultural nursery uses located along Orchard Drive in the western section of Santa Ana Heights. + General Commercial District: SP -7 (GC) - General Commercial District is intended to provide regulations for the commercial areas along South Bristol Street and ensure the continuation of commercial uses Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-28 SS3-87 City of Newport Beach 2021-2029 HOUSING ELEMENT which offer a wide range of goods and services to both the surrounding residential and business communities. This district is intendedto promotethe upgraded aestheticimage of the community and reduceconflicts between commercial and residential uses. + Business Park District: SP-7(BP) -Business Park District is intended to provide for the development and maintenance of professional and administrative offices, commercial uses, specific uses related to product development, and limited lightindustrial uses. The district shall protectthe adjacent residential uses through regulation of building mass and height, landscape buffers, and architectural design features. + Professional and Administrative Office District: SP -7 (PA) - Professional and Administrative Office District is intended to provide for the development of moderate intensity professional and administrative office uses and related uses on sites with large landscaped open spaces and off-street parking facilities. This district is intended to be located along heavily trafficked streets or adjacent to commercial or industrial districts. This district may also be used to buffer residential areas. + Professional, Administrative, and Commercial Consolidation District: SP -7 (PACC) - Professional, Administrative, and Commercial Consolidation District is intended to provide for the development of professional and administrative office uses and commercial uses on lots located between South Bristol Street and Zenith Avenue in a mannerwhich ensures lot consolidation and vehicular access to and from South Bristol Street. + Planned Development Combining District (PD) - Planned Development Combining District is intended to provide a method for land to be developed using design features which take advantage of modern site planning techniques to produce an integrated development project amongst existing and potential developmentof the surrounding neighborhoods. Housing for Persons with Disabilities Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (that is, modifications or exceptions) to their zoning laws and other land use regulations when such accommodations may be necessaryto afford disabled persons an equal opportunity to use and enjoy a dwelling. The Housing Element Update must also include programs that remove constraints or provide reasonable accommodations for housing designed for persons with disabilities. The analysis of constraints must touch upon each of three general categories: 1) zoning/land use; 2) permit and processing procedures; and 3) building codes and other factors, including design, location and discrimination, which could limit the availability of housing for disabled persons. Reasonable Accommodation Reasonable accommodation in the land use and zoning context means providing individuals with disabilities or developers of housing for people with disabilities, flexibility in the application of land use and zoning and building regulations, policies, practices and procedures, or even waiving certain requirements, when it is necessaryto eliminate barriers to housing opportunities. For example, it maybe reasonable to accommodate requests from persons with disabilities to waive a setback requirement or Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-29 (DRAFT APRIL 2021) SS3-88 City of Newport Beach 2021-2029 HOUSING ELEMENT other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances. The Reasonable Accommodation Chapter of the City's Municipal Code provides a procedure and sets standards for disabled persons seeking a reasonable accommodation in the provision of housing and is intended to comply with federal and statefair housing laws. According tothe Reasonable Accommodation Chapter of the City's Municipal Code, a request for reasonable accommodation may be made by any person with a disability, their representative, ora developer or provider of housing for individuals with a disability, and a reasonable accommodation may be approved only for the benefit of one or more individuals with a disability. Once an applicant requests reasonable accommodation via all appropriate forms and submittals (as outline in Chapter 20.25.070 of the Newport Beach Municipal Code), the following actions may be taken by the Hearing Office: + The Hearing Officer shall issue a written determination to approve, conditionally approve, or deny a request for reasonable accommodation, and the associated modification or revocation. + The reasonable accommodation request shall be heard with, and subject to, the notice, review, approval, call for review, and appeal procedures identifiedfor any other discretionary permit. + On review the Counci I may sustain, reverse, or modify the decision of the Hearing Officer or remand the matter for further consideration, which remand shall include specific issues to be considered or a direction fora de novo hearing. The written decision to approve or deny a request for reasonable accommodation must be consistent with all the applicable Federal and State laws and is be based on consideration of the following findings, all of which are required for approval, the requested accommodation: + Is requested by or on the behalf of one or more individuals with a disability protected under the Fair Housing Laws. + Is necessaryto provide one or more individuals with a disability an equal opportunityto use and enjoy a dwelling. + Will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in Fair Housing Laws and interpretive case law. + Will not result in a fundamental alteration in the nature of a City program, as "fundamental alteration" is definedin Fair HousingLawsand interpretive case law; and + Will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. In making determinizationfor a request for reasonable accommodation, the hearing officer may consider a variety of factors; factors for consideration by the hearing officer are listed (but limited to) in Chapter 20.52.070 of the Newport Beach Municipal Code. Reasonable accommodation generates practical opportunity and increased feasibility for the creation of accessible housing and the Newport Beach's City process is not considered a constraint to the development of housing for all persons. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-30 (DRAFT APRIL 2021) SS3-89 City of Newport Beach 2021-2025 HOUSING ELEMENT Definition of Family A restrictive definition of "family" that limits the number of unrelated persons and differentiates between related and unrelated individuals living together is inconsistent with the right of privacy established by the California Constitution. The City's Municipal Code defines "family" as one or more persons living together as a single housekeeping unit in a dwelling unit. The Code also defines a single housekeeping unit as the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas, and sharing household activities and responsibilities (e.g., meals, chores, household maintenance, expenses, etc.) and where, ifthe unit is rented, all adult residents have chosen tojointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit ratherthanthe landlord or property manager. The City's definition of family does not limit the number of unrelated persons living together, however the definition for single housekeeping unit, as it relates to family, may require an update by the Cityas it considers a unit the equivalent to a traditional family. Development Fees Residential developers are subject to a variety of permitting, development, and impact fees in order to access services and facilities as allowed by State law. The additional cost to develop, maintain, and improve housing due todevelopment fees result in increased housing unit cost, andtherefore is generally considered a constraint to housing development. However, fees are necessary to provide planning and public services in Newport Beach. The location of projects and housing type result in varying degrees of development fees. The presumed total cost of development is alsocontingent on the project meeting city policies and regulations and the circumstances involved in a particular development project application. Table 3-10 provides the planning and land use fees assessed by City of Newport Beach and Table 3-11 provides the engineering and development services fees required for development projects. Estimated total development and impact fees for a typical single -unit residential project, assuming it is not part of a subdivision and is consistent with existing city policies and regulations can range from $41,613 to $45,593. Estimated total development and Impact fees for a typical multi -unit residential project with ten units, assuming it is consistent with existing City policies and regulations range from $311,256 to $316,236. These estimates are illustrative in nature and that actual costs are contingent upon unique circumstance inherent in individual development project applications. Considering the high cost of land in Newport, and the International Code Council (ICC) estimates for cost of labor and materials, the combined costs of permits and fees range from approximately 1.04 percent to 1.14 percent of the direct cost of development for a single -unit residential project and 1.44 percent to 1.5 percent for a multi -unit residential project. Direct costs do not include, landscaping, connection fees, on/off-site improvements, shell construction or amenities, therefore the percentage of development and impact fees charged by the City may be smaller if all direct and indirect costs are included. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-31 (DRAFT APRIL 2021) SS3-90 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-10: Planning and Land Use Fees Type Fee Deposit Hourly Rate Amateur Radio and Satellite Dish Antenna Permit $1,379 Amendment—General Plan -- $7,500 $239 Amendment — Local Coast Program -- $3,300 $239 Amendment — Planned Community -- $7,500 $239 Amendment—Zoning Code -- $7,500 $239 Appeals to City Council $1,715 -- -- Appeals to Planning Commission $1,715 -- -- Approval in Concept Permit $839 -- -- Certificate of compliance $358 + $12 County $370 -- -- Coastal Development Permit/ Parcel Map Bundle $2,974 -- -- Coastal Development Permit Waiver / Initial Review $1,085 -- -- Compliance Letters/ Minor Records Research $382 -- -- Comprehensive/ Heritage/ Innovative Sign Program $1,841 -- -- Condominium Conversion Permit $1,325 -- -- Development Agreement -- $10,000 $239 Development Agreement Annual Review $1,367 -- -- Director/ Staff Approval $961 -- -- Extensions of Time (except Abatement Period) $168 -- -- Environmental Documents -- -- $166 Heritage Sign Review -- -- $166 In -Lieu Parking -- -- $150 Limited Term Permit — Less than 90 Days $592 -- -- Limited Term Permit — More than 90 Days $1,994 -- -- Limited Term Permit — Seasonal $274 -- -- Lot Line Adjustment $2,065 -- -- Lot Merger $2,065 -- -- Modification Permit $2,934 -- -- Nonconforming Abatement Period Extension $611 -- -- Operators License—Application $897 -- -- Operators License—Appeal $853 -- -- Planned Community Development Plan -- $10,000 $239 Planned Development Permit $5,518 -- -- Preliminary Application for Residential Development $760 -- -- Public Noticing Costs $497 -- Site Development Review— Major $5,219 -- Site Development Review— Minor $2,970 -- -- Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-32 SS3-91 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-10: Planning and Land Use Fees Type Fee Deposit Hourly Rate Subdivision Parcel Map $2,069 -- -- Subdivision Tentative/Vesting Tract Map $5,139 -- -- Temporary Banner Permit ($50 +$1 Recorded Management Fee) $51 0.06% of Construction Cost Disabled Access Compliance Review Transferof Development Rights $3,857 -- Grading Plan Review of Complex Projects by Consultant Use Permit — Conditional $5,271 -- Determination of Unreasonable Hardship Use Permit — Minor $2,970 -- -- Variance $4,637 -- -- Zoning Plan Check -- -- $185 Sources: City of Newport Beach Planning Division Fee Schedule (Effective 0810812020 per Council Resolution 2020-29). Table 3-11: Engineering and Development Services Fees Plan Review Type Fee Preliminary Plan Review $179 Plan Check Hourly Rate $146 Additional Plan Reviewand Rechecks in Excess oft $146 Plan Review $72% of Building Permit Fee Repetitive Plan Review $25 of Plan Check Fee Energy Compliance Review 0.06% of Construction Cost Disabled Access Compliance Review 0.1%of Construction Cost Grading Plan Review by City Staff 72% of Grading Permit Fee Grading Plan Review of Complex Projects by Consultant 120% of Consultant Fee Solar Systems Up to and Including 3KW $135 Determination of Unreasonable Hardship $248 Electrical Plan Review 72% of Total Permit Fee Mechanical Plan Review 72% of Total Permit Fee Plumbing Plan Review 72% of Total Permit Fee Drainage Plan Review for Alterationto Drainage $247 Water Quality Management Plan Review (Commercial Projects) $873 Water Quality Management Inspections (Commercial Projects) $1,206 Water Quality Management Plan Review/Inspections Building Fee (Residential Projects) $625 Water Quality Management Plan Review/Inspection Check Fee (Residential Projects) $448 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-33 SS3-92 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-11: Engineering and Development Services Fees Plan Review Type Fee Overtime Plan Review 1.75X regularplan checkfees ($271 minimum) Plan Check Extension $53 Harbor Construction 72% of Permit Fee Waste Management Administration Fee $16 Sources: City of Newport Beach Master Fee Schedule (2011) Impact Fees Impact fees are assessed on a case-by-case bases depending on the proposed use, location, and density. Impact fees ensure adequate maintenance and provision of public facilities and services to the project and include transportation, school, park and open space, waste management, sewage, and water. Table 3-12 provides the fees calculated based on land use in Newport Beach. Table 3-12: Development Impact fees Use Fee Transportation (Fair Share) Single -Unit Development $2,482/unit Residential -Medium Density $1,9412/unit Apartment $1,4672/unit Elderly Residential $9032/unit Mobile Home $1,3542/unit Nursing/ Convalescent Home $6092/unit School Impact Fee N-MUSD Residential Developer Fee $1.84/sq.ft.(l) Park Dedication Park Dedication $30,217/unit San Joaquin Transportation CorridorAgency (TCA)— ZoneA (2) Single Unit $6,056/unit Multi -Unit $3,536/unit San Joaquin Transportation CorridorAgency (TCA) —Zone B(2) Single Unit $4,310/unit Multi -Unit I $2,513/unit Sources: City of Newport Beach Planning Division Fee Schedule (Effective 08108/2020 per Council Resolution 2020-29), Resolution No. 2020-95. Newport -Mesa Unified School District Developer Fees Notes: (1) Addition under 500 sq.ft. maybe exempt (2) Effective July 1, 2020—June 30, 2021. The fee rate schedule increases by 2.667% each year on July 1St Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-34 SS3-93 City of Newport Beach 2021-2029 HOUSING ELEMENT On -/Off -Site Improvements Site improvements in the City consist of those typically associated with development for on-site improvements (street frontage improvements, curbs, gutters, sewer/water, and sidewalks), and off-site improvements caused by project impacts (drainage, parks, traffic, schools, and sewer/water). Thus, these are costs that may influence the sale or rental price of housing. Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of development of housing within the City. Majority of cost associated with on and off-site improvements is undertaken by the Cityand recovered in the City's development and impact fees. The City's construction codes are based upon the California Code of Regulations, Title 24 that includes the California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code, Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building Standards Code, and California Referenced Standards Code. They are the minimum necessaryto protect the public health, safetyand welfare of the City's residents. In compliance with State law, the California Building Standards Code is revised and updated every three (3) years. The newest edition of the California Building Standards Code is the 2019 edition with an effective date of January 1, 2020. The Citystrives to provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits. Code enforcement is conducted by the City and is based on systematic enforcement in areas of concern and on a complaint basis throughout the city. The Code Enforcement Division works with property owners and renters to assist in meeting state health and safety codes. The Code Compliance Department investigates complaints regarding violations of the Newport Beach Municipal Codes. The following are frequent enforcement items: + Hazardous property conditions + Overgrown vegetation + Housing Code violations (broken windows, peeling paint) + Inoperable and abandoned vehicles on private property + Signs, including signs in public right-of-way and signs without permits + Solid Waste (earlyset-outofcontainers, inadequate containers, illegal dumping) + Water quality and conservation + Zoning requirements, (i.e. illegal dwelling units and use requirements) Local Processing and Permit Procedures The processing time needed to obtain development permits and required approvals is commonly cited by the development community as a prime contributor to the high cost of housing. Depending on the Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-35 (DRAFT APRIL 2021) SS3-94 City of Newport Beach 2021-2025 HOUSING ELEMENT magnitude and complexity of the development proposal, the time that elapses from application submittal to project approval mayvary considerably. Factors that can affect the length of development review on a proposed project include the completeness of the development application and the responsiveness of developers to staff comments and requests for information. Approval times are substantially lengthened for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendments, encounter community opposition, or are appealed to or require approval from the Coastal Commission. Applicants for all permits or reviews are recommended to request a preapplication conference with the respective department to achieve the following: + I nformthe a pp I icant of City requirements as they a p ply to the proposed project. + Review the City's review process, possible project alternatives or revisions; and + Identify information and materials the City wi I I require with the app I ication, and any necessary technical studies and information relatingto the environmental review of the project All applicable fees relatedto permits and reviews are established by the City Council and can be found in the City's Master fee schedule (Tables 3-10 and 3-11). All applications are first reviewed for completeness, discretionary applications require the respective department to provides a written report and recommendation, applications arethen subjectto review bythe appropriate authority. Table 3-13 below identifies the reviewauthority responsiblefor reviewing and making decisions on eachtype of application required by the Newport Beach Zoning Code. Permit review procedures for residential developments in the City of Newport Beach are outlined below. Table 3-13: Review Authority for Permit Application Role of Review Authority' Applicable Code Director Zoning Hearing Commission CounCi12 Type of Action Chapter/Section Administrator Officer Administrative and Legislative Interpretations Section 20.12.020 Determination -- -- Appeal Appeal Planned Chapter 20.56 -- -- -- Recommend Decision Communities Specific Plans Chapter 20.58 -- -- -- Recommend Decision Zoning Code Chapter 20.66 -- -- -- Recommend Decision Amendments Zoning Map Chapter 20.66 -- -- -- Recommend Decision Amendments Permits and Approvals Conditional Use Section 20.52.020 -- -- -- Decision Appeal Permits Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-36 (DRAFT APRIL 2021) SS3-95 City of Newport Beach 2021-2025 HOUSING ELEMENT Table 3-13: Review Authority for Permit Application Role of Review Authority' Applicable Code Director Zoning Hearing Commission CounCi12 Type of Action Chapter/Section AdministratorOfficer Conditional Use Permits—Residential Section 20.52.030 -- -- Decision -- Appeal Zones HO Minor Use Permits Section 20.52.020 -- Decision 3 -- Appeal Appeal Modification Permits Section 20.52.050 -- Decision -- Appeal Appeal Planned Development Section 20.52.060 -- -- -- Decision Appeal Permits Reasonable Section 20.52.070 -- -- Decision -- Appeal Accommodations Site Development Section 20.52.080 -- Decision 3 -- Decision Appeal Reviews Variances Section 20.52.090 -- -- -- Decision Appeal Zoning Clearances Section 20.52.100 Determination -- -- Appeal Appeal Notes: (1) "Recommend" means that the Commission makes a recommendation to the Council; "Determination" and "Decision" mean that the review authority makes the final determination or decision on the matter; "Appeal" means that the review authority may consider and decide upon appeals to the decision of a previous decision-making body, in compliance with Chapter 20.64 (Appeals). (2) The Council is the final review authority for all applications in the City. (3) The Director or Zoning Administrator may defer action and refer the request to the Commission for consideration and final action. Source: City of Newport Beach Municipal Code, Chapter 20.50 Permit Application Filing and Processing Conditional UA- Oer►rr;`- •- E --'.'-. al Zoni- The purpose and intend of Conditional Use Permits in residential zoning districts, as identified by the Newport Beach Municipal Code Chapter 20.52.030, is to promote the public health, safety, and welfare and to implement the goals and policies of the General Plan by ensuring that conditional uses in residential neighborhoods do not change the character of the neighborhoods as primarily residential communities. As well as, to protect and implement the recovery and residential integration of the disabled, including those receiving treatment and counseling in connection with dependency recovery. In doing so, the City seeks to avoid the over -concentration of residential care facilities so that these facilities are reasonably dispersed throughout the community and are not congregated or over -concentrated in any particular area so as to institutionalize that area. A conditional use permit is required to authorize uses not previously permitted as allowable in the applicable residential zoning district or in an area where residential uses are provided for in Planned Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-37 (DRAFT APRIL 2021) SS3-96 City of Newport Beach 2021-2025 HOUSING ELEMENT Community Districts or specific plan districts. An application for a conditional use permit, meeting all the requirements outline in Chapter 20.52.030 D, is then reviewed bythe Directorto ensure that the proposal complies with all applicable requirements. Additionally, all conditional use permit applications require a public hearing and a public notice of the hearing. The review authority identified in Table 3-9 above is designated to approve, conditionally approve, or deny applications for conditional use permits in residential zoning districts. 'CI•., 0_1//PIA/C The City of Newport Beach identifies the purpose of site development reviews as providing a process for the review of specific development projects in order to: + Ensure consistency with General Plan policies related to the preservation of established community character, and expectations for high quality development. + Respectthe physicaland environmental characteristics of the site. + Ensure safe and convenient access and circulation forpedestrians and vehicles. + Allowfor and encourage individual identity for specific uses and structures. + Encourage the maintenance of distinct neighborhood and/orcommunity identity. + Minimize or eliminate negative or undesirable visual impacts. + Ensure protection of significant views from public right(s)-of-wayin compliance with Section 20.30.100 (Public View Protection); and + Allowfor different levels of review depending on the significanceof the development project. Site development review is required before the issuance of a building or grading permit for any new structure. Structures that do not require a site development review (but instead require a zoning clearance) include, accessory structures, fences and/or walls, reconstruction or exterior remodeling of existing structures, one to four dwelling units, without a tentative or parcel map, and non-residential up to a maximum of 9,999 square feet of gross floor area. Site development review and approval is determined by either the Zoning Administrator or the Planning Commission. Table 3-14 below identifies the applicable review authorityfor different development types. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-38 (DRAFT APRIL 2021) SS3-97 City of Newport Beach 2021-2029 HOUSING ELEMENT Table3-14: ReviewAuthority and Action for Residential Construction Role of Review Authority (1) (2) Zoning Administrator Planning Type of Construction Activity (Minor Review) Commission (Major Review) Residential construction: 5 to 20 dwelling units, without a Decision Appeal tentative or parcel map. Residential construction: 5 or more dwelling units with a tentative or parcel map and 21 or more dwelling units, -- Decision without a tentative or parcel map. Residential construction: On a bluff, an increase in the boundaries of a development area in compliance with the -- Decision findings in Section 20.28.040 (Bluff (B) Overlay District). Mixed-use projects: lto4dwelling units and nonresidential construction of up to a maximum of 9,999squarefeet of Decision Appeal gross floor area. Mixed-use projects: 5 or more dwelling units and/or nonresidential construction of 10,000 square feet or more of -- Decision gross floor area. Source: City of Newport Beach Municipal Code A site development review is initiated when the Department receives a complete application package including the required information and materials specified bythe Directorand any additional information required by the applicable review authority in order to conduct a thorough review of the project. Upon receipt of a complete application the applicable review authority shall conduct a review of the location, design, site plan configuration, and effect of the proposed project on adjacent properties by comparing the project plans to established development standards and adopted criteria and policies applicable to the use or structure. The following criteria shall be considered during the review of a site development review application: + Comp I iance with this section, the General Plan, this Zoning Code, any a pplicablespecific plan, and other applicable criteria and policies related to the use or structure. + The efficient arrangement of structures on the site and the harmonious relationship of the structures to one anotherandto otheradjacentdevelopments; and whetherthe relationship is basedon standards of good design. + The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas. + The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways,and parkingand loadingspaces. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-39 SS3-98 City of Newport Beach 2021-2029 HOUSING ELEMENT + The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and + The protection of significant views from public right(s)-of-way and compliance with Section 20.30.100 (Public View Protection). All site development reviews require a public hearing and a notice of the hearing. The review authority may approve or conditionally approve a site development review application. 7nninrf f`1o!3ri2nrr A Zoning clearance is the procedure used by the City to verify that a proposed use or structure complies with the activities allowed in the applicable zoning district and the development standards and other provisions of the City's Zoning Code. A zoning clearance is required as a prerequisite to establishing a structure for the following: • Before the initiation or commencement of any use of land not requiring the construction of a structure. • Whenever a use is proposed to be changed, whether or not the new use involves a new lessee, operator, or owner, a zoning clearance shall be obtained. • Before the City issues a new or modified building permit, grading permit, or other construction - related permit required for the alteration, construction, modification, moving, or reconstruction of any structure. The Department may issue the zoning clearance after first determining that the request complies with all Zoning Code provisions and other adopted criteria and policies applicable to the proposed use or structure. An approval may be in the form of a stamp, signature, or other official notation on approved plans, a letter to the applicant, or other certification, at the discretion of the Director. Review authority for Zoning Clearances is stated in Table 3-11 above. z. Infrastructure Constraints Another factor that could constrain new residential construction is the requirement and cost to provide adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to serve new residential development. In most cases, where new infrastructure is required, it is funded by the developer and then dedicated to the City, which is then responsible for its maintenance. Because the cost of these facilities is generally borne by developers, it increases the cost of new construction, with much of that increased cost often "passed on" in as part of home rental or sales rates. The Utilities Department oversees, manages, and maintains the water, wastewater (sewer), storm drain and tidal valve system, street sweeping, streetlights and oil and gas operations for the City of Newport Beach. The City has water, sewer and dry utilities that exist or are planned to accommodate residential development in the community. As the City is essentially built out, the infrastructure in place is designed and located to accommodate potential for additional housing identified for the 61" Cycle Housing Element. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-40 (DRAFT APRIL 2021) SS3-99 City of Newport Beach 2021-2025 HOUSING ELEMENT Dry Utilities Dry utilities are the installation of the electric, telephone, TV, internet, and gas in a community. Of the utilities, the City must plan to provide the necessary resources, such as electric and gas, to increased households from 2021-2029, as projected by the RHNAallocation. Southern California Edison (SCE) is the electrical service provider for the City of Newport Beach. SCE is regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and Southern California. The SCE reliability report identifies the reliability of electricity services tothe Cityand identifies any dependability issues that exist in the City. There are 52 circuits that serve the City of Newport Beach, in total the 52 circuits serve 77,199 customers. SCE measure reliability by three categories: + System Average Interruption Duration Index (SAIDI)—totaIminutes every SCEcustomerwas without power due to sustained power outage (outage> S minutes) divided by total number of customers + System Average Interruption Frequency Duration Index (SAIFI) — Number of sustained customer outages experienced by all SCE customersdivided by total number of customers + CustomerAverageInterruptionDurationIndex(MAIFI)— System average inter ruptionduration index divided by system average interruption frequency index Overall, the City of Newport Beach experience relatively low interruptions compared to the overall service provided to all SCE customers, displayed in Figure 3-1. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-41 (DRAFT APRIL 2021) SS3-100 City of Newport Beach 2021-2025 HOUSING ELEMENT Figure 3-1: Reliability History of Circuits Serving Newport Beach (No Exclusions) 2016 200.0 150.0 134.5 SAIDI L18A (average 100.0 minutes of sustained interruptions) 50.0 SA IR (average frequency of sustained interruptions) M UR (average frequency of momentary interruptions) 0.0 1.4 1.2 1.0 0.8 0.5 0.4 0.2 0.0 2.0 1.5 1.0 0.5 0.0 2017 2018 2014 317 139.7 136.8 d 144.8 85.0 Source: Southern California Edison, Reliability Reports, Newport Beach 2020 r ■ Newport Beach ■ SCE SYSTEMWIDE —Exodusions" are days which utilities are allowed to remove from their metrics because the outages on those days were caused by acts of nature. "Data is as of 0211M2020, data can be slightly different due to outage data validation process SCE will continue to provide adequate services to the City of Newport Beach including increased household growth as projected by the City's RHNAallocation. Natural Gas Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas is a gas -only utility and, in addition to serving the residential, commercial, and industrial markets, provides gas for enhanced oil recovery (EOR) and EG customers in Southern California. The SoCal Gas 2020 utility report projects total gas demand to decline at an annual rate of 1 percent from 2020-2035. From 2020- 2035, residential demand is expected to decline from 230 Bcf to 198 Bcf. The decline is approximately 1 percent per year, on average. The decline is due to declining use per meter—primarily driven by very aggressive energy efficiency goa Is and associated programs— offsetting new metergrowth.1 SoCalGas engages in several energy efficiency and conservation programs designed to help customers identify and implement ways to benefit environmentally and financially from energy efficiency investments. Programs administered by SoCalGas include services that help customers evaluate their energy efficiency options and adopt recommended solutions, as well as simple equipment -retrofit improvements, such as rebates for new hot water heaters. Additionally, the City of Newport Beach 1 SoCal Gas 2020 Calif omia Gas report, Prepared in Compliance with California Public Utilities Commission Decision D .95-01-039 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-42 (DRAFT APRIL 2021) SS3-101 City of Newport Beach 2021-2029 HOUSING ELEMENT employs programs for energy and utility conservation, outline below in Section 3: Housing Resources, Opportunities for Energy Conservation. Water Supply The City of Newport Beach Utilities Department currently serves a population of over 86,000 within a service area of approximately fifty square miles. The Department is responsible for providing a safe and reliable source of water to approximately 26,200 active connections and delivering approximately 13,500 - acre feet (AF) of water per year on average .2 The City's distribution system consists of approximately 300 miles of distribution pipelines and is divided into five main pressure zones: Zone 1 through Zone 5 with 16 minor zones. Zones 1 and 2 are the largest and cover most of the system demands. Zones 3, 4 and 5 are smaller pumped zones. The system infrastructure consists of four wells, three storage reservoirs, five pump stations and 43 pressure reducing stations (PRS) that manage pressure across the system .3 The City of Newport Beach water division is separated into four sections: water maintenance and repair, water production, water quality, and water system services, each department's duties are outlined below. Togetherthe division is responsible for providing a safe and reliable source of water. Newnnrt Reach Wafter Snurr-e The City receives its water from several sources, local groundwater from the Lower Santa Ana River Groundwater Basin, imported water purchased from the Municipal Water District of Orange County (MWDOC), and recycled water purchased from Orange County Water District (OCWD). Most of the City's water supply is groundwater, pumped from four wells within the Cityof Fountain Valley. Imported water is treated at the Diemer Filtration Plant operated bythe Metropolitan Water District of Southern California (Metropolitan). The City is not capable of treating water to produce reclaimed water but purchases water from OCWD through the Green Acres Project. 4 Water Maintenance and Repair Water Maintenance & Repair is responsible for the maintenance and operation of the City's water mains and valves that are located underground. Water Production Water Production operates, maintains, and disinfects the City of Newport Beach's water supply. The division operates two well sites which produce groundwater from the Orange County Basin as well as three water reservoirs to receive, store and distribute the City's water. Other water facilities that assist in the distribution and treatment process include: five water pumpstations, five Metropolitan Water District interconnections, and 42 water pressure regulating stations. Water Production also manages SCADA (Supervisory Control and Data Acquisition) which monitors and controls the pumps in the City's water wastewater and gas systems. 2 City of Newport Beach, Water rate Study, 2019 3 City of Newport Beach, Water Master Plan, 2019 4 City of Newport Beach, Urban Water Management Plan (2015) Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-43 SS3-102 City of Newport Beach 2021-2025 HOUSING ELEMENT Big Canyon Reservoirs Located at 3300 Pacific View Drive in Corona Del Mar. The Big Canyon Reservoir is the largest Cityowned reservoir with a capacity of 600 -acre foot or 195 million gallons. Built in 1958 this reservoir was the primary water supply for Newport for many years. Although the reservoir does have the ability to supply water to the entire service area the reservoir is primarily used as a storage reservoir and supply to the City's higher -pressure zones. Spyglass Hill Reservoir Located under the Spyglass Reservoir park at the end of Muir Beach Circle in Spyglass is the 1.5 -million - gallon concrete reservoir. Built in the 1970s to supply the surrounding community this 101 -foot diameter and 27 -foot -deep reservoir is under the playground park. Large concrete support columns and thick concrete roof and walls support this reservoir. 16th Street Reservoir Located at the Utilities Yard at 949 West 16th Street in Newport Beach the newest of our reservoirs is a 3 -million -gallon underground concrete reservoir. Built in 1996 as part of the City's ground water project, this reservoir receives well water from ourfour Cityowned wells in Fountain Valley. This reservoir supplies watertothe 16th Street pump stationthat can pump up to 12,000gallons per minute into our distribution system. Excess water not used in the system is stored in the Big Canyon Reservoir in Corona Del Mar. water duality The City of Newport Beach Utilities Department is responsible for providing residents with a reliable, safe, clean, potable, and domestic water supply. Newport Beach's drinking water is safe for drinking. It meets or exceeds all Federal and California water quality standards, which are the most stringent standards of any state in the nation. The City's staff continuously monitors the City's water supply and conducts more than 1,500tests each year on potable water drawn from different sampling points along our distribution system. Water System Services assists City of Newport Beach customers with any questions regarding water quality, water pressure, consumption usage, any concern with water meters, leak detection, utilities inspections and underground utility locating. The City's Water Systems Services webpage provides tips and information for proper water systems care for property owners as well as additional resources. WastPwatPr Wastewater is responsible for the collection of residential and commercial wastewater. This Division has three sub -sections: Pump Station Operation, Cleaning Operation and Construction Operation. These three sub -sections provide service relating to pump station repair and maintenance, sewer main, lateral and manhole cleaning, sewer blockage and odor, and sewer main and lateral breaks and repairs. The City's Wastewater department is responsiblefor203 miles if sewer pipe, 120 miles of sewer laterals, approximately 5,000 manholes, 21 pump stations, and five miles of force mains. The City's 2019 Sewer System Management Plan states the department's main goals to include the following: Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-44 SS3-103 City of Newport Beach 2021-2029 HOUSING ELEMENT + Maintain uninterrupted sewage flow without health hazard, effluent leakage, or water infiltration and inflow. + Operate a sanitary sewer system that meets aIIregulatory requirements. + Avoid sanitary sewer overflows and respond to sanitary sewer overflows quickly and mitigate any impactof the overflow. + Maintain standards and specifications for the installation of new wastewater systems. + Verify the wastewater collection system has adequate capacityto convey sewage during peak flows. + Provide training for Wastewater Collection staff. + Maintain the Fats, Oil, and Grease program (FOG program) to limit fats, oils, grease, and other debris that may cause blockages in the wastewater collection system. + Identify and prioritize structural deficiencies and implement short-term and long-term maintenance and rehabilitation actions to address each deficiency. + Meetall applicable regulatory notificationand reporting requirements. + Provide excellent customer service through efficient system operation and effective communication strategies. The Orange County Sanitation District (OCSD)provides sanitation services to the City of Newport Beach. In 2013, the sanitation district began a construction program to rehabilitate the OCSD's regional sewers in the City. The program ran through 2018 and consisted of five construction projects, including: + Dover Drive Trunk Sewer Relief (5-63): The Dover Drive Trunk sewer runs between Irvine Blvd. and Coast Highway and is in poor condition. The existing sewer pipeline also does not have efficient hydraulic capacity to handle the wastewater flow and must therefore be replaced with a larger pipeline. OCSD will also relocate a city waterline to reduce the level of impact for the community by eliminating the need for a secondary project in the area. + Balboa Trunk Sewer Rehabilitation (5-47): This project will rehabilitate the existing Balboa Trunk sewer along Newport Blvd. and Balboa Blvd. between A Street and Finley Ave. (See map: between A Street Pump Station and Lido Pump Station.) The project includes installation of a new protective lining in approximately 12,600 feet of sewer pipeline. + Newport Force Main Rehabilitation (5-60): The Newport Force Main is a critical component of our sewer system and needsto be rehabilitated. It carries the wastewaterflowfrom various pump stations to our treatment plant in Huntington Beach. The pipelines are located on Coast Highway stretching past Dover Dr. to the Bitter Point Pump Station, approximately 1/4 mile north of Superior Ave., which is a heavily traveled thoroughfare. There are two sewerlines, one on the north side of Coast Highway and one on the south side which make the rehabilitation more complex. + District 6 Trunk Sewer Relief (6-17): The District 6 Trunk sewer runs from Pomona Ave. in the City of Costa Mesa to Newport Blvd. near Coast Highway inthe City of Newport Beach. This projectwill increase Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-45 SS3-104 City of Newport Beach 2021-2029 HOUSING ELEMENT the capacity of the existing sewer pipeline to reduce the potential for sewerspills and to properly handle flows. + Southwest Costa Mesa Trunk (6-19): In an effort to improve efficiency in our service area, this project is looking into the design and construction of anew gravity trunk sewer. This project may lead to the abandonment of eight Costa Mesa and Newport Beach pump stations to provide more reliable service to the community The infrastructure improvements initiated by OCSD from 2013 to 2018 increased overall capacity and efficiency in the Newport Beach sewer system. The City can accommodate the increase in households as projected by the City's RHNAallocation. water Demand In fiscal year 2014-15, the City's total water demand was approximately 16,033 acre-feet. The City's potable demand was met through 11,200 acre-feet of groundwater and 4,338 acre-feet of imported water; the remaining non -potable demand was met through recycled water. The City is projecting over five percent increase in total potable and non -potable demand in the next 25 years accompanied by a projected 13 percent population growth.5 The 2015 UWMP found that Metropolitan is able to meet full service demands of its member agencies with existing supplies out to 2040 during a normal, single -dry, and multiple -dry year scenario. Additionally, the 2019 Water Master Plan found that though population continues to increase over the past ten years, total water demand has decreased. The 10 -year average annual demand for 2007-2016 (15,991 AF) is 14 percent less than the 1986-1996 average annual demand (18,626 AF). The City's water infrastructure and service provider is capable of meeting the water demands of its customers under the same hydrological conditions out to 2040, this includes all household growth estimated by the City's RHNA allocation. Fire and Emergency Services The City of Newport Beach's Fire Department aims to Protect life, property, and the environment with innovative professionalism and organizational effectiveness using highly trained professionals committed to unparalleled service excellence. The department has 144 full-time employees and over 200 part-time/ seasonal employees provide 24-hour protection and response to the community's residents, businesses, and visitors. The department's primarygoals are identified as follows: • Identify and reduce fire and environmental hazards that may threaten life and property. • Provide a safe, effective, and expeditious responseto requests for assistance. • Develop an adequately trained work force to effectively perform their duties. • Participate in the community development planning process to improve fire and life safety. • Encourage department personnel to assume leadership roles in the organization. • Plan for response to natural and man-made disasters that affect the community. • Educate and train employees and the community to assist them in maintaining a safe environment. 5 City of Newport Beach, Urban Water Management Plan (2015) Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-46 (DRAFT APRIL 2021) SS3-105 City of Newport Beach 2021-2029 HOUSING ELEMENT The department's different divisions and respective duties are outlined below. moi•-- (lnor�finnc liivicinn The Fire Operations Division is the largest of four divisions within the Newport Beach Fire Department. The primary responsibilities of its personnel are life safety, incident stabilization, and the preservation of property and the environment. The Newport Beach Fire Department operates as an "all risk" emergency responsible organization responding to the following: + Fires + Pre -hospital Medical Emergencies + Technical Rescues + Traffic Accidents + Vehicle Extrications + Major Flooding + Beach Rescues + High Rise Incidents + Wildland Fires + Disaster Operations + Hazardous Materials Incidents The Fire Department staffs eight -fire stations 24/7. The stations are strategically located throughout the city to provide the quickest and most effective response to the area served, with an average response time of five minutes. Considering the department's expansive and well-connected nature, as well as the compactness of the City of Newport, additional housing or new developments would not pose a burden on the existing Fire Department's fire operations. Therefore, fire operations are not considered a constraint to the development of housing for all income levels. The City requires Development Agreements for certain development types within the Airport area to ensure adequate safety services and ambulance units. Development Agreements include additional fees for safetyservice operations in the airport area due to current lack of ambulance units. The imposition of additional fees may pose a constraint tothe development of housing, and particularly affordable housing. This may result in greater development fees which may subsequently influence the final rental cost of units or home value. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-47 (DRAFT APRIL 2021) SS3-106 City of Newport Beach 2021-2025 HOUSING ELEMENT 4FmergencyMedical Services The goal of the Emergency Medical Services (EMS) Division is to deliverthe highest quality of medical care to members of the community, regardless of their ability to pay. In total, the City has eight fire stations that are strategically located to provide the best services the community. Each day there are eight fire engines, twofire trucks and the three paramedic ambulances in service. The average response time is four minutes and 22 seconds. The system's design accounts for fewer paramedic ambulances and expects a nearby fire engine or truck company to arrive on scene first to initiate basic medical care, which at times can include lifesaving cardio -pulmonary resuscitation or delivering rapid electrical shocks using automated external defibrillators (AEDs), priorto the arrival of the paramedicteam. The City of Newport Beach's Lifeguard Division protects up to 10 million beach visitors on Newport Beach's 6.2 miles of ocean and 2.5 miles of bay beaches, with preventative actions and medical assistance. Every day of theyear, lifeguards ensure safetyand provide customer service to the visitors on the beach, boardwalk, piers, and in the ocean. Police Services The Cityof Newport Beach's Police Department intends to: + Respond positivelyto the Community's needs, desires, and values and in so doingbe recognized as an extension andreflectionof those we serve. + Strive to provide safe and healthy environment for al 1, free from violence and property loss resulting from criminal acts, and injuries caused by traffic vioIators. + Manage inevitable change and welcomethe challengeof future problemswith creative solutions, which are financially prudentand consistentwith Community values. The Department's is headed by Chief of Police Jon T. Lewis, who is the 10th Chief of Police in the department's history, assuming office on March 22, 2016. The Cityof Newport Beach's Police Department handles a wide array of services and permitting, all services are outlined in detail on the City's Police Department webpage. 3. Environmental Constraints Newport Beach is bound by the Pacific Ocean to the West and contains many different natural landscapes within the City's boundaries. Newport Beach has a variety of coastal features ranging from replenished beach sands in West Newport, to steep bluffs comprised of sandstone and siltstone to the south of Corona del Mar. The community, as most of California is, sits along some majorfault traces. The City is susceptible toseveral potential environmental constraints tothe development of housing, including geologic hazards, flood hazards, and fire hazards, all are detailed below. Coastal Hazards A goal of the California Coastal Act and the City's adopted Local Coastal Program is to assure the priority for coastal -dependent and coastal -related development over other development in the Coastal Zone. The Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-48 (DRAFT APRIL 2021) SS3-107 City of Newport Beach 2021-2025 HOUSING ELEMENT Coastal Act is an umbrella legislation designed to encourage local governments to create Local Coastal Programs (LCPs) to govern decisions that determine the short- and long-term conservation and use of coastal resources. The City of Newport Beach's LCP is considered the legislative equivalent of the City's General Plan for areas within the Coastal Zone. Local Coastal Programs are obligated by statute to be consistent with the policies of the Coastal Act and protect public access and coastal resources. Over 63 percent of Newport Beach is within the Coastal Zone and subject to the oversight by the California Coastal Commission. '__ I -^I Mic^ -4 S%or— Ir,�Iv,.J�fi�.•, Newport Beach is exposed to a variety of coastal hazards including beach erosion, bluff erosion, and coastal flooding due to sea level rise (SLR) and storm inundation. The City has a significant amount of land directly adjacent to surface water that is directly affected by sea level rise and storm inundation. The effects of SLR on coastal processes, such as shoreline erosion, storm -related flooding and bluff erosion, have been evaluated using a Coastal Storm Modeling System (CoSMoS), a software tool and multi -agency effort led by the United States Geological Survey (USGS), to make detailed predictions of coastalflooding and erosion based on existing and future climate scenarios for Southern California. The mapping results from CoSMoS provide predictions of shoreline erosion (storm and non -storm), coastal flooding during extreme events, and bluff erosion for the Cityin community -level coastal planning and decision-making. A large portion of the City's coastal adjacent land appropriate for development is at risk of tidal flooding. Land along the coast is vulnerable to shoreline retreat, which is predicted to accelerate with Sea Level Rise. Long-term shoreline retreat coupled with storm -induced beach erosion has the potential to cause permanent damage to buildings and infrastructure in these hazard zones. As a result, the City did not utilize land within the coastal The Coastal Commission provides direct guidance on how the City of Newport Beach addresses future land use in consideration of sea level rise. According to the California Coastal Commission Sea Level Rise Policy Guidance6 , local jurisdictions can "Minimize Coastal Hazards through Planning and Development Standards" through the following measures applicable to Newport Beach: + Design adaptation strategies according to local conditions and existing development patterns, in accordance with the Coastal Act. + Avoid significant coastal hazard risksto new development where feasible. + Minimize hazard riskto new development over the life of the authorized development. + Minimize coastal hazard risks and resource impacts when making redevelopment decisions. + Accountforthe socialand economic needs of the peopleof the state include environmental justice, assure priorityfor coastal-dependentand coastal -related develop over other development The Coastal Commission has also prepared a Draft Coastal Adaptation Planning Guidance: Residential Development (dated March 2018), which will serve as the Coastal Commission's policy guidance on sea 6 California Coastal Commission Sea Level Rise Policy Guidance, 2018 Science Update Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-49 (DRAFT APRIL 2021) SS3-108 City of Newport Beach 2021-2025 HOUSING ELEMENT level rise adaptation for residential development to help facilitate planning for resilient shorelines while protecting coastal resources in LCPs Geologic Hazards According to the Newport Beach Safety Element, the geologic diversity of Newport Beach is strongly related to tectonic movement along the San Andreas Fault and its broad zone of subsidiary faults. This, along with sea level fluctuations related to changes in climate, has resulted in a landscape that is also diverse in geologic hazards. Geologic hazards are generally defined as surficial earth processes that have the potential to cause loss or harm to the community or the environment. Specific geologic hazards that may affect the development of housing in the City are detailed below. Slone Failures Slope failures often occur as elements of interrelated natural hazards in which one event triggers a secondary event such as a storm -induced mudflow. Slope failure can occur on natural and man-made slopes. The City's remaining natural hillsides and coastal bluff areas are generally vulnerable to slope failures that include: San Joaquin Hills; and bluffs along Upper Newport Bay, Newport Harbor, and the Pacific Ocean. Despite the abundance of landslides and new development in the San Joaquin Hills, damage from slope failures in Newport Beach has been small which maybe attributed to the development of strict hillside grading ordinances, sound project design that avoid severely hazardous areas, soil engineering practices, and effective agencyreview of hillside grading projects. Seismic Hazards The Cityof Newport Beach is located in the northern part of the Peninsular Ranges Province, an area that is exposed to risk from multiple earthquake fault zones. The City of Newport Beach Safety Element determines that the highest risks originate from the Newport -Inglewood fault zone, the Whittier fault zone, the San Joaquin Hills fault zone, and the Elysian Parkfault zone. Each of the aforementioned zones have the potential to cause moderate to large earthquakes that would cause ground shaking in Newport Beachand nearby communities. Earthquake -triggered geologic effects alsoinclude surfacefault rupture, landslides, liquefaction, subsidence, and seiches. Specific hazards associated with seismic hazards, which can potentially be determined as a constraint to development aredetailed below. Liquefaction Strong ground shaking can result in liquefaction. Liquefaction, a geologic process that causes ground failure, typically occurs in loose, saturated sediments primarily of sandy composition. According to the Newport Beach Safety Element, the areas of Newport Beach susceptible to liquefaction and related ground failure (i.e. seismica llyinduced settlement) include areas along the coastlinethat includes Balboa Peninsula, in and around the Newport Bayand Upper Newport Bay, in the lower reaches ofmajorstreams in Newport Beach, and in the floodplain of the Santa Ana River. It is likely that residentialor commercial development will never occur in many of the other liquefiable areas, such as Upper Newport Bay, the Newport Coast beaches, and the bottoms of stream channels. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-50 SS3-109 City of Newport Beach 2021-2025 HOUSING ELEMENT Seismically Induced Slop Failure Strong ground motions can also worsen existing unstable slope conditions, particularly if coupled with saturated ground conditions. Seismically induced landslides can overrun structures, people or property, sever utility lines, and block roads, thereby hindering rescue operations after an earthquake. Much of the area in eastern Newport Beach has been identified as vulnerable to seismically induced slope failure. Approximately 90 percent of the land from Los Trancos Canyon to State Park boundary is mapped as susceptible to land sliding by the California Geologic Survey. Additionally, the sedimentary bedrock that crops out in the San Joaquin Hills is locally highly weathered. In steep areas, strong ground shaking can cause slides or rockfalls in this material. Rupture along the Newport Inglewood Fault Zone and otherfaults in Southern California could reactivate existing landslides and cause new slope failures throughout the San Joaquin Hills. Slope failures can also be expected to occur along stream banks and coastal bluffs, such as Big Canyon, around San Joaquin Reservoir, Newport and Upper Newport Bays, and Corona del Mar. Flood Hazards The City of Newport Beach and surrounding areas are, like mostof Southern California, subject to unpredictable seasonal rainfall, and every few years the region is subjected to periods of intense and sustained precipitation that result in flooding. Flooding can be a destructive natural hazard and is a recurring event. A flood is any relatively high streamflow overtopping the natural or artificial banks in any reach of a stream. Flood hazards in Newport Beach can be classified into two general categories: flash flooding from small, natural channels; and more moderate and sustained flooding from the Santa Ana River and San Diego Creek. The Cityof Newport Beach's Safety Element Identifies 100 -year and 500 -year flood zones in the City. Federal Emergency Management Agency (FEMA) flood zones a re geogra phic areas that the FEMA has defined according to varying levels of flood risk. Each zone reflects the severityor type of flooding in the area .7 The 100 -year flood zone are areas with a one percent annual chance of flooding, the500-yearflood zones are areas with a 0.2 percent annual chance of flooding. The 100- and 500 -year flood zones include the low-lying areas in West Newport at the base of the bluffs, the coastal areas which surround Newport Bay and all low-lying areas adjacent to Upper Newport Bay. 100- and 500- yearflooding is also anticipated to occur along the lower reaches of Coyote Canyon, in the lower reaches of San Diego Creek and the Santa Ana Delhi Channel, and in a portion of Buck Gully. The City also recentlyworked with FEMAto revise proposed flood hazards maps, in which FEMA removed over 2,700 properties from flood zones. Most flooding along these second- and third -order streams is not expectedto impact significant development. However, flooding in the coastal areas of the Citywill impact residential and commercial zones along West Newport, the Balboa Peninsula and Balboa Island and the seaward side of Pacific Coast Highway. s With increased development, there is also an increase in impervious surfaces, such as asphalt. Waterthat used to be absorbed into the ground becomes runoff to downstream areas. However, various flood control measures help mitigateflood damage in the City, including reservoirs in the San Joaquin Hills and 7 FEMA Flood Zone Designations, Natural resources Conservation Service - Field Office Technical Guides 8 City of Newport Beach Safety Element Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-51 (DRAFT APRIL 2021) SS3-110 City of Newport Beach 2021-2025 HOUSING ELEMENT MOM Santa Ana Mountain foothills, and channel alterations for the Santa Ana River. These structures help regulate flow in the Santa Ana River, San Diego Creek, and smaller streams and hold back some of the flow during intense rainfall period that could otherwise overwhelm the storm drain system in Newport Beach. Fire Hazards The Newport Beach Safety Element defines a wildland fire hazard area as any geographic area that contains the type and condition of vegetation, topography, weather, and structure densitythat potentially increases the possibility of wildland fires. The eastern portion of the City and portions of the Newport Beach region and surrounding areas to the north, east, and southeast include grass- and brush -covered hillsides with significant topographic relief that facilitate the rapid spread of fire, especially if fanned by coastal breezes or Santa Ana winds. In those areas identified as susceptible to wildland fire, the Fire Department enforces locally developed regulations which reduce the amount and continuity of fuel (vegetation) available, firewood storage, debris clearing, proximity of vegetation to structures and other measures aimed at "Hazard Reduction." New construction and development are further protected by local amendments to the Uniform Building Code. These amendments, which are designed to increase the fire resistance of a building, include: protection of exposed eaves, noncombustible construction of exterior walls, protection of openings, and the requirement for Class "A" fireproof roofing throughout the City. Additionally, a "Fuel Modification" plan aimed at reducing fire encroachment into structures from adjacent vegetation must be developed and maintained. Affirmatively Furthering Fair Housing All Housing Elements due on or afterJanuary 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Further Fair Housing Final Rule of July 16, 2015. Under State law, affirmatively further fair housing means "taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. These characteristics can include, but are not limited to race, religion, sex, marital status, ancestry, national origin, color, familiar status, or disability. The Orange County Analysis of Impediments (AI) to Fair Housing Choice for FY 2015-19 was approved by the City of Newport Beach City Council on Month 10, 2016 as one of the fifteen urban county program participants in partnershipwith the Fair Housing Council of Orange County. The Draft Regional Analysis of Impediments (AI)to Fair Housing Choicefor FY 2020-25 was made availablefor public review in 2020. The Fair Housing Council of Orange County works under the direction of a volunteer board of directors and Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-52 (DRAFT APRIL 2021) SS3-111 City of Newport Beach 2021-2029 HOUSING ELEMENT staff to fulfill a mission of protecting the quality of life in Orange County by ensuring equal access to housing opportunities, fostering diversity and preserving dignity and human rights. The agency is a HUD Approved Housing Counseling Agency and provides one-on-one education, mediation, and counseling for individuals and families throughout the Orange County region. The Al identifies impediments that may prevent equal housing access and develops solutions to mitigate or remove such impediments. Newport Beach's 6th Cycle Housing Element references analysis from the FY 2020-2025 Al in orderto identify potential impediments to housing that are specific to Newport Beach. The City also completed its FY 2020-24 Consolidated Plan, adopted by City Council on May 12, 2020, as an entitlement city for Community Development Block Grant (CDBG) funding, which identifies housing problems within the community, specifically among low and very -low income households. Fair housing is identified as a priority within the Consolidated Plan. ?. Needs AssessmenP The Al contains a Countywide analysis of demographic, housing, and specifically fair housing issues for all the cities in Orange County, including Newport Beach. The City's demographic and income profile, household and housing characteristics, housing cost and availability, and special needs populations were discussed in the previous Section 2: Community Profile. Fair Housing Issues The Regional Al lists fair housing issues within the County of Orange, the Al also explicitly includes the following fair housing issues in the City of Newport Beach: + Availability, Type, Frequency, and Reliability of Public Transportation - The availability, type, frequency, and reliabilityof public transportation may be contributing factors to fair housing issues in Newport Beach. Public transportation in Orange County primarily consists of bus service operated by the Orange County Transportation Authority(OCTA)and Metrolink light rail service. However, Metrolink does not provide serviceto coastal communitiesin the central and northern portionsof Orange County, including Newport Beachwhich is disproportionately White in comparison to the county as a whole. The lack of public transportation may deter members of protected classes who do not have cars and are reliant on public transportation from choosing to live there, thus reinforcing patterns of segregation. + Impediments to Mobility - Impediments to mobility may be a significant contributing factor to fair housing issues in Newport Beach. Specifically, Housing Choice Voucher payment standards that make it difficult to secure housing in many, disproportionately White areas contribute to segregation and disparities in access to opportunity. The Orange County Housing Authority, which provides Section 8 resources to Newport Beach, has three tiers based on city rather than zip code, but the highest tier - $2,280 for two-bedroom units in selected cities— falls far short of Small Area Fair Market Rents and leaves some citiestargeted for that payment standard out of reach. For example, in zip code 92660, located in Newport Beach, the Small Area Fair Market Rentfor two-bedroom units would be $3,120. A Zillowsearch for that zip code revealed advertised two -bed room units in only two complexes available for under $2,280 but many more available between $2,280 and $3,120. + Location of Accessible Housing - The location of accessible housing may be a significant contributing factor to fair housing issues in Newport Beach. With a few exceptions the location of accessible housing Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-53 SS3-112 City of Newport Beach 2021-2029 HOUSING ELEMENT tends to track areas where there are concentrations of publicly supported housing. In Orange County, publicly supported housing tends to be concentrated in areas that are disproportionately Hispanic and/or Vietnamese and that have relatively limited access to educational opportunity and environmental health. Multi -unit housing tends to be concentrated in communities of color, but there are some predominantly White communities that have significant amounts of market -rate multi -unit housing that may be accessible and affordable to middle-income and high-income persons with disabilities, including Newport Beach. Overall, permitting more multi -unit housing and assisting more publicly supported housing in predominantly White communities with proficient schools would help ensure that persons with disabilitieswho need accessibility features in their homes have a full range of neighborhood choices available to them. + Occupancy Codes and Restrictions -Occupancy codes and restrictions maybe a sign if icantcontributing factor to fair housing issues in Newport Beach. Specifically, there is a substantial recent history of municipal ordinances targeting group homes, in general, and community residences for people in recoveryfrom alcohol or substance abuse disorders, in particular. In 2015, the City of Newport Beach entered into a $5.25 million settlement of a challenge to its ordinance, but that settlement did not include injunctive relief calling for a repeal of that ordinance.9 Although municipalities have an interest in protecting the health and safety of group home residents, these types of restrictions may be burdensome for ethical, high-quality group home operators. Occupancy codes and restrictions are not as high priority of a barrieras the factors that hinderthe development of permanent supportive housing as group homes are generally less integrated than independent living settings. The City recognizes the fair housing issues that exist within the community and is committed to reduces barriers to housing affordable to all persons. The City has outline programs toaddress fair housing issues in Newport Beach in the Section 4: Housing Plan. Fair Housing Enforcement and Outreach Capacity Currently, the Fair Housing Foundation provides fair housing services to the City of Newport Beach. This includes providing fair housing enforcement and landlord/tenant mediation services which are available for tenants, realtors, apartment owners and managers, lending institutions and other interested parties. For FY 2020-21, the Cityof Newport Beach has allocated $12,000 in Community Development Block Grant (CDBG) funds for the Fair Housing Foundation to perform the following, at no cost: + Fair housing services such as, respondingto discrimination inquiries and complaints, documenting, and investigating discrimination complaints, and resolving or mediating discrimination complaints + A comprehensive, extensive, and viable education and outreach program, including: o Fair Housing Workshop o Certificate Management Training o Walk -In Clinics o Rental Housing Counseling Workshop o Community presentations, staff training, and workshops 141 Hannah Fry, Newport Will Pay Group Homes $5.25 Million Settlement, L.A. TIMES (July 16, 2015), https://www.latimes.com/socal/daily-pilot/news/tn-dpt-me-0716-newport-group-home-settlement-20150716- story.html. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-54 SS3-113 City of Newport Beach 2021-2025 HOUSING ELEMENT 0 Community events, booths, networking, etc. + Landlord and tenant counselingon responsibilities and rights + RentaIcounseling The Fair Housing Foundations offers regularwalk-in counseling sessions, in addition to resources fairs, informational workshops (accessible in multiple languages), landlord and tenant workshops, and other outreach efforts. Additionally, the FHF provided virtual workshops available online to Newport Beach residents. From 2015 to 2020, the City provided 408 residents with fair housing services using CDBG funding. As part of the FY 2020-25 Consolidated Plan for the Newport Beach, the Cityhas seta goal of assisting 625 people with fair housing issues within the five-year period using $60,000 of CDBG funding. Newport Beach has also set a goal of retaining a Fair Housing provider to promote fair housing education and outreach within the community. The U.S. Department of Housing and Urban Development (HUD) maintains a record of all housing discrimination complaints filed in local jurisdictions. These grievances can be filed on the basis of race, color, national origin, sex, disability, religion, familial status, and retaliation. As reported bythe 2020- 2025 Al, one fair housing case is unresolved (as one 2020) in Newport Beach. 3. Analysis of Federal, State, and Local Data and Local Knowledge Integration and Segregation Patterns and Trends The dissimilarity index is the most used measure of segregation between two groups, reflecting their relative distributions across neighborhoods (as defined by census tracts). The index represents the percentage of the minority group that would have to move to new neighborhoods to achieve perfect integration of that group. An index score can range in value from 0 percent, indicating complete integration, to 100 percent, indicating complete segregation. An index number above 60 is considered to show high similarity and a segregated community. It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrants often depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country. 10 Alternatively, when white residents leave neighborhoods that become more diverse, those neighborhoods can become segregated. Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can alsocause residential segregation. Figure 3-2 shows the dissimilarity between each if the identified race and ethnic groups and Newport Beach's White population. The higher scores indicate higher levels of segregation among those racial and ethnic group. The White (non -Hispanic or Latino) population makes up most of the City's population at 10 Allen, James P. and Turner, Eugene. "Changing Faces, Changing Places: Mapping Southern California'. California State University, Northridge, (2002). Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-55 (DRAFT APRIL 2021) SS3-114 City of Newport Beach 2021-2025 HOUSING ELEMENT approximately 79.5 percent according to the 2018 ACS estimates. According to the figure, the highest levels of segregation within Newport Beach are Other Race (51.3), Native Hawaiian (44.5), Black (37.8 and Native Indian (37.4). The scores correlate with the percentage of people within that racial or ethnic group that would need to move into a predominately White census tract in order to achieve a more integrated community. For instance, 44.5 percent of the Native Hawaiian population would need to move into predominately white census tract areas to achieve "perfect" integration. As indicated above, a score of 60 or higher indicates a highly similar and segregated area. The City does not have any racial or ethnic groups with scores higher than 60. Figure 3-2: Dissimilarity Indexwith Whites—Newport Beach Hispanic Two or More Races* Other* Native Hawaiian* Asian* American Indian* Black* 0 10 20 30 40 50 60 American Native Two or Black* Indian* Hawaiian* * Other* More Hispanic Races* Dissimilarity Index with Whites* 37.8 37.4 31.2 44.5 51.3 16.6 22.4 Source: Census Scope, Social Science Data Analysis Network, *Not Hispanic or Latino Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) To assist communities in identifying racially/ethnically concentrated areas of poverty (R/ECAPs), HUD has developed a census tract -based definition of R/ECAPs. The definition involves a racial/ethnic concentration threshold and a poverty test. The racial/ethnic concentration threshold is straightforward: R/ECAPs must have a non-white population of 50 percent or more. Regarding the poverty threshold, Wilson (1980) defines neighborhoods of extreme poverty as census tracts with 40 percent or more of individuals living at or below the poverty line. Because overall poverty levels are substantially lower in many parts of the country, HUD supplements this with an alternate criterion. Thus, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower. Location of residence can have a substantial effect on mental and physical health, education opportunities, and economic opportunities. Urban areas that are more residentially segregated by race and income tend to have lower levels of upward economic mobility than other areas. Research has found Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-56 (DRAFT APRIL 2021) SS3-115 City of Newport Beach 2021-2025 HOUSING ELEMENT that racial inequality is thus amplified by residential segregation. 11 However, these areas mayalso provide different opportunities, such as ethnic enclaves providing proximity to centers of cultural significance, or business, social networks and communities to help immigrants preserve cultural identify and establish themselves in new places. Overall, it is im porta nt to st udy a nd identify these areas in order to understand patterns of segregation and poverty in a City. The 2020 Al performed an analysis of R/ECAPs within Orange County and found four R/ECAPs, none of which were found in Newport Beach. However, two of the four were found in the neighboring City of Irvine, adjacent to one another and near the University of California; these both bordered the City of Newport Beach. According to the Al, it is likely that they qualify as R/ECAPs due to the high proportions of students. These R/ECAPs have a much more diverse group of residents, with some White, Asian or Pacific Islander, Hispanic and Black residents. These R/ECAPs primarily contain Asian or Pacific Islander or Hispanic residents. 23.49% of residents are White, 1.63% are Black, 48.50% are Hispanic, 23.70% areAsian or Pacific Islander, and 0.14% are Native American. Figure 3-3 below identifies low poverty index with race/ethnicity and R/ECAPs in Newport Beach. The figure also identifies the R/ECAP areas (outlined in pink) bordering the City of Newport Beach, near the University of California, Irvine. The low poverty index captures the depth and intensity of poverty in a given neighborhood. The index uses both family poverty rates and public assistance receipt, in the form of cash -welfare, such as Temporary Assistance for Needy Families (TANF). The poverty rate and public assistance for neighborhoods are determined at the census tract level, and the higher the score, the less exposure to poverty in a neighborhood. The map identifies the R/ECAP and a few surrounding neighborhoods, to the south and south east, as having higher rates if poverty. The map confirms the All anlysis of the Cityof Newport Beach, showing that majority of resident's identify as White, non hispanic. 11 Orange County, Analysis of Impediments to Fair Housing Choice, April 2020 DRAFT. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-57 SS3-116 City of Newport Beach 2021-2029 HOUSING ELEMENT keg --w .luri•dielien Region Demographics 2010 Jot = 75 Whit•. NorrHiwanic 12 Blade Non -Hispanic S Nat" American, Non- • Hispanic AsiwVPacdir islander. Non - ti r Hispanic w5w Hispanic Other. Nan -Hispanic Multi -racial- NorrHispanic TRACT R/9CAP 'Exb� . 4, .. ••° • • ; • rr • • i is•r y-�. ff �. • • r a• 1r �i ■ • • % ■ • : j. . M r f • ■ • • ■ ■ i Low Poverty Index 0-10 10.1-20 lb 20.1-30 hk 30-1 - 40 kh 40.1 - 50 hl 501-60 bb 60-1-70 70.' - 80 ■ 80-1 - g0 go.1 - 100 Lew Poverty Index: DA Available Source: HUD Affirm itaevly Furthering Fair Housing Data and Mapping Tool, Data Versions: AFFHT0006, July 10, 2020 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-58 0 C SS3-117 City of Newport Beach 2021-2029 HOUSING ELEMENT Disparities in Access to Opportunity The UC Davis Center for Regional Change and Rabobank partnered to develop the Regional Opportunity Index (ROI) intended to help communities understand local social and economic opportunities. The goal of the ROI is to help target resources and policies toward people and places with the greatest need to foster thriving communities. The ROI incorporates both "people" and "place components, integrating economic, infrastructure, environmental, and social indicators into a comprehensive assessment of the factors driving opportunity." As shown in Figures 3-4 and Figure 3-5 below, the majority of the Cityof Newport Beach is classified as a high opportunity zone. This indicates a high level of relative opportunities that people can achieve as well as a high level of relative opportunities that Newport Beach provides. While most of the census tracts within the City are areas of high opportunity, there are two census tracts within the ROI People Index shown as yellow, identifying a low opportunity area. Together these areas contain 86 sites which accommodate 1,941 potential units designated to meet the City's RHNAfor lower income units (shown in Section 3: Housing Resources and outlined in Appendix B). The Data for both regions with lower opportunity show high civic life, health, transportation, economic and education access, however, both show very low housing access. Therefore, the consideration and identification of these areas for housing, affordable to low and very low-income households, will provide increased housing opportunity in high opportunity and high resources areas. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-59 SS3-118 City of Newport Beach 2021-2029 HOUSING ELEMENT Description V a Regional bpportwty Index (R01): People is a relapve measure of people's assets in education, the econ". housing, rftWlityftrampmt&Vm% healthfeMi ronment, And OYiC I ife. Legend Re91Dnal 0pion rtonlry Index - Penple ❑ Some JuL'u nul aruilubly Urweel Opp ortunily El e F g-==: naportuniry ❑ City Boundary Oats:: 1 : f :'?J7IE M �tlps:/f m leract.regional change,ucdav:s.edu(rdf Figure 3-4: Regional Opportunity Index: People, 2014 Regional Opportunity Index: People, 2014 Mi Source: UC Davis Center for Regional Change and Rabobank, 2014. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-60 SS3-119 City of Newport Beach 2021-2029 HOUSING ELEMENT Description rna RMiar„I np ortwilty Indar IR011: place it, a relativemeasr.re Gran area's assets in education, We economy, ho4sing, iioblit#transportation, heaMVW*rMnlent, and Civ c life, L"4,nA Helionel 4ppo1 tuaitr Iruivx: Place ❑ Some data not avaiW6 , Lowest Opportunity Ll HighoV Opportunity) City Boundary Dace: 11/1912024 https llinteract. regional charrge.ucdaws.edLOral Figure 3-5: Regional Opportunity Index: Place, 2014 Regional Opportunity Index: Place, 2014 Source: UC Davis Center for Regional Change and Rabobank, 2014. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT APRIL 2021) 3-61 SS3-120 City of Newport Baan 2021-2029 HOUSING ELEMENT 111115,t- Additionally, the Department of Housing and Community Development (HCD) together with the California Tax Credit Allocation Committee (TCAC) established the California Fair Housing Task Force to provide research, evidence -based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments tofurtherthe fair housing goals (as defined by HCD). The Task force developed the TCAC/HCD opportunity Area Maps to understand how public and private resources are spatially distributed. TheTaskforce defines opportunities as pathways to better lives, including health, education, and employment. Overall, opportunity maps are intended to displaywhich areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. According to the Task Force's methodology, the tool allocates the 20 percent of the tracts in each region with the highest relative index scores to the "Highest Resource" designation and the next 20 percent to the "High Resource" designation. Each regionthen ends up with 40 percent of its total tracts as "Highest" or "High" resource. These two categories are intended to help State decision -makers identifytracts within each region that the research suggests low-income families are most likely to thrive, and where they typically do not have the option to live—but might, if given the choice. As shown in Figure 3-6 below, nearlyall of Newport Beach is classified as moderate, high, and highest resource.There is one census tract in the Northwest Portion of Newport Beach classifies as low resource, the tracts scores identify high economic resources and low educational resources. Figure 3-6: TCAC/HCD OpportunityArea Maps, Newport Beach (2020) Source: California Tax Credit Allocation Committee and Department of Housing and Community Development, 2020. Section 3: Housing Constraints, Resources, and AFFH 62 (DRAFT APRIL 2021) SS3-121 City of Newport Baan 2021-2025 HOUSING ELEMENT Access to neighborhoods with higher levels of opportunity can be more difficult due to discrimination and when there may not be a sufficient range and supply of housing in such neighborhoods. In addition, the continuing legacy of discrimination and segregation can impact the availability of quality infrastructure, educational resources, environmental protections, and economic drivers, all of which can create disparities in access toopportunity. The Department of Housing and Urban Development (HUD) developed the opportunity indicators to help inform communities about disparities in access to opportunity, the scores are based on nationally available data sources and assess resident's access to key opportunity assets in the City. Table 3-16 provides the index scores (rangingfrom zeroto 100) for thefollowing opportunity indicator indices: + Low Poverty Index: The low poverty index captures poverty in a given neighborhood. The poverty rate is determined at the census tract level. The higher the score, the less exposure to poverty in a neighborhood. + School Proficiency Index: The school proficiency index uses school -level data on the performance of4th grade students on state exams to describe which neighborhoods have high -performing elementary schools nearby and which are near lower performing elementary schools. The higherthe score, the higher the school system quality is in a neighborhood. + Labor Market Engagement Index: The labor market engagement index providesasummarydescription of the relative intensity of labor market engagement and human capital in a neighborhood. This is based upon the level of employment, laborforce participation, and educational attainment in a census tract The higherthe score,the higherthe laborforce participation and human capital in a neighborhood. + Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets the following description: a th ree-person single -parent family with incomeat50%of the median incomefor rentersforthe region (i.e. the Core -Based Statistical Area (CBSA)). The higher the transit trips index, the more likely residents in that neighborhood utilize publictransit. + Low Transportation Cost Index: This index is based on estimates of transportation costs for a family that meets the following description: a three-person single -parent family with income at 50 percent of the median income for renters for the region/CBSA. The higher the index, the lower the cost of transportation in that neighborhood. + Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region/CBSA, with larger employment centers weighted more heavily. The higher the index value, the better the access to employment opportunities for residents in a neighborhood. + Environmental Health Index: The environmental health index summarizes potential exposure to harmful toxins ata neighborhood level. The higherthe indexvalue, the less exposure to toxins harmful to human health. Therefore, the higher the value, the better the environmental quality of a neighborhood, where a neighborhood is a census block -group. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 63 SS3-122 City of Newport Baan 2021-2029 HOUSING ELEMENT Table 3-15 below displays the opportunity indices by race and ethnicity for persons in Newport Beach. According to the data, there is low poverty among the population of Newport, across all racial/ethnic groups. Additionally, the access to quality education system is high among all racial/ethnic groups (each group has an opportunity index score above 80). The data shows the City offers high labor and economic opportunity as well as sufficient access to transportation. However, while the data shows a high access to transportation, the transportation is less affordable, specificallyto non -Hispanic Asian or Pacific Islander and Native American populations. The data also shows low environmental health index scores across all racial/ethnic groups, below 50. Table 3-15: Opportunity Indices by Race/Ethnicity, Newport Beach (Newport Beach, Low School Labor Low Jobs Transit Environmental CA CDBG) Poverty Proficiency Market Transportation Proximity Index Health Index Jurisdiction Index Index Index Cost Index Index Total Population White, Non - 81.31 90.17 82.88 86.59 75.16 90.40 41.36 Hispanic Black, Non - 78.86 89.72 81.85 86.92 76.61 90.54 40.65 Hispanic Hispanic 79.04 88.93 81.76 86.93 76.81 89.82 40.55 Asianor Pacific Islander, Non- 84.48 91.60 85.94 83.05 68.64 89.19 38.80 Hispanic Native American, 79.22 88.29 81.86 88.35 78.06 91.17 40.73 Non -Hispanic Population belowfederal poverty line White, Non - 78.99 89.20 83.30 87.76 78.81 90.38 43.27 Hispanic Black, Non - 78.71 86.38 78.21 89.58 85.43 87.99 48.46 Hispanic Hispanic 82.46 87.75 81.41 88.28 77.88 89.87 41.76 Asian or Pacific Islander, Non- 84.34 88.97 82.79 88.43 76.05 92.09 39.15 Hispanic Native American, 77.00 89.17 88.00 93.00 85.00 95.55 40.00 Non -Hispanic Source: Department of Housing and Urban Development, Affirmatively Furthering Fair Housing Online Mapping tool, Decennial Census; ACS, - Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 64 SS3-123 City of Newport Baan 2021-2029 HOUSING ELEMENT Discussion of Disproportionate Housing Needs The analysis of disproportionate housing needs within Newport Beach evaluated existing housing need, need of the future housing population, and units within the community at -risk of converting to market - rate. c►if.— 1- -4Wtf nl,. I The City's future growth need is based on the RHNA production of 1,456 very low and 930 low income units within the 2021-2029 planning period. AppendixB of this Housing Element shows the City's ability to meet its 2021-2029 RHNA need at all income levels. This demonstrates the City's ability to accommodate the anticipated future affordable housing needs of the community. -Yi,zfinn NPPri As described in Section 3.F.1 of this Housing Element, the Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors. Additionally, a variety of affordable housing opportunities currently exist in the City. In Orange County, each category of publicly supported housing (public housing, Project Based Section 8, Other Multi -unit Housing, Housing Choice Vouchers, and Low -Income Housing Tax Credit [LIHTC] units) is represented, although that representation varies greatly depending on the individual municipality. Table 3-16 below identifies the varietyof publicly supported housing, by percent, in the City of Newport Beach. Table 3-16 below displays the demographics of all public ally supported housing in Newport Beach. The data shows that majorityof persons who utilize and receive public housing support identify as White, with a small percentage Hispanic or Asian/Pacific Islander. Table 3-16: Publicly Supported Housing Demographics, Newport Beach Newport Asian or Pacific White Black Hispanic Beach Islander Housing Type # % # % # % # Project -Based 85 87.63% 0 0.00% 3 3.09% 9 9.28% Section 8 HCVProgram 99 70.21% 14 9.93% 15 10.654% 13 9.22% LIHTC 238 85.9% 8 1.99% 147 35.57% 12 2.99% Total 32,490 84.94% 135 0.35% 2,485 2,477 6.45% Households Source: County of Orange, Analysisof Impediments Notes: HVC = Housing Choice Voucher LIHTC= Low Income Housing Tax Credit Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 65 SS3-124 City of Newport Baan 2021-2029 HOUSING ELEMENT Displacement Risk The potential for economic displacement risk can result from a variety of factors, including large-scale development activity, neighborhood reinvestment, infrastructure investments, and changes in local and regional employment opportunity. Economic displacement can be an inadvertent result of public and private investment, where individuals and families may not be able to keep pace with increased property values and market rental rates. Table 3-17 below identifies the assisted and affordable housing units within the City of Newport Beach and identifies the end date of each covenant. According tothe table, 4locations (with a total of 112 units) were up for renewal in the previous planning period (2014-2021). Additionally, 3 locations, with a total of 45 units are set to expire and be addressed for renewal over the next planning period (2021-2029). The City of Newport Beach is committed to working with property owners and utilizing a ppropriate funds, as available, to review covenants set to expire for renewal. Table 3-17: City of Newport Beach Assisted (and Affordable) Housing Summary Earliest Possible Number of Project Name/ Location Type of Assistance Received Date of Change Units/Type Section 8 (rental assistance Newport Harbor Apartments vouchers) Density Bonus 2020 26 Low -Income 1538 Placentia Avenue Community Development Block Grant (CDBG) Newport Harbor II Apartments Section 8 Density Bonus CDBG 10 Low -Income 2023 1530 Placentia Avenue In -Lieu Fee Funds 4Very Low -Income Newport Seacrest Apartments Section 8 CDBG 20 Very Low -Income 2016 843 15th Street Fee Waivers Tax Credit Financing 45 Low -Income Pacific Heights Apartments 881 - Section 8 Density Bonus 2019 7Low-Income 887 W. 15th Street Newport Seashore Apartments Section 8 Fee Waivers 2018 15 Low -Income 849 West 15th Street Newport Seaside Apartment 1544 Section 8 CDBG 2017 25 Very Low -Income Placentia Fee Waivers 100 Extremely Low Seaview Lutheran Plaza (Seniors) Section 202 (federal grant) 2039 and Very Low— 2800 Pacific View Drive Section 8 Income Senior Villa del Este 2 Moderate -Income 401 Seaward Road — 2026 (ownership) 3 Moderate -Income Villa Siena 2101 15th Street DensityBonus 2021 (ownership) Bayview Landing (Seniors) 1121 In -lieu Fee Funds Fee Waivers 24 Very Low 2056 Back Bay Drive Tax Credit Financing 95 Low -Income Section 3: Housing Constraints, Resources, and AFFH 66 (DRAFT APRIL 2021) SS3-125 City of Newport Baan 2021-2025 HOUSING ELEMENT Assessment of Contributing Factors to Fair Housing Issues in Newport Beach The Al identifies the following regional goals for mitigating impediments to fair housing within jurisdictions in Orange County: + Goal 1: Increase the supply of affordable housing in high opportunity areas. 1 + Goal 2: Prevent displacement of low- and moderate -income residents with protected characteristics, including Hispanic residents, Vietnamese residents, otherseniors, and peoplewith disabilities + Goal 3: Inc reasecommunityintegrationforpersons with disabiIities. + Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately like lyto be lower-income and to experience homelessness. + Goal 5: Expand access to opportunity for protected classes The Housing Element programs incorporates these recommended goals as they relate to Newport Beach. The analysis above regarding other fair housing issues within Newport Beach yielded the following results: + The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while there are racial and ethnic groups with higher levels of segregation than others within Newport Beach, none meetthe standard set to identify segregated groups. + The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more orany census tracts that have a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area. However, one R/ECAP was identified in the neighboring city of Irvine, nearthe University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. + The UC Davis Regional Opportunity Index shows that the majority of residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. + The analysis of the TCAC/HCD opportunity Area Maps showthat most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top forty percent in the region in terms of areas that lower-income residents may thrive if giventhe opportunity to live there. All buttwo censustracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. + The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental qualityacrossall racial/ethnic groups in the City. Additionally, the opportunity indices ide ntify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 67 SS3-126 City of Newport Baan 2021-2029 HOUSING ELEMENT 4. Analysis of Sites Pursuant to AB 686 AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing. The site identification requirement involves not only an analysis of site capacity to accommodate the RHNA (provided in Appendix B), but also whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity. Figure 3-7 shows the proposed candidate sites to the RHNAfor Newport Beach in relation to the location of residents of Hispanic origin, and it shows the following findings: + Majority of sites (274 acres) identified to accommodate the City's RHNA are identified in areas with between 5.1 and 10 percent Hispanic population, including a total of 731 units that affordable to low and very low incomes and 2,859 units affordableto moderate and above moderate incomes. + In the northern region, a total of 162 acres identifiedto accommodatethe City's RHNA has a 10.1 to 25 percent Hispanic population, including a total of 1,941 units affordable to low and very low-income households. + A total of 14 acres is identified in areas with less than 5 percent Hispanic populations, including a total of 92 units affordable to low and very low-income households and 829 units affordable to moderate and above moderate -income households. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) M SS3-127 City of Newport Beach=� 2021-2029 HOUSING ELEMENTw:- y Figure 3-7: CandidateSites— EthnicityAnalysis I� �R k � J M1 t } }f afi} �i ',s..+Cruser�w�s.w fF Miles N RTH 0 1 Spumes. Amed= Onmmuno Survey; HLID Fm*orW; Cq m H—P.rt B—h Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) Newport Beach AFFH qW * SYk9ciTAKIit4F MY Beuraerr p.ro...t H�AH�;jai a acs s-i'+ArF <s� 5.714- 1096 74.7%- 2396 75-iYr•SG96 > 5094 69 SS3-128 City of Newport Beach 2021-2025 HOUSING ELEMENT Figure 3-8 shows location of existing and proposed affordable units within Newport Beach in comparison with census data showing the percentage of the population within each block group that is non-white. Figure 3-8 shows the following findings: + A total of 162 acres are identified to accommodate the City's RHNA in areas with a 25.1 to 50 percent non-White population, including a total of 1,941 units affordable to low and very low-income households. + A total of 288 acres are identified to accommodate the City's RHNA in areas with 10.1 to 25 percent non-White population, includinga total of 735 units affordable to low and very low-income households and 4,065 units affordable to moderate and above moderate -income households. Figure 3-8: Candidate Sites — Non -White Analysis Newport Beach AFFH #:, u Site C—didatox Ci LF So—nary Perce Von -White Hi5penic&Nen- Kapanic12018AC55-Yc l 'M 5.1°b-70"1 14.198 - 2iY. 25.1 % - &M > 54% Miles N WIH 4 1 2 Goum—Ame—Cmmmunih SUNCF• HUD Exotr Qr . Cq o1 Newpud Basch Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 70 SS3-129 City of Newport Baan 2021-2029 HOUSING ELEMENT Figure 3-9 shows Low/Moderate Income (LMI) block groups within the Cityof Newport Beach. The figure shows the following: + A total of 2,494 units affordable to low and very low-income households are in areas with 40.1 to 60+ percent low -and moderate -income households. + A total of 182 units affordable to low and very low-income households are in areas with 30.1 to 40 percent low -and moderate -income households. + A total of 88 units affordable to low and very low-income households are in areas with less than 15 percent low moderate -income households. Figure 3-9: Candidate Sites — Low/Moderate Income Block Group Analysis Miles NAL 4 1 2 GVUMs.Amental Cmmmun0 Survey; Hud Emdape; Cq M H—P.,t B ­h d J, ,'-p * 4V {f Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) Newport Beach AFFH Slw candk4ws ckyBounduy Percent Low-end Moderate-lacame P-12019 ACS 5-Y-1 K1sh% 15.1 % - dR.91+b 30.1%-40.0% 40.1 °d • "0% > ao% 71 SS3-130 City of Newport Beach 2021-2029 HOUSING ELEMENT 5. Analysis of Fair Housing Priorities and Goals To enhance mobility and promote inclusion for protected classes, the chief strategy included in this housing element is to provide sites suitable for affordable housing in high -resource, high opportunity areas, as demonstrated by the analysis of the housing resource sites contained in this section. Other programs that affirmatively furtherfair housing include: + Policy Action 4A: Affirmatively Furthering Fair Housing + Policy Action 7A: Supportive Housing/ Low Barrier Navigation Centers + Policy Action 7B: Transitional and Supportive Housing + Policy Action 7C: Housing for Persons with Developmental Disabilities + Policy Action 7D: Fair Housing Services 1. Regional Housing Needs Allocation This section of the Housing Element provides an overview of the resources available to the Cityto meet their Regional Housing Needs Allocation (RHNA). Residential Sites Inventory Appendix B of the Housing Element includes the required site analysis tables and site information for the vacant and non -vacant properties to meet the City's RHNAneedthrough the 2021-2029 planning period. The following discussions summarize the City's site inventory and rezone plan. Above Moderate- and Moderate -Income Sites For the 2021-2029 planning period, the City's RH NA allocation is 1,050for moderate income site and 1,409 for above moderate -income sites. The City anticipates growth, via projects already in the approval process, to entirely meet the above moderate income need within the planning period. The Citywill meet the moderate income need through a combination of existing capacity on residentially zoned land, through the redevelopment of parcels rezoned within the focus areas, and through the development of accessory dwelling units (ADUs). A total of 348 moderate income and 40 above moderate -income units can be accommodated through existing zoning capacity on parcels. By subtracting existing units from maximum potential unit yield per parcel, the City projected additional capacityon several parcels. Each parcel included in the inventory was then vetted for likelihood of redevelopment and to ensure all HCD criteria were met. The required descriptive information for these sites can be found within Appendix B. An additional 106 moderate and above moderate -income units can be accommodated through the development of ADUs throughout the community. This is based on the methodology described within this section and incorporates guidance from HCD's Housing Element Site Inventory Guidebook. Section 3: Housing Constraints, Resources, and AFFH 72 (DRAFT APRIL 2021) SS3-131 City of Newport Baan 2021-2029 HOUSING ELEMENT A supplemental 4,369 moderate and above moderate -income units can be accommodated through the rezone strategies proposed for six focus areas throughout the City. Originally identified by the Housing Element Update Advisory Committee (HEAUC), the focus areas guided the development of area -specific rezone policies and City actions to ensure that Newport Beach has sufficient capacity to meet the RHNA Allocation for the 61h Cycle. ANALYSIS OF THE CITY'S EXISTING CA PACITYAND ZONING Table 3-18: Residential Capacity for Moderate and Above Moderate -Income Sites Significant Zone Max Density Reasonable Density* Numberof Parcels Acreage Potential Units Moderate Income Sites MU -MM 26 du/ac 26 du/ac 26 11 acres 228 units MU -W2 26 du/ac 23 du/ac 13 4 acres 51 units MU -V 25 du/ac 20 du/ac 6 1 acre 13 units MU-CV/15th Street 18 du/ac 15 du/ac 30 3 acres 56 units Subtotal 175 j 19 acres j 348 units Above Moderate -Income Sites MU -W1 5 du/ac 5 du/ac 7 9 acres 40 units Subtotal 7 9 acres 40 units TOTAL CAPACITY 82 28 acres 388 units *Note —Specific densities very within these zoning designations and potential unit projections are based on the parcel - specific requirements and existing conditions on parcels. REASONABLE CA PA CITY ASSUMPTIONS This section describes the methodology developed to determine the site capacity for the moderate and above moderate -income sites. The City assumes that above moderate -income units will develop at a maximum up eight dwelling units per acre, and that moderate -income units will develop at a maximum of 26 dwelling units per acre. Reasonable capacity for sites identified to meet the City's moderate and above moderate need was calculated based on a number of factors, including site size, existing zoning requirements, vacancy and total number of units entitled, and the maximum density achievable for projects within the following zones: + MU -MM— Mixed -Use Mariners' Mile: The MU -MM Zoning District is intendedto provide areas for the development of mixed-use structures that vertically integrate residential dwelling units above the ground floorwith retail uses including office, restaurant, and retail.Thezone permits a density rangeof 20.1— 26.7 dwelling units per acre. + MU -W1— Mixed -Use Water: This zoning district applies to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. A minimum of fifty (50) percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and visitor -serving land uses are mixed. This zone permits a density range of upto 15 dwelling units peracre. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 73 SS3-132 City of Newport Baan 2021-2029 HOUSING ELEMENT + MU -W2 — Mixed -Use Water: This zoning district applies to waterfront properties in which marine - related uses may be intermixed with general commercial, visitor -serving commercial and residential dwelling units on the upper floors. This zone permits a density range of up to 15 dwelling units peracre. + MU -V — Mixed -Use Vertical: This zoning district is intended to provide for areas appropriate for the development of mixed-use structures that vertically integrate residential dwelling units above the ground floor with retail uses including office, restaurant, retail, and similar nonresidential uses located on the ground flooror above. + MU-CV/15th Street— Mixed -Use Cannery Village and 15th Street: This zoning district applies to areas where it isthe intentto establisha cohesively developed districtor neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses may include multi -unit dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonresidential uses along the street frontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed-use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots. This zone permits a density range of 20.1— 26.7 dwelling units per acre. Potential constraints, to the extent they are known, such as environmentally sensitive areas and steep slopes were considered, and deductions made where those factors decreasedthe net buildable area of a parcel. Additionally, existing units' non -vacant parcels were analyzedto determine the number of existing units currently on the parcel. Replacement of existing units was included as a factor to prevent no net loss of existing housing stock. Rezones to Accommodate the Moderate and Above Moderate RHNA In additional to residential use on specific plans and ADUs, the City of Newport Beach has identified 133 sites to be rezones from commercial use to residential use, as well as 90 sites to be rezoned to a higher residential density. The sites for rezone are further detailed in Appendix B and a rezone program is identified in Section 4: Housing Plan. Figure 3-10 displays the focus areas for rezone, accompanied by a corresponding table of strategy information shown below as Table 3-19. Section 3: Housing Constraints, Resources, and AFFH 74 (DRAFT APRIL 2021) SS3-133 City of Newport Baan 2021-2029 HOUSING ELEMENT Table 3-19: Moderate/Above Moderate -Income Rezone Strategy by Focus Area Potential Moderate Potential Feasible % Projected Rezone Above Focus Area Income Moderate- Acreage (AC) to Redevelop Density Moderate - Affordability Income Units Income Units Airport 158 AC 27% 15% 50 du/ac 301 units 755 units Vicinity Area West Newport 48 AC 30% 20% 45 du/ac 117 units 80 units Mesa Area Dover - Westcliff 14 AC 40% 5% 30 du/ac 8 units 100 units Area Newport 162 AC 27% 10% 45 du/ac 196 units 1,140 units Center Area Coyote 22 AC 100% 0% 40 du/ac 0 units 572 units Canyon Area Banning 46 AC 100% 15% 30 du/ac 207 units 893 units Ranch Area TOTAL 451 AC -- -- -- 829 units 3,540 units Development of Non -Vacant Sites and Converting to Residential Uses To analyze the potential for redevelopment of non -vacant sites, the City sent out more than 500 letters to propertyowners. Responses tothe letters were recorded and are included within the inventory of sites within Appendix B. Although a positive response tothe redevelopment interest letters does not guaranty the redevelopment of a parcel to residential as a primary use within the planning period, it is a strong indicator of likelihood of redevelopment and is used as sufficient evidence for inclusion within the Adequate Sites Inventory. 4 CCESSORY DWELLING UNIT PRODUCTION One of the proposed methods for meeting the City's moderate and above moderate RHNA is through the promotion and development of accessory dwelling units (ADUs). A number of State Assembly and Senate Bills were passed in 2019 that promote and remove barriers that may inhibit the development of ADUs within communities. The following is a summary of those bills: + AB 68 and 881 o Prohibitminimumlotsizerequirements o Cap setback requirements at4', increasingthe size and location opportunities forADUs o Prohibitthe application of lot coverage, FAR, or open space requirements thatwould prevent an 800 square footADU from being developed on a lot Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 75 SS3-134 City of Newport Beach - 2021 -2029 HOUSING ELEMENT2-a- 1 Ami��i V�In_qmi o Remove the need for replacement parking when convertingan existinggarage to an ADU o Limit local discretion in establishing min and max unitsize requirements o Mandate a 60 -day review period for ADU applications through a non-discretionaryprocess + SB 13 o Prohibit owner -occupancy requirements for 5 years o Reduce impactfeesapplicabletoADUs o Provide a program for homeowners to delay compliance with certain building code requirements that do not relate to health and safety + AB 670 o Prohibits Homeowner's Associations (HOAs) from barring ADUs These bills, as well as other significant legislation relating to ADUs creates a development environment that is likely to increase the number of ADUs developed within Newport Beach over the 2021-2029 planning period. Newport Beach, with a large proportion of single -unit residential properties (many on larger lots), is well-oriented for the development of ADUs. As a result of this legislation, the City expects to approve more ADUs in the 2021-2029 planning period. The City processed three ADUs in 2018, six in 2019 and 55 in 2020. Calculating the average of the three years, assumed at a rate doubled each year during the 61" Cycle, the City assumes a total of 334 ADUs from 2021-2029. Utilizing the Southern California Association of Governments (SCAG) approved ADU affordability assumptions, 228ADUs will be allocatedto the low and very low income RHNA, 100 will be allocated to the City's moderate income RHNA and 6 will be allocated to the above moderate. The complete methodology is outline in Appendix B. Through the Housing Element, Newport Beach commits to creating an ADU tracking program and performing a mid-cycle assessment oftheir ADU development performance. As stated in HCD guidance, the City may use other justifiable analysis to calculate anticipated ADU performance. This program is detailed in Section 4: Housing Plan. Sites Suitable for Lower Income Housing This section contains a description and listing of the candidate sites identified to meet the Newport Beach's very low and low income RHNA need. A full list of these sites is presented in Appendix B. Projects in the Pipeline and Accessory Dwelling Units The City has identified a number of projects currently in the entitlements process which are likely to be developed during the planning period and count as credit towards the 2021-2029 RHNA allocation. Projects with planned affordable components include: + Newport Airport Village + Uptown Newport, Second Phase Section 3: Housing Constraints, Resources, and AFFH 76 (DRAFT APRIL 2021) SS3-135 City of Newport Baan 2021-2029 HOUSING ELEMENT + Residences at 4400 Von Karman + Newport Village Mixed -Use + WestCoast Highway Mixed -Use + Newport Crossings The City currently has approved an average of 21 ADUs per year for development between January 1, 2018 and December 30, 2020. HCD guidance states that ADUs may be calculated based on the City's production from January 1, 2018 through December 31, 20210. To calculate a total number of ADUs assumed to be produced from 2021-2029, the average of all ADUs developed from 2018 to 2020 was calculatedthen multiplied by two for each yearof the 61" cycle. Through this method, this city identified a total of 334 ADUs assumed forthe 8 years. The City of Newport Beach utilized SCAGs affordability assumptions for ADUs in Orange County. This equates to an anticipated ADU development of 334 ADUs over the next 8 years, 228 of which are anticipated to be affordable. The ADUs not designatedto meet the City's lower income RHNAneed are anticipated to be 100 affordable at moderate income levels and 6 affordable at the above moderate - income level. The City has identified programs within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach. The total anticipated development of Projects in the Pipeline and Accessory Dwelling Units is summarized in Table 3-20 below: Table 3-20: Low and Very Low -Income Remaining Need Very Low Income Low Income RHNAAIIocation 1,456 930 Pipeline Projects 52 78 5t" Cycle Sites 0 0 Accessory Dwelling Units 84 144 Remaining Low/Very Low -Income Need 1,320 708 Qifoc Irionfifiorl fnr I?07nnn fr ^ ^rnmmnrJnfo I MAI and 1/ory In►n' After the identification of projects in the pipeline and ADUs to accommodate the City's low and very low RHNA, a remaining 2,028 units must be accommodated to meet the City's RHNA. To account for this remaining need, the City conducted a community -driven process to identify several parcels for inclusion in the Adequate Sites Inventory. This process was led bythe Housing Element Update Advisory Committee (HEUAC). Toguide the identification of adequate sites, the committee createdfocus areas Sites identified by the committee and the public to meet the City's very low and low income RHNAwere selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 77 SS3-136 City of Newport Baan 2021-2029 HOUSING ELEMENT The 221 parcels are currently zoned as the following: + 150 parcels are zoned non-residential + 71 parcels are zoned residentially at aIowe rdensity. All parcels are non -vacant and will be rezoned to higher densities (densities are specific to each focus area) able to accommodate the development of lower-income housing. Figure 3-11 below displays the sites identified to accommodate the City's low and very low income RHNA allocation. The Housing Plan section outlines actions the City will take to promote the development of affordable units within the following focus areas: + Airport VicinityArea + West Newport Mesa Area + Dover -Westcliff Area + Newport CenterArea + Coyote Canyon Area + Banning Ranch Area The key assumptions and unit projections related to each focus area are shown below in Table 3-21 and the focus areas are shown geographically below in Figure 3-10. Table 3-21: Low/Very Low -Income Rezone Strategy by Focus Area Low/Very Low- Potential Feasible %Projected to Focus Area Income Rezone Density Low/Very Low - Acreage (AC) Redevelop Affordability Income Units Airport Vicinity 158 AC 27% 45% 50 du/ac 904 units Area West Newport 48 AC 30% 65% 45 du/ac 381 units Mesa Area Dover -Westcliff 14 AC 40% 30% 30 du/ac 49 units Area Newport 162 AC 27% 30% 45 du/ac 587 units Center Area Coyote Canyon 22 AC 100% 35% 40 du/ac 308 units Area Banning Ranch 46 AC 100% 20% 30 du/ac 275 units Area TOTAL 451 AC -- -- -- 2,504 units Section 3: Housing Constraints, Resources, and AFFH 78 (DRAFT APRIL 2021) SS3-137 City of (Newport Baan 2021-2029 HOUSING ELEMENT Figure 3-10: Focus Areas for Rezones Canyon . Development of Non vacant Sites to Accommodate Low and Very Low Income Of the 239 non -vacant sites, 19 were also identified in the 51" cycle. In accordancewith AB 1397 the City will establish a program that permits By -Right development for projects that propose 20 percent of all units to be affordable to low and very low-income units. The program is outlined in detail in Section 4: Housing Plan. H GIONAL HOUSING NEEDS ALLOCATION Future Housing Needs Future housing need refers to the share of the regional housing need that has been allocated to the City. The State Department of Housing and Community Development (HCD) supplies a regional housing goal number to the Southern California Association of Governments (SCAG). SCAG is then mandated to allocate the housing goal to city and county jurisdictions in the region through a RHNA Plan. In allocating the region's future housing needs to jurisdictions, SCAG is required to take the following factors into consideration pursuant to Section 65584 of the State Government Code: + Marketdemandforhousing. + Employment opportunities. + Availability of suitable sites and public facilities. + Commuting patterns. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-79 SS3-138 City of Newport Baan 2021-2029 HOUSING ELEMENT + Type and tenure of housing. + Loss of units in assisted housing developments. + Over -concentration of lower income households. + Geological and topographical constraints. HCD, through a determination process, allocates units to each region across California. It is then up to each region to determine a methodology and process for allocating units to each jurisdiction within that region. SCAG adopted its final Regional Housing Needs Allocation (RHNA Plan) in February 2021. This RHNA covers an 8 -year planning period (starting in 2021) and addresses housing issues that are related to future growth in the region. The RHNA allocates to each city and county a "fair share" of the region's projected housing needs by household income group. The major goal of the RHNA is to assure a fair distribution of housing among cities and counties within the Southern California region, so that every community provides an opportunity for a mix of housing for all economic segments. Newport Beach's share ofthe SCAG regional growth allocation is 4,845 new units for the current planning period (2021-2029). Table 3-22, Housing Needs for 2021-2029, indicates the City's RHNA need for the stated planning period. Table 3-22: Housing Needs for 2021-2029 Income Category(%ofCountyAMI) Numberof Units Percent Extremely Low (30% or less) 728 units 15% Very Low (31 to 50%)1 728 units 15% Low (51 to 80%) 930 units 19% Moderate (81% to 120%) 1,050 units 22% Above Moderate (Over 120%) 1,409 units 29% Total 4,845 units 100% Note 1: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low- income households (0-30%AMI). In estimating the number of extremely low-income households, ajurisdiction can use 50% of the very low-income allocation or apportion the very low-income figure based on Census data. 4DEQUACYOFSITES FOR RHNA Newport Beach has identified sites with a capacity to accommodate 2,862 lower income dwelling units, which is in excess of its 2,386 -unit lower income housing need. Sites designated are on parcels that permit residential development as a primary use up to 50 dwelling units per acre. The City of Newport Beach has a total 2021-2029 RHNA allocation of 4,845 units. As demonstrated previously, the City can take credit for 2,294 units currentlywithin the planning process, lowering the total RHNA obligation to 2,632 units as shown in Table 3-23. The Housing Element update lists sites that can accommodate approximately 7,595 additional units, in excess of the required 4,845 units. As described in this section, the City believes that due to recent State legislation and local efforts to promote accessory Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-80 SS3-139 City of Newport Baan 2021-2029 HOUSING ELEMENT living unit production, the City can realistically anticipate the development of 334 ADUs within the 8 -year planning period. Overall, the City has adequate capacityto accommodate its 2021-2029 RHNA. Table 3-23: Summary of RHNA Status and Sites Inventory Extremely Low/ Moderate Above Low Income Moderate Total Very Low Income Income Income 2021-2029 RHNA 1,456 930 1,050 1,409 4,845 RHNA Credit (Units Built) TBD TBD TBD TBD TBD Total RHNA Obligations 1,456 930 1,050 1,409 4,845 Sites Available Projects in the 130 0 2,164 2,294 Pipeline Accessory Dwelling Units 228 100 6 334 Existing Zoning Capacity On 5th Cycle 0 348 40 388 Sites Remaining RHNA 2,028 602 -- 2,630 Rezone Capacity Airport Area Environs 904 301 755 1,960 Rezone West Newport Mesa 381 117 80 578 Rezone Dover -Westcliff 49 8 100 158 Rezone Newport Center 587 196 1,140 1,923 Rezone Coyote Canyon 308 0 572 880 Rezone Banning Ranch 275 207 893 1,375 Rezone Total Potential Capacity of Rezones 2,504 829 3,540 6,873 TOTAL POTENTIAL 2,862 1,277 5,750 9,889 DEVELOPMENT CAPACITY Sites Surplus/Shortfall (+/-) +476 +227 +4,341 +5,044 Percentage Buffer 20% 22% 308% 104% Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-81 SS3-140 City of Newport Beach 2021-2029 HOUSING ELEMENT n= Figure 3-11: Sites Inventoryand RHNA Obligations Summary of Sites Inventory and RHNA Obligations The data and map detailed in Figure 3-11 above shows the City of Newport Beach's abilityto meet the 4,845 RHNAallocation in full capacitywith a 5,044 -unit buffer. Along with the identifying appropriate sites to meet the current and future housing needs, the City has established a Housing Plan to support its efforts in providing housing opportunities for all income levels in Newport Beach. 2. Financial Resources Providing an adequate supply of decent and affordable housing requires funding from various sources, the City has access tothe following finding sources. Section 8 Housing Choice Voucher The Section 8 Housing Choice Voucher program is a Federal government program to assist very low- income families, the elderly, and the disabled with rent subsidy payments in privately owned rental housing units. Section 8 participants can choose any housing that meets the requirements of the program and are not limited to units located within subsidized housing projects. Theytypically pay 30to40 percent of their income for rent and utilities. The Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-82 SS3-141 City of Newport Baan 2021-2029 HOUSING ELEMENT Section 8vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors. Community Development Block Grants (CDBG) The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to cities to develop viable urban communities by providing a suitable living environment and by expanding economic opportunities, principally for low- and moderate -income persons (up to 80 percent AMI). CDBG funds can be used for a wide arrayof activities, including: • Housing rehabilitation. • Lead-based paint screening and abatement. • Acquisition of buildings and land. • Construction or rehabilitation of public facilities and infrastructure, and: • Public services for low income households and those with special needs. According tothe Federal regulations, the Cityof Newport Beach is allowed tospend no more than of 20% of CDBG funding on program administration, and 15% on community services such as senior meal delivery or homeless prevention programs. The remaining amount must be used other eligible projects that meet national objectives that principally benefit low- and moderate -income households or the disabled. HUD requires Newport Beach to complete a Five -Year Consolidated Plan (Con Plan) to receive HUD's formula grant programs. The Con Plan identifies the City's 5 -year strategies related to priority needs in housing, homelessness, community development, and economic development. It also identifies short - and long-term goals and objectives, strategies, andtimetables forachieving its goals. Developed withthe input of citizens and community groups, the Con Plan serves four basic functions: • It is a planning document for the community built upon public participation and input. • It is the application for funds under the CDBG Program. • It articulates local priorities. • It is a five-year strategythe Citywill follow in implementing HUD programs. Additionally, HUD requires the City to prepare a One -Year Action Plan for each of the five years covered by the Con Plan. The Cityof Newport Beach reports a total of $372,831 CDBG funds from HUD in the 2020- 2021 Action Plan. In same report, the City reports an anticipated $2.07 million of CDBG resources during the five-year period from July 1, 2020, through June 30, 2025. HOME Investment Partnership Program (HOME) The HOME program provides federal funds for the development and rehabilitation of affordable rental and ownership housing for households with incomes not exceeding 80 percent of area median income. The program gives local governments the flexibility to fund a wide range of affordable housing activities through housing partnerships with private industryand non-profit organizations. HOMEfunds can be used for activities that promote affordable rental housing and homeownership by low income households. The Cityof Newport Beach does not currently receive HOMEfunds. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-83 SS3-142 City of Newport Baan 2021-2029 HOUSING ELEMENT 3. Opportunities for Energy Conservation Energy Use and ProviderF The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating and cooling. The high cost of energy demands that efforts betaken to reduce or minimize the overall level of urban energy consumption. Energy conservation is important in preserving non-renewable fuels to ensure that these resources are available for use by future generations. There are also a number of benefits associated with energy conservation including improved air quality and lower energycosts. Southern California Gas Company (SCG) provides natural gas service for the City. Natural gas is a "fossil fuel" and is a non-renewable resource. Most of the major natural gas transmission pipelines within the City are owned and operated by SCG. SCG has the capacity and resources to deliver gas except in certain situations that are noted in state law. As development occurs, SCG will continue to extend its service to accommodate development and supply the necessary gas lines. Electricity is provided on an as -needed basis to customers within existing structures inthe City. Southern California Edison Company (SCE) is the distribution provider for electricity in Newport Beach. Currently, SCE has no immediate plans for expansion of infrastructure, as most of the City is built out. However, every year SCE expands and improves existing facilities according to demand --qy Conservati^ The City's energy goals, stated in the Natural Resources Element of the General Plan, make every effort to conserve energy in the City thus reducing dependence on fossil fuels. The City's policies relating to energy include increasing energy efficiency in Cityfacilities and operations and in private developments and reducing the City's reliance on fossil fuels. In order to reach the City's goals, objectives include the following: • Develop incentives that encourage the use of energy conservation strategies by private and public developments, • Promote energy-efficient design features, • Promote or provide incentives for "Green Building" programs that go beyond the requirements of Title 24 of the California Administrative Code and encourage energy efficient design elements as appropriate to achieve "green building" status; and, • Provide incentives for implementing Leadership in Environmental and Energy Design (LEED) certified building such as fee waivers, bonus densities, and/or awards recognition programs. 12 The City of Newport Beach's Energy Action Plan (EAP) is identified as a roadmap for the City of Newport Beach to reduce GHG through reductions in energyused in facility buildings and operations. According to the City's EAP, the City's long-term vision for energy efficiency focusses on the following objectives: • Reduce the City's carbon footprint and its adverse effect on the environment • Conserve energy at the local government facilities • Raise energy conservation awareness in local community and improve the quality of life 12 City of Newport Beach Natural Resource Element, 2006. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-84 SS3-143 City of Newport Baan 2021-2029 HOUSING ELEMENT Currently, the City of Newport Beach has developed the "Building Green" construction manual, created by the City's Task Force on Green Development. The City has also enacted a City-wide streetlight LED replacement program, replacing 400 units to date, and is continuing marketing. Education, and outreach to the community regarding every efficiency and conservation. Section 3: Housing Constraints, Resources, and AFFH (DRAFT APRIL 2021) 3-85 SS3-144 it City of Newport Beach 2621-2029 HOUSING ELEMENT The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies, and programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goal to encourage a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City's share of the affordable housing needs for the Orange County region. The RHNA quantifies Newport Beach's local share housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The current 2020 MFI (for an assumed family of 4 persons) for Orange County is $103,000. The MFI may change periodically, as it is updated on an annual basis. The City's 2021-2029 RHNA growth need of 4,845 housing units is allocated into the following income categories: • 1,456 units -Very low income (0-50% County MFI) • 930 units - Low income (51-80% of County MFI) • 1,050 units - Moderate income (81-120% of County MFI) • 1,409 units - Above moderate income (120% or more of County MFI) A. Housing Goal. The City of Newport Beach has identified the following housing goals as part of this Housing Element Update: Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA. Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock. Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments. Housing Goal #4: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Goal #5: Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Section 4: Housing Plan (DRAFT MARCH 2021) 4-2 SS3-146 City of Newport Beach 2621-2029 HOUSING ELEMENT Housing Goal #6: Housing opportunities for special needs populations. Housing Goal #7: Equal housing opportunities in the City for all people. Housing Goal #8: Effective and responsive housing programs and policies. The goals listed above are described below and on following pages with accompanying policies and programs to achieve them. J. Housing Policies and Program Actions This Housing Element expresses the Newport Beach community's overall housing goals and supporting policies and program actions to achieve them. The stated Housing Program Actions are based on a review of past performance of the 5t" Cycle Housing Element, analysis of current constraints and resources, and input from Newport Beach residents and stakeholders. Housing Goal #1 Provision of adequate sites to accommodate projected housing unit growth needs. Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories to serve the needs of the entire community IMPLEMENTATION ACTIONS Adequate Sites to Accommodate 2021-2029 RHNA The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the 6t" Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the City's Housing Element Update Advisory Committee (Committee), interested residents at a variety of Housing Committee public meetings, workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that was determined by the Committee as "Feasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide and have identify eight primary areas of opportunity: • Airport Area Environs • West Newport Mesa • Dover/Westcliff • Newport Center Section 4: Housing Plan (DRAFT MARCH 2021) • Banning Ranch • Coyote Canyon • 5th Cycle Housing Element Sites • Accessory Dwelling Units 4-3 SS3-147 City of Newport Beach 2021-2029 HOUSING ELEMENT Since the City has identified several opportunity sites in the 5t" Cycle that will be utilized in the 6t" Cycle Housing Element, additional policy considerations that are stated in this Policy Program These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. Policy Action 1A: Airport Environs Sub Area The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport Environs area for 158 acres of land to provide for the accommodation of at least 1,960 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1B: West Newport Mesa The City will establish a housing opportunity overlay, or similar rezoning strategy, in the West Newport Mesa area for 48 acres of land to provide for the accommodation of at least 578 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 45 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund SS3-148 City f Newport Beach _ 2021-2029 HOUSING ELEMENT Policy Action 1 C: Newport Center The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 162 acres of land to provide for the accommodation of at least 1,923 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 45 dwelling units per acre. Implementation of this program will also include but not be limited to r development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1D: Dover/ Westcliff The City will establish an overlay, or similar rezoning strategy, in the Dover / Westcliff an area for 14 acres of land to provide for the accommodation of at least 158 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will permit development of a variety of residential product types at a permitted average density of 30 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1E: Banning Ranch The City has identified the Banning Ranch area as a potential site to accommodate future housing needs. The City has previously approved housing development on this site, but the approved project was subsequently denied by the California Coastal Commission. The City believes this site is still a viable opportunity to provide housing for a variety of income levels and will continue to support development potential in the Banning Ranch Area. Section 4: Housing Plan (DRAFT MARCH 2021) 4-5 SS3-149 City of Newport Beach 2021-2029 HOUSING ELEMENT Mfr .,; ...ti`-�•3.��_, ., The site is currently within the City's Sphere of Influence. The City will work collaboratively with the County of Orange for annexation of the property and pursue entitlement of the area to provide opportunities for up to 1,375 units at an average density of 30 dwelling units per acre. Implementation of this program will also include development standards and entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. Timeframe: Complete necessary Code, General Plan and LCP Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1F: Coyote Canyon The Coyote Canyon property is a closed landfill that is owned and managed by the County or Orange but leased to a private developer. The area is of substantial acreage but has limited development potential due to various environmental considerations. The developer has evaluated the entire landfill area and has concluded that 22 acres of the property is not subject to environmental constraints. Additionally, the City has been advised that the County has expressed interest in participating in a transfer of a portion of the property to accommodate residential opportunity. The City will rezone at least 22 acres of land on the Coyote Canyon site, as shown in Appendix B, to accommodate up to 880 housing units at an average density of 40 dwelling units per acre. Implementation of this program will also include development standards and entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 G: 51 Cycle Housing Element Sites The City has identified 28 acres of sites in its sites inventory contained in Appendix B of this Housing Element that contain infill sites that were identified in the 5t" Cycle Housing Element. To comply with State law, the City will amend Title 20 of the Newport Beach Municipal Code (NEMC) to permit residential uses by -right for housing development projects in which at least 20 -percent of the units are affordable to lower income households. For the purpose of implementation of this program, by -right shall mean the City will not require a Site Development Review, Conditional Use Permit, a Planned Unit Development Permit, or other discretionary permit application that would constitute a "project" as described in Section 21100 of the Public Resources Code. For sites in the coastal zone, the City will continue to require coastal development permits to determine compliance with the City's certified Local Coastal Program. Section 4: Housing Plan (DRAFT MARCH 2021) 4-6 SS3-150 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Mfr .,; ...ti`-�•3.��_, Policy Action 1H: Accessory Dwelling Unit Construction Accessory Dwelling Units (ADUs) are an accepted method of providing affordable housing in the City. Due to recent legislation, the ability to entitle and construct ADUs has increased significantly. The City recognizes the significance of this legislation as evidenced by a marked increase in ADU permit applications. Due to this legislation, the City believes aggressive support for ADU construction will result in increased opportunities for housing including affordable units. The City will aggressively support and accommodate the construction of at least 334 ADUs by a variety of methods, including but not limited to: • Developing and implementing a public awareness campaign for construction of ADUs with a systematic approach utilizing all forms of media and outreach distribution • Preparing and maintaining a user-friendly website committed to information related to codes, processes, and incentives pertaining to the development of ADUs and JADUs in the City. • Evaluating and assessing the appropriateness of additional incentives to encourage ADU development. • Approve permit -ready standard plans to permit new ADU construction to minimize design costs, expedite permit processing, and provide development certainty for property owners. Timeframe: Analyze methods within 12 months of Housing Element adoption; Establish programs within 24 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 11: Accessory Dwelling Units Monitoring Program The City will establish an ADU Monitoring Program during the 2021-2029 Housing Element Planning Period to formally track ADU development. The analysis will track applications for ADUs, location, and other important features. The intent of the Monitoring Program is to track progress in meeting 2021-2029 ADU construction goals and to evaluate the need to adjust programs and policies if the pace of construction is less than anticipated. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1J: Accessory Dwelling Units Amnesty Program The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to legalize the ADUs during the 2021-2029 planning period. The intent of the Amnesty Program's is permit, inspect, and legalize existing unpermitted ADUs of any size to the extent feasible. Timeframe: Develop Amnesty Program within 24 months of Housing Element adoption Section 4: Housing Plan (DRAFT MARCH 2021) 4-7 SS3-151 City of Newport Beach 2021-2029 HOUSING ELEMENT Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1K.- Inclusionary Housing The City has a substantial RHNA obligation of affordable housing that will be a challenge to accommodate due to project development costs. Therefore, the City must evaluate a variety of policy prescriptions that will encourage and facilitate the construction of below market -rate housing. The City will investigate inclusionary housing policy options as a means to provide a variety of housing types and opportunities for very low, low- and moderate -income households in Newport Beach. The City will adopt an interim inclusionary policy and then assess and analyze a variety of inclusionary housing policy options as appropriate. Based upon this assessment, the City will determine the appropriateness and application of inclusionary policies, and adopt policies, programs or regulations encouraging developments that are affordable to very low, low and moderate income households. The City has determined that a base interim inclusionary requirement of 15 -percent for new residential development to be affordable to very low, low- and moderate -income households is appropriate. Applicability of this requirement will apply to projects of a certain size with smaller projects paying an in lieu fee. Timeframe: Adopt interim inclusionary policy within 6 months of Housing Element adoption. Evaluate Inclusionary Options within 24 months of Housing Element adoption. Adopt Inclusionary Policies, as appropriate within 36 months of Housing Element Adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #2 Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock. Housing Policy 2.1: Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically feasible. IMPLEMENTATION ACTIONS Policy Action 2A: Neighborhood Preservation The City will continue to improve housing quality and prevent deterioration of existing neighborhoods by strictly enforcing applicable Building Code, Fire Code, and Zoning Code regulations and abating Code violations and nuisances. The City of Newport Beach will continue to prepare a quarterly report on code enforcement activities in the 6t" Cycle. Section 4: Housing Plan (DRAFT MARCH 2021) 4-8 SS3-152 4- - City of Newport Beach � - 2021-2029 HOUSING ELEMENT " Timeframe: Ongoing, Semi -Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 2B: Residential Building Record Program The City will maintain and continue to implement the Residential Building Records (RBR) program to reduce and prevent violations of building and zoning ordinances by providing a report to all parties involved in a transaction of sale of residential properties, and providing an opportunity to inspect properties to identify potentially hazardous conditions, resources permitting. The report provides information as to permitted and illegal uses/construction, and verification that buildings meet applicable zoning and building requirements The City will continue to implement this program as RBR applications are submitted to the City. The City will continue to promote the availability of program to the public and local real estate professionals by maintaining information on its website and developing brochures and other promotional materials. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 2C: Preservation of At -Risk Units The City shall maintain registration as a Qualified Preservation Entity with HCD to ensure that the City will receive notices from all owners intending to opt out of their Section 8 contracts and/or prepay their HUD - insured mortgages. The City will consult with the property owners and potential preservation organizations regarding the potential use of Community Development Block Grant (CDBG) funds and/or Affordable Housing Fund monies to maintain affordable housing opportunities in those developments listed in Table 3-17 of Chapter 3 of this Housing Element. The City may assist in the non-profit acquisition of the units to ensure long-term affordability, upon receiving notice that a property owner of an existing affordable housing development intends to convert the units to a market -rate development. The City will maintain registration as a Qualified Preservation entity with HCD and continuously implement such policy as notices are received from property owners in the 6th Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #3 A variety of housing types, designs, and opportunities for all social and economic segments. Housing Policy 3.1: Encourage preservation of existing and provision of new housing affordable to extremely low-, very low-, low-, and moderate -income households. Section 4: Housing Plan (DRAFT MARCH 2021) 4-9 SS3-153 City of Newport Beach 2021-2029 HOUSING ELEMENT • �+3� *�'�K It Housing Policy 3.2: Encourage housing developments to offer a wide spectrum of housing choices, designs, and configurations. IMPLEMENTATION ACTIONS Policy Action 3A: Objective Design Standards State Housing law includes various exemptions for projects with an affordable housing component, which limits the City's ability to apply discretionary design review requirements to certain residential projects. State Housing law specifies having objective design standards available to applyto housing projects where the City's discretion over design review is otherwise preempted per State law. The City of Newport Beach will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards for projects with a minimum affordable housing component with appropriate objective standards to support the type and density of housing it is intended to allow. Policy Action 3B: SB 35 Streamlining The City will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35, Chapter 366 Statues 2017. These requirements apply at any point in time when the City does not meet the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA)., the City will process development projects with at least 50 percent affordable units through a streamlined permit process (i.e., 90 days for projects with up to 150 units). All projects covered by SB 35 are still subject to the objective development standards of the Newport Beach Municipal Code that includes the Building and Fire Codes. However, qualifying projects cannot be subject to Design Review or public hearings; and in many cases the City cannot require parking. Parking requirements would not be imposed on a SB 35 qualified streamlining project to the extent SB 35 prohibits such as parking requirements: 1. within a half -mile of public transit; 2. within an architecturally and historically significant historic district; 3. in an area where on -street parking permits are required but not offered to the occupants of the development; or 4. where there is a car -share vehicle located within one block of the proposed project. One parking space per unit may be required of all other SB 35 projects. The City currently has consistently exceeded RHNA performance goals during the 5th Cycle. The City's status regarding SB 35 could change during the 6th Cycle dependent upon RHNA progress throughout the 2021-2029 Planning Period. Timeframe: Adopt procedures within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-10 SS3-154 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 3C: Preservation of Rental Opportunities The City will continue to maintain rental opportunities by restricting conversions, demolition and reconstruction/reconfiguration of rental units to condominiums in a development containing 15 or more units unless the vacancy rate in Newport Beach for rental housing is an average of 5 percent or higher for four (4) consecutive quarters, and unless the property owner complies with condominium conversion regulations contained in Newport Beach Municipal Code Chapter 19.64. The City will complete a vacancy rate survey upon submittal of condominium conversion application of 15 or more units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3D: Priority of Affordable Housing The City will continue to take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with lower- and moderate -income housing requirements. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3E: Mortgage Revenue Bonds The City will continue to participate with the County of Orange in the issuance of tax-exempt mortgage revenue bonds to facilitate and assist in financing, development, and construction of housing affordable to low and moderate -income households. The City will continue to implement program per project submittal as the developer applies for these bonds. The Citywill adjust this policyto include the promotion of available bonds to the public and developers in the 6t" Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3F: Annual Reporting Program The City will conduct an annual compliance -monitoring program for units required to be occupied by very low-, low-, and moderate -income households. The City of Newport will complete review by the last quarter of each year and report within the annual General Plan Status Report including the Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing. Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-11 SS3-155 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 3G: Entitlement Assistance The City will provide entitlement assistance, expedited entitlement processing, and waive application processing fees for developments in which 5 percent of units are affordable to extremely low-income households. To be eligible for a fee waiver, the units shall be subject to an affordability covenant for a minimum duration of 55 years. The affordable units provided shall be granted a waiver of park in -lieu fees (if applicable) and City traffic fair share fees. The City will continue to implement this program as affordable housing projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3H: Prioritization of Affordable Housing Funds The City will continue to give highest priority for use of Affordable Housing Fund monies to affordable housing developments providing units affordable to extremely -low income households. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: Affordable Housing Fund Policy Action 31: Public Information About Affordable Housing The City will continue to maintain a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. A copy of this brochure shall be located at the Planning Counter, on the City's website and shall also be provided to potential developers. The City will update the brochure as needed to provide updated information regarding incentives including updated fees and a reference to the most up to date Site Analysis and Inventory. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-12 SS3-156 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 3J: Priority in Kind Assistance for Affordability The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant (CDBG) funds or the City's Affordable Housing Fund. The City will continue to implement the program as housing projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3K: Coastal Zone Development Affordability The City shall follow Government Code Section 65590 and implement Municipal Code Titles 20.34 and 2134 "Conversion or Demolition of Affordable Housing" for new developments proposed in the Coastal Zone areas of the City. All required affordable units shall have restrictions to maintain their affordability for a minimum of 55 years. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3L: Proactive Education and Outreach to Prospective Developers The City will continue to advise and educate existing landowners and prospective developers of affordable housing development opportunities available within Banning Ranch, the Airport Area, West Newport Mesa, Dover -Westcliff, Newport Center, Mariners' Mile, and Balboa Peninsula areas. The City of Newport Beach will continue to implement its program as prospective developers contact the City seeking development information. The City will maintain designated staff persons that can be contacted to provide housing opportunity information and incentives for development of affordable housing during the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3114: Regional Coordination of Housing Issues The City will continue to participate in other programs that assist production of housing. The City will attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-13 SS3-157 City of Newport Beach 2021-2029 HOUSING ELEMENT • �+3� *�'�K It Policy Action 3N: Housing Impact Studies The City will continue to study housing impacts of proposed larger -scale, significant commercial/industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the City "Charter Section 423". The City will continue to implement such program as major commercial/industrial projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #4 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Policy 4.1: Mitigate potential governmental constraints to housing production and affordability by increasing the City's role in facilitating construction of market -rate housing and affordable housing for all income groups. Housing Policy 4.2: Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. IMPLEMENTATION A C TiUfv- Policy Action 4A: Affirmatively Furthering Fair Housing Pursuant to AB 686, Chapter 958, Statutes 2018, the City will affirmatively further fair housing by taking meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and fosters inclusive communities free from barriers that restrict access to opportunity based on protected classes, as defined by State law. To accomplish this, the City or designated contracted organization will collaborate with local and regional organizations to review any housing discrimination complaints, assist in dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and resolution. Section 3 of this Housing Element contains an analysis of fair housing activities in Newport Beach and the Orange County region. The analysis found that: Section 4: Housing Plan (DRAFT MARCH 2021) 4-14 SS3-158 City of Newport Beach 2021-2029 HOUSING ELEMENT ► The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while there are racial and ethnic groups with higher levels of segregation than others within Newport Beach, none meet the standard score to identify segregated groups. ► The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area. However, one R/ECAP was identified in the neighboring City of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. ► The UC Davis Regional Opportunity Index shows that most residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. ► The analysis of the TCAC/HCD opportunity Area Maps shows that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top 40 percent in the region in terms of areas that lower-income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. ► The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally, the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). The City will continue to collaborate with the community, stakeholders, and appropriate organizations to address potential constraints to fair housing. This may include, but not limited to: • Analysis and identification of barriers to entry into homeownership or rental opportunities, • Review of historic policies or restrictions that may have prevented and/or may still prevent disadvantaged groups from locating in Newport Beach, • Specific actions that contribute to Newport Beach's ability to foster a more inclusive community to all racial, social, and economic groups. Timeframe: Ongoing 2021-2029 Responsible Agency: City of Newport Beach Community Development Section 4: Housing Plan (DRAFT MARCH 2021) 4-15 SS3-159 City f Newport Beach � -.:;_ 2021-2029 HOUSING ELEMENT "_ �r. Funding Sources: General Fund Policy Action 4B: Streamlined Project Review The City will provide a streamlined "fast-track" development review process for proposed affordable housing developments. The City of Newport will continue to implement this program as affordable housing projects are submitted to the City in the 6t" Cycle. Timeframe: Evaluate program features within 24 months, Adopt updated procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4C: Density Bonus and Incentives for Affordable Housing The City will update its Density Bonus Ordinance to be consistent with State Law, as amended. Additionally, the City shall either grant a density bonus as required by state law if requested, or provide other incentives of equivalent financial value when a residential developer agrees to construct housing for persons and families of very low, low, and moderate income above mandated requirements. The City will continue to implement provisions of Chapter 20.32, as amended (Density Bonus) of the Zoning Code as housing projects are submitted to the City during the 6t" Cycle. The City will further encourage affordable housing and the potential use of density bonus statutes to accommodate additional affordable units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4D: List of Pre -Approved Development Incentives The City will develop a pre -approved list of incentives and qualifications for such incentives to promote the development of affordable housing. Such incentives could include the waiver of application and development fees or modification to development standards (e.g., setbacks, lot coverage, etc.). The City will continue to work with the Affordable Housing Task Force to develop the list within the 6t" Cycle. Timeframe: Evaluate program features within 24 months, Adopt procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4E: Airport Area Policy Exceptions for Affordable Housing The City recognizes that General Plan Policy LU6.15.6 may result in a potential constraint to the development of affordable housing in the Airport Area, and as a result, the City shall maintain an exception to the minimum 10 -acre village requirement for projects that include a minimum of 30 percent of the units affordable to lower income households. It is recognized that allowing a smaller scale development within an established commercial and industrial area may result in land use compatibility problems and Section 4: Housing Plan (DRAFT MARCH 2021) 4-16 SS3-160 City of Newport Beach 2021-2029 HOUSING ELEMENT result in a residential development that does not provide sufficient amenities (i.e. parks) and/or necessary improvements (i.e., pedestrian walkways). Therefore, it is imperative that the exception includes provisions for adequate amenities, design considerations for the future integration into a larger residential village, and a requirement to ensure collaboration with future developers in the area. The City of Newport Beach will maintain the exception and continue to implement this program as projects are submitted to the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4F: Encourage Development of Opportunity Sites The City will continue to encourage and facilitate residential and/or mixed-use development on sites listed in Appendix B by providing technical assistance to interested developers with site identification and entitlement processing. The City will continue to support developers funding applications from other agencies and programs. The City shall post the Sites Inventory, as showing in Appendix B on the City's webpage and produce marketing materials for residential and mixed-use opportunity sites, and it will equally encourage and market the sites for both for -sale development and rental development. The City shall educate developers of the benefits of density bonuses and related incentives, identify potential funding opportunities, offer expedited entitlement processing, and offer fee waivers and/or deferrals to encourage the development of affordable housing within residential and mixed-use developments. The City will continuously implement this program as housing projects are submitted to the City. Review and update as necessary the Site Inventory and provide information to interested developers. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4G: Annual RHNA Sites Inventory Monitoring The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual basis and report the success of strategies to encourage residential development in its Annual Progress Reports required pursuant to Government Code 65400. The City of Newport will respond to market conditions and will revise or add additional sites where appropriate or add additional incentives, if identified strategies are not successful in generating development interest. The City will include the report in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-17 SS3-161 City of Newport Beach 2021-2029 HOUSING ELEMENT �ad �. stir- _ - W,__ IN: y - .;_ - Policy Action 4H: Definition of Family Pursuant to State law, the City will update, as appropriate, the definition of "family" and "single - housekeeping unit" and "Dwelling, single unit" to ensure compliance with all federal and state fair housing laws. To comply with State law, the definitions should not distinguish between related and unrelated persons and should not impose limitations on the number of people that may constitute a family. Timeframe: Complete Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #5 Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Housing Policy 5.1: Continue or undertake the following programs to mitigate potential loss of "at risk" units due to conversion to market -rate units. These efforts utilize existing City and local resources. They include efforts to secure additional resources from public and private sectors should they become available. Housing Policy 5.2: Improve energy efficiency of all housing unit types (including mobile homes). IMPI PMPAITATMAI ArTInA" Policy Action 5A: Preservation of Affordability Covenants The City will contact owners of affordable units approaching the expiration of affordability covenants to obtain information regarding their plans for continuing affordability on their properties, inform them of financial resources available, and to encourage the extension of the affordability agreements for the developments listed beyond the years noted. The City will conduct an annual compliance monitoring program and a contact list shall be maintained on City website and updated annually during the 6 1 Cycle. Timeframe: Ongoing, as necessary Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-18 SS3-162 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 5B: Section 8 Participation The City shall maintain information on the City's website and prepare written communication for tenants and other interested parties about Orange County Housing Authority Section 8 opportunities and to assist tenants and prospective tenants acquire additional understanding of housing law and related policy issues. The City will attend quarterly OCHA (Cities Advisory Committee) that provide updates on OCHA Section 8 waiting list and housing opportunities to ensure information provided on City website is up to date. If Section 8 waiting list is opened, promote the availability of the program through marketing materials made available to the public. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5C: Incentivize for Preserving of Affordability Covenants The City will investigate the potential for providing additional incentives or modify its current policy to incentivize property owners to maintain the affordability of units on their property during the 6t" Cycle. Timeframe: Investigate and adopt incentives, as appropriate, within 24 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5D: Mobile Home Park Conversions The City will continue to employ the provisions of NBMC Title 20 provision of the Mobile Home Park Overlay to maintain and protect mobile home parks in a stable environment with a desirable residential character. The City will review the existing provisions of the Mobile Home Park Overlay for consistency with State law in accordance with Government Code Section 65863.7. The City will continue to implement program as projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5E: Orange County Housing Authority Advisory Committee The City of Newport Beach will continue to participate as a member of the Orange County Housing Authority (OCHA) Advisory Committee and work in cooperation with the OCHA to provide Section 8 Rental Housing Assistance to residents of the community. The City will continue to attend quarterly OCHA (Cities Advisory Committee). Continue to maintain information on City's website informing landlords of the program benefits of accepting Section 8 Certificate holders. The City will, in cooperation with the Housing Authority, recommend and request use of modified fair - market rent limits to increase the number of housing units within the City that will be eligible to participate Section 4: Housing Plan (DRAFT MARCH 2021) 4-19 SS3-163 City of Newport Beach 2621-2029 HOUSING ELEMENT in the Section 8 program. The Newport Beach Planning Division will prepare and implement a publicity program to educate and encourage landlords within the City to rent their units to Section 8 Certificate holders, and to make very low-income households aware of availability of the Section 8 Rental Housing Assistance Program. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5F: Water Efficiency for Residential Projects The City will continue to implement and enforce the Water Efficient Landscape Ordinance and Landscape and Irrigation Design Standards in compliance with AB 1881 (Chapter 559 Statutes 2006). The ordinance establishes standards for planning, designing, installing, and maintaining and managing water -efficient landscapes in new construction and rehabilitated projects. The City will continue to implement such program as housing projects are submitted to the City. The City will also encourage the retrofit of existing residential developments to install water efficient appliances and fixtures. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5G: Energy Efficiency in Residential Projects The City of Newport Beach will continue to require that any affordable housing developments that receive City assistance from Community Development Block Grant (CDBG) funds or from the City's Affordable Housing Fund shall be required, to the extent feasible, to include installation of energy efficient appliances and devices that will contribute to reduced housing costs for future occupants of the units. The City will continue to implement program as housing projects are awarded funds from the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund & Community Development Block Grant (CDBG) funds Housing Goal #6 Housing opportunities for special needs populations. Housing Policy 6.1: Encourage approval of housing opportunities for senior citizens and other special needs populations. Section 4: Housing Plan (DRAFT MARCH 2021) 4-20 SS3-164 City of Newport Beach 2021-2029 HOUSING ELEMENT IMPLEMENTATION ACTIONS • �+3� *�'�K It Policy Action 6A: Homeless Program Assistance In the 5" Cycle, the City was successful in providing funding to local organizations for providing shelter and services the individuals experiencing homelessness. The City will continue to apply annually for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to subrecipients who provide shelter and other services for the homeless as well as submit Annual Action Plan to HUD in May of each year. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6B: Repair Loans and Grant Programs for Seniors, Persons with Physical and Developmental Disabilities and Lower Income Households The City, in partnership with OASIS Senior Center and Habitat for Humanity Orange County, has developed a Senior Home Repair Assistance Program (SHARP) that is aimed at assisting low-income seniors in need of critical home repair or modifications due to accessibility needs, safety concerns, health and well-being. The program is available to homeowners aged 60 and older who fall within the 50th percentile of the Orange County median income. Additionally, the City will continue to cooperate with the Orange County Housing Authority to pursue establishment of a Senior/Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. The City will continue to attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6C: Leverage CDGB and other Federal Formula Grant Funding The City receives annual allocation of CDBG and other Federal formula grant funds for use in a variety of housing -related activities. The City shall make every effort to leverage these annual funds from various agencies to further the City's housing goals. These may include, but are not limited to, the following State, Regional and private resources: Section 4: Housing Plan (DRAFT MARCH 2021) 4-21 SS3-165 City of Newport Beach � - 2021-2029 HOUSING ELEMENT State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program • Multifamily Housing Program (MHP) • Housing Related Parks Grant • CaIHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Regional Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding • Private Contributions • Public -Private Partnerships In addition, the City of Newport Beach will continue to maintain a list of "Public and Private Resources Available for Housing and Community Development Activities" and maintain a list of resources on City website and update as necessary in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6D: Child Daycare Facilities The City will continue to encourage the development of day care centers as a component of new affordable housing developments and grant additional incentives in conjunction with the review and approval of density bonus projects pursuant to NBMC Chapter 20.32 (Density Bonus). Timeframe: Modify Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6E: Housing Assistance for Seniors The City of Newport Beach was successful in assisting the funding of senior housing services through the 5t" Cycle. The City shall continue to encourage senior citizen independence through the promotion of Section 4: Housing Plan (DRAFT MARCH 2021) 4-22 SS3-166 City of Newport Beach 2021-2029 HOUSING ELEMENT 'i� Roti �aLT ��:fl housing and services related to in-home care, meal programs, and counseling, and maintain a senior center that affords seniors opportunities to live healthy, active, and productive lives in the City. The City will encourage and approve senior housing developments if there is a market demand provided the projects include appropriate support services including transportation. Projects that provide housing and services for low- and moderate -income seniors shall take precedence over market -rate senior housing. The City will continue to provide social services, support groups, health screenings, fitness classes, and educational services at the City's OASIS Senior Center or other facilities and offer affordable ride -share transportation and meal services to seniors who are unable to drive and/or prepare their own meals or dine out and have little assistance in obtaining adequate meals during the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6F: Emergency Shelters, Transitional and Supportive Housing To comply with State law, the City of Newport Beach will amend certain sections of its Municipal Code to address the following requirements: • Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753, Statues 2018), the City of Newport Beach will amend its Municipal Code to permit supportive housing as a use permitted by right in all zones where multiple family and mixed-use development is permitted. • Emergency and Transitional Housing Act of 2019 (AB 139) —The City will update its Municipal Code to comply with the requirements of Gov Code 65583 to address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions. • Amend the City of Newport Beach Municipal Code to comply with the definitions for "Supportive Housing", Supportive Services", "Target Population" consistent with applicable sections the California Government Code. • Amend the Newport Beach Municipal Code to ensure Emergency Shelters, Transitional and Supportive Housing are permitted in appropriate zones, consistent with State law. Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-23 SS3-167 City of Newport Beach - 2021-2029 HOUSING ELEMENT Housing Goal #7 Equal housing opportunities in the City for all people. Housing Policy 6.1: Support fair and equal housing opportunities, and environmental justice considerations for all housing opportunities in the City. ..... _.=wicry i M I I UN AG I I UNS Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers State law has been updated to require approval 'by right' of supportive housing with up to 50 units and low barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are generally defined as service -enriched shelters focused on the transition of persons into permanent housing. Low barrier navigation centers provide temporary living facilities will persons experiencing homelessness to income, public benefits, health services, shelter, and housing. To comply with State law, The City of Newport Beach will adopt policies, procedures, and regulations for processing this type of use as to establish a non -discretionary local permit approval process must be provided to accommodate supportive housing and lower barrier navigation centers per State law. In the interim, any submitted application for this use type will be processed in accordance with State law. The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted policies. Should any amendments be warranted to existing policies pursuant to State law, the City will modify its existing policies, as appropriate. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7B: Transitional and Supportive Housing In compliance with Senate Bill 2 (Chapter 364, Statutes 2017) and SB 745 Chapter 185, Statutes 2013 )the City will ensure the Zoning Code is amended to encourage and facilitates emergency shelters and limits the denial of emergency shelters and transitional and supportive housing under the Housing Accountability Act. This Program would permit transitional and supportive housing by -right in all zones allowing residential uses, subject only to those regulations that apply to other residential uses of the same type in the same zone. In addition, the Zoning Code will be amended to define "supportive housing", "target population" and "transitional housing" pursuant to state law. The City will continue to monitor the inventory of sites appropriate to accommodate transitional and supportive housing and will work with the appropriate organizations to ensure the needs of homeless and extremely low-income residents are met. The City if committed to prioritizing funding and other available incentives for projects that provide housing for homeless and extremely low-income residents whenever possible. Section 4: Housing Plan (DRAFT MARCH 2021) 4-24 SS3-168 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7C: Housing for Persons with Developmental Disabilities The housing needs of persons with developmental disabilities are typically not fully addressed by local zoning regulations. Persons with disabilities may require, in addition to basic affordability, slight modifications to existing units, and in some instances, a varying range of supportive housing facilities. To accommodate residents with developmental disabilities, the City will review and prioritize housing construction and rehabilitation including supportive services targeted for persons with developmental disabilities. Newport Beach will also explore the granting of regulatory incentives, such as expedited permit processing, and fee waivers and deferrals, to projects targeted for persons with developmental disabilities. To further facilitate the development of units to accommodate persons with developmental disabilities, the City will encourage development of projects targeted for special needs groups. As housing is developed or identified, Newport Beach will collaborate with the Regional Center of Orange County (RCOC) to implement an outreach program informing families within the City of housing and services available for persons with developmental disabilities. The City will provide information at City Hall and on the City's website. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7D: Fair Housing Services The City was successful in reaching out to the community about fair housing services during the 5t" Cycle. The City of Newport Beach will continue to contract with an appropriate fair housing service agency for the provision of fair housing services for Newport Beach residents. The City will also work with the fair housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing document required by HUD. The City will continue to provide a minimum two public outreach and educational workshops a year, and distribute pamphlets containing information related to fair housing in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-25 SS3-169 City of Newport Beach 2021-2029 MOUSING ELEMENT Housing Goal #8 Effective and responsive housing programs and policies. 'i� Roti �aLT ��:fl Housing Policy 7.1: Review the Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. IMPLEMENTATION ACTIONS Policy Action 8A: Annual Reporting Program The City of Newport Beach shall report on the status of all housing programs as part of its annual General Plan Review and Annual Progress Report (APR). The Annual Progress Report discusses Housing Programs and is submitted to the California Department of Housing and Community Development in accordance with California state law. The City will continue to annually report its efforts within the annual General Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 8B: Water and Sewer Service Providers Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Newport Beach is required to deliver its adopted housing element and any amendments thereto to local water and sewer service providers. This legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects, to ensure that the providers have an opportunity to provide input on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households. The City will submit the adopted 6th Cycle Housing Element to local water and sewer providers for their review and input. Timeframe: Transmit document immediately upon adoption of future amendment Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Summary of Quantified Objectives [TBD] Section 4: Housing Plan (DRAFT MARCH 2021) 4-26 SS3-170 �� � � _ ii!!!! Z. :� :: •fir- ' --�-- ' = +t- .�+!�• _--- - k r r� aL— . +Alp. JF - .,� : • • City of Newport Beach 2021-2029 HOUSING ELEMENT The following chart is a review of the City's housing project and program performance in the 2014-2021 Planning cycle. It is an evaluation of the 51" cycle's Policy Program and considers all current and existing programs and projects as well as the most current accomplishments and effectiveness and appropriateness. Policy Action Objective Program Accomplishments Status for Sixth Cycle Policy 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. 1.1.1 Prepare quarterly The building inspectors and code enforcement officers Ongoing Improve housing quality report on code continually enforce code regulations, abatement violations, In accordancewith and prevent deterioration enforcement activities and nuisances. State Law, the City will of existing neighborhoods continue to enforce by strictly enforcing The City conducts quarterly reports on code enforcement Building Code Building Code regulations activities and keeps them on file at City Hall. regulations and address and abating Code violations • In 2020, the CityCouncil awardedfunding for the violations and and nuisances. Senior Home Assistance Repair Program. nuisances. 1.1.2 Through Code On April 29, 2015, the Citypublished Requestfor Proposal Ongoing I nvestigate the use of Enforcement (RFP) No. 15-55 for use of the City's Affordable Housing During the 51" Cycle federal funds and local notifications and Fund toward affordable housing development or Planning Period, the funds, including correction activities, programming. Three projects received approval of the Citywas successful in Community Development attempt to identify funding from City Council on November 24, 2015: providing additional Block Grants (CDBG) and property owners in funding to 3 projects the Affordable Housing need of financial 1. Senior Home Assistance Repair Program (SHARP)- that resulted in new Fund, to provide technical assistance and overall An agreement with Habitat for Humanity Orange affordable housing and/or financial assistance, resource allocation for County (Habitat OC)granted up to $600,000for units for low-income if necessary, to existing a rehabilitation critical home repairfor low-income seniors. The seniors and veterans lower- and moderate- program. Attend total the City has used in the program to date is and in the income, owner occupants quarterly OCHA(Cities $243,466 for a total of 11 projects. rehabilitation of of residential properties I Advisory Committee) Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-1 SS3-172 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle through low-interest loans meetings to keep up to o In 2020, the program worked on 2 projects residences belonging to or emergencygrants to date on rehabilitation and expended a total of $9,222.11. Projects lower income seniors. rehabilitate and encourage programs offered by included home weatherization, roof repair The Citywill continue the preservation of existing the County and and accessibility modifications. The total to seekfunding housing stock. investigatethe we have used in the program to date is opportunities from availability of federal $228,023 for a total of 11 projects. federal and local funds funds in February of o In 2019, the City worked on 2 projects and for lower- and each year, when new expended a total of $30,682. Projects moderate -income funding opportunities included home weatherization, roof repair households. This will aretypically and accessibility modifications. continue assisting announced. o In 2018, there was $194,000 spent with 8 seniors and lower projects completed and 1 in the process at income households in the end of the year. These projects include maintaining their repairing and weatherizing roofing, homes and incentivizes bringing landscaping up to code, repairing developers to create stairs and railings, and replacing furnaces affordable housing for and windows. the community. o In 2017, the first project was completed in West Newport in March 2017. The second project was completed in Corona del Mar in October 2017. The third and fourth projects were close to completion in Bayview and Santa Ana Heights in December 2017. Additionally, there were 3 projects in the application process in 2017 in West Newport Mesa, Bayside Village, and Peninsula Point. o In 2016, the first project was funded and underway in West Newport in December 2016 to repair the following: siding, roof, paint, chimney, faucets, outlets, smoke and Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-2 SS3-173 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle carbon monoxide detectors. Anticipated completion is early 2017. The second project was in the initial inspection phases at a Santa Ana Heights residence for exterior clean-up items to address code enforcement issues such as landscape, garage door, paint and a broken window 2. An agreementwith Community Development Partners granting $1,975,000to assist withthe acquisition, rehabilitation and conversion of an existing 12 -unit apartment building located at 6001 Coast Boulevard for affordable housing — 6 for low- income veterans and 6 with a priority for low- income seniors and veterans (The Cove, formally known as the Newport Veterans Project). In June 2017, the project closed on construction financing. Building permits were issued and construction began in July 2017. The lease -up of the units were completed in 2018. 3. Seaview Lutheran Plaza Project—Seaview Lutheran Plaza was awarded $1.6 million to assist with the rehabilitation of an existing 100 -unit apartment building that is affordable to low-income seniors located at 2800 Pacific View Drive. On July 26, 2016, the Cityand Seaview Lutheran entered into an affordable housing grant agreementfor $800,000 of the award for upgrades to existing bathrooms. The design and permits were approved late 2016 and construction was underway throughout 2017. By spring 2018 all 100 units were complete. The grant agreement extended the Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-3 SS3-174 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle affordability requirement through 2069. Subsequent to the grant, Seaview Lutheran decided to not pursue the remaining $800,000 for a loan 3 PROGRAM STATUS agreement. Therefore, this money remains in the City's affordable housing account. 1.1.3 Use Chapter 20.34 On October 29, 2019, the Community Development Removed Require replacement of "Conversion or Director determined that Newport Beach Municipal Code This policy action is no housing demolished within Demolition of (NBMC) Chapters 20.34 and 21.34 (Conversion of longer being considered the Coasta I Zone when Affordable Housing" to Demolition of Affordable Housing) are no longer required. at this time. The City is housing is or has been implement Program These chapters of the NBMC implement the Mello Act continuing to look for occupied by very low—, continuously as (Government Code Sections 65590 - 65590.1 Low- and ways to protect and low-, and moderate- projects are submitted. Moderate -Income Housing Within the Coastal Zone). The create affordable income households within regulations require the replacement of housing units lost housing through the 6th the preceding 12 months. within the coastal zonethat are occupied by low- and Cycle Policy Actions and The Cityshall prohibit moderate -income households under certain circumstances Sites Inventory. demolition unless a when feasible. Both the NBMC andthe Mello Act provide determination of when there is less than 50 acres in aggregate, of privately consistencywith owned, vacant land available for residential use within the Government Code Section City's coastal zone, and 3 miles therefrom, the replacement 65590 has been made. The requirement is not required. specific provisions implementing replacement The Planning Division completed a land use inventory in unit requirements are October 2019 to determine if 50 aggregate acres of contained in Chapter 20.34 privately owned, vacant land is available for residential use of the Municipal Code. within the City's coastal zone and within 3 miles inland of the coastal zone. The inventory conducted found less than 50 qualifying acres. 1.1.4 Continuously This City report allows the Cityto verify that its residential Ongoing The Citywill continue to implement program as buildings meet zoning and building code requirements, life The Citywill continue implement the Residential 1 RBR applications are I safety requirements as set forth by the City's Municipal I implementing the RBR Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-175 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Building Records (RBR) submitted to the City. Code, and fulfill the State's requirement that all homes program through the program to reduce and Promote the have both smoke detectors and seismic strapping of water 6t" Planning Cycle. This prevent violations of availability of program heaters (California Health and Safety Code, Section 19211). allows the City to track building and zoning to the public and local • In 2020, there were 1,629 RBRs processed. the sale of properties, ordinances by providing a real estate • In 2019, there were 1,405 RBRs processed. ensurethe home meets report to the all parties professionals by . In 2018, there were 1,059 RBRs processed. Code regulations for life involved in a transaction of maintaining . In 2017, there were 1,547 RBRs processed. and safety purposes, sale of residential information on website . In 2016, there were 1,447 RBRs processed. and provide new properties, and providing and developing . In 2015, there were 1,432 RBRs processed. homeowners with an opportunity to inspect brochure and other 0 In 2014, there were 1,392 RBRs processed. detailed information on properties to identify promotional materials. the permitting history potentially hazardous of their property. conditions, resources permitting. The report provides information as to permitted and illegal uses/construction, and verification that buildings meet zoning and building requirements, including life safety requirements. Policy 2.1 Encourage preservation of existing and provision of new housing affordable to extremely low-, very low-, low-, and moderate -income households. 2.1.1 Complete vacancy A vaca ncy rate survey is completed upon receiving an Modified. This program Maintain rental rate survey upon application for the conversion of 15 or more rental units to was ongoing during the opportunities by restricting submittal of condominiums. Between 2014 and 2020 no project of 15 or 5t" cycle; however, no conversions of rental units condominium more units were submitted. projects of this nature to condominiums in a conversion application were submitted. The development containing 15 of 15 or more units. program is important in or more units unless the I I retaining the City's Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-5 SS3-176 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle vacancy rate in Newport existing rental housing Beach for rental housing is and will be continued in an average of 5 percent or the 61h cycle with higher for 4 consecutive appropriate quarters, and unless the modifications. property owner complies with condominium conversion regulations contained in Chapter 19.64 of the Newport Beach Municipal Code. 2.1.2 Continuously Pending applications that include affordable housing will be Ongoing Take all feasible actions, implement program as expedited. The Citywill continue through use of affordable housing • 2020: Newport Airport Village to promote the development agreements, projects are submitted . 2020: Residences at 4040 Von Karmen 2019: 4 very development of expedited development to the City. low-income applications submitted (1 ADU and 3 affordable housing by review, and expedited multi -unit). expediting the processing of grading, • 2018: 3 very low-income applications submitted (3 development process. building and other ADUs). The Regional Housing development permits, to Needs Allocation ensure expedient (RHNA) requires the construction and City to add 2,381 lower occupancyfor projects income homes and approved with lower- and 1,048 moderate income moderate -income housing homes; this policy requirements. action incentivizes the development of such housing. 2.1.3 Continuously The issuance of tax-exempt mortgage revenue bonds is Modify Participate with the County implement program project driven, and the developer typically applies for the The Citywill continue of Orange in the issuance I per project submittal bonds. to incentivize the Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-177 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle of tax-exempt mortgage as the developer No applications were received, 2020-2014. development of revenue bonds to facilitate applies for these affordable housing and assist infinancing, bonds. units; however, the development and policy will be adjusted construction of housing to include the affordable to low and promotion of available moderate -income bonds to the public and households. developers. 2.1.4 Complete review by Annual compliance monitoring has been conducted for Ongoing Conduct an annual the last quarter of each 2014-2020 and the report for the City's income- and rent- The Citywill continue compliance -monitoring year and report within restricted units by Priscila Davila &Associates, Inc. to maintain the program for units required the annual General (consultant) found all units in compliance. availability of to be occupied by very low- Plan Status Report affordable housing , low-, and moderate- including Housing units for lower income income households. Element Report and moderate -income provided to OPR and households. HCD by April 1st each year. 2.1.5 Continuously In 2018 the building permitfees werewaived for the Ongoing Provide entitlement implement program as Seaview Lutheran Plaza Project. Planning staff assisted as a The City, in accordance assistance, expedited affordable housing liaison between the applicant and the Building Division to with recent updates to entitlement processing, projects are submitted assist in resolving Building Code issues during the plan State Law, will continue and waive application to the City. check process for the Seaview Lutheran Plaza Project and to promote the processing fees for assisted with coordinating plan check and expediting development of developments in which 5 permitting for the Newport Beach Veterans project. affordable housing by percent of units are committing to taking affordable to extremely actions within the low-income households. To 2021-2029 Housing be eligible for a fee waiver, Element to expedite the units shall be subject to the entitlement an affordability covenant process. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-7 SS3-178 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle for a minimum duration of 30 years. The affordable units provided shall be granted waiver of parkin - lieu fees (if applicable) and traffic fairshare fees. 2.1.6 Continuously In 2020, the City released an RFQfor Permeant Supportive Ongoing Affordable housing implement program as Housing consultant to assist the City in developing a PSH. The Citywill continue developments providing affordable housing See status of Program 1.1.2. to prioritize the units affordable to projects are submitted creation or conversion extremely low-income to the City. of housing units for households shall be given extremely low-income the highest priority for use households. of Affordable Housing Fund monies. Policy 2.2 Encourage the housing development industry to respond to existing and future housing needs of the community and to the demand for housing as perceived by the industry. 2.2.1 Update brochure as A brochure is maintained and provided on the City website Ongoing Maintain a brochure of needed to provide and in the public lobby. The Citywill continue incentives offered by the updated information to promote affordable Cityfor the development of regarding incentives housing to the affordable housing including updated fees community. The City including fee waivers, and a referencetothe will continue in the 61h expedited processing, most up to date Site Cycle planning period density bonuses, and other Analysis and Inventory. to pursue methods of incentives. Provide a copy outreaching to the local of this brochure at the development Planning Counter, the community, including website and also provide a non-profit developers, to explore partnerships. Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-179 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle copy to potential developers. 2.2.2 Continuously The Cityprovides financial assistance based ona project by Ongoing The Cityshall provide more implement program as project analysis, depending on need and overall project The Citywill continue assistancefor projects that housing projects are merits. to provide assistance, provide a higher number of submitted to the City. through CDBG funds or affordable units or a This program was considered in evaluating the proposals the City's Affordable greater level of for the RFP and choosing the projects described in Program Housing Fund, for affordability. At least 15 1.1.2. projects that provide a percent of units shall be higher number of affordable when assistance affordable housing is provided from units. Community Development Block Grant (CDBG) funds or the City's Affordable Housing Fund. 2.2.3 Use Zoning Code See status of Program 1.1.3. Ongoing For new developments Chapter20.34 The Citywill continue proposed in the Coastal "Conversion or The Cityuses NBMC Chapter 20.34Conversion or to ensure the number Zone areas of the City, the Demolition of Demolition of Affordable Housing by monitoring demolition of affordable housing Cityshall follow Affordable Housing" to requests and permits. One applicable project (PA2018-051) options within the City Government Code Section implement this was submitted in 2018, requesting the demolition of 4 is not decreased. The 65590 and Title 20. program continuously units; none of the 4 units were found to be occupied by 61" Cycle RHNA All required affordable as projects are low- or moderate -income households. calculations add to the units shall have restrictions submitted. number of needed to maintain their Resultingfrom Mello Act Compliancefor the Echo Beach affordable housing affordability for a minimum project approved in 2014, 6 existing studio units at 305 E. units, therefore of 30 years. BayAvenue were remodeled and converted to very low and maintaining the low-income rental units in 2016. The units were available to affordability of units rent in 2017. does not add to the amount the City must Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-180 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle develop between 2021 and 2029. 2.2.4 Continuously Staff continues to include this affordability restriction as a Ongoing All required affordable implement program as standard condition on all affordable housing projects, The Citywill continue units shall have restrictions housing unless an otherwise longer affordability covenant is agreed to maintain a 30 -year to maintain their projects are submitted upon. minimum restriction for affordability for a minimum to the City. affordable housing of 30 years. On February 21, 2019, the 350 -unit Newport Crossings units to protect Mixed -Use Project was approved, which includes 78 units residents currently affordable to low-income households. 52 units were residing in such units restricted for a term of 55 years in compliance with density and, in conjunction bonus law and the remaining 26 non -density bonus units with other policy were restricted for a term of 30 years. actions, incentivize the development of The Newport Veterans project has an affordability affordable housing in requirement of 50 years and the Seaview Lutheran project the City. will add 30 additional years to their existing requirement, resulting in a new expiration date of 2069. 2.2.5 Continuously A brochure has been created and distributed that outlines Ongoing Advise and educate implement program as development incentives and entitlement assistance The Citywill continue existing landowners and prospective developers available in the City. The brochure is maintained at the to promote affordable prospective developers of contact City seeking public counter in Bay C at the Civic Center and on the City housing sites to affordable housing development website. prospective developers. development opportunities information. Maintain The 61" Cycle Housing available within the a designated staff Element will identify Banning Ranch, Airport person that can be opportunity sites for Area, Newport Mesa, contacted to provide housing that should be Newport Center, Mariners' housing opportunity actively presented to Mile, West Newport information and developers through this incentives for policy action. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-10 SS3-181 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Highway, and Balboa development of Peninsula areas. affordable housing. 2.2.6 Attend quarterlyOCHA Citystaffattends Orange County Housing Authority (OCHA) Ongoing Participate in other (Cities Advisory Cities Advisory Committee meetings to keep up-to-date The Citywill continue programs that assist Committee) meetings with programs that assist inthe production of housing. to participate in OCHA production of housing. to keep up to date on meetings and programs rehabilitation programs that assist in the offered by the County production of housing. in order to This policy action is continuously inform necessary in order to homeowners and achieve other actions rental property owners (2.2. 1) that inform the within the City of public of funding opportunities and to opportunities and encourage programs to further preservation of existing develop the City's housing stock. housing stock. 2.2.7 Provide a copy of the In 2017, the Newport Crossings Mixed -Use project, a 350- Ongoing New developments that Housing Element to dwelling unit mixed-use development, was submitted within The Citywill continue provide housing for lower- water and sewer the Airport Area under the Residential Overlay of the to incentivize the income households that service providers. Newport Place Planned Community. The proposed project production of help meet regional needs Pursuant to state law, includes 78 dwelling units affordable to low-income affordable housing shall have priority for the water and sewer households. The Environmental Impact Report (EIR) was units by prioritize the provision of available and providers mustgrant certified and the project was approved by the Planning allocation of resources future resources or priority to towards new services, including water developments that Commission on February 21, 2019. The EIR concluded that development that and sewersupply and include housing units adequate water and sewer capacity exist to support the provide housing for services. affordable to lower- development. The plan check for construction drawing lower income income households review households. which is implemented Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-11 SS3-182 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle continuously as these was submitted on November 17, 2020, with building permit projects are submitted. issuance expected in Summer 2021. 2.2.8 Continuously Implemented as projects are submitted. Density bonus Ongoing Implement Chapter 20.32 implement program as information and incentives are included in an informational In accordancewith (Density Bonus) of the housing projects are brochure available to the public. State Law, the City will Zoning Code and educate submitted to the City. continue to provide interested developers In 2017, the Newport Crossings Mixed -Use project, a 350- density bonuses to about the benefits of dwelling unit mixed-use development, was submitted developments that density bonuses and within the Airport Area under the Residential Overlay of the provide housing to related incentives for the Newport Place Planned Community. In exchange for lower income development of housing providing 78 units affordable to low-income households, households. This action that is affordable to very the developer has requested a density bonus of 91 units (35 proved successful low-, low-, and moderate- percent bonus), an incentive to allow for flexibility with unit during the 51h Planning income households and mix, and a development waiver of building height. The Cycle as 3 projects senior citizens. Environmental Impact Report (El R)was certified and the applied for density project was approved by the Planning Commission on bonuses that resulted February 21, 2019. in the creation of 94 affordable housing In December 2019, an application was submittedfor a new units for lower income mixed-use development located at 2510 West Coast households. Highwaythat includes the development of 36 dwelling units, 3 of which would be restricted for very low-income households. In exchange for providing the very low-income units, the developer has requested a density bonus of 9 units (35 percent bonus) and development waiver of building height. The project was approved by the Planning Commission in February of 2021 and is pending review by the City Council. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-12 SS3-183 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle In 2020 an application was submitted for Residences at 4400 Von Karman, which included 312 apartments of which 13 very -low income housing units. The project was approved by the City Council in February 2021. Newport Airport Village - A General Plan Amendment, Planned Community Development Plan (PCDP), and a Development Agreement that would allow for the future redevelopment of the 16.46 -acre property with up to 444 dwelling units (329 base units and 11S density bonus units) and 297,572 squarefeet of retail, office, and other airport supporting uses. The project was approved by City Council on September 22, 2020. Residences at 4400 Von Karman- In 2020, the former Koll Center Residences project was actively reviewed under a new project submittal called The Residences at 4400Von Karman. The request consists of 637rezoning nonresidential property to mixed-use land uses, including up to 260 residential units plus an allowance for density bonus units up to a total of 312 units (13 Very -Low Income units). On November 5, 2020, the Planning Commission considered the project and recommended approval to the City Council. The City Council approved the project on February 9, 2021, outside the reporting period. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-13 SS3-184 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Policy 2.3 Approve, wherever feasible and appropriate, mixed residential and commercial use developments that improve the balance between housing and jobs. 2.3.1 Continuously In conjunction with the environmental review required Ongoing Study housing impacts of implement program as under the California Environmental Quality Act (CEQA), The Citywill continue proposed major major potential impacts to population, housing, and employment to analyze the impacts commercial/industrial commercial/industrial is reviewed and analyzed. Recent development trends have of proposed projects during the projects are submitted consisted of redevelopment of commercial and industrial commercial and development review to the City. sites for residential development or mixed-use, which has industrial projects on process. Priorto project created new housing opportunities in the City. housing the City. While approval, a housing impact no projects were assessment shall be No major commercial/industrial projects were submitted in proposed between developed by the City with 2020-2014. 2014 and 2019 that the active involvement of triggeredthe the developer. Such requirement for an assessment shall indicate impact assessment, the the magnitude of jobs to analysis in coordination be created by the project, with CEQA identifies where housing potential effects on opportunities are expected housing and the City's to be available, and what ability to reach RHNA measures (public and allocations. 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. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-14 SS3-185 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Policy 3 Mitigate potential governmental constraints to housing production and affordability by increasing the Cityof Newport Beach role in facilitating construction of affordable housing for all income groups. 3.1.1 Continuously The City prioritizes the development review process for all Ongoing Provide a streamlined implement program as affordable housing projects. The City has been "fast-track" development housing projects are successful in review process for submitted to the City. The renovation for the Cove project, the Seaview Lutheran streamlining projects proposed affordable rehabilitation and any Senior Home Repair Program that add to the housing developments. rehabilitation projects were provided "fast-track" plan affordable housing check. stockof Newport Beach. The City will continue to streamline and "fast-track" the development review process of affordable housing to incentivize developers to create affordable housing. 3.1.2 Continuously The City considers density bonuses and other incentives on Ongoing When a residential implement provisions a project -by project basis. Chapter 20.32 (Density Bonus) is In accordance with developer agrees to of Chapter 20.32 included in the Zoning Code and is implemented as projects State Law, the City will construct housing for Density Bonus in the are submitted. continue to provide persons and families of Zoning Code as housing density bonuses to very low, low, and projects are submitted As mentioned in Program 2.2.8, the approved Newport developments that moderate income above to the City. Crossings Mixed Use project includes 78 units affordable to provide housing to mandated requirements, low-income households, and the developer has requested a lower income the Cityshall either (1) density bonus of 91 units (35 percent bonus), an incentive households. grant a density bonus as to allow for flexibility with unit mix, and a development required by state law, or waiver of building height. (2) provide other incentives Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-15 SS3-186 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle of equivalent financial Additionally, a 2020 development, Residences at 4400 Von value. Karman Project includes 312 apartment units (2510 West Coast Highway). Ofwhich, 13 were designated very -low income. 3.1.3 Work with the Waivers and incentives are considered by the Planning Ongoing Develop a pre -approved list Affordable Housing Commission and City Council on a project -by -project basis. The Citywill continue of incentives and Task Force to develop Staff received information from the Department of Housing coordinating with HCD qualifications for such the list and obtain City and Community Development (HCD) on examples of pre- to develop pre - incentives to promote the Council approval by Fall approved incentive programs from the City of Los Angeles approved incentives for development of affordable 2014. and the Cityof Anaheim. Staff will continue research with developing affordable housing. Such incentives HCDtodevelop pre -approved incentives. housing and review the include the waiver of eligibility of projects for application and As mentioned in Program 2.2.8, the Newport Crossings fee waivers and development fees or Mixed -Use project includes 78 units affordable to low- incentives. modification to income households, and the developer has requested a development standards density bonus of 91 units (35 percent), an incentive to allow (e.g., setbacks, lot for flexibility with unit mix, and a development waiver of coverage, etc.). building height. As mentioned in Program 2.2.8, the Newport Crossings Mixed -Use project includes 78 units affordable to low- income households, and the developer has requested a density bonus of 91 units (35 percent bonus), an incentive to allow for flexibility with unit mix, and a development waiver of building height. The plan check for construction drawing review was submitted on November 17, 2020, with building permit issuance expected in Summer 2021. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-16 SS3-187 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Policy 3.2 Enable construction of new housing units sufficient to meet Cityquantified goals by identifying adequate sites for their construction. Development of new housing will not be allowed within theJohn Wayne Airport (JWA) 65 dB CNELcontour, no largerthanshown on the 1985 JWA Master Plan. 3.2.1 Continuously The Citycontinually monitors requests for zone changes of Ongoing When requested by implement program as vacant and developed properties from nonresidential to The City has been property owners, the City property owners bring residential and approves when determined to be successful in rezoning shall approve rezoning of their requests to the compatible and feasible. When approved, these sites are properties from developed or vacant City. mapped for residential uses on both the Zoning District nonresidential to property from Map and General Plan Land Use Map. residential uses. The 6th nonresidential to Cycle Housing Element residential uses when Residences at 4400 Von Karman- In 2020, the former Koll identifies potential sites appropriate. These rezoned Center Residences project was actively reviewed under a that could be rezoned properties shall be added new project submittal called The Residences at 4400 Von to permit housing to the list of sites for Karman. The request consists of rezoning nonresidential developments. The City residential development. property to mixed-use land uses, including up to 260 will continue to review residential units plus an allowance for density bonus units rezoning applications up to a total of 312 units (13 Very -Low Income units). On when appropriate for November 5, 2020, the Planning Commission considered housing development. the project and recommended approval to the City Council. The City Council approved the project on February 9, 2021, outside the reporting period. Newport Airport Village - A General Plan Amendment, Planned Community Development Plan (PCDP), and a Development Agreement that would allow for the future redevelopment of the 16.46 -acre property with up to 444 dwelling units (329 base units and 115 density bonus units) and 297,572 square feet of retail, office, and other airport supporting uses. The project was approved by City Council on September 22, 2020. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-17 SS3-188 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Residences at Newport Center - Redevelopment of an underutilized commercial site in Newport Center to develop 28 condominiums. The project was submitted to the City in February 2020 and the application was deemed complete in December 2020. The City is currently preparing the draft environmental impact report for public distribution in the spring 2021. 2510 West Coast Highway- In December 2019, an application was submittedfor a new mixed-use development located at 2510 West Coast Highwaythat includes the development of 35 dwelling units, 3 of which would be restricted for Very Low Income households. In exchangefor providing the Very Low Income units, the developer has requested a density bonus of 9 units (35 percent bonus), a development waiver for building height and a waiver regarding the unit mix. The project was approved by the Planning Commission in February 2021, and the decision will be reviewed by the City Council. In 2012, the Cityadopted an amendment to the North Newport Center Planned Community and approved an additional 79 residential units for construction within North Newport Center. The amendment now allows for the total construction of up to 524 residential units within the San Joaquin Plaza sub -area. On December 12, 2013, plans were submitted for the construction of 524 -unit apartment complex and building permits and demolition permits were issued in November 2014. Construction commenced in late 2014 and was completed in Summer 2017. Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-189 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle 3.2.2 Continuously The Residential Overlay of the Newport Place Planned Ongoing Recognizing that General implement program as Community implements this program by providing an Through this policy, the Plan Policy LU6.1S.6 may projects are submitted exception to the 10 -acre site requirement for residential City has successfully result in a potential to the City. development projects in the Airport Area that include a added 734 new units, of constraint to the minimum of 30 percent of the units affordable to lower which 193 are reserved development of affordable income households. for lower incomes. housing in the Airport Area, To overcome the Cityshall maintain an In 2017, the Newport Crossings Mixed -Use project, a 350 constraints tothe exception to the minimum dwelling unit mixed-use development was approved within development of 10 -acre site requirement the Airport Area under the Residential Overlay. In exchange housing, and for projects that include a for providing 78 units affordable to low-income specifically affordable minimum of 30 percent of households, the project is eligible for the 10 -acre site housing, the City will the units affordable to requirement, a 91 -unit density bonus, and development continue to provide lower income households. incentives and waivers. The application included a Site exceptions to the It is recognized that Development Reviewto ensure that the sufficient minimum 10 -acre site allowing a smallerscale amenities and neighborhood integration improvements are requirement when 30 development within an provided. The project provides extensive on-site percent or more of the established commercial recreational amenities, including separate pool, units are proposed to and industrial area may entertainment, and lounge courtyards with eating, seating, be affordable. result in land use and barbeque space; a rooftop terrace; a fifth -level view compatibility problems and deck; a club room for entertainment and gatherings; and a result in a residential fitness facility. In addition, a 0.5 -acre public park is development that does not proposed to be constructed and dedicated to the City, and provide sufficient a public plaza is located in front of the retail shops facing amenities (i.e. parks) the main corner of the project at Corinthian Way and and/or necessary Martingale Way. The plan checkfor construction drawing improvements (i.e. review was submitted on November 17, 2020, with building pedestrian walkways). permit issuance expected in Summer 2021. Therefore, it is imperative that the exception includes In 2019, the Newport Crossings Mixed -Use project, a 350 provisions for adequate dwelling unit mixed-use development was approved within Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-19 SS3-190 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle amenities, design the Airport Area under the Residential Overlay. In exchange considerations for the for providing 78 units affordable to low-income future integration into a households, the project is eligible for the 10 -acre site larger residential village, requirement, a 91 -unit density bonus, and development and a requirement to incentives and waivers. The application included a Site ensure collaboration with Development Reviewto ensure that the sufficient future developers in the amenities and neighborhood integration improvements are area. provided. The project provides extensive on-site recreational amenities, including separate pool, entertainment, and lounge courtyards with eating, seating, and barbeque space; a rooftop terrace; a fifth -level view deck; a club room for entertainment and gatherings; and a fitness facility. In addition, a 0.5- acre public park is proposed to be constructed and dedicated to the City, and a public plaza is located in front of the retail shops facing the main corner of the project at Corinthian Way and Martingale Way. 3.2.3 Continuously Appendix H3 is the Sites Analysis and Inventory which Ongoing The Citywill encourage and implement program as identifies sites that can be developed for housing within the AB 1486 requires that facilitate residential and housing projects are planning period and that are sufficientto provide for the the Cityidentify and mixed-use development on submitted to the City. City's share of the regional housing need allocation to provide a list of sites vacant and Review and update as provide realistic opportunities for the provision of housing designated in the sites underdeveloped sites listed necessarythe Site to all income segments within the community. Appendix H3 inventory if they are in Appendix H3 by Analysis and Inventory can be found in the Housing Element available at the owner by the City. providing technical and provide Planning Division or online at: assistance to interested information to http://www.newportbeachca.gov/index.aspx?page=2087 Through the 6t" Housing developers with site interested developers. Element Planning Cycle, identification and The City has completed the following: the Citywill reviewthe entitlement processing. 1. A user-friendly Sites Analysis and Inventory is on the opportunity sites The Citywill support City's website. identified and continue developers funding Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-20 SS3-191 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle applications from other 2. A brochure is available on the website and in the public marketing opportunity agencies and programs. lobby that promotes the incentives and opportunities for sites. The City will post the Sites affordable housing projects, which includes information of Analysis and Inventory on the City's Sites Analysis and Inventory. the City's webpage and 3. A layer and note have been added in the City's marketing materials for Geographic Information System (GIS) to identify sites within residential and mixed-use the inventory to assist staff in providing information to opportunity sites, and it interested developers. will equally encourage and The Citywill encourage density bonus and offer incentives market the sites for both to interested developers. for -sale development and rental development. To Effective January 1, 2020, State law (Assembly Bill 1486, encourage the Statutes of 2019) requires a listing of sites owned by the development of affordable City, that are included in the sites inventory, and that have housing within residential been sold, leased, or otherwise disposed of in the prior and mixed-use year. The list shall include the entity to whom each site was developments, the City transferred and their intended use. The Citydoes not own shall educate developers of any of the sites listed in the current housing opportunity the benefits of density sites; therefore, no listing of sites is provided. bonuses and related incentives, identify potential funding opportunities, offer expedited entitlement processing, and offer fee waivers and/or deferrals. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-21 SS3-192 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle 3.2.4 Annually report staff's The City has significant projects on sites identified as Ongoing The Citywill monitor and findings within the underutilized: The City has been evaluate the development annual General Plan • In 2019, construction began the development of successful in identifying of vacant and Status Report including the Plaza Corona del Mar project, 6 detached underutilized sites and underdeveloped parcels on Housing Element residential condominiums units on an identified aiding/facilitating the an annual basis and report Report provided to vacant site in Corona del Mar. Building permits development of the success of strategies to OPR and HCD by April were issued in 2017. housing on said encourage residential 1st each year. • Uptown Newport was approved in February 2013, properties. development in its Annual for the construction of up to 1,244 residential units, Progress Reports required 11,500square feet of retail commercial, and 2.05 The Citywill continue pursuant to Government acres of park space. The Uptown Newport Planned to seekout Code 65400. If identified Community requires densities between 30 du/acre underutilized sites at strategies are not and 50 du/acre, consistent with the densities of the the time of the annual successful in generating General Plan, and allows additional density General Plan Status development interest, the opportunities with a density bonus. Construction of Report or OPR and Citywill respond to market the first phase of the project (462 apartment units, HCD. conditions and will revise including 91 affordable units) began in 2014 and or add additional 227 of these units were completed and finalized in incentives. 2019. • The Newport Crossings Mixed -Use project is located on a site identified as underutilized. The project was submitted in 2017 and was under review in 2018. The project includes the development of 350 residential apartment units, including 78 units affordable to low-income households. The Environmental Impact Report (EIR) was certified and the project was approved by the Planning Commission on February 21, 2019. • Residences at4400Von Karman - In 2020, the former Koll Center Residences project was actively reviewed under a new project submittal called The Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-22 SS3-193 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Residences at 4400 Von Karman. The request consists of rezoning nonresidential property to mixed-use land uses, including up to 260 residential units plus an allowance for density bonus units up to a total of 312 units (13 Very -Low Income units). On November 5, 2020, the Planning Commission considered the project and recommended approval to the City Council. The City Council approved the project on February 9, 2021, outside the reporting period. • Newport Airport Village- A General Plan Amendment, Planned Community Development Plan (PCDP), and a Development Agreementthat would allow for the future redevelopment of the 16.46 -acre property with up to 444 dwelling units (329 base units and 11S density bonus units) and 297,572 square feet of retail, office, and other airport supporting uses. The project was approved by City Council on September 22, 2020. • Residences at Newport Center— Redevelopment of an underutilized commercial site in Newport Center to develop 28 condominiums. The project was submitted to the City in February 2020 and the application was deemed complete in December of 2020. The City is currently preparing the draft environmental impact report for public distribution in the spring of 2021. • Newport Village Mixed Use — Redevelopment of underutilized commercial sites for a new mix -use development including 14 residential condominiums and 108 Apartments on the North Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-23 SS3-194 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle and South sides of West Coast Highway The project was submitted in 2017 and has undergone several design revisions. In 2020, the City reviewed revised plans and continued preparation of the draft environmental impact report. The applicant and consultant prepared multiple technical studies for review. The City anticipates public release of the draft EI R in mid to late 2021. • In December 2019, an application was submitted for a new mixed-use development located at 2510 West Coast Highway that includes the development of 36 dwelling units, 3 of which would be restricted for very low-income households. In exchange for providing the very low-income units, the developer has requested a density bonus of 9 units (35 percent bonus) and development waiver of building height. The project was approved by the in February 2021 and is currently pending City Council review. • The VUE Newport (formally known as Newport Bay Marina) project was identified as an underutilized site. The project was approved by the City in 2007 and the Coastal Commission in 2009 and permitted the development of 27 residential condominium units and 36,OOOsquare feet of commercialfloor area. The units were completed and for sale in 2017. • In 2020 an application was submittedfor Residences at 4400 Von Karman, which included 312 apartments of which 13 very -low income Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-24 SS3-195 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle housing units. The project was approved by the City Council in February of 2021. Policy 4.1 Continue or undertake the following programs to mitigate potential loss of "at risk" units due to conversion to market -rate units. These efforts utilize existing Cityand local resources. They include efforts to secure additional resources from public and private sectors should they become available. 4.1.1 Conduct as part of the Staff maintains an updated contact list for affordable units Ongoing Annually contact owners of annual compliance in conjunction with the 2014-2021 Housing Element. LDM The Citywill continue affordable units for those monitoring program Associates (consultant) included this information that was to annually update its developments listed as part required by Program sent to the owners as a part of the annual monitoring. monitoring list of of the City's annual 2.1.4. Contact list shall During the RFP process for the expenditure of the affordable housing monitoring of affordable be provided on City affordable housing funds, the Cityand LDM Associates units and contact the housing agreements to website and updated reached out to the owners of the existing affordable property owners for obtain information annually. housing units within the Cityand there was no interestto details on whether they regarding their plans for extend the existing affordable housing covenants except will continue offering continuing affordability on from Seaview Lutheran (see Program 1.1.2 for details). affordable units on their properties, inform their property. This them of financial resources promotes relations available, and to encourage between the public, the extension of the developers, and the affordability agreements City, as well as forecast for the developments listed the availability of beyond the years noted. affordable housing through the City. 4.1.2 Maintain registration The Cityof Newport Beach is registered as a Qualified Ongoing as a Qualified Preservation Entity with HCD as of 2012. When notification Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-25 SS3-196 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle The Cityshall maintain Preservation entity is received, City staff will evaluate the potential use of The City has not registration as a Qualified with HCD. Continuously monies to preserve the affordable units. received notification Preservation Entity with implement program as between 214 and 2019 HCD to ensure that the City notices are received of developments will receive notices from all from property owners. seeking to convert owners intending to opt affordable housing into out of their Section 8 market -rate housing. contracts and/or prepay The Citywill maintain their HUD insured its registration as a mortgages. Upon receiving registered Qualified notice that a property Preservation Entity to owner of an existing provide additional affordable housing funding to developers development intends to who seek to make this convert the units to a change during the 6th market -rate development, planning cycle. the Cityshall consult with the property owners and potential preservation organizations regarding the potential use of Community Development Block Grant (CDBG) funds and/or Affordable Housing Fund monies to maintain affordable housing opportunities in those developments listed in Table H12or assist inthe non-profit acquisition of Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-26 SS3-197 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle the units to ensure long- term affordability. 4.1.3 Attend quarterlyOCHA Pamphlets informing prospective tenants and landlords Ongoing Continue to maintain (Cities Advisory about the Orange County Housing Authority (OCHA) Section The Citywill continue information on the City's Committee) that 8 program have been made available in the public lobby to provide residents website and prepare provide updates on and information is posted on the City website. and developers with written communication for OCHA Section 8 waiting information in the tenants and other list and housing OCHA Section 8 interested parties about opportunities to ensure program and attend Orange County Housing information provided Cities Advisory Authority Section 8 on Citywebsite is up- Committee meetings to opportunities and to assist to -date. If Section 8 remain up-to-date on tenants and prospective waiting list is opened, opportunities relevant tenants acquire additional promote the to the City. understanding of housing availability of the law and related policy program through issues. marketing materials made available to the public. 4.1.4 Investigate availability The Cityattends OCHA meetings and has continued to Ongoing Investigate availabilityof of programs in investigate available programs and evaluate the feasibility The Citywill continue federal, state, and local February of each year of participating in such programs. to seek availability of programs and pursue these when new funding programs for funding of programs, if found feasible, opportunities are The Cove project worked directly with OCHAto obtain affordable housing and for the preservation of typically announced. project -based Veterans Affairs Supportive Housing (VASH) make this information existing lower-income vouchers. Orange County is provided VASH vouchers which available to the public. housing, especially for are distributed to the Cities via OCHA. The project was preservation of lower- awarded the project based VASH vouchers in 2016. income housing that may Renovations of the units began in 2017 and lease -up of the convert to market rates project -based voucher units was complete in spring 2018. during the next 10 years. In Additionally, the project received Veterans Housing and Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-27 SS3-198 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle addition, continually Homelessness Prevention (VHHP)funding through the promote the availability of Department of Housing and Community Development. monies from the Affordable Housing Fund as a funding source for the preservation and rehabilitation of lower income housing. A list of these programs, including sources and funding amounts, will be identified as part of this program and maintained on an ongoing basis. 4.1.5 Conduct as part of the Staff and consultant LDM Associates ("LDM")were ableto Modify The Cityshall inform and annual compliance coordinate meetings and phone calls with property owners The policy action was educate owners of monitoring program of existing units subject to affordable housing covenants or unsuccessful at affordable units of the required by Program agreements. The owners were not interested in extending encouraging property State Preservation Notice 2.1.4. the existing affordable housing covenants. Staff worked owner to maintain the Law (Government Code with LDM to provide a notice to potentially affected affordable housing on Section 65863.10-13), if property owners. their property during applicable. Pursuant to the • 2019 - Newport Harbor I at 1538 Placentia Avenue the 51h Cycle planning law, owners of is in the process of terminating. Their six-month period. Consequently, government -assisted notice was flagged by HCD. The City's new Housing the policy should be projects cannot terminate Consultant. Priscila Davila & Associates, Inc. and modified to incentivize subsidy contract, prepay Citystaffworked to resolve the issue with HCD, property owner federally assisted without requiring the notices to be resent. Thefinal maintain the mortgage, or discontinue termination document was under review by City affordability of the use restrictions without Attorney and is anticipated to be complete by units on their property. first providing an exclusive March 2021. Notice of Opportunity to Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-199 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle Submit an Offer to • 2018 - LDM discovered that 1 of the expiring Purchase. Owners affordable housing covenants did not provide the proposing to sell or state law required noticing to their tenants. In May otherwise dispose of a 2017, LDM notified the owner and management of property at any time during 1544 Placentia Avenue and as a result, the the 5 years prior to the expiration date of the affordability covenant was expiration of restrictions extended into 2018 to meet state law noticing must provide this Notice at requirements. In 2018 the following covenants for least 12 months in advance affordable housing expired and staff was unable to unless such sale or reachan agreementto extendthe affordability disposition would result in agreements: preserving the restrictions. o 849 West 15th Street - 15 units The intent of the law is to o 1544 Placentia — 25 units give tenants sufficient time o 843 West 15th Street— 65 units to understand and prepare for potential rent increases, as well as to provide local governments and potential preservation buyers with an opportunity to develop a plan to preserve the property. This plan typically consists of convincing the owner to either (a) retain the rental restrictions in exchange for additional financial incentives or (b) sell to a preservation buyer at fair market value. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-29 SS3-200 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle 4.1.6 Continuously Zoning Code Section 20.28.020 ensures compliance with Ongoing In accordance with implement program as the Government Code Section. The Citywill continue Government Code Section projects are submitted to require a relocation 65863.7, require a to the City. One relocation impact report was submitted in September impact report as a relocation impact report as 2014 for the closure of the Ebb Tide Mobile Home Parkand prerequisite when an a prerequisite for the City Council found it sufficient pursuant to Government existing mobile home closure or conversion of an Code Section 65863.7 in January 2015. park seeks to close or existing mobile home park. convert. 4.1.7 Attend quarterly OCHA Staff attends the quarterly meetings of the OCHA Cities Ongoing Participate as a member of (Cities Advisory Advisory Committee. The Citywill continue the Orange County Housing Committee). Continue to work with the OCHA Authority (OCHA) Advisory to maintain Staff continually works in cooperation with the County to to provide Section 8 Committee and work in information on City's provide Section 8 rental housing assistance to residents. rental housing cooperation with the OCHA website informing assistanceto residents to provide Section 8 Rental landlords of the A link to the Orange County Housing Authority website has and impose fair -market Housing Assistanceto program benefits of been placed on the Citywebsiteto provide information on rent limits to increase residents of the accepting Section 8 the Section 8 program. the number of units community. The Citywill, in Certificate holders. eligible to participate in cooperation with the Citystaffworked closely with OCHAstafftofacilitate the the program. Housing Authority, award of the Veterans Affairs Supportive Housing (VASH) recommend and request Vouchers to the Cove project (see Program4.1.4). The Citywill also use of modified fair -market continue to promote rent limits to increase the the availability of number of housing units Section 8 housing to within the City that will be lower income eligible to participate in the households who may Section 8 program. The benefit from the aid. Newport Beach Planning This allows the Cityto Division will prepare and expand its income implement a publicity distribution and retain program to educate and Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-30 SS3-201 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle encourage landlords within affordable housing the Cityto rent their units units. to Section 8 Certificate holders, and to make very low-income households aware of availability of the Section 8 Rental Housing Assistance Program. Policy 4.2 Improve energy efficiency of all housing unit types (including mobile homes). 4.2.1 Continuously The Citycontinued to investigate available programs and Ongoing Implement and enforce the implement program as evaluate the feasibility of participating in such programs. The Citywill continue Water Efficient Landscape housing projects are All new development projects are reviewed for compliance to implement and Ordinance and Landscape submitted to the City. with the City's Water Efficient Landscape Ordinance. enforce the Water and Irrigation Design • The annual report on the City's Water Efficient Efficient Landscape Standards in compliance Landscape Ordinance for 2019 was submittedto Ordinance and with AB 1881 (2006). The California Department of Water Resources on Landscape and ordinance establishes January3l, 2020. Irrigation Design standards for planning, . In 2019, all new development projects are reviewed Standards for new designing, installing, and for compliance withthe City's Water Efficient construction and maintaining and managing Landscape Ordinance. rehabilitation projects. water -efficient landscapes . The Cove project incorporates water -efficient Such landscaping limits in new construction and landscaping. the additional cost rehabilitated projects. (such as the cost of waterand maintenance)for both residents and property owners. 4.2.2 Continuously Implement as projects are submitted. Ongoing Affordable housing implement program as The Citywill continue developments that receive housing projects are to require energy Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-31 SS3-202 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle City assistance from awarded funds from • 2019-2020-Aspartof the SHARPprogramenergy efficient appliances and Community Development the City. efficiency is a priority with upgraded sinks, water devices to lower Block Grant (CDBG) funds heaters, weather-proof windows and new water housing costs for or from the City's efficient toilets. affordable housing Affordable Housing Fund • 2018-2015 -The Cove project and the Seaview developments that shall be required, to the Lutheran project incorporated the use of energy receive CDBG funds. extent feasible, include efficient appliances and lighting. installation of energy efficient appliances and devices, and water conserving fixtures that will contribute to reduced housing costs for future occupants of the units. 4.2.3 Complete investigation Continuously monitor requests for assistance and Code Completed Investigate the feasibility by Fall of 2014. Enforcement quarterly reports to determine need. The City completed the and benefits of using a investigation by fall portion of its CDBG or 2014. other local funds for the establishment and implementation of an energy conserving home improvements program for lower income homeowners. 4.2.4 Continually implement In 2020-2014, the City staff included 1 Leadership in Energy Ongoing Maintain a process for program as projects and Environmental Design (LEED) accredited staff member The Citywill continue LEED certified staff are submitted to the who was available to provide technical assistance when to provide technical members to provide City. requested. assistance on LEED development assistanceto certification. project proponents seeking Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-32 SS3-203 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle LEED certification, which will in turn increase the LEED points granted to projects. 4.2.5 Enhance Citywebsite Staff will work on construction of a new webpage that will Modified To encourage voluntary to provide recognition provide recognition to LEED certified buildings by displaying The Citywas not able to green building action, the of exceptional their project with pictures and their name or other complete the website Cityshall maintain a green developments and to information they would want advertised. An informational and information flyer recognition program that promote the flyer is also being drafted to encourage green building that on LEED Certification may include public sustainable will advertise the new webpage and will be provided in the during the 51h Housing recognition of LEED construction by Spring public lobby. Cycle, therefore the certified buildings (or of 2014. program remains equivalent certification), ongoing in order to payment of a display provide the public and advertisement in the local developers information newspaper recognizing the on the benefits of achievements of a project, creating LEED Certified or developing a City plaque buildings and housing that will be granted to developments. exceptional developments. Policy 5.1 Encourage approval of housing opportunities for senior citizens and other special needs populations. 5.1.1 Continue to annually Through the approved Action Plans for Fiscal Years 2014- Ongoing Apply for United States apply for CDBG funds 20, the City allocated funding to the following organizations The City has been Department of Urban and submit Annual to preservethe supply of emergencyand transitional successful in providing Development Community Action Plan to HUD in housing: Human Options, Families Forward, StandUp for funding to local Development Block Grant May of each year. Kids Orange County, Serving People in Need (SPI N), Second organizations for (CDBG)funds and allocate Chance Orange County, and Fair Housing Foundation. providing shelterand a portion of such funds to services the individuals subrecipients who provide A new program- Newport Beach: City Motel Voucher experiencing Program, was funded in 2020 through the Newport Beach I homelessness. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-33 SS3-204 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle shelter and other services Police Department (PD). The room key program allows PD Considering the for the homeless. to provide short term (1 — 3 nights on average) motel increased importance rooms to individuals experiencing homelessness in Newport of such help during the Beach. Additional CDBG monies have been allocated to the 51" Planning Cycle, the Cityfrom Federal funds under the CARESAct, Citywill continue to approximately $741,000, and will likely have a portion apply for CDBG funds allocated to homeless transitional housing projects. An with the purpose of amendment to the Action Plan, to program these additional funding homeless funds is anticipated to go to Council for consideration in services. early 2021. On November 24, 2020, the City Council approved the Memorandum of Understanding between the Cities of Costa Mesa and Newport Beachfor the funding, development and Shared Use of a Temporary Homeless Shelter Facility. A shared shelterwould enable both agencies to provide services to their respective homeless populations without duplicating efforts and thus better leveraging their respective resources. The Human Options organization has been funded to assist homeless battered women and children. 5.1.2 Attend quarterlyOCHA The City refers low-income residents to Orange County for Ongoing Cooperate with the Orange (Cities Advisory rehabilitation of mobile homes, to Neighborhood Housing The Citywill continue County Housing Authority Committee) meetings for first time buyer programs, and to Rebuilding Together to assist seniors in to pursue establishment of to keep up to date on for handyman servicefor low-income and senior funding home repairs a Senior/Disabled or rehabilitation programs households. and property Limited Income Repair offered by the County rehabilitation. The City Loan and Grant Program to in order to The City Council awarded Affordable Housing Funds for an has an aging population underwrite all or part of continuously inform agreementwith Habitatfor Humanity Orange County who is more the cost of necessary homeowners and (Habitat OC)granting up to$600,000 to establish a critical susceptible to limited housing modifications and rental property owners home repair program for low-income seniors (Senior Home income, as well as a Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-34 SS3-205 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle repairs. Cooperation with within the City of Assistance Repair Program). It is estimated that large housing stock of the Orange County Housing opportunities and to approximately 30 repair projects will be completed at structures over 30 Authority will include encourage various locations throughout the City. To date, there have years old that may be in continuing City of Newport preservation of existing been 11 projects, including 9 already completed. There is need of renovations to Beach participation in the housing stock money remaining in this program and applications are maintain adequate Orange County Continuum currently being accepted (see Program 1.1.2). quality of life and safety of Care and continuing to standards. provide CDBG funding. 5.1.3 Continuously In 2017 and 2018, the City amended its regulations to Modify Permit, where appropriate, implement program as permit the development of Accessory Dwelling Units New 2020 State Law development of senior housing projects are (ADUs) in single -unit residential zoning districts toconform permitted and accessory dwelling submitted to the City. with changes in State Law. facilitated the creation "granny" units in single- Promotional materials . In 2020 additional amendments were made to of ADUs in single unit unit areas of the City. The will be available to the update the City's regulations on ADUs to be zones with a shot clock Citywill promote and public by Spring 2014. consistent with new State Law. There were 19 for the permitting facilitate the development ADUs submitted, 8 ADUs permitted, and 2 ADUs timeline and of senior accessory finalized. restrictions on dwelling units by providing • In 2019, there were 2 ADUs submitted, 3 ADUs development fees. brochures and/or permitted, 2 ADUs under construction, and 1 ADU The Citywill continue informational materials at finalized. to promote and the building permit • In 2018, there were 6 approved ADUs and 3 facilitate ADUs for counter, online, and other additional ADUs were in the permit process. senior households as appropriate locations . In 2017, there were 5 ADUs (1 new construction well as provide detailing the benefits and and 4 conversions) in the plan check process under information on the the process for obtaining the new regulations. permitting process to approval. • No permits issued in between 2014 and 2016. the community. o In 2015, staff provided a flyer that promotes senior accessory dwelling units and is provided in the public lobby and on City's website. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-35 SS3-206 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle 5.1.4 Attend annual HOPWA The management of the HOPWA funds transferredfrom Modified. Work with the City of Santa strategy meetings for Santa Ana to Anaheim in 2016. As a result, City staff will Ana to provide the County. stay up-to-date on services provided with HOPWA funds recommendations for the and Ryan White Program funds through the HIV Planning allocation of HUD Housing Council meeting agendas. If needed, Citystaff will attend Opportunities for Persons the related budget allocation meetings which are usually with AIDS (HOPWA) funds held in August or September of each year. within Orange County. 5.1.5 Continuously maintain City maintains a list of resources that are available for Ongoing Maintain a list of "Public a list of resources on housing and community development activities. A list of The Citywill continue and Private Resources Citywebsite and resources and links are provided on the City's website. to maintain a list of Available for Housing and update as necessary. resources for housing Community Development and community Activities." development activities to promote housing development throughout the City. 5.1.6 Continuously No projects were submitted that included the Modify Encouragethe implement program as establishment of a day care center (2020-2014). development of day care housing projects are centers as a component of submitted to the City. new affordable housing developments, and grant additional incentives in conjunction with a density bonus per the Chapter 20.32. 5.1.7 Continue to provide The City provided $30,000 ($25,000 in 2018/2019, $26,900 Ongoing Encourage senior citizen social services, support in 2017 & $16,000 in 2014) in CDBG funds to Age Well The Citywas successful independence through the groups, health Senior Services home delivered meals program. The mobile in assisting the funding promotion of housing screenings, fitness meals program provides home -delivered meals to of senior housing Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-36 SS3-207 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle services related to in-home classes, and individuals who are homebound due to age, illness, or services through the 51h care, meal programs, and educational services at disability. Planning Cycle and will counseling, and maintain a the City's OASIS Senior continue to provide the senior center that affords Center. Offer The Cityalso operates the OASIS Senior Center. Services same services and seniors opportunities to affordable ride -share include: support through the 6th live healthy, active, and transportation and • A multi-purpose center owned and operated by the Cycle. The City has an productive lives in the City. meal services to Cityof Newport Beach in partnershipwith the aging population that seniors who are unable Friends of OASIS nonprofit dedicated to meeting can be affected by to drive and/or prepare needs of senior citizens and their families. limited income, so such their own meals or . Classes in art, health & fitness, music & dance, projects in can limit dine out, and have foreign languages, technology, enrichment, and additional costs. little assistance in much more. obtaining adequate . A state-of-the-art fitness centerforthose ages 50 meals. and older which provides a safe, comfortable, senior -friendly exercise environment for the active older adult including access to hire a personal trainerfor individualized programs. Separate membership required to join. • Regularly scheduled low-cost special events and socials such as luncheons, concerts, barbecues, a talent show and volunteer recognition. • Travel department coordination of day and overnight trips. • Curb -to -curb transportation program for residents of Newport Beach ages 60 and older who are no longer driving to use for medical appointments, grocery shopping, banking, and to attend OASIS classes (fee required). • Social services information and referral for seniors and their families dealing with a need for caregiver services, housing, transportation, work resources, Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-37 SS3-208 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle legal matters, and more. Informational and supportive counseling is available to seniors and their family members on an individual basis. • Various health resources and screenings for seniors, including flu shots, blood pressure, memory screenings, hearing screenings, and health insurance counseling services. • Regularly scheduled support group meetings atthe Centerto help senior citizens and their families cope with stress, illness, life transitions, and crises. • 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 Age Well Senior Services. 5.1.8 Summer 2014 Information was added to the Citywebsite under Housing Ongoing The Cityshall work with the Assistance regarding resources through the RCOC which The Citywill continue Regional Center of Orange began implementation of an outreach program. The City to work with the RCOC County (RCOC)to remains in contact with RCOC on implementing outreach to provide families with implement an outreach programs as they are developed. The City works with the information on services program informing families housing consultant at the RCOC. When projects are and housing available within the City of housing submitted, they will be offered expedited permit processing for persons with and services available for and the possibility of fee waivers. developmental persons with disabilities. The City will developmental disabilities. alsocontinue Information will be made expediting future available on the City's projects that offer website. The City shall also housing to persons with offer expedited permit disabilities. processing and fee waivers and/or deferra Is to Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-209 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle developers of projects designed for persons with physical and developmental disabilities. Policy 6.1 Support the intent and spirit of equal housing opportunities as expressed in Title VII of the 1968 Civil Rights Act, California Rumford Fair Housing Act, and the California Unruh Civil Rights Act. 6.1.1 Adopt Analysis of The Citycontracted with the Fair Housing Foundation to Ongoing Contract with an Impediments to Fair provide these services. The Fair Housing Foundation The Citywas successful appropriate fair housing Housing (2015-2020) provided the following trainings, seminars, and outreach in reaching out to the service agencyfor the by Summer of 2016. activities in the Cityduring the following 6th Cycle years: community about fair provision of fair housing Provide pamphlets on 2020: housing services during services for Newport Beach an ongoing basis at • Virtual Fair Housing Workshops — 2/3/20 and the 51h Planning Cycle. residents. The Citywill also community facilities 11/17/20 As required by State work with the fair housing and provide a • Virtual Walk -In Clinics— 5/13/20, 5/20/20, 7/15/20, Lawand HCD, the City service agencyto assist minimum of 2 public 9/2/20, and 11/18/20. will continue to provide with the periodic update of workshops relatedto . PSA, City of Newport Beach TV— 6/5/20 fair housing the Analysis of Fair Housing per year. • Literature Distribution— 2,250 information and Impediments to Fair 2019: assistance to residents Housing document . 2 Community Booths -9/28/19 and 10/19/19 and developers. required by HUD. The City . 2 Tenant Rights Workshops — 5/5/19 will continue to provide • 2 Landlord Workshops —2/14/19 and 11/20/19 public outreach and . 2 Management Trainings-3/6/19 and 6/18/19 educational workshops, 2018: and distribute pamphlets . 2 Community Booths -10/20/18 and 11/17/18 containing information . 2 Tenant Rights Workshops —4/19/18 and 11/7/18 related to fair housing. . 2 Landlord Workshops —3/27/18 and 8/30/18 • 2 Management Trainings-6/25/18 and 9/20/18 2017: • 3 Community Booths — 6/15/17, 8/1/17, and 10/21/17 Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-39 SS3-210 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle • 3 Presentations -4/13/17, 5/11/17, 6/6/17 • 2 Tenant Rights Workshops — 3/1/17 and 12/7/17 • 2 Landlord Workshops —4/27/17 and 10/25/17 • 2 Management Trainings — 6/1/17 and 11/21/17 2016: • 1 Community Booth at National Night Out Event on 8/2/16 • 5 Presentations -2/24/16, 3/9/16, 6/2/16, 7/18/16, and 12/8/16 • 2 Tenant Rights Workshops —4/12/16 and 9/6/16 • 2 Landlord Workshops —6/8/16 and 11/2/16 • 1 Walk in Clinic — 5/25/16 • 2 Management Trainings — 5/12/16 and 12/21/16 2015: • 4 Community Booths at Pavilions Grocery- 5/17/15 Hagen's Food and Pharmacy6/17/15 o National Night Out event on 8/4/15 o VA Landlord Appreciation Event 9/24/15 • 4 Presentations -1/20/15, 4/18/15, 6/14/15, 10/23/15 • 2 Tenant Rights Workshops — 6/16/15 and 9/16/15 • 2 Landlord Workshop — 2/23/15 and 7/7/15 • 2 Walk -In Clinics -4/14/15 and 8/5/15 • 2 Management Trainings-4/29/15, 8/6/15. 2014: • 2 Outreach Booths at the Newport Beach Farmers Market on 6/8/14 and the National Night Out event on 8/5/14 • 3 Presentations -6/5/14 (2) and 8/23/14 • 2 Tenant Rights Workshops — 3/5/14 and 12/4/14 • 2 Landlord Workshop — 2/12/14 and 6/4/14 Appendix A: Review of Past Performance (DRAFT APRIL 2021) SS3-211 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action Objective Program Accomplishments Status for Sixth Cycle • 2 Walk in Clinics - 3/25/14 and 9/18/14 • 3 Management Training -1/29/14, 5/7/14, and 11/3/14. • 1 Disability Policy Workshop on 6/10/14 Pamphlets containing information on Fair Housing and Dispute Resolution Services are available at the public counter. Policy 7.1 Reviewthe Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. 7.1.1 Annually report staff s This annual Housing Element Report will be submitted to Ongoing As part of its annual findings within the HCD. As required by HCD, the General Plan Review, the annual General Plan Citywill continue to Cityshall report on the Status Report including provide annual reports status of all housing Housing Element on the status of all programs. The portion of Report provided to housing programs to the Annual Report OPR and HCD by April ensure progress. discussing Housing 1st each year. Programs is to be distributed to the California Department of Housing and Community Development in accordance with California state law. Appendix A: Review of Past Performance (DRAFT APRIL 2021) A-41 SS3-212 �� � � _ ii!!!! Z. :� :: •fir- ' --�-- ' = +t- .�+!�• _--- - k r r� aL Alp. JF j ,jo T i of • City of Newport Beach 2021-2429 HOUSING ELEMENT Candidate Sites Analysis Overview The Candidate Sites Analysis process in Newport Beach was community -driven and lead by the Housing Element Update Advisory Committee (Committee). The Committee consists of a variety of professionals with relevant experience in affordable housing development and financing, housing policy, local development, environmental matters and community engagement. The primary role of the Committee was to provide analysis and feedback on the selection of sites to be included in the Adequate Sites Inventory. The "Focus Areas" for housing development, which are detailed in this document, were identified by the Committee. Within each Focus Area, subcommittees ofthe Committee assigned parcels a feasibility rating — analyzing the parcel's propensity to redevelop during the planning period. The City then sent letters toeach propertyowner whose propertywas deemed "Feasible" or "Potentially Feasible" for residential development by the Committee. This information is the basis for the sites inventory presented in this document. The Housing Element is required to identify sites by income categoryto meetthe City's RHNAAIIocation. The sites identified within the Housing Element represent the City's ability to develop housing at the designated income levels within the planning period (2021-2029). These sites are (i) residentially zoned but for which no project has been proposed, (ii) have been entitled for a residential development project (but will not yet have received building permits and a certificate of occupancy by June 30, 2021) or (iii) have been identified for (a) a rezone to a residential use from a non-residential use, or (b) for an overlay to enable a housing use in addition to or in the place of a non-residential use. A summary of this information is included within the Housing Resources section (Section 3) of the City's 2021-2029 Housing Element. Table B-1 shows the City's 2021-2029 RHNA need by income category as well as a summary of the sites identified to meet that need. The analysis within Appendix B shows that the City of has the capacity to meet its 2021-2029 RHNAallocation through a variety of methods, including: + Identification of additional increased capacity on existing, residentially zoned sites + Identification of residential property for rezone to higher -density residential primary use + Identification of non-residential propertyfor rezone to residential primaryuse + Developmentof approved projectswhichdo not have certificates of occupancy + Future developmentofaccessory dwelling units (ADUs) Water, Sewer, And Dry Utility Availability Each site has been evaluatedto ensurethere is adequate access towaterand sewer connections as well as dry utilities. Each site is situated with a direct connection to a public street that has the appropriate water and sewer mains and other infrastructure to service the candidate site. Appendix B: Sites Analysis (DRAFT APRIL 2021) B-1 SS3-214 City of Newport Beach 2021-2429 HOUSING ELE ENT rE , The City's Sewer System Management Plan provides for the identification of sewer system distribution throughout the community. All sites identified in the sites inventory have existing sewer system capacity and a sewer system capacity assurance plan is provide as part of the Management Plan to ensure the availability of future capacity citywide. Threshold criteria have been adopted to trigger any capacity enhancements necessarybased upon changes to land use and other considerations. The City's Jurisdictional Runoff Management Plan addresses stormwater management throughout the City as it provides for the identification and management of facilities to manage stormwaterthroughout the community. According to the City's Runoff Management Plan, facilities and mitigations for potential peak stormwaterflows are not deemed a constraint to future residential development. The Newport Beach Utilities Department, the Municipal Water District of Orange County, and the Irvine Ranch Water District provide water service and management of the City's potable water system. As a built -out community, the City's existing water system services all areas within the City limits through various trunk lines and mains. Fire flow considerations are the primary factor in determining the adequacy of service for future residential development. The City conducts regular monitoring of the water system in the community and provides for system upgrades via capital improvement program to ensure continued adequate water availabilityand service to existing and future planned residential development. Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas is a gas -only utility and, in addition to serving the residential, commercial, and industrial markets, provides gas for enhanced oil recovery (EOR) and EG customers in Southern California. Southern California Edison (SCE) is the electrical service provider for Newport Beach. SCE is regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and Southern California. SCE will continue to provide adequate services to Newport Beach including increased household growth as projected by the City's RH NA allocation. In accordance with the California Public Utilities Commission all electric and gas service will be provided for future development in Newport Beach as requested. SoCal Gas and Southern California Edison regularly partner with the City to provide services and obtain authorization to construct any required facilities. The City has a mature energy distribution system that will be able to add additional service connections for future residential land uses. Appendix B: Sites Analysis (DRAFT APRIL 2021) B-2 SS3-215 City of Newport Beach `• 2021-2429 HOUSING ELEMENT Adequacy of Sites to Accommodate RHNA Newport Beach has identified sites with a capacity to accommodate 2,862 lower income dwelling units, which is in excess of its 2,386 -unit lower income housing need. The identified sites are on parcels that will permit residential development as a primary use at a base density of between 30 and 50 dwelling units per acre. The City of Newport Beach has a total 2021-2029 RHNAallocation of 4,845 units. The Cityis able to take credit for 2,294 units currently within the planning process (Projects in the Pipeline), lowering the total RHNA planning need to 2,630 units as shown in Table B-1. The Housing Element update lists sites that would be able to accommodate as many as 7,595 additional units, well in excess of the remaining 2,630 unit RHNAneed. As described later in this section, the City believes that due to recent State legislation and local efforts to promote accessory dwelling unit (ADU) production, the Citycan realisticallyanticipate the development of 334 ADUs within the 8 -year planning period. Overall, the City has adequate capacityto accommodate its 2021-2029 RHNA. Table B-1: Summary of RHNA Status and Sites Inventory Extremely Low/ Very Low Income Low Income Moderate Income Above Moderate Income Total 2021-2029 RHNA 1,456 930 1,050 1,409 4,845 RHNA Credit (Units Built) TBD TBD TBD TBD TBD Total RHNA Obligations 1,456 930 1 1,050 1 1,409 1 4,845 Sites Available Projects in the Pipeline 130 0 2,164 2,294 Accessory Dwelling Units 228 100 6 334 51" Cycle Sites 0 348 40 388 Remaining RHNA 2,028 602 -- 2,630 Airport Area Environs Rezone 904 301 755 1,960 West Newport Mesa Rezone 381 117 80 578 Dover -Westcliff Rezone 49 8 100 158 Newport Center Rezone 587 196 1,140 1,923 Coyote Canyon Rezone 308 0 572 880 Banning Ranch Rezone 275 207 893 1,375 Total Potential Capacity of Rezones 2,504 829 3,540 6,873 TOTAL POTENTIAL DEVELOPMENT CAPACITY 2,862 1,248 5,750 9,889 Sites Surplus/Shortfall (+/-) +476 +227 +4,341 +5,044 Percentage Buffer 20% 22% 308% 104% Appendix B: Sites Analysis (DRAFT APRIL 2021) B-3 SS3-216 City of Newport Beach 2021-2029 HOUSING ELEMENT 3. Very Low- and Low -Income Sites Inventory This section contains a description and listing of the candidates ites identified to meet the City's very low and low income RH NA need. A full list of theses ites is presented in Table B-10. Projects in the Pipeline The City has identified a number of projects currently in, or that have completed the entitlement process which are likely to be developed and/or first occupied during the planning period and count as credit towardsthe 2021-2029 RHNAallocation. Projects with planned affordable components include: + Newport Airport Village + Uptown Newport, Second Phase + Residences at 4400 Von Karman + Newport Village Mixed-use + WestCoast Highway Mixed -Use + Newport Crossings Accessory Dwelling Units (ADUs) The City currently has approved an average of 21 ADUs per year for development between January 1, 2018 and December 30, 2020. HCD guidance states that ADUs may be calculated based on the City's production from January 1, 2018 through December 31, 2020. To calculate a total number of ADUs assumed to be produced from 2021-2029, the average of all ADUs developed from 2018 to 2020 was calculated then multiplied by 2 for each year of the 6th Cycle. Through this method, the City identified a total of 334 ADUs assumed for the 8 years. In accordance with State law, ADUs are allowed in all zones that allow single dwelling unit or multiple dwelling unit development. Junior Accessory Dwelling Units (JADU) are permitted only in single dwelling unit zones. As part of the sites analysis found within this Appendix, the City has accounted for future ADU and JADU production using the City's 2020 performance to date. SCAG conducted a regional analysis of current market rents that can be used to assignADUs to income categories in Sixth Cycle Housing Elements, the analysis surveyed, market rents of 158 existing ADUs. The analysis then determined the proportion of ADUs within each income category for both one-person and two -person households and made assumptions for what percentage of ADUs are rented for free based on existing literature and allocate those towards Extremely Low Income. Finally, the analysis combined rented and non -rented ADUs into single affordability breakdown by coun ty. Newport Beach utilized SCAGs affordability assumptions for ADUs in Orange County. This equates to an anticipated ADU development of 334 ADUs over the next 8 years, 228 of which are anticipatedto be affordable. The ADUs not designatedto meet the City's lower income RHNA need are anticipated to be 100 affordable at moderate income levels and 6 affordable at the above moderate -income level. The City has identified the following program within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach: Appendix B: Sites Analysis (DRAFT APRIL 2021) B-4 SS3-217 City of Newport Beach 2021-2429 HOUSING ELSMENT + Policy Action 1H: Accessory Dwelling Unit Construction + Policy Action 11: Accessory Dwelling Units Monitoring Program + PolicyActionlJ: Accessory Dwelling Units Amnesty Program Remaining Need Table B-2 below displays the City's total RHNA allocation for the years 2021-2029 as well as the City's net RH NA allocation after the inclusion of Projects in the Pipeline and ADUs. Table 13-2: Low and Very Low -Income Remaining Need Very Low Income Low Income RHNAAIIocation 1,456 930 Pipeline Projects 52 78 Existing Zoning 0 0 Accessory Dwelling Units 84 144 Remaining Low/Very Low -Income Need 1,320 708 Selection of Sites Sites identified to meet the City's very low and low income RHNA were selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres. Based on a public process, sites were selected based on their realistic viability to accommodate lower income housing within the 2021-2029 planning period. Sites were also evaluated based on access to resources, proximity to additional residential development, transportation and major streetway access, and resources and opportunity indicators. Section 3: Affirmatively Furthering Fair Housing, outlines all fair housing, opportunity indicators, and environmental resources in Newport Beach. The City has identified sites with capacityto accommodate the City's 2021-2029 RHNA. This capacity is based on a rezone strategy for several Focus Areas throughout the City. These Focus Areas areas follows: + Airport Area Environs + West Newport Mesa Area + Dove r-WestcliffArea + Newport CenterArea + Coyote Canyon Area + Banning Ranch Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-5 SS3-218 City of Newport Beach 2021-2029 HOUSING ELE ENT The City has analyzed potential capacity based on rezone strategies specific to each area. Each of the following sections describes the identified areas and contains a table of redevelopment assumptions and projected unit capacities. Additionally, each Focus Area is followed by a map detailing the adequate sites inventory, organized by area. irnnrf drag Fnvirnnc The Airport Area Environs has been an active area for development in the City for several years. The development of higher -density residential units within this Focus Area can be expected to accommodate lower income units. Increasing density within the Airport Area was alsoa key strategyas part ofthe City's 4th and 5th Cycle Housing Element Updates. Table B-3 below displays the capacityand opportunity in this Focus Area which can help accommodate the City's RHNA allocation. Figure B-1 below maps the sites identified within this Focus Area which can help accommodate a portion of the City's RHNA allocation. Table 13-3: Airport Area Environs - Redevelopment Analysis Feasible Projected Affordability Assumed Net Units Lower Income Moderate Income Low Very Low Moderate Above Moderate Total Acreage to Redevelop Density 158 27% 45% 15% 50 du/ac 904 units 301 units 755 units 1,960 acres units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-6 SS3-219 Nor City of Newport Beach 2021-2029 HOUSING ELEMENT West Newport Mesa Area West Newport Mesa has been identified by the City as a reinvestment and redevelopment opportunity, where older industrial, smaller scale development can transition to support future residential development. The adjacent Hoag hospital and supportive medical -related activities supports the opportunity to provide housing for local workers of various income levels. Table B-4 below displays the capacity and opportunity in this Focus Area which can help accommodate the City's RHNA allocation. Figure B-2 below maps the sites identified within this Focus Area which can help accommodate the City's RHNA allocation. Table B-4: West Newport Mesa Area - Redevelopment Analysis Affordability Net Units Feasible Projected Assumed Lower Moderate Low Very Above Acreage to Density Moderate Total Income Income Low Moderate Redevelop 48 acres 30% 65% 20% 45 du/ac 381 units 117 units 80 units 578 units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-8 SS3-221 NZ 1A L ,Sit go WAR 3Q% 21 City of Newport Beach 2021-2029 HOUSING ELEMENT Dover -Westcliff Area Dover -Westcliff has been identified as an area with opportunity to support increased density that is compatible with adjacent higher density residential uses and other uses that will support residential development. Table B-5 below displays the capacity and opportunity in this Focus Area which can help accommodate the City's RHNA allocation. Figure B-3 below maps the sites identified within this Focus Area which can help accommodatethe City's RHNAallocation. Table B-5: Dover -Westcliff Area - Redevelopment Analysis Affordability Net Units Feasible Projected Assumed Lower Moderate Low Very Above Acreage to Density Moderate Total Income Income Low Moderate Redevelop 158 14 acres 40% 30% 5% 30 du/ac 49 units 8 units 100 units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-10 SS3-223 0 21 City of Newport Beach 2021-2029 HOUSING ELEMENT Newpor` ter Area Newport Center has recently had construction of several new residential developments. The Cityexpects the continuation of these development opportunities that creates housing adjacent to major employment opportunities and support retail. Table B-6 below displays the capacityand opportunity in this Focus Area which can help accommodate the City's RHNA allocation. Figure B-4 below maps the sites identified within this Focus Area which can accommodate the City's RHNA allocation. Table B-6: Newport Center Area - Redevelop mentAnalysis Affordability Net Units Feasible Projected Assumed Lower Moderate Low Very Above Acreage to Density Moderate Total Income Income Low Moderate Redevelop 162 1,140 1,923 27% 30% 10% 45 du/ac 587 units 196 units acres units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-12 SS3-225 City of Newport Beach 2021-2029 HOUSING ELEMENT WIF foyote'=anyon "--- Coyote Canyon property is mostly a closed landfill area with limited opportunities for active uses. However, a portion of the property is not subject to these restrictions and is considered an ideal opportunity for future residential development. Table B-7 below displays the capacity and opportunity in this Focus Area which can help accommodate the City's RHNA allocation. Figure B-5 below maps the portion of the property within Coyote Canyon which can help accommodate the City's RHNA allocation. Table B-7: Coyote Canyon Area - Redevelopment Analysis Affordability Net Units Feasible Projected Assumed Acreage to Redevelop Lower Income Moderate Income Density Low Very Low Moderate Above Moderate Total 22 acres 100% 35% 0% 40 du/ac 308 units 0 units 572 units 880 units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-14 SS3-227 W OF 40 W City of Newport Beach 2021-2029 HOUSING ELEMENT Banning Ranch has been identified in prior planning periods as a site to accommodate future housing needs. Banning Ranch was approved for development by the City, but the project was subsequently denied by the Coastal Commission. The City understands that future opportunities may still exist for housing development on the Banning Ranch and would like to keep the site under consideration for the 2021-2029 planning period. Table B-8 below displays the capacity and opportunity for Banning Ranch which can help accommodate the City's RHNA allocation. Figure B-6 below maps Banning Ranch. Table B-8: Banning Ranch Area-RedevelopmentAnalysis Affordability Net Units Feasible Projected Assumed Above Lower Moderate Low Very Moderat Acreage to Density Moderat Total Income Income Low e Redevelo P e 1,375 46 acres 100% 20% 15% 30 du/ac 275 units 207 units 893 units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-16 SS3-229 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure B-6: Banning Ranch Area—Sites Inventory .—F.rt HWO-V N*am -4th gale i -:I M71 1 hNiFT Appendix B: Sites Analysis (DRAFT APRIL 2021) Site Inventory: Banning Ranch Area LEGEND Irmenhary — City Boundary Key Map 1 AFeet NOW 0 500 1 000 B-17 SS3-230 City of Newport Beach 2021-2029 HOUSING ELEMENT Through a public process, the City has assessed the feasibility of parcels in the Focus Areas to redevelop residentially during the planning period. Those parcels deemed Feasible were then analyzed to ensure compliance with HCD's criteria for sites designated to accommodate lower income development (including sizing criteria). The inventory of feasible acreage for redevelopment within each Focus Area was developed with this process. Table B-9 below summarizes the key statistics forthe rezone strategies for all Focus Areas. Table B-9: Low/Very Low -Income Rezone Strategy by FocusArea Focus Area Feasible Acreage % Projected to Redevelop Low/Very Low -Income Affordability Rezone Density Potential Low/Very Low -Income Units Airport Area Environs 158 27% 45% 50 du/ac 904 units West Newport Mesa Area 48 30% 65% 45 du/ac 381 units Dover -Westcliff Area 14 40% 30% 30 du/ac 49 units Newport Center Area 162 27% 30% 45 du/ac 587 units Coyote Canyon Area 22 100% 35% 40 du/ac 308 units Banning Ranch Area 46 100% 20% 30 du/ac 275 units TOTAL 450 -- -- -- 2,504 units The City's recent history of granting entitlement to residential uses with affordable units is shown below: + Newport Airport Village + Uptown Newport, Second Phase + Reside,4400 Von an + Newport Mixed- + West Coast Wig yMixed-Use + Newport Crossings These projects show that affordable units can be developed at this density. The Section 4: Housing Plan outlines actions the Citywill take to promote the development of affordable units within the Focus Areas. Calculation of Unit Capacity Taking into account development standards, unit capacityfor sites identified to accommodate low and very low units was calculated by multiplying the net acreage of the site bythe assumed density established for each focus area. Depending on the Focus Area, the City assumes that each identified site will develop with between 10% and 80% [The 80% number may be changing] affordable units. To support this assumption, the City has identified programs and policies to encourage developer interest and financial feasibility. These programs and policies are detailed in Section 4: Housing Plan. Additionally, based on previous development trends, the City assigned each Focus Area a percentage of its land area which the City projects to redevelop — meaning the percentage of land area within each Focus Area, which is expectedto "turn over", or develop with residential units during the planning period. Appendix B: Sites Analysis (DRAFT APRIL 2021) B-18 SS3-231 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 439 241 Palm Mesa Airport P3A_102 SP -7 RM No 148 5.88 5.88 Yes 0 50 294 146 27% 45% 18 17 20 Ltd Area 427121 Beachwood Airport L4G 062 OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 18 24 Properties LLC Area 427121 Beachwood Airport L4G 064 OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 19 - 24 Properties LLC Area 445121 AA L4A_012 Co Irvine PC CO -G No 0 0.91 0.91 Yes 0 50 45 45 27% 45% 5 20 Bart 445 161 Todd Todd Airport L4D_038 PC MH2 U No 0 0.69 0.69 Yes 0 50 34 34 27% 45% 4 21 03 Schiffman Area 445 161 Todd Todd Airport L4D_040 PC MU H2 No 0 1.04 1.04 Yes 0 50 51 51 27% 45% 6 22 03 Schiffman Area 119 300 Newport Golf Airport J5A 008 SP -7 PR No 0 1.38 1.38 Yes 0 50 69 41 27% 45%5 Y 23 17 Club LLC Area 119 310 Newport Golf Airport J5A_012 SP -7 PR No 0 3.70 3.70 Yes 0 50 184 111 ° 27/° ° 45/° 13 Y 24 04 Club LLC Area 119 300 Newport Golf Airport J5A 004 SP -7 PR No 0 1.52 1.52 Yes 0 50 76 45 27% 45% 5 Y 25 - 15 Club LLC Area 119 300 Newport Golf Airport J5A 006 SP -7 PR No 0 7.30 7.30 Yes 0 50 364 219 27% 45% 27 Y 26 16 Club LLC Area Birch L4K_006 427131 Development OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 Airport 27 16 Area Co 427121 Dekk Airport L4G 068 OA AO No 0 0.73 0.73 Yes 0 50 36 36 27%45% ° 4 28 01 Associates LP Area L4K 010 427131 Chiappero OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 Airport 29 - 14 1 1 Area 420 21 Air L4G_066 Birch OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45 /° 4 30 Bart 427131 Airport L4K 008 Chiappero OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 31 - 15 Area 445 131 City National Airport L4D 046 PC MU -H2 No 0 1.10 1.10 Yes 0 50 55 55 27% 45%7 32 - 26 Bank Area 4400 445122 Airport L4E_010 Macarthur PC MU -1-12 No 0 0.71 0.71 Yes 0 50 35 35 27% 45% 4 33 13 Area Property Mandarin 4450633 Airport L4D_018 Investment PC MU -H2 No 0 0.75 0.75 Yes 0 50 37 37 27% 45% 4 Y 34 Group 445131 Von Karman Airport L4D 002 PC MU -H2 No 0 1.19 1.19 Yes 0 50 59 59 27% ° 45/° 7 35 21 Ventures LLC Area Carl's Jr 445 121 Airport L4A 014 Restaurants PC CG No 0 1.38 1.38 Yes 0 50 68 68 27% 45% 8 36 - 11 Area LLC 4450122 irpo Air L4E_012 Mizan LLC PC MU -H2 No 0 0.79 0.79 Yes 0 50 39 39 27% 45% 5 37 eat Appendix B: Sites Analysis (DRAFT APRIL 2021) B-19 SS3-232 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 445 131 Big Man On Airport 1_41_020 PC MU H2 No 0 0.53 0.53 Yes 0 50 26 26 ° 27/° ° 45/° 3 38 23 Campus LLC Area 445 131 Hg Newport Airport 1_41_028 PC MU H2 No 0 2.01 2.01 Yes 0 50 100 100 27/° 45% 12 39 15 Owner LLC Area 445 122 Airport L4E 016 Craig Realty PC MU -1-12 No 0 0.80 0.80 Yes 0 50 39 39 27% 45% 5 40 - 05 Area 445 131 John Hancock Airport L4D 010 PC MU -1-12 No 0 1.61 1.61 Yes 0 50 80 80 27% 45% 10 41 - 18 Life Area 445 131 John Hancock Airport L4D 008 PC MU -1-12 2 No 0 2.30 2.30 Yes 0 50 115 115 27 /° 45% 14 42 19 Life Area Olen 445131 Airport L4D_006 Properties PC MU -1-124 No 0 0.64 0.64 Yes 0 50 32 32 27% 45% 43 08 Area Corp 4400 445122 Airport L4E_008 Macarthur PC MU -H2 No 0 1.17 1.17 Yes 0 50 58 58 27% ° 45/° 7 44 12 Area Property Hoag Mem 445151 Airport L4C_016 Hosp PC MU -H2 No 0 1.35 1.35 Yes 0 50 67 67 27% 45% 8 45 09 Presbyterian Area 445122 Ferrado Airport L4E 002 PC MU -H2 No 0 1.03 1.03 Yes 0 50 51 51 27% 45% 6 46 - 09 Newport LLC Area Kcn 445 131 Airport 1_41_030 Management PC MU H2 No 0 2.58 2.58 Yes 0 50 128 128 27% 45% 16 47 31 LLC Area 443431 Air irpoeat 1_41_014 PC MU -H2 No 0 0.74 0.74 Yes 0 50 36 36 27% 45% 4 48 445 121 Mac Arthur Airport L4A_010 PC COG No 0 0.74 0.74 Yes 0 50 37 37 27% 45% 4 49 05 Court LLC Area 445 131 4440 Vka Tic 3 Airport L4D 004 PC MU -1-12 Yes 0 0.66 0.66 Yes 0 50 32 32 27% 45% 4 Y 50 - 09 LLC Area Comac 445131 Airport L4D_012 America PC MU -1-12 2 No 0 0.74 0.74 Yes 0 50 36 36 27% 45% 4 51 10 Area Corporation 445151 County Of Airport L4C_002 PC PF No 0 7.78 7.78 Yes 0 50 388 388 ° 27/° 45% 47 52 01 Orange Area 445 121 Mac Arthur Airport L4A_002 PC COG No 0 7.81 7.81 Yes 0 50 390 390 27% 45% 47 53 14 Court LLC Area 445 121 Bre & Esa Airport L4A 018 PC CG No 0 2.65 2.65 Yes 0 50 132 132 27% 45% 16 54 - 18 Properties LLC Area 445161 4425 Airport 1_41_036 PC MU -H2 No 0 1.69 1.69 Yes 0 50 84 84 27% ° 45/0 10 55 04 Jamboree LLC Area 445141 Coastal Azul Airport L4B 018 PC MU -H2 No 0 0.26 0.26 No 0 50 13 13 27%45% ° 2 Y 56 04 Management Area 445131 Tst Mac Airport L4D 024 PC MU -1-12 No 0 0.59 0.59 Yes 0 50 29 29 27% 45% 4 57 - 13 Arthur LLC Area 445122 Airport L4E_014 Pacific Club PC MU -H2 No 0 1.95 1.95 Yes 0 50 97 97 27% 45% 12 58 Appendix B: Sites Analysis (DRAFT APRIL 2021) B-20 SS3-233 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 445 121 Nf Von Airport L4A 016 PC CG No 0 1.00 1.00 Yes 0 50 49 49 27% 45% 6 59 - 09 Karman LLC I Area 445122 M4 Macarthur Airport L4E 018 PC MU -H2 U No 0 0.51 0.51 Yes 0 50 25 25 27% 45% 3 60 19 LLC Area 427121 Air L4G_002 Birch OA AO No 0 1.41 1.41 Yes 0 50 70 70 27% 45% 9 61 eirpoat 427173 Bank First And Airport L4J 024 PC MU -1-12 No 0 1.00 1.00 Yes 0 50 49 49 27% 45% 6 62 01 Inc Area 420232 Air irpoeat L4R_002 Bsp Bristol LLC PC CO -G No 0 2.38 2.38 Yes 0 50 118 118 27% 45% 14 63 427 332 Newport Place Airport L4R 004 PC CO -G No 0 1.70 1.70 Yes 0 50 85 85 27% 45% 10 Y 64 - 04 Investment Area 427332 Crown Airport L4R_006 PC CO -G No 0 1.41 1.41 Yes 0 50 70 70 27% 45% 9 65 03 Building Area 427 221 Ndh America Airport L4M 018 PC MU -1-12 No 0 1.50 1.50 Yes 0 50 75 75 27%45% ° 9 66 14 Inc Area 427181 Macarthur Airport L4J 016 PC MU -1-12 No 0 1.45 1.45 Yes 0 50 72 72 27% 45% 9 67 01 Pacific Plaza Area 427 241 Newport Plaza Airport L4C!`004 PC CG No 0 3.95 3.95 Yes 0 50 197 197 ° 27/0 ° 45/0 24 Y 68 13 Office LLC Area 427 221 1200 Quail St Airport L4M_016 PC MU H2 No 0 1.00 1.00 Yes 0 50 49 49 27% 45% 6 69 13 LLC Area 427174 Air L4F_002 Elite West LLC PC MU -H2 No 0 6.32 6.32 Yes 0 50 315 315 27% 45% 38 70 Bart 420121 Air L4M_032 Nf Dove LLC PC MU -H245 No 0 3.99 3.99 Yes 0 50 199 199 27% /° 24 71 eirpoat 427181 Gurcharan Airport L4J 010 PC MU -1-12 No 0 0.72 0.72 Yes 0 50 35 35 27% 45% 4 Y 72 08 Singh Sandher Area 427222 Airport L4N 006 Malaguena PC MU -1-12 No 0 0.90 0.90 Yes 0 50 45 45 27% 45% 5 Y 73 - 05 Area 427222 Pmc Airport L4N 002 PC U MU -H2 No 0 1.56 1.56 Yes 0 50 77 77 27% 45% 9 Y 74 06 Macarthur LLC Area Sbs Dove 421021 Airport L4M_002 Street PC MU -H2 No 0 1.71 1.71 Yes 0 50 85 85 27% 45% 10 75 Partners Hankey 427221 Airport L4M_008 Investment PC MU -H29 No 0 1.52 1.52 Yes 0 50 76 76 27% 45% 76 11 Area Company 427221 wner DoveOwner Art L4M_014 PC MU -H2 No 0 3.59 3.59 Yes 0 50 179 179 27% 45% 22 77 06 Area J Ray 420674 Airport L4F_006 Macarthur PC 2 MU -1-12 No 0 0.94 0.94 Yes 0 50 47 47 27% 45 /° 6 78 Sanderson 427181 Ridgeway Real Airport L4J 008 PC MU -1-12 No 0 1.10 1.10 Yes 0 50 55 55 27% 45% 7 79 07 Estate Area 427 181 Gs 1600 Dovei Airport L4J_012 PC MU H2 No 0 2.49 2.49 i Yes 0 1 50 1 124 124 i 27% 45% F15 80 03 LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-21 SS3-234 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Feb Dove 427221 Airport L4M 004 Street PC MU -H2 No 0 1.51 1.51 Yes 0 50 75 75 27% ° 45/° 9 81 _ 09 Area Partners 427221 Westerly Ow Airport L4M_030 PC COG No 0 1.46 1.46 Yes 0 50 72 72 ° 27/° ° 45/° 9 82 02 Aberdeen Area J Ray L4F_004 427 174 Macarthur PC MU -H2 No 0 1.50 1.50 Yes 0 50 75 75 27% 45% 9 Airport 83 05 Area Sanderson 427342 Jones Fletcher Airport L4C_012 PC MU -1-12 No 0 3.70 3.70 Yes 0 50 184 184 27% 45% 22 84 02 Jr. I Area 427342 Hilbert Airport L4Q_014 PC MU -H2 No 0 1.97 1.97 Yes 0 50 98 98 27% ° 45/° 12 85 01 Properties II Area 427 221 1500 Quail Airport L4M_022 PC COG No 0 4.76 4.76 Yes 0 50 238 238 27% 45% 29 86 16 Property LLC Area Men's 439401 Airport J5A_136 Christian PF PF No 0 4.03 4.03 Yes 0 50 201 201 27% 45% 24 Y 87 01 Area Young Hankey 4270721 Airport L4M_012 Investment PC MU -H2 No 0 1.75 1.75 Yes 0 50 87 87 27% 45% 11 88 Company 427221 Davenport Airport L4M 020 PC MU -H2 No 0 1.47 1.47 Yes 0 50 73 73 27% 45% 9 Y 89 - 15 Quail Partners Area 427 141 Sa Abanoub Airport L4L 020 PC CO -G No 0 0.64 0.64 Yes 0 50 31 31 27% 45% 4 Y 90 14 LLC Area r L4L_014 90 9344 Investments t PC CO -G No 0 0.97 0.97 Yes 0 50 48 48 27% 45% 6 rt AA 91 Inve Area LP 936790 Sa Abanoub Airport L4L 024 PC CO -G No 0 0.86 0.86 Yes 0 50 42 42 27% 45% 5 Y 92 - 50 LLC Area 427141 Sa Abanoub Airport L4L 012 PC CO -G No 0 0.52 0.52 Yes 0 50 26 26 27% 45% 3 Y 93 04 LLC Area 427 141 Sa Abanoub Airport L4L 026 PC CO -G No 0 0.52 0.52 Yes 0 50 26 26 27% 45% 3 Y 94 - 11 LLC Area 936790 Sa Abanoub Airport L4L 010 PC CO -G No 0 0.72 0.72 Yes 0 50 36 36 27% 45% 4 Y 95 48 LLC Area 420 41 Sa Abanoub Air L4L_006 PC CO -G No 0 0.58 0.58 Yes 0 50 29 29 27% 45 /° 4 Y 96 LLCL4L eirpoat 427 141 Sa Abanoub Airport 004 PC CO -G No 0 0.51 0.51 Yes 0 50 25 25 27% 45% 3 Y 97 - 08 LLC Area 427141 Sa Abanoub Airport L4L 002 PC CO -G No 0 8.61 8.61 Yes 0 50 430 430 27% 45% 52 Y 98 16 LLC Area 445134 Tpg&Tsg Airport L4D 068 PC MU -H2 No 0 0.53 0.53 Yes 0 50 26 26 27% 45% 3 100 14 Venture Area 445 141 Ncp GI Owner Airport 1_413_00811 PC MU -H2 No 0 0.29 0.29 N/A 0 50 14 14 27% 45% 2 101 LLC Area 445141 Ncp GI Owner Airport 1-41300413 PC MU -H2 No 0 0.29 0.29 N/A 0 50 14 14 ° 27/° 45% 2 103 LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-22 SS3-235 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage o /o (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Global 427171 Airport L4H Alliance PC CG No 0 1.20 1.20 Yes 0 50 59 59 27% 45% 7 104 _002 02 Area Caesar 427221 Westerly Ow Airport L4M_028 PC COG No 0 1.46 1.46 Yes 0 50 73 73 o 27/0 0 45/0 9 105 03 Aberdeen Area Beni 4270371 Air 1-41-1_004 Investments PC CG No 0 1.40 1.40 Yes 0 50 69 69 27% 45% 8 106 eirpoat LLC L4L 028 936790 Orange PC CO -G No 0 0.97 0.97 Yes 0 50 48 48 27% 45% 6 Airport 107 46 County Bar Area 439 241 Palm Mesa Airport P3A_102 SP -7 RM No 148 5.88 5.88 Yes 0 50 294 146 27% ° 45/0 18 108 20 Ltd Area 427121 Beachwood Airport L4G_062 OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 45% 4 109 24 Properties LLC Area 148 158.20 158.20 7,865 7,440 904 AIRPORT AREA ENVIRONS TOTAL: 0 units acres acres units units units Newport 114170 Banning A1A_014 Beach PC OS(RV) No 0 130.87 11.95 No N/A 0 0 357 100% ° 20% 71 110 72 Ranch Cherokee Newport AIA 114170 Beach PC OS(RV) No 0 74.64 6.81 No N/A 0 0 204 100% 20% 41 Banning 111 -050 52 Ranch Cherokee Newport 114170 Banning AIA Beach PC OS(RV) No 0 65.05 5.94 No N/A 0 0 178 100% 20% 36 112 -016 50 Ranch Cherokee Newport 114170 Banning AIA Beach PC OS(RV) No 0 51.00 4.66 No N/A 0 0 139 100% 20% 28 113 -024 52 Ranch Cherokee Newport 114170 Banning AIA Beach PC OS(RV) No 0 44.78 4.09 No N/A 0 0 122 100% 20% 24 114 -022 83 Ranch Cherokee 114 170 United States Banning AIA PC OS(RV) No 0 41.20 3.76 No N/A 0 0 112 100% 20% 22 115 -058 71 Of America Ranch 114 170 United States Banning AIA OS OS(RV) No 0 19.35 1.77 No N/A 0 0 53 100% 20% 11 116 -034 76 Of America Ranch Banning A1A_056 NO AP # PC OS(RV) No 0 15.76 1.44 No N/A 0 0 43 100% 20% 9 117 Ranch 114 170 United States Banning AIA PC OS(RV) No 0 14.32 1.31 No N/A 0 0 39 100% 20% 8 118 -036 74 Of America Ranch 114 170 United States Banning AIA OS OS(RV) No 0 11.48 1.05 No N/A 0 0 31 100% 20% 6 120 -028 78 Of America Ranch 424 041 Banning A1A- 030 PC OS(RV) No 0 10.81 0.99 No N/A 0 0 29 100% 20% 6 121 04 Ranch Newport 114170 Banning AIA Beach PC OS(RV) No 0 6.52 0.60 Yes N/A 0 0 18 ° 100% 20% 4 122 -066 43 Ranch Cherokee Appendix B: Sites Analysis (DRAFT APRIL 2021) B-23 SS3-236 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 114170 United States Banning A16 002 OS OS No 0 5.79 0.53 Yes N/A 0 0 16 100% 20% 3 123 65 Of America Ranch City Of 114170 Banning A1A_032 Newport OS OS(RV) No 0 3.86 0.35 Yes N/A 0 0 11 100% 20% 2 124 80 Beach Ranch Newport A1A_052 114170 Beach PC OS(RV) No 0 0.37 0.03 No N/A 0 0 1 100% 20% 0 Banning 126 24 Ranch Cherokee City Of 114170 Banning A1A_060 Newport PC OS(RV) No 0 5.33 0.49 N/A N/A 0 0 15 100% 20% 3 127 81 Ranch Beach Newport 114170 Banning A1A_054 Beach PC OS(RV) No 0 0.21 0.02 N/A N/A 0 0 1 100% 20% 0 128 75 Ranch Cherokee Newport 114170 Banning A1A_070 Beach PC OS(RV) No 0 1.10 0.10 N/A N/A 0 0 3 100% 20% 1 129 49 Ranch Cherokee 114170 Orange Banning A16 006 OS OS No 0 1.49 0.14 N/A N/A 0 0 4 100% 20% 1 130 - 66 County Flood Ranch 0 503.90 46.00 1,375 275 BANNING RANCH TOTAL: 0 0 units acres acres units units Coyote 120 571 County Of R6A_004 PR PR No 0 243.23 22.00 No 0 40 880 880 ° 100% ° 35/° 308 Canyon, 131 12 Orange g etc. 0 243.23 22.00 880 880 308 COYOTE CANYON TOTAL: -- -- -- - -- - -- -- -- units acres acres units units units 049122 Donna Dover- H2C 592 MU -MM MU -1-11 No Yes 0 0.14 0.14 No 21 30 2 4 4 40% 30% 0 Y 132 - 03 Carpenter Westcliff Newport MU- 047 041 Dover - 135C_314 Beach Alano CV/15TH MU -H4 No Yes 0 0.11 0.11 No 18 30 1 3 3 ° 40% 30% 0 Y 133 05 Westcliff Club ST MU 047 041 Patrick Dover - 135C_292 CV/15TH MU -H4 No Yes 0 0.06 0.06 No 15 30 0 1 1 40% 30% 0 Y 134 25 Chamberlain Westcliff 117 631 Corp Of The Dover- J2A 330 MU -DW MU -H1 No 0 2.15 2.15 Yes 26 30 56 64 64 ° 40% ° 30% 8 135 12 Presiding Westcliff 117 631 Westcliff Dover- J2A_322 MU DW MU H1 No 0 1.67 1.67 Yes 26 30 43 50 50 ° 40% 30% 6 136 22 Properties LLC Westcliff 117631 Dover- J2A_326 M HorningJr. MU -DW MU -1-11 No 0 1.30 1.30 Yes 26 30 33 39 39 40% 30% 5 Y 137 17 1 1 1 Westcliff 117 631 901 Dover Ltd Dover- J2A 324 MU -DW MU -1-11 No 0 1.10 1.10 Yes 26 30 28 33 33 40%30% ° 4 138 18 Partnership Westcliff 117631 Dover- J2A 328 Lincoln Yee MU -DW MU -1-11 No 0 0.87 0.87 Yes 26 30 22 25 25 40% 30% 3 Y 139 - 11 Westcliff 117 811 Nature Dover- H3A_340 OG CO -G No 0 1.25 1.25 Yes 0 30 37 37 40% ° 30% 4 140 20 Environmental I I I I I I I I I I I I Westcliff Appendix B: Sites Analysis (DRAFT APRIL 2021) B-24 SS3-237 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 458 361 Dover- M4A_050 - PF PF No 0 1.29 1.29 Yes 0 30 38 38 40% 30% 5 141 10 Westcliff 117 811 Donna Adele Dover- H3A_004 OG CO -G No 0 1.51 1.51 Yes 0 30 45 45 ° 40% 30% 5 142 18 Gallant Westcliff 117 811 Russell E R Dover H3A 006 OG CO -G No 0 0.79 0.79 Yes 0 30 23 23 40%30% ° 3 Y 143 - 19 Fluter Westcliff 049 271 Carol Rex Dover- H3A 444 OG CO -G No 0 1.64 1.64 Yes 0 30 49 49 40% 30% 6 144 - 30 Reynolds I I I I Westcliff 0 13.88 13.88 185 411 411 49 DOVER WESTCLIFF TOTAL: -- -- - -- - -- -- -- units acres acres units units units units Newport 440 281 K26_588 Ath LLC PC PR No 0 7.60 7.60 Yes 0 45 341 341 27% 30% 28 Center 145 02 Area Church Newport 458 341 M3C_014 Newport PI PI No 0 3.03 3.03 Yes 0 45 136 136 27% 30% 11 Center 146 02 Center Area Newport 458 341 Wardens M3C_012 PI PI No 0 3.60 3.60 Yes 0 45 161 161 27% 30% 13 Center 147 01 Rector Area Newport L1N_010 NO AP # PC No 5 1.72 1.72 Yes 0 45 77 72 27% 30% 6 Center 240 H3/PR Area Newport 442 271 Irvine L1L_044 PC CO -R No 0 0.75 0.75 Yes 0 45 33 33 27% 30% 3 Center 148 30 Company p Y Area Newport 443071 L1L_046 PC CO -R No 0 1.08 1.08 Yes 0 45 48 48 27% 30% 4 Center 149 CompinanY Area Newport 442 091 Trail L1K 022 OR CO -R No 0 0.79 0.79 Yes 0 45 35 35 27% 30% 3 Center 150 - 16 Properties LLC Area Newport 442 091 Trail L1K 024 OR CO -R No 0 1.42 1.42 Yes 0 45 64 64 27% 30% 5 Center 151 - 16 Properties LLC Area Newport 442 021 The Irvine L1G_016 PC CR No 0 0.54 0.54 Yes 0 45 24 24 27% 30% 2 Center 152 47 Company LLC Area Newport 442 021 The Irvine L1G_018 PC CR No 0 1.76 1.76 Yes 0 45 79 79 27% 30% 6 Center 153 47 Company LLC p Y Area Newport 440132 Jgkallins K1C 006 PR PR No 0 1.79 1.79 Yes 0 45 80 80 ° 27/° ° 30% 6 Center 154 40 Investments Area Newport 442 231 180 Investors L1M_022 OR CO -R No 0 1.17 1.17 Yes 0 45 52 52 27% 30% 4 Center 155 08 LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-25 SS3-238 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage o /o (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Newport 442 091 Trail L1K_028 OR CO -R No 0 1.75 1.75 Yes 0 45 78 78 27% 30% 6 Center 156 12 Properties LLC Area Newport L1F_006 442 082 Ncmb No LLC PC CO -M No 0 2.72 2.72 Yes 0 45 122 122 27% 30% 10 Center 157 11 Area Newport 442 082 L1F_004 Ncmb No LLC PC CO -M No 0 4.05 4.05 Yes 0 45 182 182 27% 30% 15 Center 158 14 Area Newport 442 082 L1F_014 Ncmb No LLC PC CO -M No 0 3.46 3.46 Yes 0 45 155 155 27% 30% 13 Center 159 08 Area Newport 442 082 L1F_010 Ncmb No LLC PC CO -M No 0 1.17 1.17 Yes 0 45 52 52 27% 30% 4 Center 160 12 Area Amalfi Newport 442 081 L1E_004 Investments PC MU -H3 No 0 0.75 0.75 Yes 0 45 33 33 27% 30% 3 Center 161 05 Gp Area Newport 442 271 17 Corporate L1L_004 PC CO -R No 0 1.04 1.04 Yes 0 45 46 46 o 27/0 o 30% 4 Center 162 17 Plaza Assoc Area Mark Newport L1L_032 442 271 Robinson Jr PC CO -R No 0 0.55 0.55 Yes ` 0 45 24 24 27% 30% 2 Center 163 23 LLC Area Newport 442 271 Mitchell L1L_042 PC CO -R No 0 0.76 0.76 Yes 0 45 34 34 27% 30% 3 Center 164 12 Junkins Area Newport 442 271 Property L1L 016 PC CO -R No 0 0.89 .89 45 39 39 27% 30% 3 Center Y 165 — 05 Reserve Inc Area Newport 442 271 Property L1L 012 PC CO -R No 0 0.89 0.89 Yes 0 45 40 40 27% 30% 3 Center Y 166 — 03 Reserve Inc Area Newport 442 271 Burnham- L1L_026 PC CO -R No 0 0.98 0.98 Yes 0 45 44 44 27% 30% 4 Center 167 32 Newport LLC Area Newport Newport 442 271 L1L_002 Corporate PC CO -R No 0 1.02 1.02 Yes 0 45 45 45 27% 30% 4 Center 168 16 Plaza Area Newport 442 271 Heritage One LIL 036 PC CO -R No 0 0.68 0.68 Yes 0 45 30 30 o 27/0 o 30% 2 Center 169 15 LLC Area Pacific Newport 442 271 L1L_006 Development PC CO -R No 0 0.84 0.84 Yes 0 45 37 37 27% 30% 3 Center 170 01 Group Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-26 SS3-239 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage o /o (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Olen Newport 442 271 L1L_008 Properties PC CO -R No 0 0.75 0.75 Yes 0 45 33 33 27% 30% 3 Center 171 02 Corp Area 442 271 Newport L1L_034 Scott Boras PC CO -R No 0 0.51 0.51 Yes 0 45 22 22 27% 30% 2 Center 172 34 Area Newport 442 271 George Randy L1L_038 PC CO -R No 0 0.88 0.88 Yes 0 45 39 39 o 27/0 o 30% 3 Center 173 14 Kinkle Area Newport 442 271 L1L_014 Division Tax PC CO -R No 0 0.97 0.97 Yes 0 45 43 43 27% 30% 3 Center Y 174 04 Area Newport 442 271 Chico L1L 040 PC CO -R No 0 0.76 0.76 Yes 0 45 34 34 27% 30% 3 Center 175 13 Associates Inc Area Newport 442 271 L1L_022 Co Irvine PC CO -R No 0 1.13 1.13 Yes 0 45 50 50 27% 30% 4 Center 176 19 Area Olen Newport 442 271 L1L_020 Properties PC CO -R No 0 1.17 1.17 Yes 0 45 52 52 27% 30% 4 Center 177 29 Corp Area Newport 442 271 Irvine L1L_028 PC CO -R No 0 3.00 3.00 Yes 0 45 134 134 27% 30% 11 Center 178 31 Company p Y Area Newport 442 271 24 Corporate L1L 024 PC CO -R No 0 0.98 0.98 Yes 0 45 44 44 27% 30% 4 Center 179 33 Plaza II LLC Area Newport 442 271 Baldwin Bone L1L 030 PC CO -R No 0 0.70 0.70 Yes 0 45 31 31 27% 30% 3 Center 180 — 24 Properties Area Newport 442 011 L1N_022 Fainbarg PC PR No 0 2.98 2.98 Yes 0 45 134 134 27% 30% 11 Center 181 53 Area Newport 442 011 Golf Realty MU- L1N_016 64 Fund LP PC H3/PR No 0 2.96 2.96 Yes 0 45 133 87 27% 30% 7 Center Y 182 Area Newport 442 262 Pacific Mutual L1C_002 OR CO -R No 0 9.99 9.99 Yes 0 45 449 449 27% 30% 36 Center 183 01 Life Area Newport 440 132 K1C_004 Russell Fluter PR PR No 0 2.80 2.80 Yes 0 45 126 126 27% 30% 10 Center 184 48 Area Newport 442 231 Southwest L1M 024 OR CO -R No 0 0.51 0.51 Yes 0 45 23 23 27% 30% 2 Center 185 09 Investors Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-27 SS3-240 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage o /o (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Newport 442 161 Design Plaza L1K_006 OR CO -R No 0 7.17 7.17 Yes 0 45 322 322 o 27/0 o 30% 26 Center 186 17 Owners Assn Area 100 Newport Newport L1M_002 442 231 Center Drive OR CO -R No 0 0.61 0.61 Yes 0 45 27 27 27% 30% 2 Center 187 13 LLC Area Newport 442 491 Hhr Newport L1N_006 CV CV No 0 9.54 9.54 Yes 0 45 429 429 o 27/0 o 30% 35 Center 188 02 Beach LLC Area Newport 442 082 L1F_012 Co Irvine PC COW No 0 4.10 4.10 Yes 0 45 184 184 27% 30% 15 Center 189 05 Area Newport 442 021 L1G_044 Co Irvine PC CR No 0 1.74 1.74 Yes 0 45 78 78 27% 30% 6 Center 190 28 Area Newport 442 021 Irvine L1G_046 PC CR No 0 2.50 2.50 Yes 0 45 112 112 27% 30% 9 Center 191 26 Company LLC Area Newport 442 231 L1M_008 Co Irvine PC CO -R No 0 2.83 2.83 Yes 0 45 127 127 27% 30% 10 Center 192 11 Area Newport L1G_048 442 021 Irvine PC CR No 0 1.73 1.73 Yes ` 0 45 77 77 27% 30% 6 Center 193 13 Company LLC p Y Area Newport 442 021 L1G_036 Co Irvine PC CR No 0 0.80 0.80 Yes 0 45 36 36 27% 30% 3 Center 194 08 Area 442 021 Newport L1G_022 Co Irvine PC CR No 0 0.63 Q.63 45 28 28 27% 30% 2 Center 195 32 Area Newport 442 021 Irvine L1G_040 PC CR No 0 4.09 4.09 Yes 0 45 184 184 27% 30% 15 Center 196 29 Company LLC p Y Area Newport 442 021 L1G_032 Co Irvine PC CR No 0 1.24 1.24 Yes 0 45 55 55 27% 30% 4 Center 197 30 Area Newport 442 021 L1G_042 Co Irvine PC CR No 0 1.17 1.17 Yes 0 45 52 52 27% 30% 4 Center 198 27 Area 0 442 021 The Irvine Newport L1G_020 PC CR No 0.87 0.87 Yes 0 45 38 38 27% 30% 3 Center 199 40 Company LLC Area Newport 442 021 The Irvine L1G_010 PC CR No 0 4.11 4.11 Yes 0 45 185 185 27% 30% 15 Center 200 46 Company LLC p Y Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-28 SS3-241 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Newport 442 021 L1G_012 Co Irvine PC CR No 0 0.56 0.56 Yes 0 45 25 25 27% 30% 2 Center 201 35 Area 442 021 Newport L1G_024 Co Irvine PC CR No 0 4.03 4.03 Yes 0 45 181 181 27% 30% 15 Center 202 33 Area Newport 442 231 L1M_004 Co Irvine PC CO -R Yes 0 4.10 4.10 Yes 0 45 184 184 27% 30% 15 Center 203 14 Area Newport 442101 Island Hotel L1D 010 PC MU -1-13 No 0 5.37 5.37 Yes 0 45 241 241 27% 30% 20 Center 204 - 27 Finance LLC Area Newport 442 021 L1G_030 Co Irvine PC CR No 0 8.25 8.25 Yes 0 45 371 371 27% 30% 30 Center 205 31 Area Newport 442 021 L1G_026 Co Irvine PC CR No 0 0.56 0.56 Yes 0 45 24 24 27% 30% 2 Center 206 11 Area Newport L1G_028 442 021 Irvine PC CR No 0 1.74 1.74 Yes 0 45 78 78 27% 30% 6 Center 207 17 Company p Y Area 442 021 The Irvine Newport L1G_002 PC CR No 0 5.43 5.43 Yes 0 45 244 244 27% 30% 20 Center 208 43 Company LLC p Y Area Newport 44021 ne L1G_008 PC CR No 0 0.99 0.99 Yes 0 45 44 44 27% 30% 4 Center 209 Company LLC Area Newport 442 021 Irvine Co LLC L1G_006 PC CR No 0 1.25 1.25 Yes 0 45 56 56 27% ° ° 5 Center 210 44 The Area Newport 44021 ne L1G_004 PC CR No 0 4.16 4.16 Yes 0 45 187 187 27% 30% 15 Center 211 Company LLC Area Newport 442 411 Brett L1N_024 PC CG No 0 1.12 1.12 Yes 0 45 50 50 27% 30% 4 Center 212 01 Feuerstein Area Newport 442 261 L1A_024 Co Irvine MU -H3 No 0 2.23 2.23 Yes 0 45 100 100 27% 30% 8 Center 213 21 Area 442 011 Golf Realty MU Newport L1N_058 No 0 1.11 1.11 Yes 0 45 50 87 27/° 30% 7 Center Y 214 65 Fund LP H3/PR Area Newport L1N_056 NO AP # No 0 1.18 1.18 Yes 0 45 53 53 27% 30% 4 Center 257 H3nPR Area 162.13 162.13 7,260 7,246 587 NEWPORT CENTER TOTAL: 5 units - - - - - - - - - acres acres units units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-29 SS3-242 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) 425471 Pipeline H4C 060 Jeffrey Shafer MU -MM MU -1-11 No 0 0.20 0.20 N/A 24 3 35 N/A N/A 3 242 55 1 1 1 1 Project 425471 Nb Mariner's Pipeline H4C 078 MU -MM MU -H1 No 0 4.37 4.37 N/A 26 116 - 198 N/A N/A 9 246 27 Mile LLC Project 445 131 Slf-Kc Towers Pipeline 1-413050 PC MU -1-12 No 0 6.22 6.22 N/A 0 325 N/A N/A 13 249 - 29 LLC Project 427172 Macarthur Pipeline L4J 020 PC MU -1-12 No 0 1.71 1.71 N/A 0 117 N/A N/A 26 252 06 Starboard Project Newport 445134 Pipeline L4D_062 Jamboree PC MU -1-12 No 0 1.86 1.86 N/A 0 703 N/A N/A 10 255 04 project 1 Uptown 427111 Pipeline L4G 040 Ap Center OA MU -1-12 No 0 0.73 0.73 Yes 0 70 N/A N/A 4 260 03 Project 427111 Pipeline L4G_036 Apc LP OA MU -H2 No 0 0.74 0.74 Yes 0 - 69 N/A N/A 3 261 05 Project 1 427111 Pipeline L4G 038 Apc LP OA MU -1-12 No 0 0.71 0.71 Yes 0 69 N/A N/A 3 262 - 04 Project 427111 Pipeline L4G 034 Js 4630 LLC OA MU -1-12 No 0 0.79 0.79 Yes 0 68 N/A N/A 3 263 06 Project 427111 Pacific Pipeline L4G 026 OA MU -1-12 No 0 1.00 1.00 Yes 0 69 N/A N/A 4 264 - 10 Medical Project 427172 Macarthur Pipeline L4J 022 PC MU -1-12 No 0 1.83 1.83 Yes 0 117 N/A N/A 26 266 02 Starboard Project L4J 018 427172 Macarthur PC MU -H2 No 0 1.94 1.94 Yes 0 - 117 N/A N/A 26 Pipeline 267 03 Starboard Project 22.10 22.10 119 1,957 130 PIPELINE TOTAL: 0 units acres acres units units units West 114 170 School Costa Newport AIA PF PF No 0 11.56 11.56 No 0 45 520 520 30% 65% 101 215 -042 51 Mesa Union Mesa Area West 424141 Taormina Newport A21)_048 IG IG No 0 0.23 0.23 No 0 45 10 10 30%65% ° 2 Y 216 17 Property Mesa Area West A21)_006 424141 424141 Taormina IG IG No 0 0.23 0.23 No 0 45 10 10 30% 65% 2 Newport Y 217 Property Mesa Area West 892 080 Chi Ltd Newport A2F_002 RM RM No 61 4.34 4.34 Yes 13 45 0 134 134 30% 65% 26 Y 218 02 Ptnrship Mesa Area West 4240151 Newpo A2F_010 Chi Limited RM RM No 56 4.77 4.77 Yes 14 45 0 158 158 30% 65% 31 Y 219 Mesart Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-30 SS3-243 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) West 892 090 Brian Newport A2F 004 RM RM No 56 4.27 4.27 Yes 13 45 0 136 136 30% 65/° 27 220 — 55 Bellerose Mesa Area West 892109 Charlotte Newport A2E_010 RM RM No 36 1.90 1.90 Yes 13 45 0 49 49 30% 65% 10 221 03 Patronite Mesa Area West City Of 114 170 Newport AIA 038 Newport PF PF No 0 3.05 0.92 Yes 0 45 41 41 30% ° 65/° 8 222 82 Beach Mesa Area West City Of 424 401 Newport A2C_018 Newport PF PF No 0 2.00 0.60 Yes 0 45 26 26 30% 65% 5 223 12 Mesa Beach Area West City Of 425171 Newport A3A 006 Newport PF PF No 0 7.95 2.38 Yes 0 45 107 107 30% 65%21 224 — 01 Beach Mesa Area West 424111 Michael Newport A21)_04005 IG IG No 0 0.55 0.55 Yes 0 45 24 24 30% 65% 5 225 Voorhees Mesa Area West 42406141 Newpo A21)_028 Scab Wrks LLC IG IG No 0 0.52 0.52 Yes 0 45 23 23 30% 65% 4 226 Mesart Area West 424 111 Trico Newport Newport A2D 044 IG IG No 0 3.23 3.23 Yes 0 45 145 145 ° 30% 65% 28 Y 227 — 06 Properties Mesa Area West 424401 Howland Newport A2C 022 IG IG No 0 1.86 0.56 Yes 0 45 25 25 30% 65% 5 228 — 04 Associates LLC Mesa Area West 424141 Richard Newport A21) 038 IG IG No 0 2.73 2.73 Yes 0 45 122 122 30% 65% 24 229 — 01 Hunsaker Mesa Area West 424 142 Lois For Newport A2F 014 IG IG No 0 0.74 0.74 Yes 0 45 33 33 30%65% 6 230 — 14 Horness Mesa Area 424 141 Orangethorpe West A2D 032 IG IG No 0 0.69 0.69 Yes 0 45 30 30 30% 65% 6 231 — 04 Properties Newport Appendix B: Sites Analysis (DRAFT APRIL 2021) B-31 SS3-244 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-10: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Density (Du/Ac) Potential Units Potential Net Parcel Land 5th Existing Gross Buildable Redevelopment Affordability Focus Letter Inventory TAG Owner Zoning Vacancy Sizing Units Units Number Use Cycle Units Acreage Acreage ° /° (LowVl) Area Interest? ID Criteria? Zoned Rezoned Zoned Rezoned Net (LowVL) Mesa Area West 424 141 Brent & Ami Newport A21)_030 IG IG No 0 0.53 0.53 Yes 0 45 23 23 30% ° 65/° 4 232 05 Ducoing Mesa Area West 424131 Riverport Newport A2E 022 OM CO -M No 0 1.07 1.07 Yes 0 45 48 48 ° 30% ° 65/° 9 233 16 Properties LLC Mesa Area West 424141 James Newport A2D_034 IG IG No 0 1.08 1.08 Yes 0 45 48 48 30% 65% 9 234 03 DeGraw Mesa Area Metal West 424142 Newport A2F_030 Finishing IG IG No 0 1.31 1.31 Yes 0 45 58 58 30% 65% 11 235 11 Mesa Hixson Area West Newport 424 401 Newport A2C_012 Business IG IG No 0 1.14 1.14 Yes 0 45 51 51 ° 30% 65% 10 236 06 Mesa Center Area West 424141 Richard Newport A2D_036 IG IG No 0 1.61 1.61 Yes 0 45 72 72 30% 65% 14 237 02 Hunsaker Mesa Area West 424401 Allred Newport A2C_008 IG IG No 0 0.76 0.76 Yes 0 45 34 34 30% 65% 7 238 08 Newport LLC Mesa Area West 424 141 Glynn Van De Newport A21)_022 IG IG No 0 0.56 0.56 Yes 0 45 25 25 30% 65% 5 239 09 Walker Mesa Area 209 58.70 48.30 1,952 1,952 381 WEST NEWPORT MESA TOTAL: -- -- -- - -- - -- -- -- units acres acres units units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-32 SS3-245 City of Newport Beach 2021-2029 HOUSING ELEMENT Moderate and Above Moderate Sites Inventory This section contains a description and listing of the candidate sites identified to meet the City's moderate and above moderate income RH NA need. A full list of these sites is presented in Table B-14. Projects in the Pipeline The City has identified a number of projects currently in the entitlements process which are likely to be developed and/or first occupied during the planning period and count as credit towards the 2021-2029 RHNA allocation. Notably, Projects in the Pipeline can completely accommodate the City's Above Moderate RHNAallocation. Table B-11 below summarizes the potential units from Projects in the Pipeline: Table B-11: Moderate and Above Moderate -Income Projects in the Pipeline Moderate Income Above Moderate Income Pipeline Projects 0 units 2,164 units Accessory Dwelling Units For Moderate and Above Moderate Income Households 4As noted in Paragraph A3 of this Appendix, the City anticipates a total of 100 ADUs affordable at moderate income levels and 6 ADUs affordable at the above moderate -income level. The City has identified programs within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach. Remaining Need Table B-12 below displays the City's RHNAallocation need affordable to moderate and above moderate income households for the years 2021-2029 as well as the City's net RHNAallocation need affordable to moderate and above moderate households afterthe inclusion of Projects in the Pipeline and ADUs. Table B-12: Moderate and Above Moderate -Income Remaining Need Moderate Income Above Moderate Income RHNAAIIocation 1,050 units 1,409 units Pipeline Projects 0 units 2,164 units Existing Zoning 348 units 40 units Accessory Dwelling Units 100 units 6 units Remaining Low/Very Low -Income Need 602 units No remaining need Selection of Sites Pursuant to a public process, sites were selected based on their realistic viability to accommodate lower income housing within the 2021-2029 planning period. Sites were also evaluated based on access to resources, proximity to additional residential development, transportation and major streetway access, and resources and opportunity indicators. Section 3: Affirmatively Furthering Fair Housing, outlines all fair housing, opportunity indicators, and environmental resources in Newport Beach. A detailed map and list of candidate sites can be found on the City's website. Appendix B: Sites Analysis (DRAFT APRIL 2021) B-33 SS3-246 City of Newport Beach 2021-2029 HOUSING ELEMENT The City has identified sites with capacity to accommodate the City's 2021-2029 RHNA. This capacity is based on a rezone strategy for several Focus Areas throughout the City. These Focus Areas areas follows: + Airport Area Environs + West Newport Mesa Area + Dover -Westcliff Area + Newport CenterArea + Coyote Canyon Area + Banning Ranch Area The City has developed analyzed potential capacity based on rezone strategies specific to each Focus Area. Through a public process, the City has assessed the feasibiIityof parcels to redevelop residentially during the planning period. Those parcels deemed feasible were then analyzed to ensure compliance with HCD's criteria for sites designated to accommodate lower income development (including sizing criteria). The inventory of feasible site for redevelopment within each Focus Area was developed with this process. Table B-13 below summarizes the key statistics forthe rezone strategies. Table B-13: Moderate/Above Moderate -Income Rezone 5trategybyFocus Area % Potential Moderate Potential Feasible Projected Rezone Above Focus Area Income Moderate - Acreage to Density Moderate - Affordability Income Units Redevelop Income Units Airport Area 158 27% 15% 50 301 units 755 units Environs West Newport 48 30% 20% 45 117 units 80 units Mesa Area Dover - Westcliff 14 40% 5% 30 8 units 100 units Area Newport 162 27% 10% 45 196 units 1,140 units Center Area Coyote 22 100%0% ° 40 0 units 572 units Canyon Area Banning 46 100% 15% 30 207 units 893 units Ranch Area TOTAL 450 -- -- -- 829 units 3,540 units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-34 SS3-24 7 City of Newport Beach 2021-2029 HOUSING ELEMENT WIF Calculation of Unit Capacity Taking into account development standards, unit capacityfor sites identified to accommodate moderate and above moderate -income units was calculated by multiplying the net acreage of the site by the assumed density established for each focus area. Depending on the Focus Area, the City assumes that each identified sitewill develop with between 10% and 80% affordable units (the remainder developing as moderate and above moderate income units). To support this assumption, the City has identified programs and policies to encourage developer interest and financial feasibility. These programs and policies are detailed in Section 4. Additionally, based on previous development trends, the City assigned each Focus Area a percentage of its land area which the City projects to redevelop — meaning the percentage of land area within each Focus Area, which is expected to "turn over", or develop with residential units during the planning period. Appendix B: Sites Analysis (DRAFT APRIL 2021) B-35 SS3-248 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod SthCycle- H4C_ 049110 Mariners MU -MM MU -H1 No Yes 0 1.68 1.68 Yes 26 1 1 100% N/A 1 Existing No 1 022 30 Center M2 LLC Zoning 5th Cycle - BSA_ 423 122 Lido Group MU -W2 MU -W2 Yes Yes 0 1.34 1.34 Yes 26 5 5 Q 100% N/A 5 Existing Yes 2 058 01 Retail LLC Zoning 5th Cycle - H4A_ 049 150 Nb Mariner's MU -W1 MU -W1 No Yes 0 2.18 2.18 Yes 5 1 1 100% N/A 1 Existing No 3 042 26 Mile LLC Zoning 5th Cycle - H4A_ 049 150 Mariners Mile MU -W1 MU -W1 No Yes 0 1.65 1.65 Yes 5 9 9 100% N/A 9 Existing No 4 038 29 LLC Zoning 5th Cycle - H4A_ 049 130 Golden Hills MU -W1 MU -W1 No Yes 0 1.39 1.39 Yes 5 8 8 100% N/A 8 Existing No 5 004 22 Towers LLC Zoning 5th Cycle - H4A_ 049 150 Nb Mariner's MU -W1 MU -W1 No Yes 0 0.92 0.92 Yes 5 5 5 100% N/A 5 Existing No 6 046 21 Mile LLC Zoning 5th Cycle - H4A_ 049 150 Chino Hills Mall MU -W1 MU -W1 No Yes 0 0.52 0.52 Yes 5 3 3 100% N/A 3 Existing No 7 044 16 LLC Zoning 5th Cycle - H4C_ 425471 Mariners Mile MU -MM MU -H1 No Yes 0 0.95 0.95 Yes 26 25 25 100% N/A 25 Existing No 8 076 26 North LLC Zoning 5th Cycle - H4C_ 049 121 Mile Co MU -MM MU -H1 No Yes 0 0.96 0.96 Yes 26 25 25 100% N/A 25 Existing No 9 046 23 Mariners Zoning 5th Cycle - H4C_ 049 121 Mile Co MU -MM MU -H1 No Yes 0 0.88 0.88 Yes 26 23 23 100% N/A 23 Existing No 10 044 24 Mariners Zoning 5th Cycle - H4C_ 425 471 2436pch LLC MU -MM MU -H1 No Yes 0 0.56 0.56 Yes 26 15 15 100% N/A 15 Existing No 11 208 57 Zoning 5th Cycle - H4C_ 425 471 Susan Cuse Inc MU -MM MU -H1 No Yes 0 0.53 0.53 Yes 26 14 14 100% N/A 14 Existing No 12 068 23 Zoning 5th Cycle - H4C_ 425 471 Sadie Mary MU -MM MU -H1 No Yes 0 0.54 0.54 Yes 25 14 14 100% N/A 14 Existing No 13 070 24 Stegmann Zoning 5th Cycle - BSA_ 423 123 Wypark MU -W2 MU -W2 No Yes 0 0.59 0.59 Yes 25 15 15 100% N/A 15 Existing No 14 032 08 Investments Pc Zoning 5th Cycle - H4A_ 049 130 Quay Works MU -W1 MU -W1 No Yes 0 1.31 1.31 Yes 5 7 7 100% N/A 7 Existing No 15 012 18 LLC Zoning 5th Cycle - H4A_ 049 130 Newport Beach 014 14 Waterfront MU -W1 MU -W1 No Yes 0 1.21 1.21 Yes 5 7 7 100% N/A 7 Existing No 16 Zoning Appendix B: Sites Analysis (DRAFT APRIL 2021) B-36 SS3-249 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 7 Zoned Rezoned Zoned Rezoned Net Mod Mod 5th Cycle - H4C_ 425 471 Shafer Irrevoc MU -MM MU -1-11 No Yes 0 0.49 0.49 No 26 7 7 100% N/A 7 Existing No 268 204 56 Tr Zoning 5th Cycle - H4C_ 049 110 MU -MM MU -1-11 No Yes 0 0.32 0.32 No 24 5 5 100% N/A 5 Existing No 269 132 19 Zoning 5th Cycle - H4C_ 425 471 MU -MM MU -1-11 No Yes 0 0.23 0.23 No 26 3 3 100% N/A 3 Existing No 270 048 15 Zoning 5th Cycle - H4C_ 049 110 MU -MM MU -1-11 Yes Yes 0 0.25 0.25 No 24 3 3 100% N/A 3 Existing Yes 271 020 21 Zoning 5th Cycle - 1-14C _ 425 471 Shaw Kathleen MU -MM MU -H1 No Yes 0 0.16 0.16 No 25 2 2 100% N/A 2 Existing No 272 054 12 A Zoning 5th Cycle - H2C_ 049 122 InvestmentsLlc MU -MM MU -1-11 No Yes 0 0.17 0.17 2 2 2 100% N/A 2 Existing No 273 590 04 Zoning 5th Cycle - H4C_ 425 471 Shafer Family MU -MM MU -H1 No Yes 0 0.12 0.12 No 24 3 3 o 100% N/A 3 Existing No 274 206 55 1983 T Zoning 4W 5th Cycle - H4C_ 425 471 MU -MM MU -H1 No Yes 0 0.14 No IF 2 100% N/A 2 Existing No 275 052 13 Zoning 5th Cycle - H4C_ 425 471 MU -MM MU -1-11 No Yes 0 0.12 0.12 No 24 7 7 100% N/A 7 Existing No 276 050 14 Zoning 5th Cycle - H2C_ 049 122 Llc mu -MMU -H1 No Yes 0 0.09 0�9 1 1 100% N/A 1 Existing No 277 582 25 Zoning 5th Cycle - D31_ 048 132 MU -V MU -V No Yes 0 0.35 0.35 No 25 5 5 100% N/A 5 Existing No 278 030 19 Zoning MU- 5th Cycle - B5C 047 032 CV/15TH MU -1-14 No Yes 0 0.27 0.27 No 25 4 4 100% N/A 4 Existing No 279 278 19 ST Zoning MU- 5th Cycle - BSC_ 047 031 Development CV/15TH MU -1-14 No Yes 0 0.29 0.29 No 23 4 4 100% N/A 4 Existing No 280 326 19 Up ST Zoning MU- 5th Cycle - BSC_ 047 031 CV/15TH MU -1-14 No Yes 0 0.24 0.24 No 25 3 3 100% N/A 3 Existing No 281 328 20 ST Zoning 5th Cycle - D3F_ 048 115 MU -V MU -V No Yes 0 0.19 0.19 No 25 3 3 100% N/A 3 Existing No 282 022 11 Zoning MU- 5th Cycle - BSC 047 031 _ CV/15TH MU -H4 No Yes 0 0.19 0.19 No 26 3 3 100% N/A 3 Existing No 283 286 03 ST I Zoning Appendix B: Sites Analysis (DRAFT APRIL 2021) B-37 SS3-250 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 7 Zoned Rezoned Zoned Rezoned Net Mod Mod 5th Cycle - D3G_ 048 122 MU -V MU -V No Yes 0 0.13 0.13 No 23 2 2 100% N/A 2 Existing No 284 002 07 Zoning MU- 5th Cycle - 135C_ 047 033 CV/15TH MU -1-14 No Yes 0 0.13 0.13 No 23 2 2 100% N/A 2 Existing No 285 372 05 ST Zoning MU- 5th Cycle - 135C_ 047 052 CV/15TH MU -1-14 No Yes 0 0.12 0.12 No 24 1 1 100% N/A 1 Existing No 286 364 04 ST Zoning 5th Cycle - H4C_ 425 471 Shafer Irrevoc MU -MM MU -1-11 No Yes 0 0.12 0.12 No 25 7 7 100% N/A 7 Existing No 287 136 56 Tr Zoning 5th Cycle - 135A_ 423 123 MU -W2 MU -W2 No Yes 0 0.50 0.50 No 26 7 7 100% N/A 7 Existing No 288 028 10 Zoning 5th Cycle - 135A_ 423 121 3 L P MU -W2 MU -W2 No Yes 0 0.30 0.30 No 26 4 4 100% N/A 4 Existing No 289 048 05 Zoning 5th Cycle - 65D_ 047 162 Paulette MU -W2 MU -W2 No Yes 0 0.23 0.23 No 26 3 3 100% N/A 3 Existing No 290 172 18 Pappas Tr Zoning 5th Cycle - B5D_ 047 120 MU -W2 MU -W2 No Yes 0 0.18 0.18 No 22 2 2 100% N/A 2 Existing No 291 214 01 Zoning 5th Cycle - 135A_ 423 121 MU -W2 MU -W2 No Yes 0 0.08 0.08 No 26 1 1 100% N/A 1 Existing No 292 050 06 Zoning 5th Cycle - B5D_ 047 142 MU -W2 MU -W2 No Yes 0 0.09 0.09 No 22 1 1 100% N/A 1 Existing No 293 216 25 Zoning 5th Cycle - 65D_ 047 151 MU -W2 MU -W2 No Yes 0 0.09 0.09 No 22 1 1 100% N/A 1 Existing No 294 284 12 Zoning 5th Cycle - B5D_ 047 152 Levonian MU -W2 MU -W2 No Yes 0 0.10 0.10 No 20 1 1 100% N/A 1 Existing No 295 114 03 Separate Zoning MU- 5th Cycle - BSC_ 047 041 Close 2-1- CV/15TH MU -1-14 No Yes 0 0.09 0.09 No 22 1 1 100% N/A 1 Existing No 296 318 35 1rrevocT ST Zoning MU- 5th Cycle - BSC_ 047 051 CV/15TH MU -1-14 No Yes 0 0.10 0.10 No 19 1 1 100% N/A 1 Existing No 297 186 07 ST Zoning 5th Cycle - BSA_ 423 121 MU -W2 MU -W2 No Yes 0 0.07 0.07 No 13 1 1 100% N/A 1 Existing No 298 052 03 Zoning 5th Cycle - D31 048 123 MU -V MU -V No Yes 0 0.06 0.06 No 16 1 1 100% N/A 1 Existing No 299 004 02 Zoning Appendix B: Sites Analysis (DRAFT APRIL 2021) B-38 SS3-251 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 7 Zoned Rezoned Zoned Rezoned Net Mod Mod 5th Cycle - D3F_ 048 115 MU -V MU -V No Yes 0 0.07 0.07 No 14 1 1 100% N/A 1 Existing No 300 020 12 Zoning MU- 5th Cycle - 135C_ 0470,43 Tr CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 301 202 11 ST Zoning MU- 5th Cycle - 135C_ 047 042 CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 302 270 20 ST Zoning MU- 5th Cycle - 135C_ 047 032 Ellison Tr CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 303 404 03 ST Zoning 5th Cycle - D3H_ 048 134 MU -V MU -V No Yes 0 0.07 0.07 No 14 1 1 100% N/A 1 Existing No 304 034 04 Zoning MU- 5th Cycle - 135C_ 047 042 Ptnshp CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 305 264 07 ST Zoning MU- 5th Cycle - 135C_ 047 042 Marshall CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 306 268 04 Family Tr ST Zoning MU- 5th Cycle - 135C_ 047 051 CV/15TH MU -1-14 No Yes 0 0.07 0.07 No 15 1 1 100% N/A 1 Existing No 307 180 01 ST Zoning MU- 5th Cycle - 135C_ 047 032 Charlotte L CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 308 402 04 Jackson ST Zoning MU- 5th Cycle - 135C_ 047 051 CV/15TH MU -1-14 Yes Yes 0 0.07 0.07 No 14 1 1 100% N/A 1 Existing Yes 309 182 02 ST Zoning MU- 5th Cycle - 135C 047 031 CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 310 288 02 ST Zoning 5th Cycle - H4C_ 425 471 Shafer Irrevoc MU -MM MU -H1 No Yes 0 0.05 0.05 No 21 7 7 100% N/A 7 Existing No 311 082 56 Tr Zoning MU- 5th Cycle - BSC_ 047 041 Llc CV/15TH MU -1-14 No Yes 0 0.07 0.07 No 14 1 1 100% N/A 1 Existing No 312 320 31 ST Zoning MU- 5th Cycle - BSC_ 047 032 CV/15TH MU -1-14 No Yes 1 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 313 398 07 ST Zoning MU- 5th Cycle - B5C_ 047 041 CV/15TH MU -1-14 No Yes 1 0.06 0.06 No 15 1 1 100% N/A 1 Existing No 314 294 24 ST I I I I I I I I I I Zoning 5th Cycle - 1-14C 425 471 _ MU -MM MU -H1 No Yes 0 0.49 0.49 No 26 13 13 100% N/A 13 Existing No 315 066 19 Zoning Appendix B: Sites Analysis (DRAFT APRIL 2021) B-39 SS3-252 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 7 Zoned Rezoned Zoned Rezoned Net Mod Mod 5th Cycle - H4C_ 049 121 Realty Corp MU -MM MU -H1 No Yes 0 0.43 0.43 No 25 11 11 100% N/A 11 Existing No 316 042 22 Zoning 5th Cycle - H4C_ 049 121 Llc MU -MM MU -H1 No Yes 0 0.42 0.42 No 26 11 11 100% N/A 11 Existing No 317 040 18 Zoning 5th Cycle - H4C_ 425 471 Humphries MU -MM MU -H1 No Yes 0 0.43 0.43 No 25 11 11 o 100% N/A 11 Existing No 318 062 54 Family Tru Zoning 5th Cycle - H4C_ 049 110 MU -MM MU -H1 No Yes 0 0.33 0.33 No 24 8 8 100% N/A 8 Existing No 319 024 25 Zoning 5th Cycle - H2C_ 049 122 MU -MM MU -H1 No Yes 0 0.17 0.17 No 24 4 4 100% N/A 4 Existing No 320 586 06 Zoning 5th Cycle - H2C_ 049 122 MU -MM MU -H1 No Yes 0 0.17 0.17 No 24 4 4 100% N/A 4 Existing No 321 588 05 Zoning MU- 5th Cycle - 135C 047 041 _ CV/15TH MU -H4 No Yes 0 0.19 0.19 No 26 5 5 100% N/A 5 Existing No 322 302 33 ST Zoning MU- 5th Cycle - 135C_ 047 051 CV/15TH MU -H4 No Yes 0 0.20 0.20 No 25 5 5 100% N/A 5 Existing No 323 178 06 ST Zoning MU- 5th Cycle - 135C_ 047 042 Charlotte L CV/15TH MU -H4 No Yes 0 0.13 0.13 No 23 3 3 100% N/A 3 Existing No 324 266 22 Jackson ST Zoning MU- 5th Cycle - 135C_ 047 052 CV/15TH MU -H4 No Yes 0 0.12 0.12 No 24 3 3 100% N/A 3 Existing No 325 368 02 ST Zoning 5th Cycle - 135A _ 423 123 Partnership MU -W2 MU -W2 No Yes 0 0.24 0.24 No 25 6 6 100% N/A 6 Existing No 326 040 04 Zoning 5th Cycle - B5A_ 423 122 MU -W2 MU -W2 No Yes 0 0.17 0.17 No 23 4 4 100% N/A 4 Existing No 327 070 11 Zoning MU- 5th Cycle - BSC_ 047 041 CV/15TH MU -H4 No Yes 0 0.10 0.10 No 20 2 2 100% N/A 2 Existing No 328 304 12 ST Zoning MU- 5th Cycle - B5C_ 047 052 CV/15TH MU -H4 No Yes 0 0.10 0.10 No 20 2 2 100% N/A 2 Existing No 329 358 07 ST Zoning MU- 5th Cycle - BSC_ 047 041 Partnership CV/15TH MU -H4 No Yes 0 0.11 0.11 No 18 2 2 100% N/A 2 Existing No 330 312 06 ST Zoning MU- 5th Cycle - BSC 047 041 _ CV/15TH MU -H4 No Yes 0 0.05 0.05 No 18 1 1 100% N/A 1 Existing No 331 324 21 ST Zoning Appendix B: Sites Analysis (DRAFT APRIL 2021) B-40 SS3-253 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod MU- 5th Cycle - B5C_ 047 041 CV/15TH MU -1-14 No Yes 0 0.05 0.05 No 18 1 1 100% N/A 1 Existing No 332 322 23 ST Zoning MU- 5th Cycle - B5C_ 047 052 CV/15TH MU -1-14 No Yes 0 0.06 0.06 No 16 1 1 100% N/A 1 Existing No 333 366 03 ST Zoning 5t' CYCLE EXISTING ZONING TOTAL: 2 28.13 28.13 - - 388 - 388 388 40 units acres acres units units units units P3A_ 439 241 Airport Palm Mesa Ltd SP -7 RM No 148 5.88 5.88 Yes 0 50 294 146 27% 0.15 6 15 17 102 20 Area L4G_ 427121 Beachwood Airport OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 18 062 24 Properties LLC Area L4G_ 427121 Beachwood Airport OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 19 064 24 Properties LLC I Area L4A_ 44512 1 Airport Co Irvine PC COG No 0 0.91 0.91 Yes 0 50 45 45 27% 0.15 2 4 20 012 17 Area L4D_ 445 161 Todd Todd Airport PC MU -H2 No 0 0.69 0.69 Yes 0 50 34 34 27% 0.15 1 3 21 038 03 Schiffman I Area L4D_ 445 161 Todd Todd Airport PC MU -H2 No 0 1.04 1.04 Yes 0 50 51 51 27% 0.15 2 5 22 040 03 Schiffman Area J5A_ 119 300 Newport Golf Airport 008 17 Club LLC SP -7 PR No 0 1.38 1.38 Yes 0 50 69 41 27% 0.15 2 4 Area Y 23 J5A_ 119 310 Newport Golf Airport SP -7 PR No 0 3.70 3.70 Yes 0 50 184 111 ° 27/0 0.15 4 11 Y 24 012 04 Club LLC Area J5A_ 119 300 Newport Golf Airport SP -7 PR No 0 1.52 1.52 Yes 0 50 76 45 ° 27/° 0.15 2 4 Y 25 004 15 Club LLC Area J5A_ 119 300 Newport Golf Airport SP -7 PR No 0 7.30 7.30 Yes 0 50 364 219 27% 0.15 9 23 Y 26 006 16 Club LLC Area Birch L4K_ 427131 Airport Development OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 27 006 16 Area Co L4G_ 427121 Dekk Airport OA AO No 0 0.73 0.73 Yes 0 50 36 36 27% 0.15 1 3 28 068 01 Associates LP Area L4K_ 427131 Airport Chiappero OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 29 010 14 Area L4G_ 427121 Airport Birch OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 30 066 02 Area L4K_ 427131 Airport Chiappero OA AO No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 31 008 15 Area L4D_ 445 131 City National Airport PC MU H2 No 0 1.10 1.10 Yes 0 50 55 55 27/° 0.15 2 5 32 046 26 Bank Area 4400 L4E_ 445122 Airport Macarthur PC MU -H2 No 0 0.71 0.71 Yes 0 50 35 35 27% 0.15 1 3 33 010 13 Area Property Mandarin L4D_ 445133 Airport Investment PC MLI -1-120.15 No 0 0.75 0.75 Yes 0 50 37 37 27% 1 3 Y 34 018 06 Area Group Appendix B: Sites Analysis (DRAFT APRIL 2021) B-41 SS3-254 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod L4D_ 445 131 Von Karman Airport PC MU H2 No 0 1.19 1.19 Yes 0 50 59 59 27% 0.15 2 6 35 002 21 Ventures LLC Area Carl's Jr L4A_ 445121 Airport Restaurants PC CG No 0 1.38 1.38 Yes 0 50 68 68 27% 0.15 3 7 36 014 11 Area LLC L4E_ 44512 2 Airport Mizan LLC PC MU H2 No 0 0.79 0.79 Yes 0 50 39 39 27% 0.15 2 4 37 012 06 Area L4D_ 445 131 Big Man On Airport PC MU H2 No 0 0.53 0.53 Yes 0 50 26 26 27% 0.15 1 2 38 020 23 Campus LLC Area L4D_ 445 131 Hg Newport PC MU -H2 No 0 2.01 2.01 Yes 0 50 100 100 27 /° 0.15 4 10 Airport 39 028 15 Owner LLC Area L4E_ 445 122 Craig Realty PC MU -H2 No 0 0.80 0.80 Yes 0 50 39 39 27% 0.15 2 4 Airport 40 016 05 Area L4D_ 445 131 John Hancock Airport 010 18 Life PC MU H2 No 0 1.61 1.61 Yes 0 50 80 80 27% 0.15 3 8 Area 41 L4D_ 445 131 John Hancock Airport PC MU H2 No 0 2.30 2.30 Yes 0 50 115 115 27% 0.15 5 12 42 008 19 Life Area Olen L4D_ 445131 Airport Properties PC MU -H2 No 0 0.64 0.64 Yes 0 50 32 32 27% 0.15 1 3 43 006 08 Corp Area 4400 L4E- 445122 Macarthur PC MU -H2 No 0 1.17 1.17 Yes 0 50 58 58 27% 0.15 2 6 Airport 44 008 12 Area Property Hoag Mem L4C_ 445151 Airport Hosp PC MU -H2 No 0 1.35 1.35 Yes 0 50 67 67 27% 0.15 3 7 45 016 09 Area Presbyterian L4E_ 445122 Ferrado Airport PC MU -H2 No 0 1.03 1.03 Yes 0 50 51 51 27% 0.15 2 5 46 002 09 Newport LLC Area Kcn L4D_ 445131 Airport Management PC MU -H2 No 0 2.58 2.58 Yes 0 50 128 128 27% 0.15 5 13 47 030 31 Area LLC L4D_ 445131 Airport #N/A PC MU H2 No 0 0.74 0.74 Yes 0 50 36 36 27% 0.15 1 3 48 014 34 Area L4A_ 445 121 Mac Arthur Airport PC CO -G No 0 0.74 0.74 Yes 0 50 37 37 27% 0.15 1 3 49 010 05 Court LLC Area L4D_ 445 131 4440 Vka Tic 3 Airport PC MU -H2 Yes 0 0.66 0.66 Yes 0 50 32 32 27% 0.15 1 3 Y 50 004 09 LLC Area L4D_ 445131 Comac Airport America PC MU -H2 No 0 0.74 0.74 Yes 0 50 36 36 27% 0.15 1 3 51 012 10 Area Corporation L4C_ 445151 County Of Airport PC PF No 0 7.78 7.78 Yes 0 50 388 388 27% 0.15 16 41 52 002 01 Orange Area L4A_ 445 121 Mac Arthur Airport PC COG No 0 7.81 7.81 Yes 0 50 390 390 27% 0.15 16 42 53 002 14 Court LLC Area L4A_ 445 121 Bre & Esa Airport PC CG No 0 2.65 2.65 Yes 0 50 132 132 27% 0.15 5 14 54 018 18 Properties LLC Area L4 D_ 445 161 4425 Jamboree Airport PC MU H2 No 0 1.69 1.69 Yes 0 50 84 84 27% 0.15 3 9 55 036 04 LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-42 SS3-255 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria ° % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod L4B_ 445 141 Coastal Azul Airport PC MU -1-12 No 0 0.26 0.26 No 0 50 13 13 27% 0.15 1 1 Y 56 018 04 Management Area L4D_ 445 131 Tst Mac Arthur Airport PC MU -H2 No 0 0.59 0.59 Yes 0 50 29 29 27% 0.15 1 3 57 024 13 LLC Area L4E_ 445122 Pacific Club PC MU -1-12 No 0 1.95 1.95 Yes 0 50 97 97 27% 0.15 4 10 Airport 58 014 17 Area L4A_ 445 121 Nf Von Karman Airport PC CG No 0 1.00 1.00 Yes 0 50 49 49 27% 0.15 2 5 59 016 09 LLC Area L4E_ 445 122 M4 Macarthur Airport PC MU H2 No 0 0.51 0.51 Yes 0 50 25 25 27% 0.15 1 2 60 018 19 LLC Area L4G_ 427121 Airport Birch OA AO No 0 1.41 1.41 Yes 0 50 70 70 27% 0.15 3 7 61 002 27 Area L4J_0 427173 Bank First And Airport PC 2 MU -1-12 No 0 1.00 1.00 Yes 0 50 49 49 27% 0.15 2 5 62 24 01 Inc Area L4R_ 427 332 Airport Bsp Bristol LLC PC COG No 0 2.38 2.38 Yes 0 50 118 118 27% 0.15 5 12 63 002 02 Area L4R_ 427 332 Newport Place Airport PC CO -G No 0 1.70 1.70 Yes 0 50 85 85 ° 27/° 0.15 3 9 Y 64 004 04 Investment Area L4R_ 427332 Airport Crown Building PC CO -G No 0 1.41 1.41 Yes 0 50 70 70 27% 0.15 3 7 65 006 03 Area L4M 427 221 Ndh America Airport PC MU -H2 No 0 1.50 1.50 Yes 0 50 75 75 27% 0.15 3 g 66 _018 14 Inc Area L4J_0 427181 Macarthur Airport PC MU -H2 No 0 1.45 1.45 Yes 0 50 72 72 27% 0.15 3 7 67 16 01 Pacific Plaza Area L4Q_ 427 241 Newport Plaza Airport PC CG No 0 3.95 3.95 Yes 0 50 197 197 27% 0.15 8 21 Y 68 004 13 Office LLC Area L4M 427 221 1200 Quail St Airport PC MU -1-12 No 0 1.00 1.00 Yes 0 50 49 49 27% 0.15 2 5 69 016 13 LLC Area L4F_ 4271 74 Airport Elite West LLC PC MU -1-12 No 0 6.32 6.32 Yes 0 50 315 315 27% 0.15 13 34 70 002 04 Area L4M 427 221 Airport Nf Dove LLC PC MU -1-12 No 0 3.99 3.99 Yes 0 50 199 199 27% 0.15 8 21 71 _032 01 Area L4J_0 427181 Gurcharan Airport PC MU -H2 No 0 0.72 0.72 Yes 0 50 35 35 27% 0.15 1 3 Y 72 10 08 Singh Sandher I Area L4N_ 427 222 Airport Malaguena PC MU -H2 No 0 0.90 0.90 Yes 0 50 45 45 27% 0.15 2 4 Y 73 006 05 Area L4N_ 427 222 Pmc Macarthur Airport PC MU H2 No 0 1.56 1.56 Yes 0 50 77 77 27% 0.15 3 8 Y 74 002 06 LLC Area L4M 427 221 Sbs Dove Airport PC MU H2 No 0 1.71 1.71 Yes 0 50 85 85 27% 0.15 3 9 75 _002 10 Street Partners Area Hankey L4M 427 221 Airport Investment PC MU -1-120.15 No 0 1.52 1.52 Yes 0 50 76 76 27% 3 g 76 008 11 Area Company L4M 427 221 Dove Owner Airport PC MH2 U No 0 3.59 3.59 Yes 0 50 179 179 27% 0.15 7 19 77 _014 06 q Ag Area ay F_ 427174 Airport Macarthur PC 2 MU -1-12 No 0 0.94 0.94 Yes 0 50 47 47 27% 0.15 2 5 78 006 0 06 Area Sanderson Appendix B: Sites Analysis (DRAFT APRIL 2021) B-43 SS3-256 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod L4J_0 427 181 Ridgeway Real Airport PC MU H2 No 0 1.10 1.10 Yes 0 50 55 55 27% 0.15 2 5 79 08 07 Estate Area L4J_0 427 181 Gs 1600 Dove Airport PC MU -H2 No 0 2.49 2.49 Yes 0 50 124 124 27% 0.15 5 13 80 12 03 LLC Area L4M 427 221 Feb Dove Airport PC MU -H2 No 0 1.51 1.51 Yes 0 50 75 75 27% 0.15 3 8 81 _004 09 Street Partners Area L4M 427 221 Westerly Ow Airport 030 02 Aberdeen PC COG No 0 1.46 1.46 Yes 0 50 72 72 ° 27/° 0.15 3 7 Area 82 ay F_ 427174 Airport M car hur PC MU -H2 No 0 1.50 1.50 Yes 0 50 75 75 27% 0.15 3 g 83 004 0 05 Area Sanderson L4Q_ 427342 Jones Fletcher Airport PC MU H2 No 0 3.70 3.70 Yes 0 50 184 184 27% 0.15 7 19 84 012 02 Jr. Area L4Q_ 427342 Hilbert Airport PC MU H2 No 0 1.97 1.97 Yes 0 50 98 98 27% 0.15 4 10 85 014 01 Properties II Area L4M 427 221 1500 Quail Airport PC CO -G No 0 4.76 4.76 Yes 0 50 238 238 27% 0.15 10 25 86 _022 16 Property LLC Area Men's J5A_ 439401 Airport Christian PF PF No 0 4.03 4.03 Yes 0 50 201 201 27% 0.15 8 21 Y 87 136 01 Area Young Hankey L4M 427 221 Investment PC MU -H2 No 0 1.75 1.75 Yes 0 50 87 87 27% 0.15 4 9 Airport 88 012 07 Area Company L4M 427 221 Davenport Airport PC MU -H2 No 0 1.47 1.47 Yes 0 50 73 73 27% 0.15 3 7 Y 89 020 15 Quail Partners Area L4L_ 427 141 Sa Abanoub Airport PC CO -G No 0 0.64 0.64 Yes 0 50 31 31 27% 0.15 1 3 Y 90 020 14 LLC I Area L4L_ 936790 Jrj Investments Airport PC COG No 0 0.97 0.97 Yes 0 50 48 48 ° 27/° 0.15 2 5 91 014 44 LP Area L4L_ 936790 Sa Abanoub Airport PC CO -G No 0 0.86 0.86 Yes 0 50 42 42 27%0.15 2 4 Y 92 024 50 LLC Area L4L_ 427 141 Sa Abanoub Airport PC COG No 0 0.52 0.52 Yes 0 50 26 26 27% 0.15 1 2 Y 93 012 04 LLC Area L4L_ 427 141 Sa Abanoub Airport PC COG No 0 0.52 0.52 Yes 0 50 26 26 27% 0.15 1 2 Y 94 026 11 LLC Area L4L_ 936790 Sa Abanoub Airport PC CO -G No 0 0.72 0.72 Yes 0 50 36 36 27% 0.15 1 3 Y 95 010 48 LLC Area L4L_ 427 141 Sa Abanoub Airport PC CO -G No 0 0.58 0.58 Yes 0 50 29 29 27% 0.15 1 3 Y 96 006 07 LLC I Area L4L_ 427 141 Sa Abanoub Airport PC CO -G No 0 0.51 0.51 Yes 0 50 25 25 27% 0.15 1 2 Y 97 004 08 LLC Area L4L_ 427 141 Sa Abanoub Airport PC CO -G No 0 8.61 8.61 Yes 0 50 430 430 27%0.15 17 46 Y 98 002 16 LLC Area Uptown L4D_ 445134 Airport Newport PC MU -H2 No 0 0.67 0.67 Yes 0 50 33 33 27% 0.15 1 3 100 052 22 Area Jamboree LLC L4D_ 445134 Tpg&Tsg Airport PC MU -H2 No 0 0.53 I 0.53 Yes 0 50 26 26 ° 27/° 0.15 1 I 2 101 068 14 Venture I I I I I I I Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-44 SS3-257 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod L4B_ 445 141 Ncp GI Owner Airport PC MU H2 No 0 0.29 0.29 N/A 0 50 14 14 27% 0.15 1 1 103 008 11 LLC Area L4B_ 445141 Ncp GI Owner PC MU H2 No 0 0.29 0.29 N/A 0 50 14 14 27% 0.15 1 1 Airport 105 004 13 LLC Area L4H_ 427 171 Global Alliance Airport PC CG No 0 1.20 1.20 Yes 0 50 59 59 27% 0.15 2 6 106 002 02 Caesar Area L4M 427 221 Westerly Ow Airport 028 03 Aberdeen PC COG No 0 1.46 1.46 Yes 0 50 73 73 ° 27/° 0.15 3 7 Area 107 Beni L4H_ 427171 Airport Investments PC CG No 0 1.40 1.40 Yes 0 50 69 69 27% 0.15 3 7 108 004 03 Area LLC L4L_ 936790 Orange County Airport PC CO -G No 0 0.97 0.97 Yes 0 50 48 48 27%0.15 2 5 109 028 46 Bar Area 148 158.20 158.20 0 7,865 7,440 301 755 AIRPORT TOTAL: units acres acres - units units units units units A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 130.87 130.87 No 0 0 0 1375 ° 100% 0.15 54 232 110 014 72 Cherokee Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 74.64 74.64 No 0 0 0 0 100% 0.15 31 132 111 050 52 Cherokee Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 65.05 65.05 No 0 0 0 0 ° 100% 0.15 27 115 112 016 50 Cherokee Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 51.00 51.00 No 0 0 0 0 ° 100% 0.15 21 90 113 024 52 Cherokee Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 44.78 44.78 No 0 0 0 0 100%0.15 18 79 114 022 83 Cherokee Ranch A1A_ 114 170 United States Banning PC OS(RV) No 0 41.20 41.20 No 0 0 0 0 100% 0.15 17 73 115 058 71 Of America Ranch A1A_ 114 170 United States Banning OS OS(RV) No 0 19.35 19.35 No 0 0 0 0 100%0.15 8 34 116 034 76 Of America Ranch A1A-NO Banning AP # #N/A PC OS(RV) No 0 15.76 15.76 No 0 0 0 0 100% 0.15 6 28 117 056 1 Ranch A1A_ 114 170 United States PC OS(RV) No 0 14.32 14.32 No 0 0 0 0 100% 0.15 6 25 Banning 118 036 74 Of America Ranch A1A_ 114 170 United States OS OS(RV) No 0 11.48 11.48 No 0 0 0 0 100% 0.15 5 20 Banning 120 028 78 Of America Ranch A1A_ 424041 Banning #N/A PC OS(RV) No 0 10.81 10.81 No 0 0 0 0 100% 0.15 4 19 121 030 04 Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 6.52 6.52 Yes 0 0 0 0 ° 100% 0.15 3 12 122 066 43 Cherokee Ranch A16_ 114 170 United States Banning OS OS No 0 5.79 5.79 Yes 0 0 0 0 100% 0.15 2 10 123 002 65 Of America Ranch A1A_ 114170 City Of Banning OS OS(RV) No 0 3.86 3.86 Yes 0 0 0 0 ° 100% 0.15 2 7 124 032 80 Newport Beach Ranch A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 0.37 0.37 No 0 0 0 0 ° 100% 0.15 0 1 1 26 052 24 Cherokee Ranch A1A_ 114170 City Of Banning PC OS(RV) No 0 5.33 5.33 N/A 0 0 0 0 100% 0.15 2 9 127 060 81 Newport Beach Ranch Appendix B: Sites Analysis (DRAFT APRIL 2021) B-45 SS3-258 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod A1A_ 114 170 Newport Beach Banning PC OS(RV) No 0 0.21 0.21 N/A 0 0 0 0 100% 0.15 0 0 128 054 75 Cherokee Ranch A1A_ 114 170 Newport Beach PC OS(RV) No 0 1.10 1.10 N/A 0 0 0 0 100% 0.15 0 2 Banning 129 070 49 Cherokee Ranch A1B_ 114170 Orange County OS OS I No 0 1.49 1.49 N/A 0 0 0 0 100% 0.15 1 3 Banning 130 006 66 Flood Ranch 0 503.90 46.00 0 1,375 207 893 BANNING RANCH TOTAL: units acres acres 0 units units units units - Coyote R6A_ 120 571 County Of PR PR No 0 243.23 22.00 No 0 40 880 880 ° 100% 0 0 572 Canyon, 131 004 12 Orange etc. 0 243.23 22.00 880 880 0 572 COYOTE CANYON TOTAL: - - - 0 - - - - - Units acres acres units units units units H2C_ 049122 Donna Dover 592 03 Carpenter MU MM MU H1 No Yes 0 0.14 0.14 No 21 30 2 4 4 40% 0.05 0 1 Westcliff Y 132 MU BSC_ 047 041 Newport Beach Dover - CV/15TH MU -1-14 No Yes 0 0.11 0.11 18 30 1 3 3 40% 0.05 0 0 Y 133 314 05 Alano Club Westcliff ST B5C_ 047 041 Patrick MU Dover - CV/15TH MU -1-140.05 No Yes 0 0.06 0.06 No 15 30 0 1 1 40% 0 0 Y 134 292 25 Chamberlain Westcliff ST J2A_ 117 631 Corp Of The Dover - MU -DW MU -H1 No 0 2.15 2.15 Yes 2 30 56 64 64 ° 40% 0.05 1 16 135 330 12 Presiding Westcliff J2A_ 117 631 Westcliff Dover- MU -DW MU -H1 No 0 1.67 1.67 Yes 26 30 43 50 50 40% 0.05 1 13 136 322 22 Properties LLC Westcliff J2A_ 117 631 Dover- M HorningJr. MU -DW MU -H1 No 0 1.30 1.30 Yes 26 30 33 39 39 40% 0.05 1 10 Y 137 326 17 Westcliff J2A_ 117 631 901 Dover Ltd Dover 324 18 Partnership MU -DW MU -1-11 No 0 1.10 1.10 Yes 26 30 28 33 33 40% 0.05 1 8 Westcliff 138 J2A_ 117 631 Dover Lincoln Yee MU DW MU H1 No 0 0.87 0.87 Yes 26 30 22 25 25 40% 0.05 1 6 Y 139 328 11 Westcliff H3A_ 117 811 Nature Dover- OG CO -G No 0 1.25 1.25 Yes 0 30 37 37 40% 0.05 1 9 140 340 20 Environmental Westcliff M4A 458 361 Dover- #N/A PF PF No 0 1.29 1.29 Yes 0 30 38 38 40% 0.05 1 9 141 _050 10 Westcliff H3A_ 117 811 Donna Adele Dover- OG CO -G No 0 1.51 1.51 Yes 0 30 45 45 40% 0.05 1 11 142 004 18 Gallant Westcliff H3A_ 117 811 Russell E R Dover OG COG No 0 0.79 0.79 Yes 0 30 23 23 40% 0.05 0 5 Y 143 006 19 Fluter Westcliff H3A_ 049 271 Carol Rex Dover- OG COG No 0 1.64 1.64 Yes 0 30 49 49 40% 0.05 1 12 144 444 30 Reynolds Westcliff 0 13.88 13.88 185 411 411 8 100 DOVER WESTCLIFF TOTAL: - - - - - Units acres acres units units units units units Newport K2B_ 440 281 Ath LLC PC PR No 0 7.60 7.60 Yes 0 45 341 341 27% 0.1 9 55 Center 145 588 02 Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-46 SS3-259 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Church Newport M3C 458 341 Newport PI PI No 0 3.03 3.03 Yes 0 45 136 136 27% 0.1 4 22 Center 146 014 02 - Center Area Newport M3C 458 341 Wardens PI PI No 0 3.60 3.60 Yes 0 45 161 161 27% 0.1 4 26 Center 147 012 01 Rector Area Newport L1L_ 442 271 Irvine PC CO -R No 0 0.75 0.75 Yes 0 45 33 33 27% 0.1 1 5 Center 148 044 30 Company Area Newport L1L_ 442 271 Irvine P -R No 0 1.08 1.08 Yes 0 45 48 48 27% 0.1 1 7 Center 149 046 30 Company Area Newport L1K_ 442 091 Trail Properties OR CO -R No 0 0.79 0.79 Yes 0 45 35 35 o 27/0 0.1 1 5 Center 150 022 16 LLC Area L1K_ 442 091 Trail Properties Newport OR CO -R No 0 1.42 1.42 Yes 0 45 64 64 27% 0.1 2 10 Center 151 024 16 LLC Area Newport LIG_ 442 021 The Irvine PC CR No 0 0.54 0.54 Yes 0 45 24 24 27% 0.1 1 3 Center 152 016 47 Company LLC Area Newport LIG_ 442 021 The Irvine PC CR No 0 1.76 1.76 Yes 0 45 79 79 27% 0.1 2 12 Center 153 018 47 Company LLC Area Newport K1C_ 440132 Jgkallins PR PR No 0 1.79 1.79 Yes 0 45 80 80 o 27/0 0.1 2 12 Center 154 006 40 Investments Area Newport L1M 442 231 180 Investors OR CO -R No 0 1.17 1.17 Yes 0 45 52 52 27% 0.1 1 8 Center 155 022 08 LLC Area Newport L1K_ 442 091 Trail Properties 028 12 LLC OR CO -R No 0 1.75 1.75 Yes 0 45 78 78 o 27/0 0.1 2 12 Center 156 Area Newport L1F 442 082 Ncmb No LLC PC CO -M No 0 2.72 2.72 Yes 0 45 122 122 27% 0.1 3 19 Center 157 006 11 Area Newport L1F 442 082 Ncmb No LLC PC CO -M No 0 4.05 4.05 Yes 0 45 182 182 27% 0.1 5 29 Center 158 004 14 Area Newport L1F 442 082 Ncmb No LLC PC CO -M No 0 3.46 3.46 Yes 0 45 155 155 27% 0.1 4 25 Center 159 014 08 Area Newport L1F 442 082 Ncmb No LLC PC CO -M No 0 1.17 1.17 Yes 0 45 52 52 27% 0.1 1 8 Center 160 010 12 Area Amalfi Newport LIE_ 442 081 Investments PC MLI -1-13 No 0 0.75 0.75 Yes 0 45 33 33 27% 0.1 1 5 Center 161 004 05 Gp Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-47 SS3-260 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Newport L1L_ 442 271 17 Corporate PC CO -R No 0 1.04 1.04 Yes 0 45 46 46 o 27/0 0.1 1 7 Center 162 004 17 Plaza Assoc Area Newport L1L 442 271 Mark Robinson PC CO -R No 0 0.55 0.55 Yes 0 45 24 24 27% 0.1 1 3 Center 163 032 23 Jr LLC Area Newport L1L_ 442 271 Mitchell PC CO -R No 0 0.76 0.76 Yes 0 45 34 34 27% 0.1 1 5 Center 164 042 12 Junkins Area Newport L1L_ 442 271 Property PC CO -R No 0 0.89 0.89 Yes 0 45 39 39 o 27/0 0.1 1 6 Center Y 165 016 05 Reserve Inc Area Newport L1L_ 442 271 Property 012 03 Reserve Inc PC CO -R No 0 0.89 0.89 Yes 0 45 40 40 o 27/0 0.1 1 6 Center Y 166 Area L1L_ 442 271 Burnham- Newport PC CO -R No 0 0.98 0.98 Yes 0 45 44 44 27% 0.1 1 7 Center 167 026 32 Newport LLC Area Newport Newport L1L_ 442 271 Corporate PC CO -R No 0 1.02 1.02 Yes 0 45 45 45 27% 0.1 1 7 Center 168 002 16 Plaza Area Newport L1L_ 442 271 Heritage One PC CO -R No 0 0.68 0.68 Yes 0 45 30 30 27% 0.1 1 4 Center 169 036 15 LLC Area Pacific Newport L1L_ 442 271 Development PC CO -R No 0 0.84 0.84 Yes 0 45 37 37 27% 0.1 1 5 Center 170 006 01 Group Area Olen Newport L1L_ 442 271 Properties PC CO -R No 0 0.75 0.75 Yes 0 45 33 33 27% 0.1 1 5 Center 171 008 02 Corp Area Newport L1L442 271 - Scott Boras PC CO -R No 0 0.51 0.51 Yes 0 45 22 22 27% 0.1 1 3 Center 172 034 34 Area Newport L1L_ 442 271 George Randy PC CO -R No 0 0.88 0.88 Yes 0 45 39 39 27% 0.1 1 6 Center 173 038 14 Kinkle Area Newport L1L 442 271 Division Tax PC CO -R No 0 0.97 0.97 Yes 0 45 43 43 27% 0.1 1 6 Center Y 174 014 04 Area Newport L1L_ 442 271 Chico PC CO -R No 0 0.76 0.76 Yes 0 45 34 34 27% 0.1 1 5 Center 175 040 13 Associates Inc Area Newport L1L 442 271 Co Irvine PC CO -R No 0 1.13 1.13 Yes 0 45 50 50 27% 0.1 1 8 Center 176 022 19 Area Olen Newport L1L_ 442 271 Properties PC CO -R No 0 1.17 1.17 Yes 0 45 52 52 27% 0.1 1 8 Center 177 020 29 Corp Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-48 SS3-261 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Newport L1L_ 442 271 Irvine PC CO -R No 0 3.00 3.00 Yes 0 45 134 134 27% 0.1 4 21 Center 178 028 31 Company Area Newport L1L_ 442 271 24 Corporate PC CO -R No 0 0.98 0.98 Yes 0 45 44 44 o 27/0 0.1 1 7 Center 179 024 33 Plaza II LLC Area Newport L1L_ 442 271 Baldwin Bone PC CO -R No 0 0.70 0.70 Yes 0 45 31 31 27% 0.1 1 5 Center 180 030 24 Properties Area Newport LIN_ 442 011 Fainbarg PC PR No 0 2.98 2.98 Yes 0 45 134 134 27% 0.1 4 21 Center 181 022 53 Area Newport LIN_ 442 011 Golf Realty MU- PC No 0 2.96 2.96 Yes 0 45 133 87 o 27/0 0.1 2 14 Center Y 182 016 64 Fund LP H3/PR Area LIC_ 442 262 Pacific Mutual Newport OR CO -R No 0 9.99 9.99 Yes 0 45 449 449 27% 0.1 12 72 Center 183 002 01 Life Area Newport K1C_ 440132 Russell Fluter PR PR No 0 2.80 2.80 Yes 0 45 126 126 27% 0.1 3 20 Center 184 004 48 Area Newport L1M 442 231 Southwest OR CO -R No 0 0.51 0.51 Yes 0 45 23 23 27% 0.1 1 3 Center 185 024 09 Investors Area Newport L1K_ 442 161 Design Plaza OR CO -R No 0 7.17 7.17 Yes 0 45 322 322 o 27/0 0.1 9 52 Center 186 006 17 Owners Assn Area 100 Newport Newport L1M 442 231 Center Drive OR CO -R No 0 0.61 0.61 Yes 0 45 27 27 27% 0.1 1 4 Center 187 002 13 - LLC Area Newport LIN_ 442 491 Hhr Newport 006 02 Beach LLC Cv CV No 0 9.54 9.54 Yes 0 45 429 429 o 27/0 0.1 12 69 Center 188 Area Newport L1F 442 082 Co Irvine PC CO -M No 0 4.10 4.10 Yes 0 45 184 184 27% 0.1 5 29 Center 189 012 05 Area Newport L1G 442 021 Co Irvine PC CR No 0 1.74 1.74 Yes 0 45 78 78 27% 0.1 2 12 Center 190 044 28 Area Newport L1G 442 021 Irvine PC CR No 0 2.50 2.50 Yes 0 45 112 112 27% 0.1 3 18 Center 191 046 26 Company LLC Area Newport L1M 442 231 Co Irvine PC CO -R No 0 2.83 2.83 Yes 0 45 127 127 27% 0.1 3 20 Center 192 008 11 Area Newport L1G_ 442 021 Irvine PC CR No 0 1.73 1.73 Yes 0 45 77 77 27% 0.1 2 12 Center 193 048 13 Company LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-49 SS3-262 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Newport L1G_ 442 021 Co Irvine PC CR No 0 0.80 0.80 Yes 0 45 36 36 27% 0.1 1 5 Center 194 036 08 Area Newport L1G_ 442 021 Co Irvine PC CR No 0 0.63 0.63 Yes 0 45 28 28 27% 0.1 1 4 Center 195 022 32 Area Newport L1G_ 442 021 Irvine PC CR No 0 4.09 4.09 Yes 0 45 184 184 27% 0.1 5 29 Center 196 040 29 Company LLC Area Newport L1G_ 442 021 Co Irvine PC CR No 0 1.24 1.24 Yes 0 45 55 55 27% 0.1 1 8 Center 197 032 30 Area Newport L1G_ 442 021 Co Irvine PC CR No 0 1.17 1.17 Yes 0 45 52 52 27% Center 198 042 27 Area LIG_ 442 021 The Irvine Newport PC CR No 0 0.87 0.87 Yes 0 45 38 38 27% 0.1 1 6 Center 199 020 40 Company LLC Area Newport LIG_ 442 021 The Irvine PC CR No 0 4.11 4.11 Yes 0 45 185 185 27% 0.1 5 29 Center 200 010 46 Company LLC Area Newport LIG_ 442 021 Co Irvine PC CR No 0 0.56 0.56 Yes 0 45 25 25 27% 0.1 1 4 Center 201 012 35 Area Newport LIG_ 442 021 Co Irvine PC CR No 0 4.03 4.03 Yes 0 45 181 181 27% 0.1 5 29 Center 202 024 33 Area Newport L1M 442 231 Co Irvine PC CO -R Yes 0 4.10 4.10 Yes 0 45 184 184 27% 0.1 5 29 Center 203 004 14 - Area Newport LID442 101 Island Hotel - PC MU -H3 No 0 5.37 5.37 Yes 0 45 241 241 27% 0.1 7 39 Center 204 010 27 Finance LLC Area Newport L1G 442 021 - Co Irvine PC CR No 0 8.25 8.25 Yes 0 45 371 371 27% 0.1 10 60 Center 205 030 31 Area Newport L1G 442 021 - Co Irvine PC CR No 0 0.56 0.56 Yes 0 45 24 24 27% 0.1 1 3 Center 206 026 11 Area Newport L1G 442 021 Irvine - PC CR No 0 1.74 1.74 Yes 0 45 78 78 27% 0.1 2 12 Center 207 028 17 Company Area Newport L1G 442021 The Irvine - PC CR No 0 5.43 5.43 Yes 0 45 244 244 27% 0.1 7 39 Center 208 002 43 Company LLC Area Newport L1G_ 442 021 The Irvine PC CR No 0 0.99 0.99 Yes 0 45 44 44 27% 0.1 1 7 Center 209 008 45 Company LLC Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-50 SS3-263 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Newport L1G_ 442 021 Irvine Co LLC PC CR No 0 1.25 1.25 Yes 0 45 56 56 27% 0.1 2 9 Center 210 006 44 The Area Newport L1G_ 442 021 The Irvine PC CR No 0 4.16 4.16 Yes 0 45 187 187 27% 0.1 5 30 Center 211 004 42 Company LLC Area Newport LIN_ 442 411 Brett PC CG No 0 1.12 1.12 Yes 0 45 50 50 27% 0.1 1 8 Center 212 024 01 Feuerstein Area Newport L1A_ 442 261 Co Irvine MU -1-13 No 0 2.23 2.23 Yes 0 45 100 100 27% 0.1 3 16 Center 213 024 21 Area Newport LIN_ 442 011 Golf Realty MU- No 0 1.11 1.11 Yes 0 45 50 87 o 27/0 0.1 2 14 Center Y 214 058 65 Fund LP H3/PR Area Newport LIN_ MU- PC No 5 1.72 1.72 Yes 0 45 77 72 27% 0.1 2 11 Center 240 010 H3/PR Area Newport LIN_ MU- No 0 1.18 1.18 Yes 0 45 53 53 27% 0.1 1 8 Center 257 056 H3/PR Area 5 162.13 162.13 7,260 7,246 196 1,140 NEWPORT CENTER AREA TOTAL: - - - 0 units - - - - - Units acres acres units units units units L4D_ 445134 Pipeline Tsg-Parcel LLC PC MU -H2 No 0 2.58 2.58 Yes 0 30 N/A N/A 30 99 032 17 Project H4C_ 425471 Pipeline Jeffrey Shafer MU -MM MU -H1 No 0 0.20 0.20 N/A 24 3 35 N/A N/A 32 242 060 55 Project J2A_ 425 061 Pipeline Ms 36 Dev LLC RM -6000 RM No 114 5.76 5.76 Yes 92 416 -22 N/A N/A -22 243 006 09 Project P3A_ 439 241 Ginnie & Pipeline Anastasios RMD RM No 5 0.16 0.16 No 37 5 6 N/A N/A 6 244 052 01 Project Nikolaou F9C_ 459 123 Auto Spa Of Pipeline RM RM No 0 0.27 0.27 No 8 2 6 N/A N/A 6 245 046 41 Corona Del Project H4C_ 425 471 Nb Mariner's Pipeline M MU -MM MU -H1 No 0 4.37 4.37 N/A 26 116 198 N/A N/A 189 246 078 27 Mile LLC Project B5C_ 047042 C N Properties Pipeline CV/ 5TH MU -H4 No 0 0.06 0.06 N/A 15 1 3 N/A N/A 3 247 238 32 LP Project ST L4D_ 445 131 Slf-Kc Towers Pipeline PC MU -1-12 No 0 6.22 6.22 N/A 0 325 N/A N/A 312 249 050 29 LLC I I Project L4G_ 427111 Pipeline CorpJrsm OA MU -H2 No 0 3.19 3.19 Yes 0 28 N/A N/A 28 250 028 09 Project L2B_ 442 221 Big Canyon PC RS -D No 0 1.83 1.83 N/A 0 1 N/A N/A 1 Pipeline 251 008 52 Country Club Project L4J_0 427172 Macarthur Pipeline 1 PC MU H2 No 0 1.71 1.71 N/A 0 117 N/A N/A 91 252 20 06 Starboard Project Appendix B: Sites Analysis (DRAFT APRIL 2021) B-51 SS3-264 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod Newport 445133 Pipeline Jamboree PC 2 MU -1-12 No 0 12.57 12.57 N/A 0 66 N/A N/A 66 253 034 034 07 Project Uptown Newport 445134 Pipeline Jamboree PC 2 MU -1-12 No 0 1.86 1.86 N/A 0 703 N/A N/A 693 255 062 062 04 Project Uptown K1E_ 440132 Bayside Village Pipeline PC MU -W2 No 0 4.74 4.74 N/A 0 49 N/A N/A 49 256 036 60 Marina Project Vivante 442 261 Pipeline Newport PC MU -H3 No 0 2.91 2.91 N/A 0 90 N/A N/A 90 258 004 004 17 Project Center 410 Twenty BSC_ 04 Pipeline Ninth Street MU -H4 No 0 0.05 0.05 N/A 0 4 N/A N/A 4 259 456 01 01 Project LLC L4G_ 427111 Pipeline Ap Center OA MU H2 No 0 0.73 0.73 Yes 0 70 N/A N/A 66 260 040 03 Project L4G_ 427111 Pipeline Apc LP OA MU H2 No 0 0.74 0.74 Yes 0 69 N/A N/A 66 261 036 05 Project L4G_ 427111 Pipeline Apc LP OA MU -1-12 No 0 0.71 0.71 Yes 0 69 N/A N/A 66 262 038 04 Project L4G_ 427111 Pipeline Js 4630 LLC OA MU H2 No 0 0.79 0.79 Yes 0 68 N/A N/A 65 263 034 06 Project L4G_ 427111 Pipeline Pacific Medical OA MU H2 No 0 1.00 1.00 Yes 0 69 N/A N/A 65 264 026 10 Project Cove T3K_ 477 261 Pipeline Community PC OS No 0 5.17 5.17 N/A 0 76 N/A N/A 76 265 106 54 Project Crystal L4J_0 427172 Macarthur Pipeline PC MU -H2 No 0 1.83 1.83 Yes 0 117 N/A N/A 91 266 22 02 Starboard I I Project L4J_0 427172 Macarthur Pipeline PC MU -H2 No 0 1.94 1.94 Yes 0 117 N/A N/A 91 267 18 03 Starboard Project 119 61.49 61.29 543 0 2,294 0 2,164 PIPELINE PROJECTS TOTAL: - - - - - Units acres acres units units units units units West A1A_ 114 170 School Costa PF PF No 0 11.56 11.56 No 0 45 520 520 30% 20% 31 23 Newport 215 042 51 Mesa Union Mesa Area West A2 D_ 424141 Taormina IG IG No 0 0.23 0.23 No 0 45 10 10 30% 20% 1 0 Newport Y 216 048 17 Property Mesa Area West A2D_ 424141 Taormina IG IG No 0 0.23 0.23 No 0 45 10 10 30% 20% 1 0 Newport Y 217 006 17 Property Mesa Area West A2 F_ 2F01 424151 Chi Limited RM RM No 56 4.77 4.77 Yes 14 45 0 158 158 30% 20% 9 7 Newport Y 219 Mesa Area West A2F_ 892 090 Brian Bellerose RM RM No 56 4.27 4.27 Yes 13 45 0 136 136 30% 20% 8 6 Newport 220 004 55 Mesa Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-52 SS3-265 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod West A2E_ 892109 Charlotte RM RM No 36 1.90 1.90 Yes 13 45 0 49 49 30% 20% 3 2 Newport 221 010 03 Patronite Mesa Area West A1A_ 114170 City Of PF PF No 0 3.05 0.92 Yes 0 45 41 41 Q 30% o 20% 2 1 Newport 222 038 82 Newport Beach Mesa Area West A2C_ 424 401 City Of PF PF No 0 2.00 0.60 Yes 0 45 26 26 o 30% o 20% 2 1 Newport 223 018 12 Newport Beach Mesa Area West A3A_ 425171 City Of 006 01 Newport Beach PF PF No 0 7.95 2.38 Yes 0 45 107 107 o 30% o 20% 6 4 Newport 224 Mesa Area West A2D 424111 Michael _ IG IG No 0 0.55 0.55 Yes 0 45 24 24 30% 20% 1 1 Newport 225 040 05 Voorhees Mesa Area A2D_ 424141 West Scab Wrks LLC IG IG No 0 0.52 0.52 Yes 0 45 23 23 30% 20% 1 1 Newport 226 028 06 Mesa Area West A2D_ 424 111 Trico Newport IG IG No 0 3.23 3.23 Yes 0 45 145 145 o 30% 0 20% 9 6 Newport Y 227 044 06 Properties Mesa Area West A2C_ 424401 Howland IG IG No 0 1.86 0.56 Yes 0 45 25 25 30% 20% 2 1 Newport 228 022 04 Associates LLC Mesa Area West A2D_ 424141 Richard IG IG No 0 2.73 2.73 Yes 0 45 122 122 30% 20% 7 5 Newport 229 038 01 Hunsaker Mesa Area West A2F_ 424142 Lois For IG IG No 0 0.74 0.74 Yes 0 45 33 33 30% 20% 2 1 Newport 230 014 14 Horness Mesa Area West A2D_ 424141 Orangethorpe IG IG No 0 0.69 0.69 Yes 0 45 30 30 o 30% o 20% 2 1 Newport 231 032 04 Properties Mesa Area West A2D_ 424 141 Brent & Ami IG IG No 0 0.53 0.53 Yes 0 45 23 23 30% 20% 1 1 Newport 232 030 05 Ducoing Mesa Area West A2E_ 424131 Riverport OM CO -M No 0 1.07 1.07 Yes 0 45 48 48 30% 20% 3 2 Newport 233 022 16 Properties LLC Mesa Area West A2D_ 424141 James DeGraw IG IG No 0 1.08 1.08 Yes 0 45 48 48 30% 20% 3 2 Newport 234 034 03 Mesa Area West A2F_ 424 142 Metal Finishing IG IG No 0 1.31 1.31 Yes 0 45 58 58 30% 20% 3 2 Newport 235 030 11 Hixson Mesa Area Newport West A2C_ 424401 Business IG IG No 0 1.14 1.14 Yes 0 45 51 51 30% 20% 3 2 Newport 236 012 06 Center I I I I I I I I I I I I I I I I I I Mesa Area Appendix B: Sites Analysis (DRAFT APRIL 2021) B-53 SS3-266 City of Newport Beach 2021-2029 HOUSING ELEMENT Table B-14: Sites Inventory to Accommodate Very Low- and Low -Income RHNA Allocation HCD Densit Du/Ac Y ( ) Potential Units Potential Net Units Letter Parcel 5th Existing Gross Buildable Sizing Redevelopment Affordability TAG Owner Zoning Land Use Vacancy Units Focus Area Interest ID Above Number Cycle Units Acreage Acreage Criteria o % (Mod) 7 Zoned Rezoned Zoned Rezoned Net Mod 7 Mod West A2 D_ 2D02 424141 Richard IG IG No 0 1.61 1.61 Yes 0 45 72 72 30% 20% 4 3 Newport 237 Hunsaker Mesa Area West A2C_ 424401 Allred Newport IG IG No 0 0.76 0.76 Yes 0 45 34 34 o 30% o 20% 2 1 Newport 238 008 08 LLC Mesa Area West A2D_ 424 141 Glynn Van De IG IG No 0 0.56 0.56 Yes 0 45 25 25 o 30% o 20% 2 1 Newport 239 022 09 Walker Mesa Area 209 58.70 48.30 0 1,952 1,952 117 80 WEST NEWPORT MESA TOTAL: units acres acres units units units units units Appendix B: Sites Analysis (DRAFT APRIL 2021) B-54 SS3-267 _ . �- -..t., `r? Y9. • it -y.. ,� - —t „e�,�. • - _ ti ���_ � ATT . -__ _ `'T _ : �'.. � � Ra[ .. �- � � .. ..'moi � ra•.. VL � •� ! � - �'..•�•�y�,� . .. it - iFy�re��h .F� �-tr'. -� aiar.eXF '� � ' - � �r k � �-T 1 ri City of Newport Beach 2021-2029 HOUSING ELEMENT Section 65583 of the Government Code sates that, "the local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." Meaningful community participation is also required in connection with the City's Assessment of Fair Housing (AFH). A summary of citizen participation is provided below. As part of the 6th Cycle Housing Element Update process, Newport Beach has conducted extensive public outreach activities beginning in 2019. In October 2019, the City launched Newport Together, a Listen & Learn process to guide and inform a future General Plan Update. The goal of the Listen & Learn was to hear from a broad spectrum of community members on community values, assess the current General Plan Vision, and provide recommendations for a future General Plan Update. Newport Togetherwas guided by the General Plan Update Steering Committee, a body appointed by City Council to oversee the Listen and Learn process. The following series of Community Workshops occurred in each of the Newport Beach Council Districts: • November 12, 2019 from 6-8 p.m. at 16t" Street Recreation Center— District2 • November 14, 2019 from 6-8 p.m. Back Bay Science Center— District 3 • November 20, 2019 from 6-8 p. m. Newport Coast Community Center— District 7 • November 21, 2019 from 6-8 p. m. OASIS Senior Center— District 6 • December3, 2019 from 6-8 p.m. Central Library's Friend Meeting Room—District5 • December 11, 2019 from 6-8 p. m. Bonita Creek Community Center- District4 • December 12, 2019 from 6-8 p. m. Marina Park Community Center— District 1 Beginning in 2020the Citybegan additional focused discussion for the 6th Cycle Housing Element Update. These recent outreach efforts included Community Workshops, Digital Engagement, Planning Commission Study Sessions, Housing Element Advisory Committee Meetings, digital media, and noticed Public Hearings. Project materials, including summaries from community workshops and public meetings, notices, and draft public review documents are available on the City's website: https://www.newporttogether.com/housing. Outreach for the 6th Cycle Housing Element to the Newport Beach community, includes the following actions: • Community Workshop #1—The City conducted a virtual community workshop on October 20, 2020. Advertising for the workshop included emailing the City's list serve, posting on social media, creating an item on the City's calendar, newspaper ads, water bill notices, and announcing the event on the project website. The recorded workshop is available for viewing on the workshop's webpageathttps://www.newporttogether.com/virtual_ workshop. The 82 workshop participants were provided with an overview of the Housing Element Update process, community and housing characteristics, and also participated in engagement activities. Takeaways from the workshop include the following: Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-1 SS3-269 City of Newport Beach 2021-2029 HOUSING ELEMENT o Many believe Newport Beach has opportunities to overcome housing challenges in communities where density may be increased and through a mixture of housing types that meets the needs of many different family types and income levels; o Traffic impacts and parking are important issues to be addressed along with housing; o Different densities are suitable indifferent areas ofthe City; o And, some people are opposed to the development of more housing. • Community Workshop #2 and #3—The City conducted a second and third community workshop on November 161h and 17th, 2020. Advertising for the workshop included emails out to the City's distribution list, social media posts, creating an item on the City's calendar, newspaper ads, water bill notices, and announcing the event on the project website. The recorded workshop is available for viewing on the workshop's webpage at https://www.newporttogether.com/housing- suitability. The workshop included an ice breaker that asked participants to guess the density of various housing types. The activity's goal was to have participants think about density and to associate density numbers with housing projects in Newport Beach. Participants could submit comments and questions via the Zoom chat box in the first half of the workshop. In the second half, during the public comment section, participants could use the "raise hand" function to indicate that they would like to speak verbally, and project staff would then unmute their microphone. Each participant was allotted three minutes to ask questions or provide comments. Participants were also able to submit comments via the chat box. A primary objective of the workshop was allowing participants opportunities to comment on the housing suitability analysis for focus areas in the City. Participants were asked to consider if focus areas were suitable for housing development and if there were challenges and opportunities associated with these specific areas. Attendance for the part 1 and part 2 of the workshop was as follows: o Part 1: 61 participants (4called in and 57 participated on the web) o Part 2: 55 participants (1called in and 54 participated on the web) • Community Workshop #4 — The City conducted a fourth community workshop on February 24tH 2021. Advertising for the workshop included emails out to the City's distribution list, social media posts, creating an item on the City's calendar, newspaper ads, water bill notices, and announcing the event on the project website. The recorded workshop is available for viewing on the workshop's webpage at https://www.newporttogether.com/circulation-element-themes2. The workshop discussed opportunity sites and policy strategies forthe Housing Element and provide opportunities for the public to discuss options and provided feedback. • Community Workshop #5—The Cityconducted a fifth community workshop on March 22nd, 2021. Advertising for the workshop included emails out tothe City's distribution list, social media posts, creating an item on the City's calendar, newspaper ads, water bill notices, and announcing the event on the project website. The recorded workshop is available for viewing on the workshop's webpage at https://www.newporttogether.com/housing-element-initial-draft. The workshop Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-2 SS3-270 City of Newport Beach provided an introduction to the initial draft and provided opportunities for the public to provide questions and comments. • Online Community Survey — [UPDATE AS WE PROCEED] Newport Beach launched an online community survey to gather additional feedback regarding the Housing Element Update. Participants were asked to consider potential policies and programs to include in the Housing Element, as well as potential housing types and opportunities for housing in the City. The survey also solicited feedback regarding potential barriers to housing access and constraints to the development of housing. • Planning Commission Study Session — [UPDATE AS WE PROCEED] The City held a Planning Commission Study Session on March 22nd, 2021. During the study session, the project team provided a presentation with an overview of the Public Review Draft Housing Element and Housing Element update process to date. Community members had the opportunity to give public comments. • Housing Element Update Advisory Committee (HEUAC) Meetings — The City established a Housing Element Update Advisory Committeeto: o Ensure there is sufficient public outreach and stakeholder input regarding the update to the Housing, Land Use, and Circulation Elements of the Newport Beach General Plan and any other Elements deemed necessary. o Review responses to the Request for Proposal for services to update the Housing, Land Use, Circulation, and other Elements deemed necessary. o Make recommendations to the City Council regarding the selection of consultants to assist in the update of the Housing, Land Use, Circulation, and other Elements deemed necessary. o Provide guidanceto City staff and the consultant through the outreach process. o Provide guidance to City staff, and the consultant, on goals and policies related to the update of the Housing, Land Use, Circulation Elements, and any other Elements deemed necessary by the Committee or City Council. o Make other recommendations to the City Council regarding the update of the General Plan, as necessary. The HEUAC meeting agendas, minutes, and videos are available on the City's webpage at: https:Hecros.newportbeachca.gov/Web/Browse.aspx?startid=2503780&cnb=BoardsCommissio ns. Nine Newport Beach residents were appointed by the Mayor and Confirmed by the City Council to be part of the committee. • Housing Element Update Website — A website was developed for public consumption, and can be accessed at https://www.newporttogether.com/housing. The website provided relevant information about the update process, keyfeatures of the housing element, project timeline and a calendar of events for outreach activities. The website also provided a link to the community Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-3 SS3-271 City of Newport Beach 2021-2029 HOUSING ELEMENT surveytool, past recorded meetings and summaries, as well as the contact information of the City for residents and community members to send additional comments or request additional information. As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element made by the public have previously been provided to each member of the City Council. This Appendix contains a summary of all public comments regarding the Housing Element received by the Cityat scheduled public meetings, and theAppendix has been provided to the City Council. Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-4 SS3-272 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains all the related materials from the virtual Community Workshop 1. This includes the outreach flyer, materials provided to participants, and the workshop summary. Comments were received in the chat box, polling questions, and open-ended questions with types responses. Video recording of the workshop and verbal comments are available at https://www.newporttogether.com/. Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-5 SS3-273 ANe port, iet her, Housing Element Focus Virtual Workshop 1 - Envisioning Housing Alternatives W You're invited to the first i eries of virtual works Help Shape the Future of Housing in Newport Beach! The City of Newport Beach has initiated a focused amendment of the Newport Beach General Plan, including updates to the Housing and Circulation Elements to comply with State laws. This workshop will introduce the Housing Element process and include opportunities for you to provide input future housing alternatives in Newport Beach. OCTOBE 0,2020 6: :30PM ZOOM REGISTRATION & MORE INFO AT WWW.NEWPORTTOGETHER.COM Scan Me EXISTING CONDITIONS, POLICY DRAFT PLAN FINAL PLAN EDUCATION AND DEVELOPMENT DEVELOPMENT ADOPTION/CEGA VISIONING Fall 2020 Winter 2021 Spring 2021 Summer/Fall 2021 f j 'To;rearn more about Housing and RHNA head to the website www. Newport Together. com SS3-274 U, er. ENVISIONING THE FUTURE OF HOUSING: Housing Element Virtual Workshop Summary be 2020 GL J Prepared by Kearns & West November 4, 2020 Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 1 SS3-275 Introduction 3 Takeways from the Workshop 3 Project Overview 3 Public Outreach Overview 4 Virtual Workshop 1: Envisioning the Future of Housing Activities 4 Activity 1: Ice Breaker 5 Activity 2: What is your connection to Newport Beach? 5 Activity 3: How familiar are you with the term "environmental justice"? 6 Activity 4: What surprised you about the community profile? 6 Activity 5: What are creative solutions to meet our housing needs? 6 Activity 6: Envisioning a Range of Housing Alternatives ►A Activity 7: What are the challenges to meeting our housing needs? g `-Newport, \\T�gether. Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 2 SS3-276 Introduction The City of Newport Beach (City) has initiated a focused update to the General Plan Housing Element. In October 2020, the project team hosted the first public workshop to review community input from previous Listen & Learn outreach, identify the process and framework for the Housing Element, explore housing challenges and solutions, and envision a range of housing alternatives. Takeaways from the Workshop The virtual workshop produced many different data points, which will be used to inform the Existing Conditions and Visioning part of the General Plan Update process. While this document summarizes the information collected, four key takeaways are important to note. • Many believe Newport Beach has opportunities to overcome housing challenges including: o Communities where density may be increased o A mixture of housing types that meets the needs of many different family types and income levels • Traffic impacts and parking are important issues to be addressed along with housing • Different densities are suitable in different areas of the City • Some people are opposed to the development of more housing Additional public engagement opportunities will help the City learn more, including from people who chose not to respond during this first workshop Project Overview The effort to update the City's General Plan Housing Element will enable the City to comply with State housing law. Compliance is mandatory, although details of how the City complies is left to the City, subject to approval by the State. This amendment will focus on housing mandates, but will also necessarily result in amendments to the Land Use and Circulation Elements, and the incorporation of environmental justice policies. The Housing Element will provide for policies, programs and actions addressing existing and projected future housing needs in the community for the 2021-2029 planning period. The Land Use Element will need to be updated for consistency with required changes to the Housing Element to accommodate future housing growth needs as determined by the State. The Circulation Element will describe policies, programs, and actions that consider the implications of future growth on the City's transportation and circulation system. The update will be evaluated and the impacts to Level of Service (LOS) and Vehicle Miles Travelled (VMT) will be examined within an Environmental Impact Report. This will include the incorporation of Complete Streets policies. The Environmental Justice Element, as required by SB 1000, describes related goals, policies, and objectives that identify "disadvantaged communities" within the area covered by the General Plan. The environmental justice goals, policies, and objectives will identify objectives and policies (1) to reduce the unique or compounded health risks in disadvantaged communities by means that include, but are not limited to, the reduction of pollution exposure, including the improvement of air quality, and the promotion of public facilities, food access, safe and sanitary homes, and physical activity, (2) to promote civil engagement in the public decision-making process, and (3) prioritize improvements and programs that address the needs of disadvantaged communities. Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 3 SS3-277 Public Outreach Overview Public outreach is integral to each step of the process. Phase 1 Existing Conditions, Education, and Visioning; Phase 2 Policy Development; and Phase 3 Draft Plan Development. Members of the public may participate in workshops, activities on the project website, and in Community Advisory Committee meetings. Phase 4 Draft & Final Plan Development/EIR/CEQA, the draft plan will be circulated for comments, which will also be received at Planning Commission and City Council meetings. Virtual Workshop 1: Envisioning the Future of Housing Activities Objectives During the first workshop, the goals were to review input from the Listen & Learn outreach that took place during Winter 2020, identify the process and framework for the Housing Element, and engage and educate participants in the discussion of housing alternatives compliant with state law and challenges presented by the State's requirements. Date, Time, Platform, and Attendance The meeting took place during the evening of October 20, 2020. The City chose the Zoom platform to involve 82 unique participants. On average, 65% percent of participants engaged in workshop activities. Those who responded provide a preliminary understanding of the range of opinions among community members. About 35% of participants did not engage in the activities. It is difficult to infer meaning from this data point. However, the comments typed during the workshop may explain some of the reasons for not responding. Through additional engagement the City will deepen its understanding of participant opinions. Getting the Word Out Information about the workshop was shared through the City's distribution email, on social media platforms, as an item on the City's calendar, announced on the project website (NewportTogether.com). Aw Outreach Event Activiti and Input The first workshop was sed of seven activities, which included entries into the chat box, polling questions, Ad open- ed questions with typed responses. Each activity is described below along with a summarNf results. Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 4 SS3-278 Activity 1: Ice Breaker Using the chat box, participants were invited to introduce themselves by sharing their neighborhood and the view from their windows. Out of 82 participants, 12 people responded. Participants.. Corona Del Mar Newport Back Bay Newport Crest Newport Crest Newport Crest The Bluffs Newport Back Bay West Newport Beach West Newport Beach Banning Ranch Newport Island Trovare Community of Newport Coast Newport Bay Two additional participants are connected to the Airport Area. One is a business owner and the other is a commercial property owner. Activity 2: What is your connection to Newport Beach? The second activity provided more information about participants. Chart 1 illustrates the breakdown with residents being the majority. Chart 1: Participant Connection to Newport Beach 1'd Bus Ow 20% Workers 2% Nearby 5% Residents 61% Residents Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 5 SS3-279 Activity 3: How familiar are you with the term "environmental justice"? The State requires that local jurisdictions incorporate environmental justice policies into their General Plans. According to the California Environmental Justice Agency',environmental justice policies "call for fairness, regardless of race, color, national origin or income, in the development of laws and regulations that affect every community's natural surroundings, and the places people live, work, play and learn." Out of 27 respondents, most (37%) are somewhat familiar and a large percentage (33%) are unfamiliar with the term. Chart 2 shows the distribution of responses. Chart 2: Familiarity With The Term "Environmental Justice" Somewhat Familiar What Does This Mean? Very Familiar Somewhat Unfamiliar Activity 4: What surprised you about the community profile? i7% The presentation included a community profile to provide participants with resident and housing characteristics. Participants were asked what surprised them about the community profile and they were able to type their responses. This question received 31 responses, which are included in Appendix A: Data Summary. The following topics received comments from multiple people. • Not a surprise: Of all participants 11 participants were not surprised by the data. • Age: A few participants commented on age demographics, noting that more than half of the population is 45 years or older. • Multi -family housing: Two participants noted the proportion of multi -family housing, which makes up more than 30% of the housing stock. 1 https://calepa.ca.gov/envjustice/ Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 6 SS3-280 Activity 5: What are creative solutions to meet our housing needs? Participants were asked about solutions to meet Newport Beach's housing needs. They were encouraged to make two to three comments in the chat. This question garnered a total of 47 responses. The full list of comments is available in Appendix A: Data Summary. The word cloud in Figure 1 illustrates the text responses. The size of the word represents the number of times it was typed by participants. Increasing density, development in the airport area, and the use of strip commercial/ excess retail for residential development were all noted in five comments. Three comments made note of transportation solutions, construction of accessory housing units, and additional multi -family units. The following solutions were noted in two comments each: parking lots, mixed uses, fewer industrial properties, Newport Center, and development in Banning Ranch. Figure 1: Participant Responses Word Cloud DuJAmwtO Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 7 SS3-281 Activity 6: Envisioning a Range of Housing Alternatives In addition to solutions, participants were asked about the appropriateness of six different housing types in five areas of the City. The map in Figure 2 shows the five areas and the questions referred to the housing types illustrated below. Figure 2: Housing Activity Responses Single Family Duplex Townhome a& Small Lots Mid -Rise Housing The responses presented below are a summary of responses in Chart 3. High -Rise Housing 1.3 Area 1: Duplexes are perceived as the most appropriate. Single family, small lots, townhomes, and mid -rise also received relatively high response rates. Area 2: Like Area 1, duplexes received a high number of responses and small lots, mid -rise, and single family received a high response rate. Area 3: Higher density was viewed as appropriate in Area 3, with mid -rise being the most popular closely followed by small lots. Town -homes received several responses followed by high-rise and duplexes. Area 4: Mid -rise, townhomes, and high-rise are viewed as most appropriate in Area 4. Area 5: Single family homes, with 14 responses, are seen as most appropriate in Area 5. Duplexes, townhomes, and mid -rise also received a notable number of responses. Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 8 SS3-282 Chart 3: Appropriateness of Housing Type by Area Area 1 Area 2 Area 3 Area 4 Area 5 lex 0 5 10 15 20 Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 9 SS3-283 Several comments were submitted in the chat during this activity. The complete chat record may be found in Appendix B. Multiple comments addressed the following: • Airport Area: The airport area generated three comments. One reinforced the responses to the polling question. The other two are paraphrased below: o Existing business invested in a business environment. There are not sufficient pedestrian and residential amenities. o The airport area should be thoughtfully planned with an integrated approach, weaving together a mixed-use landscape in a manner sensitive to existing issues. • Area 1: Three people said that Area 1 has been developed enough, and should be an open area, and needs remidiation. • Banning Ranch: Four people noted that do not want housing developed in Banning Ranch. • Do not want development: Several different comments indicate that people would have chosen "none" if it were an option. Activity 7: What are the challenges to meeting our housing needs? The ability to overcome challenges is important for the development of housing units. Participants were asked to identify one or more challenges from a list. Chart 4 illustrates responses. Of all the choices, available land, cost of housing, and traffic impacts received the most responses. Chart 4: Challanges to Meeting Housing Needs 9% Approval & 9°% Housing Choices 12% Parking Impacts 4% Local Control 17% Traffic Impacts 28% Available Land 21% ost of )using Envisioning the Future of Housing: Housing Element Virtual Workshop Summary 10 SS3-284 Newport, gether. Community Involvement Every Step of the Way The City has initiated a focused amendment of the Newport Beach General Plan in 2020. The purpose of this amendment is to enable the City to comply with State laws, including the State Housing Law and others relating to transportation and environmental justice. COMMUNITY ENGAGEMENT OPPORTUNITIES DIGITAL COMMITTEE VIDE ENGAGEMENT ADVISORY MEETING WORKSHOP PRESENTATION FII 2020 Existing Conditions, Education and Visioning Housing Element Combined Public Circulation Element LM a P o WEBINAR 4 Her do you get involved? The process chart below offers you a glimpse into the many engagement opportunities you will have t participate in the General Plan Update from Virtual Workshops to Planning Commission Meetings. Dates and times for iters below will be available through NewportTogether.com Spring 2021 DratiL vian uevel pmelnt Summer/ FII 2021 Draft & Final Plan D eve to prime ntE I F E CSA PLANNING PLANNING DRAFT PLAN DRAFT PLAN FINAL PLAN COMMISSION EIR SCOPING DEVELOPMENT ADOPTION/ STUDY COMMISSION MEETING DEVELOPMENT f EIR PUBLIC FINAL EIR SE$$10N 4 ; PRESENTATION fEIR REVIEW 4= SS3-285 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains the summary and chat responses from the virtual Community Workshop 2/3. Comments were received in the chat box and verbally during the meeting. Video recording of the workshop and verbal comments are available at https://www.newporttogether.com/. Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-6 SS3-286 Newport, Together. Housing Suitability - Virtual Workshop Held On: November 16 & 173 2020 Workshop Summary Prepared by Kearns & West December 29, 2020 Housing Suitability Virtual Workshop: Workshop Summary 1 SS3-287 Introduction On November 16 and 17, 2020, the City of Newport Beach (City) hosted a Housing Suitability Virtual Workshop to gather community input on potential housing sites and their suitability. The City chose to host the virtual workshop in two parts to provide enough time for public input and question and answer sessions for different areas in the City. Part 1 (November 16) focused on the Airport Area, West Newport, and Newport Mesa. Part 2 (November 17) focused on Newport Center and Coyote Canyon. The workshop built on the community input and exploration of housing alternatives from previous workshops. The workshop summarized in this report focused on presenting the site feasibility analysis and the process used by the Housing Element Update Advisory Committee to identify candidate sites for review. Workshop Objectives The workshop had two objectives. The first was to present the site feasibility analysis and potential areas for candidate sites. The second objective was to allow the public to comment on this analysis and the potential sites. A primary driver for this workshop was providing a workshop format to allow members of the public to provide input and engage with staff in a question and answer style meeting. Getting the Word Out Information about the workshop was shared through the City's email distribution list, on social media platforms, as an item on the City's calendar, and as an announcement on the project website (NewportTogether.com). Newport, Together (Online Input Opportunities) The workshop page on the Newport, Together project website includes recordings from both workshop dates and virtual tools to gather input. The platform allows the project team to expand input opportunities beyond the workshop dates and for participants to engage with the project on -demand. Participants are currently able to submit geo-located comments on identified housing sites. Workshop Format: Date, Time, Platform, and Attendance Summary The workshop took place during the evening of November 16 & 17, 2020. Both workshop parts were hosted using Zoom to continue to build participant familiarity with the virtual platform and its tools. Over the two nights, the workshop had a total of 133 registered participants and combined attendance of 116 participants. Attendance details are below. Part 1: Pa rt 2: • Total attendance of 61 participants. • Four participants called in • 57 web -based participants • Total attendance of 55 participants. • One participant called in • 54 web -based participants Housing Suitability Virtual Workshop: Workshop Summary 2 SS3-288 Activities The workshop included an ice breaker that asked participants to guess the density of various housing types. The activity's goal was to have participants think about density and to associate density numbers with housing projects in Newport Beach. Response rates for the ice breaker were: Part 1: 90 responses were submitted Part 2: 60 responses were submitted Input Opportunities Participants could submit comments and questions via the Zoom chat box in the first half of the workshop. In the second half, during the public comment section, participants could use the raise - hand function to indicate that they would like to speak verbally and project staff would then unmute their microphone. Each participant was allotted three minutes to ask questions or provide comments. Participants were also able to submit comments via the chat box. Major Themes from Public Questions and Comments A primary objective of the workshop was allowing participants opportunities to comment on the housing suitability analysis for focus areas in the City. Participants were asked to consider if focus areas were suitable for housing development and if there were challenges and opportunities associated with these specific areas. The following section outlines the key themes and comments highlighted by participants. Themes consider overall responses and ideas shared during the public input section for each area. Chat responses can be found in Appendix A. Airport Area: • Participants expressed concern over the impact of noise levels on new housing development. It was noted flight paths could impact development. • It was suggested that the area could become a higher density area, but the City should have an overall plan that incorporates services, recreation space, and other necessary amenities for a community. • Participants stated concerns with housing developments sitting close to or within industrial areas that have contamination issues. • The question was asked how the City makes sure that developments create affordability. West Newport: • Participants noted that housing development in the area is limited. • Concern was expressed over the displacement of mobile homeowners. • A potential partnership with Hoag Hospital for mixed-use development was mentioned. • A concern was raised over the number of available sites for development and if property owners would be open to development. • Concern over limited parking availability for new residents with new development was expressed. • It was suggested Newport -Mesa Unified School District could be a partner in workforce development. Housing Suitability Virtual Workshop: Workshop Summary 3 SS3-289 Newport Mesa: Dover/Westcliff/Mariners Mile • Some participants noted a preference for lower density housing typologies. • Comments included concern over developer affordability with development near the coast. • Another concern involved property ownership interest in the development of low- income units. • The question was asked if there is any surplus property to considered for development. Newport Center • Some participants identified the possibility of high-rise development as well as mixed-use development. • Concern was expressed over Irvine Company property ownership development restrictions. • Residents who live close to Newport Center noted a request to keep existing height restriction agreements in place at Newport Center. • Property owners expressed interest in market -rate development. • It was stated that amenities are essential for residents; the City needs to consider community benefits. • A commenter noted that placing affordable housing near Newport Center would be ideal because of the availability of jobs. • Questions were posed about the conversion of retail to housing with shifting trends. Coyote Canyon • Several participants noted there could be an opportunity for higher density units. • Participants commented that area development would require further incorporation of services to the area. • Concern was expressed over environmental impacts because of the potential location of affordable housing units near the landfill. • Participants noted that development of the non -landfill area on the north section could be most feasible. • Participants noted future development needs to consider the expansion of infrastructure. • A commenter noted that access to development might be a concern for development north of the landfill. Housing Suitability Virtual Workshop: Workshop Summary 4 SS3-290 Appendix A: Chat Responses Nov 16 Housing Suitability Virtual Workshop Chat From Susan Eaton : Park Newport From Susan De Santis : Susan De Santis, Trovare in Newport Coast From Bruce Bartram : Bruce Bartram Newport Crest From Sam Shams : East Bluff From Jenna Tourje, Facilitator : Thanks everyone for sharing! 14111 From P. Matheis : The Airport Area is, by my observations, a eclectic series of kveloped properties. Some of these properties are significant class A properties, while others are old and dilapidated. Given the figures of about 4,800 new dwelling units I read in the print news that NB planning officials suggest that this is not possible given self describe& restrictions. Because of my experience in Newport Beach and understanding of thesitua ' e the ground I dispute this view. If I were to suggest that this housing could be meet entirely Oithin the Airport Ar he community development people explain why this is not possible. IWM From Jenna Tourje, Facilitator: Thanks, P. We will incorporate your comments From David Tanner: Hi Seimone & Jim, Please provide an overview of the existing setting for the Housing Element Update project. Include the physical and regulatory setting and the impact housing regulations have had on the buildout of the existing General Plan. After you provide the existing setting upon buildout of the General Plan,oplease summarize how staff proposes to address General Plan buildout in the Housing Element Update Project. From P. Matheis : As I recall, on or about the 1980s/90s the permitted housing development in Area2 was downzoned in a way that impacted about 320 dwelling units. Is this something that is being reconsidered? From David Tanner: Please confirm (yes or no) if the existing General Plan is in compliance with state law. If no, what does Staff propose to remedy the deficiencies and will it be a part of the Housing Element Update Project? From David Tanner : Please provide the legislative steps the Ci has and is proposing to take relative to the Housing Element Update Project, and the location(s) where Housing Ele nt Update information can be found (GP diagnostic memo, communications between the City and HCD, Congresswoman Norris, SCAG, other cities and legislators, etc.). From David Tanner : The scope of the Housing Element Project (the other Elements to be amended as part of the Project and how staff hopes to achieve internal consistency among the Elements (example: General Plan Vision Statement)). From David : What is Staff's strategy for meeting the HCD deadline for submittal of an adopted Housing Element (if you feel a vote of the public to make the Housing Element Update effective is not required, please provide a detailed explanation. If staff believes other governmental approvals are not required, (example: Coastal Commission review/ approval) please explain why. From Nancy Scarbrough : This area seems like an area that could become a higher density, but I believe the City should have an overall plan for the area that incorporates services, recreation space and other uses that are necessary to a community. We don't want to create an environmentally disabled area. From David Tanner : TRis information will provide the public with a clear picture of the situation facing the City, the challenges that lay ahead and the City's plan to address these challenges. this information should be provided to the public prior to asking the public for recommendations. From Susan De Santis : What is the capacity in the Airport Area for housing if developed on the available sites at 60 units per acre? Housing Suitability Virtual Workshop: Workshop Summary 5 SS3-291 From P. Matheis : In the 1990s the entitlements in Newport Center (Area 3) were reduced following a vote of the people. Is this area being considered for future additional development? From Allyson Presta : what is the response from property owners in the area? From Adriana Fourcher : I am a property owner and not in favor of this. From David Tanner: Will existing housing laws allowing ADUs impact the City Jobs Housing Balance? From David Tanner: Will existing housing laws allowing ADUs impact the city circulation system? From David Tanner: Will existing housing laws allowing ADUs impact emergency services and public safety? From Susan De Santis: What is the potential for finding 100 percent affordable housing locations for a workforce housing? From Nancy Scarbrough : Can we focus on projects that are 100% low income or very low income with a subsidy whether in this area or another area of the city? We can't possible comply wit he state mandates if only 5% of a project is low or very low income housing. If we allow projects with only 5% low ry low income ill have to approve 40,000 (plus or minus) residential units in our city of approximately 45,0 in residential From David Tanner: How many ADUs can be constructed within the City? From Susan De Santis : How many stories is the Uptown Newport project? How is the noise added? From Susan De Santis : How is the noise issues addressed in Uptown Newport? I&L From P. Matheis : I suspect that there a number of properties in the City that could h eet this State mandate. By focusing on the Airport Area an opportunity seems to exist to answer a good deal of this allenge. hhh- From Adriana Fourcher : Susan - noise was not addressed. Uptown is 5 stories. It is of fully occupied so there is not a lot of information on noise compl lus with Covid all air traffic is unusually low. This will change when things return to "normal". From David Tanner : Is there a penalty if the RHNA allocation 'of met within the timeframe? From Jonathan Langford : Do we anticipate�he 65 dB CNEL line anging? From Alexis Mondares : If there is a focus of affordable density housing within the airport area, is there a concern that clustering affordable housing within such a noisy area that others find unsuitable would be discriminatory? From Adriana Fourcher: Jonathan - we have monitored noise levels at 4340 and the decibels range from 65 to 70. From Adriana Fourcher : Alexis - Environmental Justice is not a term that fits in this discussion. From P. Matheis : Should legal questions be answered by the people best suited to answer those questions? IV From Susan De Santis : Can you discuss how the affordable units in the new Picerne project were created? From Cesar Covarrubias : How will affordable housing will be incorporated into these focus areas. Density alone will not be create affordable housing in the focus areas. What policies are we putting in place to address AH in the focus areas? I From Nancy Scarbrough : The City just approved a project in the 65 CNEL without regard for noise. They ignored the Airport Commision recommendation. From Adriana Fourcher : Susan - Only small # of affordable units in Picerne project. Doesn't make a dent. From David Tanner : Housing in West Newport - What impact will the conversion of housing in west Newport and the Airport area have on Jobs? Housing Suitability Virtual Workshop: Workshop Summary 6 SS3-292 From Nancy Scarbrough : If you displace the mobile homes, which are already low income housing, will those individuals who lose their mobile homes new housing that they can afford? From Adriana Fourcher : Nancy - Thank you. Taxpayers don't want to bear the financial consequences if the City gets sued. The developer fees are driving this. From David Tanner : If we convert employment areas to housing create new jobs for the increase in population? From Adriana Fourcher : David - Great question! What steps will the City take to replace lost jobs and From P. Matheis : This area seems to have a limited payoff versus the Airport Area. From Adriana Fourcher : Business owners don't want to be disregarded in the conversation. From Adriana Fourcher : P. Matheis - there is no payoff, hopefully. From David Tanner: What will the cumulative impact from RHNA (1.3 million units) have on jobs within Newport Beach? From Charles Klobe : The pie charts shown in each slide do not reflect a no build answer, Participants were not offered the choice of no units. That translates to the false belief that residents agreed to some additional residential units in each area. This does not reflect actual responses. Why is the total focus of this meeting on affordable housing to our housing element? From P. Matheis : This area is a significant industrial area, and I wonder if this is somethi g that needs to be maintained for business needs in the City. From Adriana Fourcher: Charles - Very good point. From Charles Klobe : We have to TRY to plan. We do not have to succeed. From David Tanner: Whaeities ative impact from ADUs in Southern California have on jobs within the City? From Adriana Fourcher :s now but what is going to be later and after that. The City of Newport Beach should combine efforts with othed fight backon RHNA allocations. From Susan De S4ntis : How many units have already been approved that will be counted towards the RHNA allocation? From Sam Shams : Is the plan able to assume the conversions •existing properties, or does it require open space? So can the plan basically be that one large development becomes even bigger? A ^is believe it is important that the City plan for this mandate. I suspect that the idea that the City simply thing that will not suc eed in 2020 and beyond. From Alexis Mondares : Adriana -the City h s already appealed its RHNA allocation. However, it is unlikely that the City's share will be reduced in a meaningful way. From Debbie Stevens: I have concerns with siting housing closer or within industrial areas that have contamination issues, as there are such properties in this area. From David Tanner : Staff's statement - The City has no choice but to increase density. This is not a foregone conclusion. This is Staff's conclusion. Fact - The City Council is proceeding on a 3 pronged approach. Compliance is one. There is no evidence to date that Compliance is feasible. From Adriana Fourcher : Alexis - An appeal is the first step. The City has too much to loose to simply accept central planning from Sacramento. From Sam Shams : Thank you for the response! Housing Suitability Virtual Workshop: Workshop Summary 7 SS3-293 From Adriana Fourcher : It seems like we are going thru an exercise but there will not be any meaningful consensus from both residents and businesses. From Charles Klobe : There is no stated penalty for not finding willing property owners. From Alexis Mondares : If density housing is created in this area, I would think parking would be ane issue for new residents. From Allyson Presta : in this area isn't the road & track site zoned for residential? From Sylvia Walker :Doing away with the mobile homes, which are likely affordablQ housing, to put in other housing seems like a less than opportune way to meet RNHA goals, if that is what was sugges From Sam Shams: I am curious if dorm rooms for coastline college would be wort1inking of, I am not familiar with that college though. From Angelica Astorga : If density housing is built they should provide a parking structure nd not street parking so that residents can park. From P. Matheis : Is senior housing something that is considered "affordable" housi Iq From P. Matheis : Due to the proximity to Hoag Hospital is seems like senior housing might be something to consider if it meets the definition of affordable. From Susan De Santis : Senior and workforce housing are both considered affordable ho sing. From Adriana Fourcher: I understand the committee's role in identifying opportunity zon hat same process was used a few years ago which resulted in the business park that our business is located as being marked as an "opportunity zone for residential". Most of the building owners were not part of that discussion. We invested in a business park. We do not believe that residential should be approved in a commercial zone, simply because it gets colored "pink" on a City map. From David Tanner : Everyone review the State Housing and Community Development ADU handbook published in September 2020 to learn the facts on the potential for ADUs: https://www.hcd.ca.gov/policy-research/docs/adu-ta- handbook-final.pdf I From Adriana Fourcher : Senior housing is important. From Charles Klobe : Anyone notice that they have not answed one of Dave Tanner's questions? Why the total focus on finding sites for affordable housing only? Our housing element includes housing needs for the entire city. From Adri— ana Fourcher : Housing needs for young professionals. From P. Matheis : Staff is doing a great job here. Angelica Astorga : Many people are commenting on affordable housing, then that is obviously an issue especially -ornia. �A Cesar Covarrubias : The Hoag area creates a lot of service sector jobs. It will be appropriate to prioritize affordable Lfor the workforce and families. From Angelica Astorga : I am a college student and we need more affordable housing, discussions around that are extremely important, in all of my circles it is a huge problem. From Adriana Fourcher : People commute and make their own choices based upon what things are important to them. Irvine has lots of apartments and housing choices that is definitely more affordable than Newport Beach. From David Tanner: Everyone, ask Staff to share the findings of the General Plan Diagnostic Memo prepared as part of the Housing Element Update. The Memo identifies the existing deficiencies in the General Plan that must be remedied. Ask Housing Suitability Virtual Workshop: Workshop Summary 8 SS3-294 Staff to discuss how these deficiencies will be remedied. From Angelica Astorga : You want to push people out of Newport because they cannot find affordable housing? That is classist. What about students and young people who work in Newport? From Sylvia Walker : Irvine has an affordable housing issue. From Angelica Astorga : Sylvia - exactly. both cities need more options. From P. Matheis : At Dover and West Coast Hwy is an empty lot that is not painted blue. Why? From Adriana Fourcher : Angelica - College Students can rent rooms in people's homes, share apartments, work 2 jobs, etc. Affordable housing in Newport Beach is a different level of rent than in other Cities. From Allyson Presta : I am an apartment complex at bayshores and pch 1411 AA From Allyson Presta : would I be part of this area IV From Adriana Fourcher : Angelica - I moved here from the Midwest right out of college and had to adjust to CA. It is expensive here. From Sylvia Walker : Rents in Newport Beach are not necessarily higher than rents for apartments in Irvine. From David Tanner : Staff updated the City Council last week on the Housing Element Update. staff warned the City Council that they might have to break the Housing Element Update into 2 stages. If Staff does this only a portion of the General Plan would be updated. Staff said the cost of the total General Plan Update would increase from $1.5 to $3.5 million dollars (2 EIRs and 2 General Plan amendment processes). Ask Staff to explain what they are thinking. From Allyson Presta : not currently From Angelica Astorga : Well I was born in California, I have lived a life of knowing how important it is to have access to affordable housing. As a student, we do all of those things and the way wages have remained stagnant in this state and housing costs only go up i hallenging for new graduates. From Allyson Presta: that bite is rented long term From David Tannfr : Will the Housing Element Update go to a vote of the public per the City Charter? Staff does not want to answer this question. Why? Ask Staff to explain. Or From P. Matheis : The properties on West Coast Hwy appear to be under used retail properties. From Adriana FourdKer : Jenna, thanks for reminding us of those slides. My recollection is someone could earn somewhere ab 50 to $60K a year and qualify for affordable housing. However, there are very few units. The Picerne project stacks the affordable units to Studio units. That might be fine for a single person but won't work for a young family. From Allyson Presta : he rented the entire site From Allyson Presta : russ fluters From P. Matheis : The proximity to the water is a silent point. This speaks to the value of maximizing the development in the Airport Area for this challenge. From P. Matheis : Should read "Salient." From Adriana Fourcher : Mariners Mile is very expensive property. P. Matheis there is a cost to purchasing existing buildings in airport area and scraping the property and then building residential. From David Tanner : The City's Local Coastal Plan prohibits impacts to coastal bluffs and blockage of ocean/harbor views How can the City possibly make a finding that high density residential is consistent with the Local Coastal Plan? Housing Suitability Virtual Workshop: Workshop Summary 9 SS3-295 From Susan De Santis : Should the City provide housing for its seniors and its essential workers? From Cesar Covarrubias : Have surplus land sites from the City and the Special Districts been identified at opportunity sites? From Adriana Fourcher : Angelica, that explains why so many residents and businesses have moved out of state. It is not because those states provide them with subsidized housing it is because the cost of development is lower, the cost of land is lower and the government doesn't tax, tax, tax. From David Tanner : Why is Staff been un -willing to discussing these obvious General Plan inconsistencies? These questions have been asked since day 1. 'Wr 1411 From Adriana Fourcher: If we give CA a few more months this problem might resolve by the law of natural consequences. The State if Broke. Businesses and residents might move which will make/environment values decrease and increase supply. From P. Matheis : I submit that if we take this time to properly plan for this we could design something that is the best it can be under the circumstances. I do not see a change in the politi i acramento in the near term, and it is likely this mandate will stand. From P. Matheis : How is an area outside the City included in this plan, ., item 1? From David Tanner : Seimone - provide a date certain when these questions will be answered. Quit putting this off! From Adriana Fourcher : Seimone - the committee has been given an impossible task. The policy recommendations unfortunately impact property owners. Again, we are in a Business Park that was colored "Pink" a few years ago based upon some committee discussion and few community input. Now the business owners arE�all fighting residential infill proposals. From Technical Support: www.newporttogether.com. lip From Sam Shams : This might sound crazy, but what are the chances of changing the city borders to get some of Costa Mesa? From Adriana Fourcher: Seimone - the in -fill residential project that is being proposed in our parking lot will take around 3 years to build. That is a real negative ito the employees and businesses. A parking lot that is common area. Think about that. From Charles Klobe : The NMUSD property is prime for workforce housing. Susan DeSantis has previously offered this to the committee. Likely nothing will come of this until the new trustees are seated. We should work toward this as it is good for the city, good for the district and good for the NMUSD employees. I hope we pursue this in 2021. From Ad� a Fourcher : Charles - Absolutely no subsidized housing units for Public Sector employees. Do not use our tax dollars to pay for housing for government employees. Sorry. From David Tanner: All are assumed by the State to be Affordable Housing. From Sam Shams : Does rent -control qualify as affordable housing? From Adriana Fourcher: Sam - good question. From Sam Shams : I ask because affordable housing options usually don't appreciate much in value relative to market prices, and when you consider mortgage etc, it may be a better alternative for low income people to rent From Charles Klobe : Not suggesting subsidized by the city. The idea is to take the NMUSD property and have the district build rental housing for their new employees, The offer of this could factor into their labor negocistions From Adriana Fourcher: Who owns the NMUSD property? Housing Suitability Virtual Workshop: Workshop Summary 10 SS3-296 From Charles Klobe : spell check. Fred: I will send you the outline via email. From Susan De Santis : How will the city and consultants use the input that you received this evening? From Adriana Fourcher : Charles - this is Adriana. IN From Allyson Presta : are we going to cover Newport center tonight? From David Tanner: ADUs are considered affordable by the State - period. The state requires documentation to demonstrate they are in fact affordable. ADUs can be a few hundred square fee to 1,200 sq. feet How will this not be affordable? From Charles Klobe : NMUSD owns the property. Banning Ranch Conservancy would not oppose the project of workforce housing for NMUSD employees. From Debbie Stevens: FYI - Newport Center will be covered tomorrow nig *446� From Allyson Presta : thank you 1W From Adriana Fourcher : Charles - no workforce housing for public�service employees. T re socialism. The next step will be imminent domain to take private property for public sector employee housin From Mary Ann Soden : How long will you be looking at input through the website. I have folks not able to attend the workshops. Is there a deadline? From Susan De Santis : Will the city be pursuing partnerships with Hoag and the school district as part of this process? From Adriana Fourcher : Thank you Jenna. b. , From P. Matheis : Can a large developer build in one area and site the affordable units in another area of the City? From Sam Shams: Thank you! From Bruce Bartram : My thanks to Staff and everyone for an interesting and informative presentation. From Sylvia Walker: Good job by Newport Beach staff. From Debbie Ste ice job and thanks! From Charles Klobe k You. From Susan De Santis : hank you! From Adriana FourcVr : Thank you. From Kevin Martin : Good job Newport team. Talk to you tomorrow! From Mary Ann Soden : See you tomorrow. Thank you. Dciate the work. morrow. thank you Housing Suitability Virtual Workshop: Workshop Summary 11 SS3-297 Nov 17 Housing Suitability Virtual Workshop Chat Susan Eaton: Park Newport formerly Eastbluff Allyson Presta: Big Canyon Resident, property owner thru newport Charles Klobe: Anyone who participated did not have the option for no housing. So the charts are skewed to give the impression that residents wanted more housing throughout the city. David Tanner: Hi Seimone & Jim, As a preface to public input at tonight's Housing Suitability meeting please provide the following information in Staff's introductory remarks: 1. As professional planners, please provide an overview of the long-term regional effects of State housing laws. Please assume for this discussion the literal interpretation of the laws which create the potential for development of millions of Accessory Dwelling Units (ADUs) and 1.3 million additional RHNA units (by 2029) within southern California (SCAG boundary). For example, what impacts will likely occur to the following sectors: (beneficial impact, negative impact or no impact) a. The ability of the existing transportation systems and urban infrastructure to accommodate the increased population. b. Jobs and employment opportunities (will people in inland areas continue to commute long distances to Job centers o�will urban in -fill take those jobs?). c. W i I I there be a need for additional Jobs to meet the population increase? e. Social and economic impacts: i. Will there be higher or lower costs to consumers? ii. Will business be attracted to or leave southern California? f. Public safety and quality of life. i.What will be the regional impact? Based on the answers to the regional concerns in c}destion #1, what are the potential long-term impacts to the City of Newport Beach from housing laws and RHNA? a. Will the impacts mirror the regional impacts or will Newport Beach be disproportionally impacted? (better or worse) b. What impact will this regional growth have on tourism within Newport Beach? c. What impact will this regional growth have on the city's circulation system and transportation infrastructure? d. Would you expect the increased regional population would put pressure on John Wayne Airport to expand the number of flights beyond current limitations? e. Will there be more competition for jobs in Newport Beach as a result of regional growth? f. If you believe increase lation will increase the competition for jobs, can the City expect to get a higher quality workforce? What impact will this have on the City of Newport Beach demographics? ii. What sectors might benefit and wh11sectors might decline? iii. What impact will this have on wagesIWeacs g. What will be the regional impact on Newport Bsh water supplies? David Tanne Question 3 3. What are the constraints the City faces in formalizing the Housing Element Update? For Example: a. As professional planners would you recommend the City locate housing in: (yes, no, maybe) i. Disadvantaged -- - i lnities ii. Areas subject flooding iii. Areas subject to wildfire iv. Areas subject to liquefaction v. Areas subject to I rise vi. Under the flight path of John Wayne Airport vii. Areas subject to health hazards viii. Areas subject to illy significant earthquake hazards ix. Within or adjacent to protected biological areas x. Areas subject to high ✓els (65 CNEL or greater) xi. Hazardous waste sites xii. Areas that do not have job opportunities for new residents lith a significant jobs/housing imbalance) Areas that would result in an unavoidable decline in emergency services/public health and safety. David Tanner: Question 4 4. What are the consequences to the City if the RHNA housing allocations identified in the Housing Element Update are not met? Is there a difference in the consequences between un -met affordable and market rate units? Answers to these 4 questions will provide the public with a clearer picture of the regional impacts facing the City. It will provide insight if the City does nothing and the rationale behind the City's plan to address these challenges. Charles Klobe: There is no stated penalty by the state for trying and failing to find willing landowners who want to rezone Housing Suitability Virtual Workshop: Workshop Summary 12 SS3-298 their land for high density lower income housing. The city is trying through the Housing committee but they will almost certainly fail to find landowners to rezone their property without state or federal subsidy. Alejandra Reyes: Is Jenna breaking for anyone else or only me? Allyson Presta: I can't hear her either Andrew Campbell: breaking up for all Kevin Martin: breaking up for me as well Taylor York (Technical Support) : Apologies for the technical delays! Allyson Presta: my site can be high rise Mary Ann Soden: what site is that? P. Matheis: is Fashion Island designed for additional building stock? Sam Shams: I think we need to consider public access to the sand beaches at the dunes, I would imagine there might be some restrictions to development to allow public access. Charles Klobe: What percentage would you propose as affordable Allyson? Allyson Presta: i don't know I'm not a developer Cesar Covarrubias: Is Newport Center a mixed use zone or do you need an overlay for w development P. Matheis: I foresee significant high-rise potential in Newport Center with the correla ng ADUs in the Airport Area. P. Matheis: Is the Fashion Island property seen as something that might see a change in zoning due to changes in how people shop? Mary Ann Soden: Ano por lement is the impact on traffic circulation, so these two general plan updates need to be considered at some point together. Susan Eaton: Thank you Cesar. Charles Klobe: No property owner has expressed any interest in developing lower income housing without City, State, or -16 Federal subsidy. NONE! Many owners would like to rezone their property for high density market rate apartments. The City does not need to offer density bonuses beyond what the state requires for any area of Newport Beach. Residents will suffer the increased traffic and drain on resources. vid Tanner: Has the HEUC determined this site is feasible for residential development? 4alejandra Reyes: Echoing a few comments (and responding to others) and as a housing researcher and UCI faculty ember, I want to highlight that there are many new state and assembly bills that do emphasize the importance of this Housing Element update: In 2017, SB -35 created consequences for failing to meet local housing targets and AB -1397 now requires cities and counties to ensure that proposed development sites have a demonstrated potential for development. Since 2019, AB -686 also pushes cities to site low-income housing in high opportunity neighborhoods and grants the California Department of Housing and Community Development increased oversight capacity. Also since 2019, SB 330 limits some jurisdictions' abilities to restrict development due to their failure to meet their RHNA goals. David Tanner: The cost of development on this site makes this site economically infeasible. David Tanner: Would you want your family members to live on a landfill given its environmental constraints. I see the potential for litigation. Sam Shams: Development of the non -landfill area here on the north section seems like the most feasible development Housing Suitability Virtual Workshop: Workshop Summary 13 SS3-299 I have seen so far in the city. Allyson Presta: i think the garbage site would be bad for health P. Matheis: If housing can be developed on the 30 acres then why would the City not use this op p nity given the external pressure. Lin He: Non -landfill area makes sense as it's close to freeway etc. David Tanner: It would make a nice site for habitat restoration/mitigation. Nancy Scarbrough: I think the 30 available acres seems like a great place to build low and very low income homes. It is close the freeway. P. Matheis: My sense is that the bulk of the opportunity for developme DUs will be in the Airport Area above SR -73 given the cost limitations. Charles Klobe: Nearly every single family home in Newport Beach is eligible to have an ADU and junior ADU. David Tanner: High density development on the 30 acre portion of the landfill would pro de a great visual window from the toll road to the high quality homes in the area. Mary Ann Soden: To Mr. Smith's question and Mr. Barquist's comments now, the City might need to use its own land to meet the planning goals Sam Shams: What are those two zones on the south if the landfil zone? P. Matheis: I do not believe that the City should reduce parkland for development. Allyson Presta: i agree Allyson Presta: my kidssports park for activities use th Sam Shams: sure 1 David Tanner: Are they fule mod zones? Susan Eaton: Elephant in the room - what are issues to David Tanner: Why doesn't the city satisfy the RHNA owners to consider any level of "Affordable" Housing - nt with ADUs? Debbie Stevens:The Newport Tennis Club should be considered as potentially feasible. P. Matheis: I suspectthat area 29 (fire & police station location) are potentially feas Mary Ann Soden: Please update ps per Larry Tucker's comments so that the folks who participate through the website will have the corrected maps. Thank you. V11614na Tourje, Facilitator: Thanks Mary Ann - we will update the maps on the website as well P. Matheis: I believe that the preservation of the natural resources are critical to this process. While this may result in intensification of development in other areas the City is special because of the natural resources. Charles Klobe: Every developer may be willing to redevelop their property to market rate apartments. NO developer is willing to redevelop without Federal, State or City subsidy any more than 5% affordable. To get to 2,400 or so affordable they need to build 48,000 market rate apartments @ 5% which pencils according to the developers I have spoken to. Never going to happen although the developers are drooling to build them. David Tanner: Staff updated the City Council a week ago and said Staff was concentrating on the Housing Element. Please clarify Housing Suitability Virtual Workshop: Workshop Summary 14 SS3-300 P. Matheis: As I recall the City was considering moving the police facility to the city yard site at one point, and there is a Newport Beach fire station relocation study that moves the Newport Center Fire Station adjacent to the OCTA bus station. Mary Ann Soden: How will the housing and circulation elements be harmonized given their separate committees Brad Avery: Great resident input and effort from the CD team, many thanks! Brad David Tanner: How can the City possible meet the Housing Element Update by October 2020. David Tanner: Is this not piecemealing? David Tanner: Why does the schedule not include a vote of the public per the Q&Lch ter? Sam Shams: Thank you everyone! Debbie Stevens:Great job Jenna, Jim, Dave and Ben! +,or Alejandra Reyes: Thank you! Mary Ann Soden: Thank you for this learning opportunity and input opportunity. This is very important. Allyson Presta: Thank you so much Susan De Santis: Thank you all. Well-done! 1 1 7AA Housing Suitability Virtual Workshop: Workshop Summary 15 SS3-301 City of Newport Beach 2021-2029 HOUSING ELEMENT - 3 - _ML�.' This section contains the summary and chat responses from the virtual Community Workshop 4. Comments were received in the chat box and verbally during the meeting. Video recording of the workshop and verbal comments are available at https://www.newporttogether.com/. I Appendix C: Summary of Outreach (DRAFT APRIL 2021) 1 C-7 SS3-302 Housing Element Focus i�Newport, / gether. JOIN US AS WE DISCUSS POTENTIAL HOUSING OPPORTUNITY SITES AND POLICY STRATEGIES Over the past few months, Newport Beach has been in the process of identifying housing opportunity sites to meet the City's Regional Housing Needs Allocation (RHNA) mandate to plan for 4834 housing units. Join us to discuss the location of the housing opportunity sites and housing policy strategies to help meet the RHNA State mandate. Housing Element Opportunity Sites and Policy Strategies Workshop February 24, 2021 6-8p.m. Register on NewportTogether.com Housing Element Update Process EXISTING CONDITIONS, POLICY DRAFT PLAN FINAL PLAN EDUCATION AND DEVELOPMENT DEVELOPMENT ADOPTION VISIONING Fall 2020 Winter 2021 Spring 2021 Summer/Fall 2021 --0 To learn more and register for these opportunities visit: fi www.NewportTogether.com SS3-303 4/15/2021 Search Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together • dome Home » Housing Workshop 3: Opportunity Sites and Policy Strategies » Sites Analysis Activity 0 You need to be signed in to add your comment. Sign In Register Sites Analysis Activity 24 -Feb -2021 Please provide any questions or comments on the proposed changes in each of the areas. Dover -Westcliff Increasing density from 26.7 du/ac to 30 du/ac Changing land use from office to housing RECOMMENDED DENSITY Considering residentlal overlay at 30 du/ac RECDNI M EDED A FFD R DABI LIITY Low/ Very Love: 0% Moderate: 20% https://www. newporttogether.com/he-opportun ity-sites-and-policy-strategies/forum topics/area-changes 1/7 SS3-304 4/15/2021 Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together Newport Beach = Newport Center •Y+Id� xu�JYiltia- W i5d� hhvvs :GQ: Lq+l� Land Use Change Land Use Change Land Use Change Increased density RE00MMENDED DENSITY Considering residential overlay at 4S du/ac AFFORDABILITY Lflw/ Very Low: 5% Moderate: 5% https://www. newporttogether.com/he-opportunity-sites-and-policy-strategies/forum topics/area-changes 2/7 SS3-305 4/15/2021 Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together Airport Vicinity Slits InreFd[Iry: Airport vicinity LEGEND P* -n. wqd. Inventory Parcels I rd I.. n1 q. W C—o , ..d U. ..eu.Y 3 1 o.xi https://www. newporttogether.com/he-opportunity-sites-and-policy-strategies/forum topics/area-changes Increased density Land Use Change Increase in density DEN5FfY Considering residential overlay at 50 d u/ae AFFORDABILITY Low] Very Low: 80% Moderate: 20% 3/7 SS3-306 4/15/2021 Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together West Newport Mesa/Banning Ranch https://www. newporttogether.com/he-opportunity-sites-and-policy-strategies/forum topics/area-changes Considering Banning Ranch at existing G P designatlons Land Use Change Inc=rease in density RECOMMENDED DENSITY Considering residential overlay at 45 du/ac RECOMMEDED AFFDRDARILM Lcw/ Very Low: 80% Moderate: 20% 4/7 SS3-307 4/15/2021 Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together Coyote Canyon hhv�n :'9Q:• PSV" Land Use Change Increase in density RECOMMEDED DENSITY Considering residential overlay at 45 du/ac RECOMMENDED AFFORDABILITY; Low/ Very Low: 10% Moderate: 10% M W ® M 0-4 Write a comment... You can use @ to tag somebody in the conversation 5 comments Recently active Posted first Matthew Clark, 25 days ago Alert moderator I am opposed to the proposed land use changes for the Airport Vicinity. Specifically, the portion of the golf course that is being considered. If that portion cannot remain a golf course, I think that creating a freshwater marsh in conjunction with the Delhi channel would be the best solution. This would create a natural filtration system that would clean the water of silt and toxins, as well as create additional habitat for the wildlife of the Upper Bay, which is one of our greatest resources. Both residents and visitors would benefit from this option. Reply Do you agree? 4 0 0qk0 in V ® M https://www.newporttogether.com/he-opportunity-sites-and-policy-strategies/forum topics/area-changes 5/7 SS3-308 4/15/2021 Sites Analysis Activity I Housing Workshop 3: Opportunity Sites and Policy Strategies I Newport, Together Linbackbay, 28 days ago Alert moderator I do not agree with the land use change for the Airport Vicinity. Residents need to have access to affordable recreation like the NB Golf Course and the YMCA. We don't need to change the land use or make things more dense. That's not what we want. You are already changing plenty in other areas of NB. Please preserve open space around the Back Bay! Reply Do you agree? 4 2 190 GOOse, 28 days ago M # ® M Alert moderator We are strongly opposed to the proposed "airport vicinity." Absolutely must preserve the open space designation, not increase density in this area, and work to generate better and more creative, sustainable solutions that work for the long-term! Reply Do you agree? 4 2 0' 0 troy, 28 days ago 11 V ® M Alert moderator I would also like to voice concern over change the use of land in the "airport vincinity" Please do not make this space more dense! Reply Do you agree? 4 3 190 surfinpnut8S, 29 days ago 11 V ® M Alert moderator Regarding the "Airport Vicinity": Please do not change the land use of any of the golf course parcels or what looks like the current YMCA. Please preserve our open space designation here and around the Back Bay! Reply Do you agree? 4 3 0' 0 TERMS AND CONDITIONS PRIVACY POLICY MODERATION POLICY in 0 ® M https://www.newporttogether.com/he-opportunity-sites-and-policy-strategies/forum topics/area-changes 6/7 SS3-309 City of Newport Beach 2021-2029 HOUSING ELEMENT - 3 } _ML,' This section contains the summary and chat responses from the virtual Community Workshop 5. Comments were received in the chat box and verbally during the meeting. Video recording of the workshop and verbal comments are available at https://www.newporttogether.com/. Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-8 SS3-310 Mewprt, gether. Initial Draft of Housing Element & Circulation Element Workshops �hM= March 22, 2021 6-8 p.m. Housing Element Initial Draft Review Workshop ■ ■ I I I � � Y ym April 5, 2021 6-8 p.m. Circulation Element Initial Draft Review Workshop City staff and its consultant team have been working with the Housing Element Update Advisory Committee, the Planning Commission, and the community over the past eight months to prepare an initial draft of the updated General Plan Housing Element & Circulation Element. The initial drafts are now available online. The first comment period will be open until April 30, 2021. To participate online, register for the workshops, and learn more visit: www.NewportTogether.com (D SS3-311 N ewport, \� gether. Housing Element Initial Draft Housing Element Workshop March 22, 20215 6 - 8 p.m. Workshop Chat Prepared by Kearns & West March 23, 2021 Housing Element - Initial Draft Housing Element Workshop 1 SS3-312 Housing Element - Initial Draft Housing Element Workshop 17:54:03 From Christian Mendez (K&W) Technical Support to Everyone (in Waiting Room) : Welcome to the Newport Beach - Housing Element Workshop. We will open the meeting room at 5:55 pm, and the workshop will begin at 6:00 pm. Thank you, and we will see you soon! 18:00:57 From Christian Mendez (K&W) Technical Support to Everyone (in Waiting Room) : Welcome to the Newport Beach - Housing Element Workshop. We will open the meeting room at 5:55 pm, and the workshop will begin at 6:00 pm. Thank you, and we will see you soon! 18:03:52 From Ivana Rosas (K&W) Technical Support, she/her to Everyone (in Waiting Room) : Hello everyone. If you have any technical issues during today's webinar, please send me, Ivana Rosas, a private message describing your issue. I will help diagnose the problem. 18:04:06 From Ivana Rosas (K&W) Technical Support, she/her to Everyone: Hello everyone. If you have any technical issues during today's webinar, please send me, Ivana Rosas, a private message describing your issue. I will help diagnose the problem. 18:07:44 From Ivana Rosas (K&W) Technical Support, she/her to Everyone: Hello everyone. If you have any technical issues during today's webinar, please send me, Ivana Rosas, a private message describing your issue. I will help diagnose the problem. 18:11:58 From Ivana Rosas (K&W) Technical Support, she/her to Everyone : You can access the chat button at the menu of the bottom of your screen. 18:12:09 From John Loper to Everyone : John I think the Villas at Fashion Island are a great example of high density units done very well 18:12:46 From Suzanne Gignoux to Everyone : I don't live in a unit or project. I love Newport Shores. 18:13:12 From Melanie Schlotterbeck to Everyone : Melanie Schlotterbeck (representing Olen Properties), Great housing: San Jose 18:13:27 From Charles Klobe to Everyone: Baker Block in Costa Mesa 18:13:30 From Dorothy Kraus to Everyone : One Nautical Mile, 15th street, West Newport 18:13:55 From Sonja Trauss to Everyone : Sonja Philadelphia! Row houses, classic human scale form 18:18:39 From Susan Eaton to Everyone: Camarillo Homeless Housing Community formed at a decommissioned military facility. It is a large group of housing with medical facilities, local bus service, rehabilitated older units and family area in newer LEER certified housing. It felt like Park Newport where I live and love where I live. 18:22:04 From Susan Eaton to Everyone : Camarillo is in Long Beach. 18:23:11 From Mary Ann Soden to Everyone : I wish I could stay for this entire meeting, but cannot tonight. Here are my two cents. The plan appears to propose zoning a whopping 9,957 dwelling units to meet the 4845 allocation. That is not in the best interest of the City. Plan definitely needs reduction of the DU within the sight plane over Newport Center to ensure the zoning is compliant with that municipal commitment. Consideration of housing partnerships with affordable housing non profits to build what is needed and required, not 3217 above mod units that are not responsive Housing Element - Initial Draft Housing Element Workshop 2 SS3-313 to the FHNA allocation. I'll follow up further online. Thank you. 18:24:46 From Jenna Tourje to Everyone: Thank you, Mary Ann! We are glad you could join tonight and are looking forward to your input online 18:25:04 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate 18:26:24 From Sonja Trauss to Everyone : I have q.s specifically about section 3 18:26:56 From Sonja Trauss to Everyone : Particularly about the map on page 70, figure 3-8 18:27:14 From Christian Mendez (K&W) Technical Support to Everyone: Hi Sonja, we will have an opportunity for questions in a few minutes 18:34:14 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate 18:41:09 From Christian Mendez (K&W) Technical Support to Everyone: Technical Support: Hello, everyone. If you have any technical issues during today's workshop, please send me (Technical Support) a private message describing your issue. I will help diagnose the problem. 18:53:50 From Herman Basmaciyan to Everyone : Herman Basmaciyan 18:54:01 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate 18:54:10 From Dorothy Kraus to Everyone : Question: Does the "overlay" for Newport Mesa include Banning Ranch? So, some of 347 low/very low, 86 mod units would be zoned on Banning Ranch? If yes, how many? Thank you. 18:58:58 From Herman Basmaciyan to Everyone : Is my understanding correct that the City has to show the capacity for accommodating these units, not necessarily make sure that the units are constructed? What happens if no developer comes in to construct the units? Are there any consequences? Will this plan require an environmental review and require that it is consistent with all other elements of the General Plan? 19:00:27 From Herman Basmaciyan to Everyone: The preceding questions are from Herman Basmaciyan. 19:07:07 From Sonja Trauss to Everyone: RHNA is a minimum, so if Newport Beach produces more housing and exceeds its RHNA, that's great, all the better. California has a housing shortage. 19:07:35 From John Loper to Everyone : Is there a reason why there are no plans for new housing in the Coastal Zone? Such as the Peninsula. Are there some sites that could be redeveloped? 19:07:45 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate 19:22:51 From Dorothy Kraus to Everyone: Jenna/Jim, will the City respond to each public comment submitted regarding the Draft HE update? Thank you. 19:22:58 From Glenn Hellyer to Everyone : Thanks to staff for presenting a plan to accomplish the RHINA goals Housing Element - Initial Draft Housing Element Workshop 3 SS3-314 and recognized that NB is showing good faith in providing new housing stock. 19:33:51 From Glenn Hellyer to Everyone : Again thanks to Staff for recognizing ADUs as the low hanging fruit opportunity for increasing much needed housing stock. Why would the incentives take 2 years to employ? 19:36:49 From karen martin to Everyone : will this recording be available on the website? 19:37:45 From Jenna Tourje to Everyone : Hi Karen - the recording will be available this week on www. NewportTogether.com 19:37:54 From Jenna Tourje to Everyone : including a transcript of the chat as well 19:43:01 From John Loper to Everyone: would this be something as 5% very low, 5% low and 5% mod income levels? 19:44:02 From Glenn Hellyer to Everyone : Would the Inclusionary program be voluntary with density bonus as opposed to mandatory? 19:45:02 From John Loper to Everyone : thank you 19:47:50 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate 19:48:27 From Christian Mendez (K&W) Technical Support to Everyone: To find more information on the project, copy and paste this link into your browser: www.newporttogether.com. 19:49:05 From Charles Klobe to Everyone: The final draft will go to the City Council for a vote to submit, modify and submit, or revisit and submit nearer to the date it is due. It takes four City Council Members to advance this or another version. You will note that there has been no direct answer to the max possible units question. Estimates have run over 20,000 new apartments. Newport Beach land prices do not support single family homes or condos as affordable. This is about high density, high rise apartment construction only. There are alternative approaches that the City has chosen not to pursue. If you think the City should seek alternate ideas, please write to the City Council Members and ask them to slow this process down and visit alternate ideas. 19:50:06 From Dorothy Kraus to Everyone : will we get a response from city for our comments like what's done with either 19:50:46 From Dorothy Kraus to Everyone : Thank you. 19:51:23 From Dorothy Kraus to Everyone: will comments be made public? 19:52:11 From Dorothy Kraus to Everyone: comments in response 19:55:56 From Glenn Hellyer to Everyone : Thank you all! 19:57:10 From Susan De Santis to Everyone: Thank you! 19:57:17 From Christian Mendez (K&W) Technical Support to Everyone: To find the draft Housing Element, copy and paste this link into your browser: www.newportbeachca.gov/DraftHEUpdate Housing Element - Initial Draft Housing Element Workshop 4 SS3-315 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains the summaryof survey results. [UPDATEASWE PROCEED] Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-9 SS3-316 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains the meeting minutes and materials provided at the study session. All recordings, agendas, and minutes can be found on the City's website at https://www.newportbeachca.gov/ government/depa rtments/community-development/pla nning-divis ion/pla nning-commission. [UPDATEAS WE PROCEED] 1 Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-10 SS3-317 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains the meeting minutes and public comments for each meeting held up to February V' 2021. All recordings, agendas, and minutes can be found on the City's website at https://www.newport beachca.gov/government/data-hub/agendas-minutes/housing-element-update-advisory-committee. [UPDATEASWE PROCEED] Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-11 SS3-318 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, JULY 1, 2020 REGULAR MEETING —B P.M. I. CALL MEETING TO ORDER — 6 p -m - I1. WELCOME, INTRODU CTIONS AND ROLL CALL MEMBERS PRESENT- Chair Larry Tucker, Jeffrey Bloom, Susan 0eSantis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Ed Selich, Debbie Stevens, (Ex Officio Member) Mayor Will O'Neill MEMBERS ABSENT: None Staff Present: City Manager Grace Leung, Community Development Director Seimone Jurps, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, City Traffic Engineer Ton} Brine, Administrative Support Technician Amanda Lee Chair Tucker welcomed everyone to the inaugural meeting of the Housing Element Update Advisory Committee (HEUA ). The Housing Element Update process begins with the State determining the number of housing units that agencies must plan for over the ensuing planning period. Mayor O'Neill thanked committee members for their service to the City- The Council spent quite a bit of time in December 2019 and January 2020 thinking about how to address the Housing Element Update. Committee members were selected for specific reasons, including their background and expertise. In 2019, the Council tallied to residents to ensure it understood what residents were looking for- Given the size and scope of the Housing Element, the Council will need to engage stakeholders. Finding the number of housing units will be incredibly difficult and will likely be divisive. At the beginning of the year, the Council adopted an approach to object to the State's mandate legally and politicallyflegislatively and to Gornply with the mandate. The goal for the HEUAC is to find a way for the City to comply or to explain whir the City cannot comply with the mandate. Technically, the Southern Califomia Association of Governments (SLAG) has not provided a wrtified number of housing units required for this planning cycle. SLAG has requested the California Department of Housing and Community Development (HCD) grant extensions for all municipalities. HCD has not responded. Indications are HCD will deny the request; however, enforoement will be extremely difficult. The City has been working with Senator John Moorlach and Assembly Member Cottle Petrie -Norris- In reference to his role on the HEUA , Mayor O'Neill explained that he represents the Council, but he cannot speak for the Council without a majority vote on a topic- He may offer his personal opinion and present a topic or question to the Council. HI. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Masher hoped any conflicts of interest would be handled transparently given committee members' expertise in real property development and HEUAC's recommendations to the C 0Uncil regarding the use of real property. If people are paid to attempt to influence committee members' opinions, they are regarded as lobbyists and should register with the City- SS3-319 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 2 of IV. CURRENT BUSINESS a. Three -Pronged Strategy of City Council and Focus of the Committee Recommended Action: No action taken Chair Tucker reported the City is working legislatively and with other agencies tc better define the Regional Housing bleeds Assessment (RHNA) number and credits that can be applied to the number_ Community Development Director Seimone Jurjis advised that the City has engaged with multiple State agencies. SLAG has issued a draft RHMA number of 4,832 housing units for the City. The Mayor has written letters to SCAC opposing the methodology and to H C D requesting clarification. State law requires the City to permit accessory dwelling units (ADUs), but H C D's guidelines do not provide sufficient credits for AD Us to meet RHNA numbers. Staff has drafted legislative changes, and Assembly Member Petrie -Norris has introduoed legislation that defines RHNA credits and provides guidelines for substantial evidence. The City needs to build a coalition to support the bill and will appeal its RHNA numbers, Chair Tucker indicated the Citi+ has to identify sites where res iden Lial development could occur and prepare an Inventory of Sites_ The Tax Assessor's panel number for each property must be listed on the Inventory. The certified number of RHNA units and credits will not be known for some period of time, ,any political efforts to reduce housing units will likely occur gate in the process. Chair Tucker invited the public to corn ment_ Jim Mosher noted HEUAC's purpose and responsibilities do not include a complete focus on RHNA numbers_ HEUAC is more of a forum for public input. The General Plan Update Steering Committee (PU ) attempted to conduct outreach and research, which could inform HEUA 's discussions. HEUAC should obtain input from the people who will be impacted by the need for housing as well as developers. David Tanner suggested HEUAC direct the public as to how it can help HEUAC achieve its goals_ He requested an update regarding staffs efforts to expedite the processing of the Housing Element amendment, specifically an exemption from the California Environmental Quality Act (EQA), to affect. the G reenIight provision or Measure S. Magor O'Neill noted that Still Protecting Our Newport ( PON) submitted the same request as Mr. Tanner_ The City has requested State Representatives sponsor legislation to exempt or at least expedite the C EQA process for a Housing Element Update_ The sole purpose of the City's request was to try to meet the timing aspects of the Housing Element Update. The representatives declined the request_ Chair Tucker advised that he raised the issue of a CEQA exemption with the GPUSC in order to emphasize that HCD's schedule would be difficult to meet and if an EIR had to be prepared then additional time would be needed to compete a Housing Element Update. With respect to Mr. Mosher's comments, the resolution directs HEUAC to make any recommendations it believes necessary, To begin the compliance process, HEUAC. will need to identify sites. Greenlight will not change the Committee's work, but rather will merely add one more layer of approval, a public SS3-320 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 3 of 5 vote, after the Committee, Planning Commission and City Council complete their work. Therefore, reenlight is outside HEUA 's purview_ In response to a committee member's question, Deputy Community Development Director Jim Dampbell understood a housing project that is approved but not completed before June 30, 2021 may be counted towards the City's RHNA numbers. Currently, there is no information regarding counting live-aboards towards RHNA numbers. Staff will provide HEUAC with a tally of housing units. Committee Member Deantis noted S CAG has joined the San Diego Association of Governments and the Sacramento Area Association of Governments to sign a letter to the Governor and HD to push back on the schedule. The Governor or the Legislature can change the timeline for the Housing Element Update, but HD cannot. HD recently extended the timeline for the local assistance program by six to eight months_ b. Discuss Methods to Identify Possible Housing Opportunfty Sites Recommended Action: Discuss procedures for (i) fdenfiying and contacting owners of potential housing opportunity sites. iii) discuss approach to encouraging saes that could enable affordable housing in whole or in part; and (ill) prioritizing saes in case the f2"NA requirements are lower than currently anticipated Chair Tucker related that there may be underutilized or vacant parcels in the City that can be opportunity sites, Newport Center, the west Newport area, and the Airport Area will be opportunity sites. He noted that in GPUSC community workshops, participants favored placing housing in Newport Center, the Airport Area, the area near Hoag Hospitaj, Banning Ranch, and the former landfill in Newport Coast. HEUAC will have to review each parcel in areas that might provide opportunity sites. The standard for opportunity sites is land that is suitable and available (feasible). Determining whether a parcel is available will rewire some technical analysis_ Determining whether a parcel is suitable will be decided by the full Committee and will require public input. HEUAC will form a subcommittee to analyze sites to see how the process will play out. Anyone with ideas for potential opportunity sites should contact staff or committee members. Committee Member Fruchbom added that feasibility means economically feasible. Chair Tucker noted the City is required to plan for development, not to ensure sites are developed. State law states a municipality that plans to use non -vacant land for more than 50 percent of lower- income RHNA requirements has to provide substantial evidence that there are no impediments to the use of the property in order to claim credit for the property. In reply to Committee Member iley's query, Chair Tucker advised that HEUAC will review recent housing applications that were not developed. The first step is to identify sites where development is feasible_ If sites are feasible, HEUAC will consider their suitability. The hot topic for the community will be which sites are suitable for housing. In answer to Committee Member andland's inquiry, Chair Tucker agreed that his memorandum proposed HEUAC rank opportunity sites. He did not believe the State would reduce the RHNA numbers materially. However, if the City cannot comply with the RHNA numbers and the State does reduce the numbers, the Council can use the ranking of sites by the Committee and supporting information rather than having to start the process again_ SS3-321 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 4 of 5 Committee Member Deantis believed community input on a range of scenarios will be important when HEUAC prioritizes sites. The Orange County Business Council's in -fill capacity study focused on capacity within Orange County for additional housing development. Perhaps HEUAC can invite the study author to present information about changing market trends and the study's results. Chair Tucker invited the public to comment- jim Mosher remarked that the public may not be familiar with committee members, which could be a problem if committee members want to engage with the public. He hoped committee members would have open minds. The infeasibility of the former landfill site is not obvious. Chair Tucker indicated if development of the former landfill site was feasible, someone would have developed it by now. An unnamed resident provided an unrelated comment about the COVID-19 pandernic- c. rormatlon of Affordable Housing Subcommittee and Opportunity Sites Subcommittee Rccommerdad Action. Form an affordable housing subcommittee ttee acrd a housing opportunity saes subcommittee to divide up workload Chair Tucker reviewed the City's RHNA numbers by income level and stated he thought that three committee members had expertise in development of affordable housing- It was his hope that an affordable housing subcommittee would be able to educate HEUAC regarding choi Cos. Mayor O'Neill advised that Committee Members Bloom and Fruchbom have experienoe with affordable housing - hair Tucker proposed Committee Members Selich and Sandland form a housing opportunity sites subcommittee, which will analyze sites for feasibility. HEUAC will form a subcommittee for outreach in the future. Jim Mosher asked if the affordable housing su boom rn ittee will propose revisions to the goals and policies of the Housing Element and engage people living in or seeking affordable housing- Chair Tucker reported the purpose of the subcommittee is to assist HEUAC: in understanding the financing and tax aspects of affordable housing and Crow the City can seek as many new affordable units as passible while still complying with RHNA. The subcommittee will not review the existing Housing Element regarding affordable housing from the vantage point of people living in or seeking affordable housing. Mayor O'Neill suggested the City not only needs to zone for affordable housing, but hast to think it will actually happen. The question of whether the required number of affordable housing units can be constructed given the cost of land is legitimate. The Council needs to know if it is possible. If it is not possible, the Council needs to know the amounts of a subsidy and incentives that could achieve more affordable housing. The Council will need a primer on affordable housing and an explanation of what is needed to achieve affordable housing. In response to Committee Member Deantis' question, Chair Tucker stated programs that involve larger employers in the G ity to incentivize affordable housing is outside HEUA's purview, although SS3-322 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 5 of 5 he noted that is something that Committee Member De antis might want to discuss directly with the City Council. Chair Tucker invited the public to comment. Seeing no one wishing to comment, he moved, seconded by Committee Member Selich, to appoint Committee Members Bloom and Fruchbom and Chair Tucker to the affordable housing subcommittee and Committee Members Selich and andland and Chair Tucker to the housing opportunity sites subcommittee. AYE: Tucker, Bloom, DeSantis, Fruchbom, Kiley, LePlastrier, Sandland, Selich, Stevens NO; None ABSTAIN; None ABSENT: None d. Discuss Agenda Items for Next Meeting Recommended Action.- o action taken Chair Tucker requested agenda items for a DEQA project description, a definition of substantial evidence, and an outreach process. In reply to Committee Member Selich's quem, Principal Planner Jaime Murillo advised that the proposed recommendations for substantial evidence were taken from the initial legislative amendments, Chair Tucker invited the public to comment. Charles Klobe suggested committee members may be confronted by folks who need a planning incentive to make affordable housing work. Residents may be resigned to the RHNA number, but they may not accept the City granting a subsidy or incentive that the resident has to pay for- HEUAC may not find enough sites to comply with the requirements, but the State will be hard pressed to impose fines for not trying - V. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIRE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR DEPORT (NON -DISCUSSION ITEM) Committee Member De antis requested the author of the in -fill capacity study address HEUA regarding development trends and data from the study relevant to Newport Rea&. Committee Member Sandland requested staff advise H EUAC regarding the consultant's work and how the consultant"s work will affect HEUAC's work. In answer to Committee Member Bloom's question, Chair Tucker indicated HEUAC will receive information about housing units entitled or permitted before June 30, 2021 - Community Development Director Jurjis recommended a presentation from the consultant regarding HUD`s guidelines and information HDD is seeking - VI. ADJOURNMENT — 7;36 p.m. Next Meeting: July 15, 2020. 6 p-rr?- in the City Council Chambers. SS3-323 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, ,DULY 15. 2025 REGULAR MEETING —6 P.M. 1. CALL MEETING TO ORDER — 6 p_rn_ II. WELCOME AND ROLL CALL MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan De antis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Ed Selich, Debbie Stevens MEMBERS ABSENT: {Ex Officio Member} I+Vi11 O'Nei11— arrived at 6;31 p.m. Staff Present; Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, City Traffic Engineer Tony Brine, Administrative Support Specialist Clarive I Rod III. PUBLIC COMMENTS ON NON -AGENDA ITEMS Deborah Allen, Harbor View Hills Community Association President, questioned the rationale of holding a public meeting on such an important topic in light of the coronavirus and suggested the City fight the State regarding the timing of the Housing Element Update_ Jim Mosher asked if the City would defend voters' disapproval of the Housing Element Update in a court because a provision of AB 1063 authorizes a court to order the Housing Element Update approved if the City submits it timely but final approval is delayed due to a local requirement for voter approval_ Philip Bettencourt believed consultants imle-Horn and LSA would serve the City well and appreciated the substantial materials provided to the public. Dorothy Kraus hoped members of the Housing Elernent Update Advisory Committee {Committee} would introduce themselves and noted the foremost objective of the Committee is to serve as a public forum as stated in the Council resolution forming the Committee_ David Tanner inquired abourthe City's strategy to successfully update the Housing Element and public involvement in the process. Chair Tucker advised that Committee members would introduce themselves later in the meeting. The Committee will serve as a forum for public comments, The Council needs a draft Housing Element Update to consider and possibly adopt if it chooses to comply with the California Uepartment of Housing and Community Uevelopment's (HOD) requirements. With respect to AB 1063, if thresholds are met and a Measure S vote is required, there will be a further approval process for Council actions, Measure S means the electorate can decide whether to proceed. SS3-324 Housing Element Update Advisory Committee Meeting July 15, 2020 Page 2 of 9 IV. CONSENT CALENDAR a. Minutes of July 1, 2020 Recommended Action: Approve and file Chair Tucker noted his and Mr. osher's revisions. Chair Tucker moved, seconded by Committee Member Seiich, to approve the minutes of the July 1, 2020 meeting as amended by himself and r_ Mosher_ AYE: Tucker, Boom. DeSantis, Fruchbom, Filey, LePlastrier, Sandland, Selich, Stevens NO; None ABSTAIN; None ABSENT: None V! URRENT BUSINESS a. Overview of Project Schedule Recommended Action: No action; receive presentation from Kimley-Horn on the tentative project scheduic and discuss as necessary. David Barquist, Kimley-Horn & Associates, reported the State of California has imposed deadlines on all Metropolitan Planning Organizations (MPO), and the Southern California Association of Governments (SOA), the MPO for Newport Beach, has imposed deadlines on all jurisdictions within its region_ The Housing Element planning period extends from October 15, 2021 to October 15, 2029, and the Housing Element due date is October 15, 2021. The October 15, 2021 due date may be delayed for up to six months. Legislative action is required to extend the due date_ The State provides the Regional Housing Needs Assessment (RHNA) allocations. The RHNA process includes development of allocations, an appeal period, and final adoption of the allocations at SCAG. Because of a number of issues, the State postponed the appeal period for up to 120 days, and the final allocations may not be approved until the end of 2020. In order to update the Housing Element, the City is assuming the draft allocation will be its final allocation_ The baseline analysis, which will extend through October 2020, includes a demographic housing profile, a constraints and resources analysis, analysis of fair housing issues, and a review of the performance of the prior Housing Element. Drafting of the Housing Element will extend through February 2021. The public review period will extend from Manch through July 2021. A draft Housing Element will be submitted to HOD for compliance review in June 2021. HOD has 60 days to review the draft Housing Element. During that review, HOD staff and City staff can and will communicate regarding issues_ Staff anticipates public hearings will be held in September or early October 2021 in order to comply with the adoption deadline, Committee Member Sandiand requested the fiscal analysis, Task 7.3, begin prior to February 2021. In response to Chair Tucker's questions, Mr. Barquist advised that the market analysis will be conducted by Keyser Marston Associates. The analysis WiII look at the implications of growth as it relates to the fiscal model prepared by a prior City consultant. It will determine the cost dynamic for such things as future opportunities for growth, affordability levels, and the rental market versus the owner market_ Task 2.2, development of housing pian, is the policy component of the Housing Element, and work on it will occur along with Task 2.4, draft Housing Element. A draft Housing Element could be ready for presentation by November 2020, but work and analyses may be SS3-325 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 3 of 9 presented to the Committee prior to November. The project description is scheduled for an extended time period because there could be some issues with sites and decisions may affect the project description. Before the Environmental Impact Report (EII) process begins in eamest, the project description should be accurate. The scoping meeting is typically held just after the notice of preparation is issued, but it can be held earlier or later in the process. The scoping meeting will define the bounds of the project for the public. The Initial Study, notice of preparation, and public process to begin the E I R is meant to focus on specific environmental issues. In reply to Committee Member Selich's inquiries, Mr. Barquist indicated the E I R p bIic review period is generally the final two months of the process. The public review period will be determined by the hearing dates before the Planning Commission and City Council_ The public review period could occur between June and September 2021. 1n answer to Committee Member De antis' query, Cllr. Barquist related that the length of a Housing Element Update process depends on the jurisdiction and outreach and collaboration opportunities, The average process extends for 12-16 months_ The COVID situation, the nature of outreach, and potential legislative changes will influence the length of the process. The proposed schedule is feasible_ In response to Committee Member Bandland's question, Mr_ Barquist stated funding and financing opportunities for affordable housing are part of the requisite analysis for the Housing Element. The analysis will consider existing local programs and regional, state, federal and private programs for affordable housing_ A summary of the programs will be provided to the Committee_ In reply to Ccrnmittee Member De S antis' inquiries, Mr_ Barquist noted the area subject to the VMT analysis will be determined in the next few weeks and will be shared with the Committee, October or November may be too early to have information from VMT analyses_ In answer to Cornmittee Member Stevens' query, Mr. Barquist advised that a baseline assessment is part of the Housing Element policy. Committee Member Stevens suggested including the baseline environmental study as a separate task. The scoping meeting should be held during the public comment period for the Initial Study and notice of preparation_ Jim Mosher agreed that the scoping meeting seems to be scheduled late in the process_ He inquired about the City's position regarding the SoCal Connect Plan, He wanted to know what the public review draft, Item 2.6, would be and how long the review period would be. David Tanner stated under normal times, the Housing Element Update process would extend over two years_ The schedule is unrealistic. If it is realistic, there will not be any public participation_ The schedule shows very little public involvement. He requested inclusion of Measure S in the schedule because Measure S will be required_ He asked why the City is pursuing legislation that will exempt Measure S from a vote, Chair Tucker assumed the consultant prepared the schedule based on the due date. The process will include public input, The Committee's task is to complete a draft Housing Element, Measure is not within the Committee's purview. SS3-326 Housing Element Update Advisory Committee Meeting July 15, 2020 Page 4 of 9 b. Lessons Learned from Prior Outreach and Discussion of Future Outreach Recommended Action_ No action; receive presentation from staff on previous outreach efforts under the now dissolved General Plan Update Steering Committee and discuss future outreach efforts. Senior Planner Ben Zdeba reported a major product of the General Plan Update Steering Committee was branding for the overall General Plan Update effort_ Public engagement disclosed that the Land Use and Housing Elements were two of the most important elements for the community. A public workshop was held in each Council district on different days. More than 600 people were engaged in person and online during those workshops. One lesson learned from the prior outreach is engaging the public on such a complicated matter is not easy. The prior process developed a list of shared community values. Early in the process, outreach focused on commu nity values and a vision statement. Approximately 400 people attended a kickoff event. The first workshop garnered the highest attendance with 68 people, and a workshop in December garnered the lowest attendance with 8 people, Workshops included an exercise for participants to map locations for housing_ A large amount of housing was placed in the Airport Area, Banning Ranch, the Hoag area, Newport Coast, and Fashion IslandlNewport Center, Some housing was scattered around the City and placed in boats off the coast, Chair Tucker advised that he attended five of the seven workshops and found the usual community members at the workshops_ An Outreach Subcommittee will be appointed, but engaging the oommunity is difficult. Mildred Peru, Kennedy Commission. suggested the City engage community organizations early in the process to discuss meeting the housing needs of low-income people and to engage low- income communities. The Kennedy Commission would like to assist with public outreach. David Tanner remarked that the questions asked at the works,hops reflected the consultanfS view and not the public's view. He requested a discussion of the numerous impacts to the General Plan from housing las. Dorothy Kraus suggested advertising begin now for the Housing Element Update, perhaps through a banner on the City's homepage and announcements on social media platforms. Committee Member Stevens noted the pandemic. the closure of City Hall, and misconceptions are impediments to outreach. Committee Member DeSantls believed outreach would probably not be in person; therefore, different strategies and technologies will be needed_ c. Overview of Current Housing Opportunity Sites, H D Guidebook for Site Selection Criteria and Substantial Evidence Recommended Action: No action; receive presentation ficin Ximley-Nora and staff regarding current housing opportunity sties inventory of the Housing Element as wall as the current site selection criferra perfain;ng to the update. The discussion should also touch on what "sabstantial evidence" means_ Nick Chen, timley-Horn, reported sites are suitable for residential development if zoned appropriately and available for residential use during the planning period. Approximately half of the City's RHNA allocation is designated for very -low-income and low-income housing, H D's SS3-327 Housing Element Update Advisory Committee Meeting July 1, 2020 Page 5 of 9 memorandum is generally oriented toward meeting the lower-income need. The analysis of sites begins with units entitled after the start of the projection period, June 30, 2021, which can be counted towards the hHNA allocation, Next are the most available or the easiest to develop sites, also known as vacant sites, but vacant sites are not a readily available resource in Newport Beach_ Next in the analysis are non -vacant or underutilized sites, which are sites currently zoned for residential or other uses that are deemed, based on substantial evidence, re -developable for affordable housing within the planning period_ New guidance states if 50 percent or more of the allocation is fulfilled with non -vacant or underutilized sites, there is an impediment to housing development and further evidence must be provided, evidence such as past performance in developing these types of sites or market analysis, The City is not responsible for development of sites, but for providing an environment for development of sites_ Creative measures or alternative methods, such as accessary dwelling units, can be used to fulfill the allocation. HD's memorandum provides methods for anticipating the number of accessory dwelling units that can be counted toward the allocation. Boats as housing units may be an alternative method_ Development has to result in no net housing lass, and any loss of units has to be accounted for in the Housing Element and sites analyses_ Fair housing and the equitable distribution of housing has to be addressed and analyzed, The HD memorandum defines substantial evidence as facts, reasonable assumptions or expert opinion that can be supported by facts. n reply to Committee Member Fruchbom's query, lair, Chen advised that if the analysis shows that fulfilling a requirement is infeasible, staff would have to discuss with HD next steps and an approach for addressing the situation. Chair Tucker commented that locating affordable units on the coast will result in fewer units than locating them near Hoag or the airport. Equitable distribution will be a challenge. Mr. Chen explained that equitable distribution ensures units are not concentrated in lower resource areas. All census tracts in Newport Beach are likely high resource areas. Chair Tucker noted the ,airport Area is zoned for a different school district_ HOD suggests a jurisdiction vary its development standards if it cannot generate sufficient affordable units. At some point, increased density becomes counterproductive_ Landowners' decisions to redevelop their properties will be driven by economics. . In response to Committee Member LePlastrier's inquiry, Principal Planner Jaime Murillo explained staff's development of the sites inventory prepared for the 2006 General Plan Update. Staff inciluded justification for the sites being legitimate opportunity sites, The Airport Area provided the greatest opportunity for housing, followed by Newport Center, Mariners Mile, and a few smaller sites_ More analysis is needed to determine sites that can accommodate lower-income units. State law provides that if a site can accommodate at least 30 dwelling units per acre, it is presumed the site can accommodate lower-income housing_ The Airport Area is the only area in the City with that minimum density. The Airport Area requires a minimum 'I0 -acre site. and the City implemented a housing overlay exempting a development with at least 30 percent affordable units from the site requirement. Lower-income housing sites are concentrated in the Airport Area, but it is a high resource area. Unfortunately. development projects have reduced the number of lower-income units that can be developed in the Airport Area. Committee Member Kiley remarked that because of the proximity tc employment and transportation, the Airport Area is the logical location for affordable housing. In answer to her query, Principal Planner Murillo related that staff is looking at the possibility of accessory dwelling units (ADU) qualifying as affordable units. The potential for development of ADUs in the City is great. SGAG is developing pre -approved methodologies to count ADUs regionally, At the time of SS3-328 Housing Element Update Advisory Committee Meeting July 15, 2020 Page 6 of 9 permitting, property owners complete a questionnaire indicating the rent far an AD U, and in some cases the ADUs can be counted as low-income housing units_ In answer to Corn mitte9 Member Fruchbom's question, Principal Planner MuriIIo explained that in the Airport Area the minimum density is 30 units per acre and the maximum is 50 units per acre. Staff used 30 units per acre and parcel size to develop the realistic capacity for the Airport Area. The actual capacity of the Airport Area is closer to 4,000 units. Staff did not consider 60 or 80 units per acre because the General Plan does not allow such high densities, Chair Tucker recalled the Mayor's letters to legislators regarding credit for ADUs. Public opinion seems to be split as to whether ADUs will be developed, In response to Committee Member De antW inquiries, Principal Planner Murillo believed the Committee will explore the potential for redeveloping existing land uses as housing. Changes in retail business models and the pandemic may provide justification for redevelopment of sites as housing_ Chair Tucker indicated surface parking lots are being redeveloped for other uses. The Sites Subcommittee is exploring all possibilities and hopes to find sites on the perimeter of town. In reply to Committee Member Sandiand's inquiry, Principal Planner Murillo reported the Newport Crossings project with 350 units and Uptown Newport project with approximately 600 units have been entitled, but they have not been submitted for plan check_ As such, it is likely they will be counted towards the City's RHNA allocation for the upcoming cycle. Unfortunately, the units that can be counted will be moderate or above- rnode rate -i n come units because the lower-income components have been completed. Staff will prepare a list of projects and units for the next meeting. Jim Mosher oommented that the vast majority of opportunity sites identified in 2013 have not been redeveloped during the current planning period, but some of the areas that have been redeveloped with housing were not identified as housing opportunity sites. The Committee may want to know the number of ADUs to which the safe harbor provisions of the HCD memo refer. Locating housing on the County's portion of Banning Ranch may not be a good idea because of the requirements to annex the property and to assume the County's RHNA allocation for the site_ Deborah Allen indicated the community strongly supports locating 4,800 units on the periphery of the City. David Tanner requested clarification of the viability under the new regulations of opportunity areas previously shown on the General Plan and not developed. Current laws allow each residential property owner within the City to construct an ADI) on his property_ More than 40,000 ADUs could be built within the City. Dorothy Kraus inquired about preparation of a baseline number of units that have been built and the remaining capacity and about the Coastal Commission's review of opportunity sites in the Coastal Zone and the impact of the Coastal Commission's review on the October 2021 deadline_ Chair Tucker advised that opportunity sites within the Coastal Zone are not under consideration presently. SS3-329 Housing Element Update Advisory Committee Meeting July 15, 2020 Page 7 of 9 Deputy Community Development Director Jim Campbell explained that the City has a robust GIS database of density. Much of the under -built density is located on R-2 properties. Staff has not created any summaries but has created maps, which have been provided to the consultant for evaluation of the current baseline_ Staff will work with HQD to develop projections for ALUs and werk with the community to increase development of ADUS. Redeveloping single-family homes on R-2 lots as duplexes may be an untapped resource for housing units, but it could be difficult to justify to H C D because staff would have to assess the amount of redevelopment over the next eight years based on a nonexistent program. In response to Committee Member iley's inquiry, Deputy Community Development Director Campbell related that staff would like to count existing, unpermitted ADUS. However. HOD might take the position that existing ADUS are not a net increase in housing_ The City may need to develop policies and programs to promote permitting of existing unperrnitted ADUS and redevelopment on R-2 parcels so that HD will accept the housing units. d. CEGA Project Description Recommended Action. No action; receive presentation from staff on the project description as it pertains to compliance with the Calrforrrra Environmental Quality Act (l QA) and discuss as necessary. ft Deputy Community Development Director Campbell reported the environmental review will be programmatic. The QEQA analysis will be based on discrete geographies and Specific densities, which are the fundamental components of a project description. This approach to a programmatic environmental review will likely result in an EIR that reflects more impacts than what will be approved_ There will not be an opportunity to change the project description to match the final inventory. In reply to Chair Tucker's questions, Deputy Community Development Director Campbell explained Sites may be removed from the inventory if they are not feasible or do not meet legal definitions, but sites cannot be added to the inventory. The project scope may be larger than the final sites inventory. Amendments to the Circulation Element may require environmental revi ew and analysis. Policies added to the Housing Element and Land Use Element may need to be evaluated_ The project description has to be broader than potential sites. Many components will need to be analyzed before preparation of the €IR begins. The sites inventory will be specific while areas of interest can be fairly broad, Sites will be considered in parallel to preparation of the EI R. Staff and the consultants will prepare a project description and present it to the Committee for review and action_ Meanwhile, the Committee will be reviewing potential sites. A Statement of Overriding Considerations is a possibility even if the RHNA allocation is fulfilled. While Level of Service has been replaced with Vehicle Miles Traveled, a Level of Service analysis will be needed to properly plan for intersections and to ensure housing fits as best it can within projections. In answer to Committee Member Deantis' inquiry, Deputy Community Development Director Campbell indicated staff will attend S CAG's workshop regarding a new tool for the site inventory. In response to Committee Member Fruchbom's query, Deputy Community Development Director Campbell related that there has been talk about exempting the Housing Element Update from EQA requirements so that jurisdictions can complete it on time. Staff will }proceed under the assumption that the Housing Element Update is not exempt from CEQA requirements. SS3-330 Housing Element Update Advisory Committee Meeting July 15, 2020 Page 8 of 9 David Tanner stated the project description should not be developed by staff or consultants, The City's Traffic Phasing Ordinance will require a Level of Service analysis- There will be massive gridlock if ADUs are developed and RHNA numbers are met. e. Subcommittee Progress Reports Recommended Action. Receive verbal progress reports from both subcommittees and discuss as necessary - Chair Tucker advised that the Affordable Housing Subcommittee discussed funding, financing, tax credits, subsidies, and rent restrictions for affordable housing. The challenge will be creating incentives that allow the construction of as much affordable housing as possible. At this time, achieving the fHNA allocations for affordable housing does not appear realistic. Committee Member Fruchbom introduced himself as an affordable housing developer. The cost of Providing an affordable unit in Newport Beach is higher than in many other cities, but state and federal regulations for affordable housing rents do not consider that feet- Tax credits generally do not provide sufficient income to construct the required number of affordable units. Because rents are high in Newport Beach, increasing the density to some economic limit creates more value for projects in Newport Beach than in an area with lower rents. Hopefully, the developer's profit from high -rent units will be sufficient to subsidize the affordable rents - Committee Member Jeffrey Bloom introduced himself as the head of commercial lending for a regional bank. In addition, he oversees the bank's investment in low-income housing tax credits - Finding tax credit investments in higher -income areas is extremely difficult. Incentives are needed far developers to construct projects in high-income areas and allocate funds saved from that project to projects in less -costly areas. Chair Tucker indicated the Sites Subcommittee began analyzing parcels in a portion of the Airport Area for potential opportunities. There are many large parking lots in the area; however, office buildings have the rights to park in those lots. The subcommittee will probably draft letters to the property owners. The Airport Area is limited to 550 infill units, but that number will probably change. Com mittee Member SeIich introduced Himself as a housing developer and a former member of the Newport Beach City Council, Planning Commission, Affordable Housing Task Force, and Local Coastal Program Implementation Committee. Committee Member Sandiand introduced himself as a licensed architect and retired real estate developer, primarily in infill and reuse projects. He has served on the City Hall Design Committee and the Building and and Fire Board of Appeals- The Sites Subcommittee also discussed buildings that could be rep urposed or demolished for a higher and better use and wrap and podium projects. For all of these projects, the property owner has to be willing to redevelop his property. Committee Member LePlastrier introduced himself as a business adviser and a member of the Board for Olson Urban Housing. Committee Member Kiley introduced herself as a commercial real estate appraiser. Committee Member Deantis introduced herself as a consultant for stakeholder engagement and advised that she has worked with the CaIifomia Association of Re as the Director of the State Department of Housing, and with an urban planning firm, SS3-331 VI VII Housing Element Update Advisory CornMittee Meeting July 15, 2020 Page 9of Committee Member Stevens introduced herself as an environmental consultant primarily for CEQA documents and as President of the Corona del Mar Residents Association, Chair Tucker introduced himself as a former attorney for residentiail, retail and industrial real estate developers, an investor in corn merdaI properties, and a former licensed real estate broker. He has also served on the Planning Commission, City Hall Design Committee, and Finance Committee_ Jim Mosher appreciated the introductions and the detailed subcommittee reports and hoped future agendas would include subcommittee reports. New Subcommittee Appointments Recommended Action: Appoint ar? additional opportunity sites subcommittee and appointment ars outreach subcorr mittec. Chair Tucker appointed Committee Members LePlastrier, Selich and Kiley to the Opportunity Sites Subcommittee for West NewportfMesa and Committee Members De antis and Stevens to the Outreach Subcommittee, Chair Tucker moved, seconded by Committee Member SeIich. to oonfirm the appointments to the Opportunity Sites Subcommittee and the Outreach Subcommittee_ AYE: Tucker, Bloom. DeSantis, Fruchbom: Filey, LePlastrier: Sandland, Selich, Stevens NO; None ABSTAIN: Alone ABSENT; None COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON -DISCUSSION ITEM) Chair Tucker did not believe a presentation of the 2018 Orange County Business Council study would be useful even though it is an interesting study_ The study could be good support for a draft Housing Element Update_ ADJOURNMENT — 8:11 p.m. Next Meefing: August ?g, 2020. 8 p.m. in the City Coancil Chambers SS3-332 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, SEPTEMBER 2, 2020 REGULAR MEETING —6 P.M. 1. CALL MEETING TO ORDER — 6 p_rn_ IL WELCOME AND ROLL CALL MEMBERS PRESENT: Chair LarryTucker. Jeffrey Bloom, Susan DeSan[is, Elizabeth Kiley, Geoffrey LePlastrier (remote), Stephen Sandland, Ed Selich, Debbie Stevens, (Ex Officio Member) Will O'Neill (arrived at 6:10) MEMBERS ABSENT: Paul Fruchbom Staff Present; Community Development Director Seimone Jugis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, City Traffic Engineer Tony Brine, Administrative Technician Amanda Lee 111. PUBLIC COMMENTS ON NON -AGENDA ITEMS David Tanner inquired regarding the City's strategy for updating the Housing Element; the rationale for spending more than 2 million to update the Housing Element. a Greenlight election, and the City's involvement in AB 1063_ He offered to explain an alternative strategy that would save the City time and money. Jim Mosher noted there have not been agenda items to discuss the frequency of the Housing Element Update Advisory Committee (HEUAO) meetings or the consultant's work on the Environmental Impact Report (EIR). The Circulation Element Update has been delegated tc the Planning Commission when the City Council charged the HEUAC with updating the Circulation Element. Nancy Scarbrough asked if the City has applied for any planning grants offered by the [California Department of Housing and Community Development (HCD). Senior Planner Ben Zdeba reported the City has been awarded grants under the SB 2 planning grant program and the Local Early Assistance Planning (LEAP) grant program. The grant funds have been used to update the City's land management software_ Chair Tucker suggested the City Council is the appropriate body to consider Mr. Tanner's alternative strategy. The City Council has indicated a Greenlight vote will be held if the Housing Element Update triggers one. Chair Tucker believed a vote would be necessary. AB 1063 failed to receive the support necessary for advancing through the Legislature_ The H E U AC will meet as needed and when necessary information is available, The HEUAO will receive updates regarding the environmental document. The decision has been made to delegate the Circulation Element Update to the Planning Commission. SS3-333 Housing Element Update Advisory Committee Muting September 2, 2020 Page 2 of 7 Mayor O'Neill advised that the need for a Greenlight vote will not be known until the end of the update process_ I. CONSENT CALENDAR a. Review Minutes of the .July 15, 2020 Meeting Recommended Action: Approve and file the minutes of JLdy 15, 2020 At Committee Member andland's request, Principal Planner Jaime Murillo clarified that the Newport Crossings project has been entitled, but it has not been submitted for plan check. Staff anticipates the project's housing units can be counted towards the City's Regional Housing deeds Assessment (RHNA) allocation for the upcoming cycle. Committee Member Sandland requested the minutes reflect Mr_ Murillo's clarification of comments in the fifth paragraph on page 6 and reflect Building and Fire Board of Appeals rather than Building and Life Safety Board of Appeals on page 8_ David Tanner asked the City to create a folder to store all public comments rather than including public comments in each agenda item_ Chair Tucker requested the incorporation of Mr. Mosher's correction of typographical errors and proper names. Committee Member Sandland moved, seconded by Committee Member elich, to approve the minutes of the July 15, 2020 meeting as amended, AYE: Tucker, doom, De antis, Kiley, LoPlastrier, Sandland, Selich, Stevens NO-. None ABSTAIN: None ABSENT: Fruchbom V. CURRENT BUSINESS a_ Community Outreach Plan Recommended Action- Review and discuss the draft outreach pian. Provide direcrier? to staff on how to proceed. David Barquist, K imIey-Horn & Associates, reported the purpose of the plan is to ensure community engagement is sustained throughout the planning process. The overall goal is to provide a transparent process that provides sufficient and varied opportunities for public participation. The plan can be adapted to respond to the COV ID situation. The process chart depicts the planning phases and outreach activities for each phase. He summarized the use of Bang the Table, the online platform, and workshops; the HEUAC's and City Council's involvement, and opportunities for feedback regarding the EIR. Committee Member Deantis appreciated staff and the consultant incorporating the outreach subcommittee's comments in the plan. In response to her questions, Mr. Barquist recommended a four-week lead time to promote the i nitial workshop in October, Staff and consultants are working on the details of the workshop. A specific date in October has not been announced. Consultants will suggest technologies they feel are best for tasks. Bang the Table can be used for polling, SS3-334 Housing Element Update Advisory Committee Muting September 2, 2020 Page 3 of 7 analysis, mapping, and many other activities and will be the base technology. Workshops will be recorded and available for the public to review and provide feedback - in reply to Committee Member Stevens' inquiry, Senior Planner Zdeba advised that the website has been updated and is Iive. A member of the public has commented an the removal of the prior planning effort, and staff is working on returning it to the website. The website will be updated throughout the process - In answer to Committee Member andland's queries, fair. Barquist indicated the overall schedule and associated action items are being updated and will be provided to the HEUAC at or before its next meeting. Chair Tucker remarked that the H EUAD needs to review and understand information about housing sites before it can provide direction regarding outreach, The H E U AC needs the information in order to obtain specifiic input from the public, Deborah Allen, Harbor View Hills Community Association President, agreed with Chair Tuckers comments. The sites will be the issue for public comment. Notices of meetings and workshops should be provided to community associations and homeowners associations far distribution to the members, Jim Mosher inquired regarding the anticipated deliverables from the workshops and the purpose of outreach- For outreach to be effective, the topic for public comment should be specific, and the input should have a meaningful effect on the outcome of the process. The HEUAU should consider better branding for the update effort- The number of community members who have used the outreach tools is probably small, and community familiarity with the tools is not sufficient reason to continue using the tools. Stakeholders should include potential future residents with low incomes, David Tanner suggested the workshops be dialogs with the community such that the community helps draft the document. The schedule should be revised to accommodate a Creenlight election and Coastal Commission approval, None of the documentation refers to updating the Safety Element. Voters want to know the assumptions being used in modeling - Nancy Scarbrough expressed concern about the timing of the outreach program. The content of workshops should be reviewed in advance to ensure the workshops will be productive and effective, Community input needs to be more than responses to questions. Chair Tucker believed sites would drive discussions and community input. Hopefully, the outreach program will be designed to elicit input about sites- Stakeholders are residents, businesses, and owners of commercial properties where housing sites may be located. Committee Member Stevens suggested a review of the housing sites subcommittee's work would help the public understand the complexities of selecting sites, Committee Member Deantis understood the community wants to know the location of housing sites and the effect of development at those sites on the look of the community. This will add another layer to the complexity of identifying sites. Chair Tucker expected the look of potential developments to be a factor in decisions.. In all likelihood, only a small number of sites could accommodate an all affordable housing project. The SS3-335 Housing Element Update Advisory Committee Muting September 2, 2020 Page 4 of 7 majority of affordable units would likely be components of large, above -moderate -income development projects. b. Subcommittee progress Deports Recommended Action: Receive verbal progress reports from all subcommittees and discuss as necessary. Chair Tucker reported the sites subcommittee has reviewed sites in the Airport Area to determine possible sites for housing_ He reviewed each of the sites and pros and cons for redeveloping the sites. Committee Member Sell ich advised that limited housing opportunities are available in West Newport areas zoned for residential, medical office, and public facility uses. Housing may be possible in areas zoned for industriallcommercial uses and in areas containing mobile home lots_ Chair Tucker explained that a zoning overlay retains the current use and acids a new use. An ave rlay mar be important for the east side of MacArthur Boulevard. Tenants of affordable housing pay rent, but the rent amount is based upon income. I ncentives will be needed for the development of affordable housing. Committee Member Filey related that rezoning a one or two-story commercial building to residential could increase the utilization of the site, which may be preferable to the property owner. The cost of demolishing a commercial building from the 1970s and replacing it with housing could be less than remodeling the commercial building. Jim Mosher believed the State allows housing with adequate sound attenuation in 65 dB areas_ However, Noise Element Policy N 3.2 prohibits new residential development in 65 dB areas_ A General Plan amendment has been noticed for the September 8 City Council meeting. The amendment would extend the existing overlay for housing into an area where housing is not allowed_ He requested clarification of Committee Member Bloom's concept of incentives for development of projects in high-income areas. Chair Tucker indicated developers could pay a fee for projects in high-income areas. and the fees would be used for affordable housing projects in areas with lower land costs. In answer to Committee Member Deantis' questions, Chair Tucker stated the HIEUAC does not advise the Council regarding planning applications. If the Council approves the General Plan amendment, the HEUAC will have less to consider. The units have been incorporated into the roadmap. C. Housing Element Sites Str3tegy Recommended Action: Receive an overview of current projects in the developmentp*llne that can count towards the RHNA allocation and discuss strategies to identify housing opportunities. Senor Planner Zdeba reported the City's draft R HNA allocation will be increased to 4,834 units_ The roadmap is simplistic and does not include income designations. Entitled and unbuilt projects may be under construction but have not received a certificate of occupancy and will provide 1,13 units. Projects under review have not been entitled) and could provide 878 units. SS3-336 Housing Element Update Advisory Committee Muting September 2, 2020 Page 5 of 7 In reply to Chair Tucker's questions, Senior Planner Zdeba indicated the unit count for the U pto n Newport project pertains to Phase 2. Phase 2 will begin when TowerJazz"s lease expires_ Principal Planner Murillo explained that the Newport Crossings project was approved under the Newport Place affordable housing overlay. The overlay allows housing development up to 50 dwelling units per acre subject to design review only. To qualify for housing under the overlay, the developer has to commit to providing a minimum of 30 percent of units at the low-income level. The developer has received a density bonus in exchange for low-income housing. This is the first application to utilize the overlay . Plans have not been submitted for plan check. The Airport Area has a maximum development limit of 2,200 units, but most of those units have to be developed through the conversion of commercial floor area. Five hundred fifty infill units are also allowed. The Residences at 4400 Von barman project is utilizing 260 of those infill units, The developer received a density bonus for providing very -low-income units. The Newport pillage project complies with minimum commercial standards and maximum residential standards and is currently under review. The project does not seek more intensity than is allowed. Committee Member Kiley suggested the RHNA allocation and business closures caused by COV 11) may provide an opportunity to amend the general Plan to support more residential and less commercial space in mixed-use projects. In answer to Mayor O'NeiII's queries, Principal Planner M uriIIo explained that if a project is permitted and built prior to June 30, 2021, the units in the project will be credited to the current cycle_ The guidelines state the cutoff date is the date of entitlement, permitting. or issuance of a certificate of occupancy. Staff relies on the date a certificate of occupancy is issued_ The Newport Crossings project has been entitled but has not obtained permits. The Uptown Newport project is subject to a Development Agreement - Se n ior greement_Senior Planner Zdeba advised that 78 1 units from the 2014-2021 Housing Element inventory could count if they comply with the guidelines for the current cycle. The number of units does not include any units at Banning Ranch because annexation probably could not occur prior to the deadline_ In response to Committee Member andland's inquiry, Senior Planner Zdeba indicated the 781 units are based on the realistic development capacity of the existing inventory and do not include sites slated for redevelopment. He agreed to provide a tabulation of the units. Senior Planner Zdeba described alternatives to new construction as preservation of existing affordable units and conversion of market -rate units to affordable units. The guidelines limit the number of alternative units to 25 percent of theCity's very low and law -income requirements. Mobile home units can be identified as committed and preserved for affordable housing, but the 55 -year minimum affordability term may be a deterrent to property owners taking that action_ In reply to Chair Tucker's queries, Senior Planner Zdeba stated realistically 12 units could be preserved within the timeframe for the current cycle. Chair Tucker believed there are few opportunities to achieve the 594 units, Senior Planner Zdeba related that 1,000 units is an aggressive target for the production of accessory dwelling units (ADUs)_ With the changes in State law, the production of ADUs is much easier. To achieve this number, the City would have to commit to promoting ADUs, monitoring ADU production, and being held accountable should 1,000 units not be achieved. The ADU target number is open for discussion. SS3-337 Housing Element Update Advisory Committee Muting September 2, 2020 Page 6 of 7 In response to Chair Tucker's inquiries, Senior Planner Zdeba indicated there would be consequences for failing to achieve 1,000 ADUs_ Mate law does not allow the imposition of new or existing private restrictions on ADUs. Senior Planner Zdeba explained that the City could commit to a rezoning program that would account for shortfalls in achieving goals. In answer to Committee Member Bandland's questions, Senior Planner Zdeba advised that the beginning of the planning period is June 30, 2021. None of the goals include potential units at Banning Ranch. Principal Planner Murillo reported live-aboards with permanent utility hookups can count towards the allocation_ Moorings in Newport Harbor do not provide permanent utility hookups and cannot count. In reply to Committee Member elich's queries, Senior Planner Zdeba reported the number of units obtained through rezoning could be 445 if the other goals are achieved. Staff has not analyzed the number of units from the existing inventory to suggest a realistic number of units that could be achieved. The assumptions for existing inventory sites, altematives to new construction, a nd AD Us will affect the target for rezoning. Committee Member Bloom remarked that the net number of needed units is 2,809 absent income restrictions. With income restrictions, the target for law -income units is about 3,300 units- Approximately nits_Appro imately 8,200 units will be needed to satisfy the income restrictions_ Principal Planner Murillo related that only 88 of the 1,136 units entitled and unbuilt are lower-income units_ Staff needs to present the number of units per income category for each target. In answer to David Tanner's question, Chair Tucker stated the H E IIJAG will attempt to find sufficient sites to accommodate housing. If the HEUAC cannot accomplish that, it will report it to the Council, Mr. Tanner suggested the HEUAC ask staff and consultants about the strategy if the allocation cannot be fulfilled. He inquired about opportunities for public input in the roadmap. Jim Mosher remarked that the HEUAC is not envisioning all affordable housing projects. The goal for low and very -low-income units is more than 2,000. To achieve 2,000 units, the number of overall units will have to be more than 4,834. The City Council has asked the Harbor Commission to review live-aboards, perhaps with the idea of counting them towards the RHNA allocation. The Harbor Code prohibits houseboats. Aehai"Tucker reported approximately 2:400 units in the lower affordability range are required. If market -rate housing projects can include no more than 20 percent affordable housing, 12,000 housing units will be needed to provide 2,400 affordable units. Magor O'Neill recalled the Council's direction for three paths. providing a compliant Housing Element, pushing back legislatively, and pushing back legally. The Council will consider an appeal and legal options when it receives the formal R H N A allocation. The Council's legislative efforts ended when the bill it supported died. Completing the Housing Element Update in 14-15 months is not possible. The expectation for the HEUAD is to find as much compliance as possible and make recommendations to the Council_ The Council will then review its options_ In reply to Committee Member Selich's question, Principal Planner Murillo advised that a rezoning program, if needed, would be contained in the Housing Element that the City Council adopts. The City will have three years to complete rezoning, which could include General Plan amendments, A SS3-338 Housing Element Update Advi cry Committee Meeting September 2, 2020 Page 7 of 7 reenlight vote would not occur until rezoning and associated General Plan amendments are proposed- A Oreenlight vote and Coastal Commission approval are not needed to submit the Housing Element to HCD. Committee Member De antis remarked that affordable housing does not have to be achieved through inclusionary requirements only. The HEUAO can explore other methods to achieve affordable housing that will not increase the number of overall units. A housing trust fund and mortgage programs are examples of such methods. Newport Beach employers could be interested in contributing to a housing trust fund for workforce housing. Chair Tucker commented that the HEUAG will need to document and describe the reasons it cannot meet the RHNA allocation, if that occurs. Magor O'Neill referred to the City's efforts to subsidize permanent supportive housing, which could aid compliance with the RHNA allocation. Marr Ann Soden encouraged the HIEUAC to consider nonprofit and affordable housing partners to build affordable housing. In answer to Committee Member Sandland`s question, Chair Tucker indicated he is working with staff to draft a letter to property owners regarding redevelopment of their properties - d. Appointment of an Additional Sites Subcommittee Recommended Action. Appoint an additional sites subcommittee. Chair Tucker moved, seconded by Committee Member Selich, to establish an Additional Sites Subcommittee composed of Chair Tucker and Committee fvlembers Selich and Stevens - AYE: Tucker, Bloom, DeSantis, Kiley, LePlastrier, Sandland, Selich, Stevens NO- None ABSTAIN. None ABSENT: Fruchbom VII. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON -DISCUSSION ITEM) hair Tucker requested details of affordable housing - VII, ADJOURNMENT —839 p -m. Next Meeting: October 7, 2020, 6 p.m. in the Cify Council Chambers. SS3-339 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, OCTOBER 7, 2020 REGULAR MEETING — 6 P.M. 1. CALL MEETING TO ORDER — 6 p_m_ II. WELCOME AND ROLL CALL. MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan De antis, Paul Fruchbom (remote), Geoffrey LePlastrier, Stephen Sandiand, Ed Sell ich, Debbie Stevens MEMBERS ABSENT; Elizabeth Kiley (excused), (Ex Officio Member) Will 0: Neill Staff Present; Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, Administrative Support Specialist CIariveI Rodriguez III. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher noted the City Council has amended the General Plan and approved a development agreement for a developer to build housing that does not require low-income or very -low income units on property adjacent to thea Airport. Allowing all developers to do this would result in the need to find locations for up to 49,000 units to achieve quotas for affordable housing. Nancy Scarbrough commented that the Circulation Element had been delegated to the Planning Commission without a Council vote or public awareness. She wanted to know when and where that decision was made and whether staff or consultants have begun work on updating the Circulation Element, IV. CONSENT CALENDAR a. Minutes of the September 2, 2020 Recon mended Achon. Approve and fife the minutes of September 2, 2020 Chair Tucker indicated Mr. Mosher has provided a minor correction_ Chair Tucker moved, seconded by Committee Member Selich, to approve the minutes of the September 2. 2020 meeting as presented, AYE. Tucker, Bloom, DeSantis, LePlastrier, Sandland, Selich, Stevens NO: None ABSTAIN: Fruchbom ABSENT' Tiley SS3-340 Housing Element Update Advisory Committee Muting October 7, 2020 Page 2 of 8 V. CURRENT BUSINESS a. Subcommittee Progress Deports Recommended Acfion: Receive verbal progress reports from alf subcommittees and discuss as necessary. Chair Tucker reported the sites subcommittees for the Airport Area and Nest Newport Mesa have completed their reviews, and staff has posted the subcommittees' notes to the website. The site subcommittee for the remainder of the City is awaiting information from staff_ The goal is to have the subcommittee's review complete and its nates posted prior to the next HEUAC meeting and the workshop. Senior Planner Ben Zdeba advised that the information should be available for the subcommittee the following week_ Chair Tucker explained that the sites subcommittees graded each site as feasible, potentially feasible, or infeasible. Feasible sites have physical characteristics that may allow housing development. Infeasible sites appear not to have the ability to accommodate housing. Potentially feasible sites may accommodate housing, but the subcommittee could not make a determination based upon current information. After public input, the H E LJ AC will decide if a parcel is Suitable for housing_ Committee Member Sandland requested staff maintain a tabulation of the number of acres and potential units the sites could generate in each category. Deputy Commu nity Development Director Jim Campbell advised that staff will maintain a tabulation of the acreage of the sites and could provide a range of densities or unit yields at different densities. I n response to Deputy Cornmuniky Development Director Campbell's query, Chair Tucker explained that the HEUAC should determine sites are suitable for housing prior to Staff contacting the property owners. The subcommittees have no decision-making authority_ Deputy Community Development Director Campbell expressed concern because the HELJAC would receive public input prior to making a decision, and public input would occur over a number of months_ Staff should contact property owners sooner rather than later to learn of their interest in building housing on their properties. In addition, staff Should probably contact more property owners than the H€UAC identifies in order to gather additional informabon about sites. Chair Tucker expected the workshops to provide public input regarding the sites that could accommodate housing. The October 20, 2020 workshop could provide input for the HEUAD to consider in its October 21 meeting. The HEUAC will review sites in the Airport Area and West Newport Mesa on October 21 and the rest of the City on November 4_ By November 4, the HEUAC should have enough input for staff to begin contacting property owners. Deputy Community Development Director Campbell did not believe the October 20 workshop would oonsider specific sites: therefore, the H E LJAC would not have public input regarding specific sites for its October 21 meeting. Jim Mosher requested a more logical numbering system for the parcels and suggested the HEUAC ebpage contain a list of subcommittees, subcommittee members, and the task of each subcommittee. Chair Tucker related that the numbering system was provided to the subcommittee, and the subcommittee did not change it. SS3-341 Housing Element Update Advisory Committee Meeting October 7, 2020 Page 3 of 8 Deputy Community Development Director Campbell indicated the webpage could be updated to include a list of subcommittees. Dorothy Kraus remarked that the lack of a response to Ms. Scarbrough's comments about the Circulation Element leaves an unsettling feeling. She inquired about the rationale for deeming the Road and Track building as infeasible when the underlying zoning for the parcel is residential. Chair Tucker explained than he made a recommendation to staff and the Mayor that the Planning Commission update the Circulation Element as it has experience with traffic matters and HEUAC members do not. He was not privy to how the decision occurred. Committee Member Selich advised that the subcommittee was informed that the Road and Track building is undergoing remodeling for a private school's educational offices. With the school's investment in the building, the subcommittee felt it was infeasible for housing. In addition, a major portion of the parking lot for the building is in the public right-of-way for the extension of 15"' Street. Deputy Community Development Director Campbell reported several years ago the Hearing Officer granted an extension of the nonconforming office use for Lobe's project at the Road and Track site_ Pacifica Christian School is making similar investments and extending that nonconforming privilege. Changing zoning on the site from residential to commercial would require a General Plan Amendment_ Also, the shape and size of the parcel makes a residential development on the site challenging, In order to include the site in the Housing Element Update, the City needs reasonable evidence that the site could change land uses during the planning period_ Chair Tucker appreciated Ms. Kraus' input as the type of input the HEUAC wants to receive b. Strategy for Public Input on Sites Recommended plc ion: Discuss and provide direction on how to best seek public input on the housing opportunity Sites inventory. Chair Tucker wanted to receive quality input regarding the suitability of sites listed in the subcommittees' notes. Following the October 20 workshop, the HEUAC will revi ew feasible and potentially feasible sites, hear public inpiA prDvided at the workshop, and determine sites suitable for housing. HEUAC review of sites in the Airport Area and West Newport Mesa will be scheduled for October 2 1, and sites in the remainder of the City will be scheduled for November 4. In response to Chair Tucker's question, David Barquist, Kimley- Horn and Associates, advised that the City has the right to adopt a Housing Element as it sees fit, but the City has to abide by State law_ If the City adopts a Housing Element that does not comply with statutory requirements, the State will not certify the Housing Element. There are some challenges to self -certifying a Housing ElernenL In his opinion, the community's desires and statutory requirements should be considered equally. Chair Tucker understood penalty provisions contained in recent legislation apply pressure on cities to achieve their RHNA allocations. Mr. Barquist could provide the HELJAC with relevant legislation. Chair Tucker did not want the public to participate in the engagement process and then feet as though the HEUAC ignored its input. He read the Code section regarding public participation. SS3-342 Housing Element Update Advisory Committee Meeting October 7, 2020 Page 4 of 8 C. Outreach Plan Update Recommended Action_ Receive an overview of the outreach plan efforts, including information on the schedule moving forward and the upcoming October 20 virtual workshop and the November fS vitlual workshop for the Circulation Element Update. Mr, Barquist reviewed opportunities for community engagement, which include digital engagement, committeeladvisory meetings, in-person or virtual workshops, online video presentations, and webinars. The first community workshop is scheduled for October 20, 2020, will be held online, and will be interactive without a presentation- Engagement opportunities will be available through the website and HEUAC meetings Senior Planner Zdeba related that 36 people have registered via Zoom for the October 20 workshop. The community was notified of the workshop through email blasts and Nextdoor posts, The community may register for the workshop on the website- A Circulation Element kickoff workshop is scheduled for November 16, 2020, In response to Committee Member Deantis' inquiries, Nor. Barquist emphasized the interactive nature of the October 20 workshop, The workshop will include lessons learned from prior outreach efforts, the context for IHNA, a series of activities, and next steps. Scenario building or modeling with different densities will occur after the October workshop. Vehicle miles traveled (VMT) and circulation will be part of the analysis. Mitigation measures for VMT impacts and many other topics will be part of community education. In answer to Committee Member Stevens' question, Mr. Barquist stated the Lego exercise will not be repeated as staff has clearly directed the oonsultant team not to repeat activities- The workshop will focus on locations within areas of the City. Chair Tucker remarked that if the HEUAD cannot achieve the RHNA allocation during the update process, sites will be selected based on their ability to provide housing units, which is not a good planning method - Committee Member De antis referred to a letter from Olen Properties- Visioning is not reviewing individual sites but preparing a realistic model for an area based on available sites and the development community's input regarding feasibility - In reply to Committee Member elich's query, Mr. Barquist explained that during the workshop, participants can respond to polls and share their ideas. Jim Mosher hoped the workshop will have some form- He expressed concern about having to provide information to Zoom in order to register for the workshop, He inquired whether workshops would be recorded and posted on the website- He requested el a rification of the Circulation Element workshop and the center column of the chart for outreach opportunities. Charles Klobe commented that without State and Federal subsidies, the City will not find enough sites to accommodate 49,000 housing units, which will include the required number of affordable housing units- The HEUAC should decide it will submit an incomplete Housing Element. He suggested staff reach out to coastal cities in the same position as Newport Beach and develop a regional coalition to approach the tate- SS3-343 Housing Element Update Advisory Committee Meeting October 7, 2020 Page 5 of 8 Dorothy Kraus expressed confusion regarding the role of the outreach subcommittee in obtaining public input on sites- The HEUAC seems to be glossing over Committee Member DeSantis' comments regarding visioning. The Outreach Plan and the websites are confusing and do not relate to each other. Chair Tucker advised that Committee Members DeSantis and Stevens form the outreach subcommittee. They coordinate the outreach program with staff and consultants in order to obtain meaningful public input. The City can fight its RHNA allocation or update the Housing Element to achieve the allocation- If individuals feel the City should fight the allocation, they should address the City Council, Deputy Community Development Director Campbell indicated the workshops will be recorded and posted on the website- A detailed script or agenda of the workshop is not ready for publication. Zoom registration requires a name and email address. Staff will update the City Council on October 1, 2D2D. but currently no other meetings with the Planning Commission or City Council have been scheduled- 4 Chair Tucker requested the workshop script be provided to the outreach subcommittee for comment. The affordable housing subcommittee is awaiting information from Principal Planner Jaime Murillo. Gornmittee Member De antis noted Orange County has a housing trust fund, and cities may create a local fund to subsidize housing units - Senior Planner Zdeba explained that the Circulation Element webinar is listed at the tap of the chart. I n response to Committee Member SandIand's question, Deputy Common ity Development Director CarrrpbeII clarified that workshops and webinars will allow the corn munity to participate through chat and polling features. ha r Tucker recommended the workshop include an announcement of the HEUA 's schedule for reviewing sites in the Airport Area, West de port Mesa, and the remainder of the City, d. Affordable Housing Compliance Re commended A ction.-Receive ars overview of what "affordable housing" means in the context of Orange County, as welt as the new affordable housing requi'rements related to the housing opportunity sites inventory. Discuss strategies for compliance. WW Mr. Barquist defined affordability as the ability to pay based on income and housing cost. Affordability is based on median family income (MR), which is calculated by the Department of Housing and Urban Deve.loprnent (HUD) for each county. Orange County's MFl of $108,000 is high in comparison to many counties in the state. RHNA assumes a family of four individuals. The Housing Element is required to identify sites by income category. Affordability for a site is generally based upon the density allowed for the site. According to the State, 30 dwelling units per acre is the default density for affordable units- Sites can accommodate more than one income category - The Department of Housing and Community Development (HDD) recommends a 1-0 percent buffer for additional dwellings to cover no net loss- SS3-344 Housing Element Update Advisory Committee Muting October 7, 2020 Page 6 of 8 In reply to Dommittee Member Selich's questions, Mr. Barquist indicated the C ity would have to find situ to accommodate affordable housing that a developer does not build on a site designated for affordable housing. Staff will track affordable housing sites and construction of affordable housing. A subsidy could be a policy solution for construction of affordable housing, Chair Tucker advised that most sites in Newport Beach are non -vacant, which is required for housing in the lower-income range_ Therefore, the substantial evidence rule will come into effect. In answer to Chair Tucker's query, Mr_ Barquist explained that different strategies and methods can encourage property owners to redevelop their land. Committee Member Selich remarked that the City cannot provide enough incentives, fee reductions. or bonus programs to make up the deficit of constructing affordable housing. Committee Member Fruchbom related that coastal cities have the most difficulty providing affordable housing because their rents are higher than countywide rents, on which RHNA requirements are based. He calculated a developer's loss in constructing a hypothetical one - bedroom apartment unit at 50-0 percent AMI in Huntington Beach and in Newport Beach. According to his very rough estimation, a bond measure levying $6,000 on every man, woman, and child in Newport Beach could provide funding for affordable housing. Theoretically, it is possible for tax credits and cheap land to fill a developer's deficit, but the demand for tax credits is immense - Th e mmense_The City could offer increased density in exchange for affordable units. In the past, he surveyed the City for sites that could accommodate a development with affordable housing and found only ane site, City -owned land near the maintenance yard. Chair Tucker questioned whether the State would accept a Housing Element that utilizes strategies to achieve affordable grousing allocations, regardless of the success of the strategies, Committee Member Selich expressed concern regarding the no net loss requirement_ Chair Tucker suggested the no net loss requirement will have to be covered through an overlay that requires affordable housing as part of a residential development. In response to Committee Member De antis' inquiry, Mr. Barquist stated the City could use in -lieu fees to construct affordable housing in other cities. Committee Member Deantis noted UCI has a fund for silent second mortgages on affordable housing, The City of Livermore and the County of Marin are subsidizing mortgages to attract residents. Chair Tucker added that UCI is subsidizing affordable housing located ori UI's property. He questioned whether the State would accept affordable housing built in another city. Mr. Barq uist clarified that the Housing Element contains courses of actions that should achieve the RHNA allocation. The specific details of those actions do not have to be included in the Housing Element. To obtain affordable housing, the City could provide incentives or streamline permitting for accessory dwelling units (ADU), increase densities, create affordable overlay zones, promote the preservation of existing affordable units. or promote the conversion of market -rate units to affordable units_ In reply to Committee Member andland's questions, Mr. Barquist explained the City's ability to count affordable units when their affordable covenants, which are set to expire, are renewed. Deputy Community Development Director Campbell reported the current Housing Element SS3-345 Housing Element Update Advisory Committee Muting October 7, 2020 Page 7 of 8 contains a list of project sites subject to affordable covenants. Staff has registered with the State to receive notice prior to the expiration of covenants. Theoretically, the City could negotiate with property owners to pay for an extension of the covenants. Staff has contacted property owners where the covenants were about to expire, and all property owners have rejected offers to extend the covenants. Senior Planner Zdeba indicated covenants on 12 properties will expire during the 2021-2029 planning cycle. In answer to Committee Member elich's query, Mr. Barquist related that the no net loss requirement applies to the entire RHNA allocation. Chair Tucker commented that staff and consultants will provide the HEUAC with alternatives for affordable units. The HEUAC will likely consider an inclusionary fee. Mr_ Barquist indicated HCD considers whether the Housing Element meets the spirit and intent of the law and s bstantially complies with the law. Staff can discuss potential programs and strategies with HCD prior to completing the Housing Element. Committee Member Deantis suggested salaries for Newport Beach jobs should be prominent in the workshop discussion so that the community can relate to residents of affordable housing Jim Mosher suggested staff clarify the statement that HCD considers a density of 3 0 units per acre as suitable for affordable housing and the application of that density to the Newport Airport Village project - De puty roject_ Deputy Community Development Director Campbell reported a site identified for affordable housing must have a density of 30 units per acre. He recommended the Housing Element reflect the number of affordable units proposed for the Newport Airport Village project rather than the maximum number of units that could be built on the site. His recommendation would apply to the Newport Crossings project and any remaining development in the Uptown Newport project. e. RHNA Appeal Filing -Council I#em for October 1 Recommended Action.- Receive and file. Chair Tucker remarked that the appeal lists retail commercial and industrial properties without describing economic constraints on converting those properties to residential uses. He has submitted language addressing that issue to staff. In determining the number of housing units needed, the State did not consider the availability of land for housing. Jim Mosher stated other cities will appeal their allocations and make arguments similar to Newport Beach's arguments. Deputy Community Development Director Campbell advised that a draft letter has been included in the meeting packet and will be presented to the City Council on Tuesday along with a request to authorize an appeal. The Bauthem California Association of Governments (CA) will convene its litigation committee, which could mean SCAG is considering litigation regarding RHNA. In answer to Committee Member Deantis' query, Principal Planner Murillo reported the deadline to submit an appeal is October 26, 2020_ A 45 -day comment period will follow the deadline_ Once the comment period expires, S CO will hold hearings, which are estimated to last four to six weeks. SS3-346 Housing Element Update Advisory Committee Muting October 7, 2020 Page 8 of 8 The appeal process is expected to conclude in late January or early February 2 02 1. At that time, cities will have their final RHNA allocations_ 111. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON -DISCUSSION ITEM) Chair Tucker requested a presentation by the Kennedy Commission and a discussion of the appropriate time for staff to contact property owners about building housing on their properties. Committee Member De antis' requested a presentation by Renaissance Housing, an affordable housing developer. Chair Tucker suggested that occur when the Affordable Housing Subcommittee has information to share. Committee Member Sandland requested Mr_ Barquist provide an updated outreach schedule by October 21, 2020. 1111. ADJOURNMENT — 8;28 p.m. Next Mee ng_ October 21, 2020, 6 p.rrr. in the City Council Chambers_ M SS3-34 7 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, OCTOBER 21, 2020 REGULAR MEETING — 6 P.W 1. GALL MEETING TO ORDER — 6 p_m_ II. WELCOME AND ROLL GALL MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sand land, Ed Selich, Debbie Stevens MEMBERS ABSENT- Paul Fruchbom, (Ex Officio Member) Will O'Neill (excused) Staff Present= Community Development Director Seimone Judis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba. City Traffic Engineer Tony Brine, Administrative Support Specialist ClariveI Rodriguez III, PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher remarked that a loophole in the Housing Crisis Act allows people to merge lots and demolish multifamily housing if the new development is limited to a single unit, which sterns contrary to the intent of the Housing Crisis Act. IV. CONSENT CALENDAR a. Minutes of the October 7, 2020 Meeting Recommended Achon. prove and fife the minutes of October 7, 2020 Chair Tucker advised that Mr. Masher has suggested some minor corrections to the October minutes_ Chair Tucker moved, seconded by Committee Member Selich, to approve the minutes of the October 7, 2020, meeting with Mr. Moshsr's revisions. AYE- Tucker, Bloom, DeSantis, Kiley, LePlastrier, Sandland, Selich, Stevens N; None ABSTAIN: None ABSENT; Fruchbom V. CURRENT BUSINESS a. Presentation by The Kennedy Commission Recommended Action: Receive a presentation from Cesar Covarrubias of The Kennedy Commission followed b Grief questions and answers_ Chair Tucker indicated The Kennedy Commission is an affordable housing advocacy group that was founded in 2001. The Housing Element Update Advisory Committee (HEUAC) is interested SS3-348 Housing Element Update Advisory Committee Meeting October 21, 2020 Page 2 of 7 in hearing about strategies, policies, and incentives that will result in affordable housing development - Cesar Covarrubias shared information regarding median home price, household income, affordability, and Regional Housing Needs Assessment (RHNA) allocations for Orange County. Two cities in Orange County have specific policies for affordable housing and have met their RHNA allocations in the very -low-income and low-income categories- Overlays and specific plans can encourage housing as part of mixed-use developments. Institutional and church campuses are potential sites for mixed-use concepts- The Surplus Land Act, a mixed -income housing ordinance, an affordable housing strategic plan, housing opportunities zoning or an overlay, and an affordable housing land trust support affordable housing. The Veterans and Affordable Housing Bond Act, the No Place Like Horne program, the Orange County Housing Finance TrusVJPA, the Orange County Housing Trust, the Orange County Housing Bond 2020, and the Mental Health Services Act can be used to fund affordable housing - Chair Tucker commented that there are areas in the City where property owners may be enticed to build housing on their properties. Policies that relax development standards and increase allowed density can encourage housing development, but at some point increased density makes construction costs infeasible. Mr. Covarrubias suggested incorporating the City's housing objectives into an overlay or zoning change. Changes to the State Density Bonus Law may result in more affordable housing. Office buildings can be redeveloped with a more intense and intentional use- Adopting policies and programs for affordable housing is essential to the development of affordable housing. In answer to Committee Member S andIand's question, Mr. Covarrubias advised that The Kennedy Commission is reviewing the potential for housing located in areas such as Banning Ranch and portions of the Airport Area located within the 65 dB CNEL contour- Planning growth around existing uses is challenging but doable. In reply to Committee Member DeSantis' query, Mr. Covarrubias indicated he is aware of cities discussing agreements to use funding from one city to build affordable housing in the other city - However. he did not anticipate such agreements would work well because of each city's need to fulfill its allocation for low and very -low-income housing. I n response to Committee Member Stevens' comment, Mr. Covarrubias remarked that if amenities are Iocated close to housing, residents will probably make fewer vehicle trips. h. Orange County Mayors' Letter to the Southern California Council of Governments (SCAG) Recommended Action- Receive and Me - Chair Tucker felt the Mayors' letter could be more fruitful in reducing RHNA allocations than other approaches. The public should be aware of the letter. Jim Mosher inquired regarding the reasons for the Mayors of Dana Point and San Clemente not signing the letter. SS3-349 Housing Element Update Advisory Committee Meeting October 21, 2020 Page 3 of 7 C. Subcommittee Progress Reports Recommended Action- Receive verbal updates from each subcommiftoe, as appropriate. Chair Tucker reported that the subcommittee for opportunity sites in the remainder of Newport Beach met the prior day, and a report will be scheduled for the next HEUAG meeting. The affordable housing subcommittee will review different approaches to obtain affordable housing at different income levels and may craft an inclusionary plan. d. October 20, 2020 Virtual Housing Workshop Rcecap Recommended Action: Receive an overview of the first virtual housing workshop and discuss any to eawayrs. Provide feedback or direction to staff and the consultants on any changes or considerations for future workshops. David Barquist, Kimley-Horn and Associates, reported 72 people participated in the workshop. Analysis of feedback provided during the workshop is underway. and a report will be available via the Newport Together website. Engagement occurred during the workshop and will continue online. During the workshop, members of the public inquired about a no housing response to questions. In light of the draft RHfNA allocation for Newport Beach, the consultant team does not believe a no housing response is practical. I n subsequent stages of outreach, the team can explore the most appropriate locations for growth and development and different types of housing. The public can view the workshop and provide feedback on the IN e port Together website. In reply to Committee Member Stevens.' question, Mr_ Barquist advised that the team will explore methods to obtain public input for individual opportunity sites during both in-person and virtual meetings. Committee Member Stevens remarked that the interactive portion of the workshop was easy and a goad start to obtaining public feedback_ Committee Member DeSantis suggested future virtual workshops include more opportunities for two-way communication, The presentations and polling were well done. The workshop could have been longer to allow more dialog with the community_ She emphasized the importance of creating visions for opportunity areas while reviewing parcels in the areas. Mr. Barquist noted the difficulty of sustaining the public's attention for an extended period of time. Engagement will build and improve as the schedule progresses. The team is working with the City's Public Information Officer to distribute information to the community through different avenues. The public and committee members can assist by sharing links and posts to meetings and information. Deborah Allen, Harbor View Hills Community Association President, advised that she discussed the workshop with seniors at OASIS. a number of whom attended the workshop, and neither the seniors nor she feet the technology was easy to use or the workshop encouraged Gommunity input_ The input may have been too structured for a community that is accustomed to voicing their opinions_ Questions have to have a no project response_ If the goal is to obtain community input, the public has to be allowed to express opinions. Nancy Scarbrough noted 18 of those present for the workshop were staff and committee members. The inability to converse was extremely frustrating. Future workshops need to be more interactive with the public_ Jim Mosher concurred with comments, regarding the lack of two-way communication. The workshop did not mention HEUAC meetings, and the website does not list all HEUAC meetings. SS3-350 Housing Element Update Advisory Committee Meeting October 21, 2020 Page 4 of 7 Adriana Fourcher felt the workshop was not collaborative. In-person meetings with small group discussions should be possible. She had some difficulty participating in the polling and did not believe her responses were counted. Input from the business community is needed. Melanie Schlotterbeck, representing Olen Properties: expressed disappointment with the repetition of information during the workshop. She supported the use of breakout rooms during virtual meetings to allow individuals to comment_ There has been no mention of new and innovative housing types and mixed-use development. Housing options need to include a range of sizes, prices, and affordability. The City needs a vision for the Airport Area_ Hoiyin 1p suggested community groups will help distribute information about meetings and workshops, One city in Orange County has been assessing in -lieu housing fees for many years. David Tanner hoped the City would work with The Kennedy Commission to learn about the effects of affordable housing on public services. Staff is intentionally misinforming the public regarding the scope of the Housing Element Update by discussing only RHNA information_ Dorothy kraus remarked that workshop participants were the usual group who attend or participate in public meetings. Staff and the consultants need to use more traditional means to notify the public about meetings_ Chair Tucker advised that the State has disrupted the City's planning process and shortened the time for a planning process_ Staff has not intentionally misled anyone_ Public comments have included some valid criticisms of the outreach process. The HEUC is charged with preparing a plan to comply with State requirements. Consequently, no development is not an option_ Committee Member Stevens related that the City's Public Information Manager asked the outreach subcommittee to distribute information about the workshop, and the subcommittee sent emaiis to almost 1,000 people_ The community may not be interested in planning efforts, e. Sites Rundown: Airport Area Recommended Action- Review the list of potential saes and dlsouss feasibility. Solicit input from the public on the list and the Committee's discussion. Chair Tucker directed staff to begin contacting the owners of properties identified as feasible or potentially feasible for housing. He assumed members of the public would agree with the subcommittee's designations for sites as the public has expressed interest in locating housing in the Airport Area, He reviewed the subcommittee's consideration of parcels 43, 113, 37, 60, 95, 87, 23, 70, 80, 81, 111, 9, 24, 131, 135, 38, and 79 and the Saunders site. Committee Member Sandiand suggested the parcel numbers for the Saunders site should be provided. If the prohibition of housing in the 65 dB CNEL is relaxed, parcels 87 and 23 may be potentially feasible rather than infeasible. Chair Tucker indicated the subcommittee may reconsider designations for parcels located within the 55 dB G NEL if the prohibition is relaxed. ornmittee Member Bloom corn mented that abandoning streets so that parcels may be combined would theoretically create more land and larger parcels. Parcels could be even more feasible for housing_ Chair Tucker clarified the comment as abandoning private circulation rather than streets_ SS3-351 Housing Element Update Advisory Committee Meeting October 21, 2020 Page 5 of 7 Jim Masher did not recall the HEUAC agreeing with the subcommittee's approach of not considering parcels within the 65 dB ONEL_ Based on the staternent that the subcommittee iS not considering parcels within the 65 dB GN EL at this time„ he inquired when the subcommittee would consider those parcels, Chair Tucker suspected the subcommittee would consider those sites if aI1l other sites do not provide sufficient housing to comply with the RHNA allocation or if someone proposes a project on a parcel within the 65 dB ONEL. In reply to Chair Tucker's inquiry, Deputy Community Development Director Jim Campbell related that a policy in the Noise Element of the General Plan states parcels within the fib dB ONEL are not appropriate for housing development. The Airport Land Use Commission would find housing development incompatible with the 65 dB ONEL. Chair Tucker reviewed the subcommittee's consideration of parcels 51, 72, 88, 71, 91, 122, 52, 138, 77, 68, 106, 121, 19, 33, 117, 116, 119, and 126. Adriana Fourcher remarked that the dB rating pertains to jet traffic_ Noise studies are needed for small plane traffic because the departure pattern for small planes is over the parcels being considered for housing. Deputy Community Development Director Camptel I advised that the noise contours are based on a composite of both runways and represent a 24-hour average of all aircraft traffic_ 9r Chair Tucker reviewed the subcommittee's consideration of parcels 66, 67, 83, 61, 62, 63, 76, 16, 105, 47, 31, 13, 99, and 104- The subcommittee omitted parcels 89 and 89, which are located partially within the 65 dB CNEL. Parcel 39 is small, and the building on parcel 89 has been refurbished_ Therefore, parcel 39 is infeasible and parcel 89 is feasible - Co mm ittee easible_ Committee Member Stevens expressed concern that airplane noise was last studied and the ON EL contours determined in 1986_ Deputy Community Development Director Campbell indicated an update of CNEL maps is not on the horizon. Staff could discuss the topic with Airport Land Use Commission staff and provide a report to the HEUAC. Chair Tucker reviewed the subcommittee's consideration of parcels 4, 1, 8, 6, 2. 3 , 8, 9, 10, 11, 13- 16, 17, 12, 37-42, 43-69, 70, and 71-76, Adriana Fau raher advised that helicopters from a het icapter school and the Orange County Sheriffs Office fly over the area and beneath the departure pattern for small planes. A noise study is needed. Chair Tucker reviewed the subcommittee's consideration of parcels 77, 78, 7, 80, 81, 82, 1, 20, -27, 31, 21-4, 28-30, 34-36, and 83. Adriana Fourcher noted many property owners oppose the residential project proposed for the parking lot of Zoll Center Newport. Melanie chlotterbeck, representing Olen Properties, indicated parcel 19 is an Olen Properties building and is not part of a residential project_ The review of parcels focuses on site selection rather than the integration of sites with their surroundings. She questioned whether sites would be excluded if a property owner did not respond to a request for information. This is an opportunity for the City to partner with landowners and developers to enact a vision for the area. The focus on housing and not mixed uses is a lost opportunity to create a community, The Airport Area could SS3-352 Housing Element Update Advisory Committee Meeting October 21, 2020 Page 6 of 7 become a vibrant, walkable, bikeable, mixed-use, urban core that attracts a range of residents, incomes, and opportunities_ She encouraged the HEUAC to creale a vision for the Airport Area_ If. Sites Rundown: West Newport -Mesa f ecommended Actr'on: Review the list of potential sites and discuss feasibiflty_ SoJrcrt input from the public on the fist and the Committee's discussion, Committee Member Selich noted the West Newport Mesa area contains medical office uses, mobile home parts. various densities of residential uses, older single -story industrial/commercial buildings, and a series of institutional uses. The subcommittee hes discussed the need to preserve opportunities for smaller -scale industrial and service businesses and recommends a zoning overlay concept as some but not all parcels may convert to residential uses. It is important not to convert everything to residential in order to have a well -balancers land use plan. He reviewed the subcommittee's consideration of parcel 56 {Newport Health Care}; parcel 27 (Ebb Tide); parcels 62 and 64 (Road & Track Building); parcel 63 (Coastline College); the private school site north of parcel 50; the City Utilities Yard: the City General Services Yard; parcels 36, 116, 123, and 182 (four mobile home parks); the area bordered by Superior, 15'h, and Monrovia; the area bordered by Hospital Road, Placentia, and Superior; and parcels 1, 41, 4, and 49. Commissioner Member Sandland suggested combining parcels 18 and 11 could result in a designation of potentially feasible_ Perhaps staff could send a letter to the property owners inquiring about interest in building housing on the parcels, Committee Member elich noted the demand for medical offioe buildings is high at the current time_ Committee Member Kiley concurred with sending a letter as the owners can indicate no interest. Chair Tucker advised that parcels 14 and 44 will be designated infeasible and parcels 13 and 11 will be designated potentially feasible. Committee Member Selich reviewed the subcommittee's consideration of the small residential parcels between Dana and Flagship; parcels 3, 39, 48, 117, 124, and 228; parcels 74 and 122; parcels 24 and 40; parcels 17 and 51; parcels 2, 10, and 23; parcels 5-7, 9, 18-2, 26, 28, 29, 31- 34, 36, 37, 46, 47, 53, 55, 60, 61, and 227; parcels 4 and 16; and parcels 50 and 59. The HEUAC may wish to consider contacting Hoag Hospital regarding construction of workforce housing in the area_ Deputy Community Development Director Campbell advised that the business located on parcel 47 has some air quality issues and has installed equipment to hopefully resolve the issues_ Committee Member Stevens indicated the business has been reviewed for both ground and soil contarrunation. The cleanup requirements for industrial uses are different from the requirements for residential uses. The time and expense to clean up the site for residential uses may be prohibitive - An unidentified speaker appreciated the suggestion to contact Hoag Hospital. The small amount of land available for construction is dismaying_ The Mayors' letter may be the best approach to seek a reduction in the RHNA allocation. SS3-353 Housing Element Update Advisory Committee Muting October 21, 2020 Page 7 of 7 111. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON -DISCUSSION ITEM} Chair Tucker noted the subcommittee for housing sites in the remainder of Newport Beach will report at the next meeting. He requested a discussion of inclusionary zoning and fees. Committee Member Sandland requested a discussion of large employers that could support housing. VIII. ADJOURNMENT — 8;58 p.m. Next Mee fing- November 4, 2020, 6 p_rn- in the Crfy Council Chambers. SS3-354 0 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE WEDNESDAY, NOVEMBER 4, 2020 REGULAR MEETING —G P.M. CALL MEETING TO ORDER — 6 p_m_ WELCOME AND ROLL CALL MEMBERS PRESENT: Chair Larry Tucker, Susan De antis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Ed Selich, Debbie Stevens, (Ex Officio Member) Will O'Neill MEMBERS ABSENT: Jeffrey Bloom (excused) Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Senior Planner Ben Zdeba, Administrative Support Specialist larivel Rodriguez PUBLIC COMMENTS ON NON -AGENDA ITEMS Deputy Community Development Director Jim Campbell reported 47 of 197 jurisdictions located within the Southern California Association of Governments (SCAG) region have filed appeals of their Regional Housing Needs Assessment (RHNA) allocations_ Eighteen agencies in Orange County filed appeals. Four agencies, including the City of Newport Beach, filed appeals against the City of Santa Ana, The City has sent a letter to SLAC, trying to get sponsorship of legislation, that will protect local jurisdictions subject to another agency's oversight_ CONSENT CALENDAR a. Minutes of the October 21, 2820 Meeting Re commended A ction.,Approve and fife the minutes of October 2f, 2020 Chair Tucker noted Mr. Masher has submitted corrections to the October 21, 2020 minutes. Chair Tucker mored, seconded by Committee Member Selich, to approve the minutes of the October 21, 2020 meeting with Mr. Mosher's revisions, AYE: Tucker, DeSantis, Fruchborn, Kiley, LePlastrier, Sandland. Selich, Stevens NO: Done ABSTAIN: None ABSENT: Bloom SS3-355 Housing Element Update Advisory Cornmittee Meetir7g November 4, 2020 Page 2of5 V. CURRENT BUSINESS a. Subcommittee Progress Deports Recommended Action: Receive verbal updates from each subcommittee, as appropriate. Chair Tucker advised that the affordable housing subcommittee met to discuss methods for financing and developing affordable housing projects_ The subcommittee will prepare a report of potential incentives to generate affordable housing, The Housing 'Element Update Advisory Com mittee (HEUAC) may discuss the subcommittee's report during its December 2, 2020 meeting, and the Council will determine which, if any, approach to pursue. b. Sites Rundown: Remainder of Town Recommended Action.- Review the fist of potential sites and discuss feasibility. Solicit input from the public on the list and theCommittee's discussion. Chair Tucker noted the report is in draft form and will be revised and attached to the agenda for the next HEUAC meeting. Before any parcel is approved for inclusion on the sites inventory list, the HEUAC will have to find that housing is a suitable use for the parcel. The intent of the review is to narrow the number of sites that staff will investigate and the HEUAC will consider after receiving public input. Sites that the suboommittee determines are infeasible or does not review may later be determined to be feasible or potentially feasible and may be evaluated for suitability_ Sites may be brought to the subcommittee's attention and may be ultimately included in the sites inventory after public input_ In reply to Committee Member Deantis' questions, Chair Tucker related that defining feasible, potentially feasible, and infeasible is more art than science. Crafting definitions other than those previously stated is not possible_ The feasibility determination for any site could change if the site is viewed in the context of a vision for the area. However, the State form requires a listing of sites by parcel number. Committee Member Deantis believed a site inventory is a critical piece of the Housing Element Update, but neither the HEUAC nor the community can provide adequate input without a vision for the major opportunity areas. Seeking community input without providing a vision is meaningless_ In response to Committee Member Fruchbom's query, Chair Tucker clarified Committee Member Deantis's position as the HEUAC should be doing more than reviewing sites. In order to begin the planning process, the H E UAC needs to understand the source of traffic trips and where housing can be placed, Committee Member Stevens noted combining some sites could result in a designation of feasible_ Listing more than one parcel number per site on the State's form is probably acceptable. Chair Tucker stated undeveloped sites listed in the sites inventory for the fifth cycle are considered feasible for the sixth aide. He reviewed the designations for Pa rceIs 1, 2, 3. 4, 6-9, 10, 12. 11, 13, 14-17, 18, 19, 20, and 21-1- Jim 1.1_ Jim Mosher reiterated his request for staff to list the subcommittees and their members on the website. He questioned whether the feasibility of sites pertains to technical or economic feasibility; whether income level affects feasibility; the term "remainder of town" when the maps do not show all of Newport Beach outside the Airport Area and West Newport Mesa; and the numbering system for parcels. SS3-356 Housing Element Update Advisory Cornmittee Meeting November 4, 2020 Page 3of5 Chair Tucker explained that the term "remainder of town" resulted from the subcommittee's request for staff to prepare information for certain sites_ The subcommittee may have inadvertently overlooked some sites. He reviewed the designations for the Dunes west of the lagoon and Parcels , 23, 24, 25, 36, 09, 40, 42, 43, 44, 85, 34, and 38. Mayor ()'Neill related that he as Mayor will send a formal invitation for the Irvine Company to participate in the Housing Element Update process unless there are strong objections to doing so_ ChairTucker and Committee Members Kiley, Stevens, Sandland, and De S antis encouraged Mayor O'Neill to send an invitation_ Committee Member De antis proposed Mayor O'Neill send invitations to Hoag Hospital, major employers within Newport Center, and churches that own large parcels. Jim Mosher noted there is no analysis or conclusion for Parcel 37. Committee Member Kiley clarified that feasibility for the sites pertains to the ability to physically oonstruct housing on a site. The property owners will determine whether housing is financially feasible_ Chair Tucker reviewed the designations for Fashion Island and Parcels 00, 29, 27, 28, 31, 32, 114- 120. 122, 121, 105-109, 104, 114-113, 107 (the County bus depot), 98-102, 143, 91-97, 87-89, 77, 78, BO -B6, 57-61, 63-76, 45, 47-56, and 52. Committee (Member Sandland proposed revising the designation for Parcels 98-102 and 143 to feasible_ The Irvine Company may be willing to discuss Parcels 46-54. Debra Allen, Harbor View Hills Community Association Presiffl t, reported the sight plane ordinance applies to certain areas and limits building heights in those areas. Jim Mosher remarked that buildings on Parcels 45 and 47-56 should not obstruct views from Fashion Island Circle_ Chair Tucker reviewed the designations for Parcels 123, 124, 125. 126, 127, and 128, Committee Member Sandland suggested the subcommittee explore the parcels across Pacific Coast H i ghway from Parce12 2, t1)a C ity's Avon parking lot, and the parking lot for Mariner's Square, Committee Member Selich advised that Lower Castaways Park is deed restricted to parkland. Chair Tucker noted the parking lot for Mariner's Square is subject to a height limit and located in the Coastal Zone_ In addition, the parking would have to be replaced. Committee Member Kiley indicated a number of lots along the Peninsula and Bay are included in the Housing Element for the fifth cycle and covered by paragraph 1 of the subcommittee's report. Jim Mosher requested the maps reflect the sites listed in the fifth cycle. One or two housing units could be guilt on a small lot; therefore, small lots should not be deemed infeasible based on size alone. Charies F lobe proposed contacting a developer that is constructing a residential project on a closed landfill to determine irf housing can be built on Parcel 128. SS3-357 Housing Element Update Advisory Cornmittee Meeting November 4, 2020 Page 4of5 Johnny advised that night lighting around the Library and the Orange County Transportation Authority bus depot needs to be brighter - Mary Ann Soden encouraged the HEUAC to consider projects that provide housing for very -low, low, and moderate -income households. Chair Tucker reported Parcels 46-64, Avon parking lot, and the Mariners Square Parking Lot will be added to the list as potentially feasible, and he will inquire regarding construction of residential units on a closed landfill. In answer to Committee Member Deantis' querYr Chair Tucker indicated the subcommittee will explore an exchange of zoning for land on which 100 -percent affordable housing may be built. Committee Member Deantis encouraged the affordable housing subcommittee to explore those possibilities so that the bulk of affordable units is not provided through inclusionary zoning. Chair Tucker requested staff add the sites from the fifth cycle Housing Element to the rnap- In reply to Committee Member SandIand's inquiries, Chair T cker related that staff may prepare a tabulation of acreage from sites designated feasiblo and potentially feasible after learning of property owners' interest in developing housing. Deputy Community Development Director Campbell advised that staff plans to send letters to property owners in the next few weeks and follow up with property owners in an effort to obtain their responses by the end of the year, C. Site Suitability Input and Community Engagement Re commanded Actionr Receive ars overview of the outreach plan moving forward, including) how the community will he engaged on the suitability of the sites that are identified as feasible or potentially feasible. Provide feedback and direction to staff and the consultant on the outreach plan. Senior Planner Ben Zdeba reviewed public engagement opportunities in October through H EUAC, City Council, and Planning Commission meetings and a virtual community workshop and in Novernber through HELJA, City Council, and Planning Commission meetings, two virtual housing suitability workshops, and a virtual Circulation Element workshop. The housing suitability workshops will begin to consider density, which has policy implications. The public will be able to comment verbally and through the chat box and to respond to polls during the housing and Circulation Element workshops. In answer to Committee Member Deantis' questions, Senior Planner Zdeba advised that the public may provide feedback regarding parcels identified by the subcommittee and other parcels during the workshops. On the Newport Together website, community members may place pins on a CIS map to indicate their preferences for locations of housing types- If the HEUAC agrees with the plans for November workshops, staff will begin an extensive promotion of the workshops through social media and email blasts. Committee Member Deantis suggested posts and emails contain a link to Newport Together and information about providing feedback through the website. Senior Planner Zdeba noted a potential social media campaign to drive more traffic to the website. The City's appeal of the RHNA allocation should be resolved in February 2021. If the City's appeal is successful, the City's allocation could theoretically be reduced by half. Committee Member 0e antis commented that focusing messaging on the needs of the community rather than a State mandate could generate more community interest and feedback. SS3-358 Housing Element Update Advisory Ccrnmittee Meeting November 4, 2020 Page 5of5 In response to committee Member Stevens' inquiries, Senior Planner Zde ba indicated the potential housing sites will be divided between the two housing workshops_ Activities utilized during the workshops will be available on the website for the public to provide feedback after the workshops, Staff has prepared a flyer promoting the workshops to distribute in the community. Chair Tucker remarked that "none of the above" will not be a response to questions about locations for housing because the City has to find enough sites to comply with the RHNA allocation. Jim Mosher inquired whether the workshops will extend for the full two hours_ He suggested staff publish questions from the workshops ahead of the workshops so that community members have time to consider their responses. Community members are less likely to provide feedback if they feel it will not have a practical effect on HEUAO discussions and decisions, Debra Allen suggested information for the workshops include a list of sites to be discussed in each workshop and instructions for participating in polling and verbal and chat box comments, Senior Planner Zdeba clarified that flyers will include a list of areas to be discussed in each workshop. Discussion topics for the workshops will be published on the website prior to the workshops. The workshops will extend for two hours unless the public completes their questions and comments in less than two hours. Mary Ann Soden concurred with requests for publication of workshop information and suggested staff promote the workshop in print media and allow the community to participate in workshops from the Community Boom. Chair Tucker advised that the HEUAG will not meet on November 18, 2020. VII. ADJOURNMENT— 8-04 p.m. Next Moefing: Noveraber 18, 2020_ B p.m. in the City Coancil Chamber's_ me SS3-359 IV. CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES ZOOM WEDNESDAY, DECEMBER 2, 2020 REGULAR MEETING — 6 P.M. CALL MEETING TO ORDER — 6 p.m. WELCOME AND ROLL CALL MEMBERS PRESENT (remote): Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Ed Selich, Debbie Stevens MEMBERS ABSENT: (Ex Officio Member) Will O'Neill (excused) Staff Present (remote): Community Development Director Seimone Jurjis, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, Administrative Support Technician Amanda Lee PUBLIC COMMENTS ON NON -AGENDA ITEMS David Tanner indicated the public has been told that they will get answers to their questions at this meeting, but there is not an agenda item for this topic. He inquired as to when the public will have an opportunity to ask questions and receive answers. Hoiyin Ip remarked that virtual meetings are missing the energy of in-person meetings and suggested more interaction with the public during workshops and activities before and after workshops to get participants thinking about housing topics. CONSENT CALENDAR a. Minutes of the November 4, 2020 Meeting Recommended Action: Approve and file the minutes of November 4, 2020 Committee Member Sandland corrected the third paragraph of page 4 to read "Chair Tucker reported Parcels 46-54, the Avon parking lot, and the Mariners Square parking lot will be added to the list as potentially feasible, and he will inquire regarding construction of residential units on a closed landfill." Chair Tucker moved, seconded by Committee Member Sandland, to approve the minutes of the November 4, 2020 meeting as amended. AYE: Tucker, Bloom, DeSantis, Fruchbom, Kiley, LePlastrier, Sandland, Selich, Stevens NO: None ABSTAIN: None ABSENT: None SS3-360 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 2of7 V. CURRENT BUSINESS a. Subcommittee Progress Reports Recommended Action: Receive verbal updates from each subcommittee, as appropriate. Chair Tucker reported the sites subcommittees have completed their work temporarily. The notes for sites in the remainder of town have been revised. The affordable housing subcommittee met on October 27, 2020 to discuss the Regional Housing Needs Assessment (RHNA) numbers and preparation of a full report to the Housing Element Update Advisory Committee (HEUAC). The purpose of the report is to educate the HEUAC regarding the various methods for financing and developing affordable housing projects. Understanding the affordable housing business will help the HEUAC reach a recommendation for the Council. Chair Tucker indicated he has prepared a first draft of the report and sent it to staff for review. He will modify the report after staff's review, if necessary, and circulate it to subcommittee members for revision. The report should be complete in December. In response to Chair Tucker's question, Senior Planner Ben Zdeba advised that staff is preparing maps containing all sites and a list of properties from the fifth cycle that have not been developed. Staff hopes to provide both at the next meeting as a "receive and file" agenda item. Committee Member Fruchbom related that he read information indicating Shopoff sold an acre in Uptown Newport for 66 luxury condominiums at an average price of almost $400,000 per unit or more than $24 million for the real property. If the information is true and the City can create land through increased densities, the land value of the units will be extraordinarily high and should allow the City to extract some reasonable fees for added density. Charles Klobe added that the Uptown Newport project is entitled for 66 luxury condominiums with no requirement for anything less than above moderate, which should increase the price of land. The entitlements that Picerne is seeking for the 4400 Von Karman project only allows 5% of the total units to be low-income units while the apartments will be market rate. Chair Tucker recalled Shopoff building a fair number of affordable units in the first phase of the project and Picerne seeking a density bonus of 20 percent in exchange for either 10 percent low- income units or 5 percent very -low-income units. Picerne chose 5 percent very -low-income units. David Tanner asked about the validity of statements that staff is considering placing housing within the 65 decibel (dB) CNEL contour and, if true, the rationale for doing that. It would seem to open the City to litigation. b. Virtual Workshops Recap Recommended Action: Discuss the virtual workshops so far and takeaways from them. Receive an overview of the outreach plan timeline moving forward and provide feedback to staff and the consultant. Senior Planner Zdeba reported the November 16 and 17, 2020, site suitability workshops obtained community input regarding potential density, scale, and attributes that could be applied to sites and the suitability of housing on the sites. Forty to 50 people attended each night, and dialog with the public was greater during the second workshop. The November 23 Circulation Element workshop included a good discussion with the community and solicited good feedback. SS3-361 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 3 of 7 Jenna Tourje, Kearns & West, advised that the public provided good information through the chat feature, and she shared that information with all participants during the workshop. Chair Tucker noted participants could offer multiple comments and were not limited to one 3 -minute time period. Staff and the consultants have addressed the shortcomings of the first workshop. In reply to Committee Member Sandland's inquiries, Ms. Tourje indicated recordings of workshops are available on newporttogether.com. The team is preparing an after -action report that will include key comments from the workshops and printouts of comments from the chat feature. The report should be ready in the next week. The team can capture comments regarding specific sites. In answer to Committee Member DeSantis' queries, Ms. Tourje related that the team has been promoting the Newport Together website through ads, emails, and campaigns. Seventeen people have provided input on the map. Many people have visited the website without providing feedback on parcels. One thousand thirty-six unique IP addresses have visited the website over the past month. Currently, there is nothing tangible to which the public can respond. Senior Planner Zdeba added that the next utility bill will include a postcard regarding the January Circulation Element workshop. Hopefully, the postcard will drive a little more traffic to Newport Together and generate input. Staff is exploring contacting homeowners' associations (HOA) in the vicinity of the affected areas to generate interest. Deborah Allen, Harbor View Hills Community Association President, commented that staff has attempted to make the process as transparent as possible and that she has heard good feedback from participants in the second workshop. Contacting HOAs with a list of sites should generate interest and input. Nancy Scarbrough believed the format of the two workshops was much more interactive than previous workshops. Twelve to 13 of the participants were staff and committee members, and another ten were people who regularly attend public meetings. Some participants told her they left the workshops early because they did not feel their opinions would affect the outcome. Chair Tucker advised that he sent an email about the workshops to 75 people who were likely to attend, and one email recipient attended the first night. Adriana Fourcher encouraged the HEUAC to engage business owners in discussions of Airport Area sites. Committee Member DeSantis suggested presenting information about specific sites to HOAs interested in those sites. Chair Tucker indicated the HEUAC needs to narrow the list of sites before talking to HOAs. C. Housing Element Update Progress Documents Recommended Action: Discuss, receive, and file. David Barquist, Kimley-Horn and Associates, reviewed the five basic components of the Housing Element Update. Drafts of the Community Profile and Review of Past Performance components have been prepared. Chair Tucker advised that this item will come back at the next meeting for additional thoughts and comments because of the substantial amount information contained in the documents. SS3-362 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 4 of 7 Mr. Barquist indicated there will be a number of opportunities to comment on the draft documents as the process progresses. For the Community Profile, the Government Code requires an assessment of housing needs and an inventory of resources and constraints, specifically an analysis of the population, employment trends, and household characteristics. The analysis tells stories about the community and assists with the development of policies and programs that address needs. The Review of Past Performance document evaluates the 2014-2021 Housing Element goals, objectives, policies, and programs to determine whether they contributed to attaining the State's housing goals and were effective in attaining the community's goals and objectives, and to determine the progress of the City in implementing the Housing Element. Past performance is a good basis for including policies from the fifth cycle in the sixth cycle. Many policy changes will relate to new and emerging needs. In response to Committee Member Stevens' question, Mr. Barquist related that census data will not be available for this analysis. Much of the information is based on projections. In reply to Committee Member DeSantis' inquiries, Mr. Barquist stated the HEUAC can discuss specific policies and explore options at any time. The subcommittees and staff have already begun the discussions. Chair Tucker added that the HEUAC and the public need to understand affordable housing in order to stimulate ideas about meeting the RHNA allocation. The HEUAC may not need to meet with affordable housing developers because one is a committee member. Talking with a developer may not be appropriate as developers will compete for any sites the update process generates. Committee Member DeSantis anticipated the HEUAC needing to explore the parameters of an inclusionary zoning policy. Chair Tucker indicated committee members and the public can ask questions about inclusionary zoning when the affordable housing subcommittee presents its report. Adriana Fourcher noted the population growth forecast for the City of Newport Beach is 8.4 percent over the next 20 years. Meeting the RHNA numbers may result in more housing units than are actually needed. Building housing in the Airport Area may displace jobs. Chair Tucker noted the HEUAC is tasked with complying with the RHNA allocation. Jim Mosher commented that if the HEUAC oversees the writing of the Housing Element with public guidance, having an outline of the new Housing Element would be valuable. Misstatements of facts in the two documents detract from the credibility of the documents. Hoiyin Ip appreciated the interesting presentation d. RHNA Sites Identification Strategy Recommended Action: Receive an overview of a strategy to comply with the RHNA allocation through the sites inventory and alternative housing opportunities. Mr. Barquist advised that Table B in the November 24, 2020 memo contains incorrect information. In the very low column, projects in the pipeline should be 135, the total should be 146, and the net remaining need should be 1,307. The text below the table will be revised accordingly. The City of Newport Beach has been allocated 4,834 housing units and has to identify sites that can accommodate that allocation through the planning period. After subtracting existing capacity, projects in the pipeline, and accessory dwelling units (ADU), the City's net remaining RHNA allocation is 1,307 very -low-income units, 831 low-income units, 1,022 moderate -income units, and SS3-363 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 5 of 7 0 above -moderate -income units. The next step is to determine candidate sites that will subsequently undergo evaluation of their suitability for housing. The HEUAC has identified a number of candidate sites, and letters have been sent to the property owners to determine their interest in redeveloping their properties. A number of property owners have responded to the letters. Next, the net remaining need will be refined based on each property owner's interest in redevelopment, site conditions and constraints, statutory limitations and constraints, and prioritization of sites. Finally, the HEUAC, staff, and the community will begin to create policy and programmatic solutions to meet the unaccommodated need. In reply to Chair Tucker's questions, Mr. Barquist reported the number of housing units generated by projects in the pipeline is correct, but the numbers are fluid due to assumptions. The law states that cities must identify RHNA obligations by income category, but it does not require a developer to identify affordability categories when developing a project. The City is obligated to ensure there is no net loss when projects are developed. If there is a net loss, the City has 120 days to provide rezoning that accommodates the net loss. Essentially, the City needs to accommodate more units than its RHNA obligation to avoid the net loss scenario. The California Department of Housing and Community Development's (HCD) general recommendation is to plan for 10 to 30 percent more units than allocated. If the HEUAC determines sites will not accommodate the full amount of growth, the Housing Element may contain a program of actions to address the deficiency. At the time of adoption, the Housing Element may identify all sites to accommodate the RHNA allocation or include a policy mechanism to identify all sites within three years. Committee Member Stevens noted the City will need to create policies that encourage developers to include more units in the very -low and low-income categories in their projects. In answer to Committee Member Sandland's queries, Mr. Barquist related that sites will be divided into the four categories. The sites inventory will list the seven descriptors for each site, and the required HCD form will provide the information. Committee Member Sandland stated some sites will have to be identified for 100 percent affordable housing in order to meet the RHNA allocation. Committee Member Kiley understood the HEUAC would identify sites, and the Council would develop policies, including a policy to fund 100 percent affordable housing. The City previously had a program that required developers to pay a fee for luxury residential developments, and the City used the funds for affordable housing. The City of Irvine has a similar program. Chair Tucker noted affordable housing projects typically provide 50 or so units rather than 400 units. Financing for 100 percent affordable housing projects is more complicated than financing for any other type of affordable housing project. In -lieu fees are not sufficient to construct the number of affordable units for which the fees are paid. Committee Member Fruchbom advised that more than $0.5 billion would be needed to fund the required number of affordable housing units. The shortfall for each affordable housing unit is about $250,000. The problem is exacerbated by higher costs and rents in Newport Beach. Chair Tucker highlighted the difficulties of meeting the allocation for affordable units. Committee Member Selich viewed the excess number of above -moderate units as increasing the total number of units needed. As developers build mainly above -moderate units and few very low, SS3-364 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 6 of 7 low and moderate units, the City will be in a never-ending cycle of zoning for the no net loss scenario. Committee Member Sandland remarked that the City will have to look to property owners with other economic interests. Perhaps employers and churches will be willing to give up a portion of their properties for housing in exchange for a concession. In response to Committee Member DeSantis' inquiry, Mr. Barquist reported the total number of ADUs was based on the number of ADUs constructed in the City. HCD provides criteria for affordability of ADUs located in the Southern California Association of Governments (SCAG) region. The intent is to expand the opportunities for construction of ADUs through policies and programmatic enhancements. Committee Member DeSantis noted Vancouver has imposed a tax on vacant units to fund affordable housing and has increased the tax three times in the past 12 months. In answer to Committee Member Bloom's query, Mr. Barquist advised that the sites inventory does not have to include the feasibility of developing a site. Whether or not a site is developed as planned comes into play with the no net loss scenario. Adriana Fourcher believed a tax or fee imposed to fund affordable housing would be passed to consumers. Imposing a tax on vacant homes conflicts with the City's concerns about VRBO and Airbnb. Property owners pay property taxes and should not have to pay a fee or rent their home if they choose to take an extended vacation. David Tanner suggested the HEUAC develop estimates of in -lieu fees for units in the different affordability levels. He inquired about the penalty for the Housing Element not attaining its goals. Chair Tucker indicated the answer to Mr. Tanner's question is probably unknown at this point. Nancy Scarbrough asked if Mayor O'Neill has contacted the City of Irvine about sharing information with the City. Chair Tucker indicated he has not received any information about it. Jim Mosher remarked that Table B seems to reinforce the historical anomaly that Newport Beach has great difficulty producing moderate housing units. He inquired whether the production of moderate -income housing in Newport Beach is a real problem, whether the barriers are known, and whether it can be corrected. Chair Tucker suggested increasing density to 50 to 60 units per acre may generate moderate housing. e. Formation of an Additional Sites Subcommittee Recommended Action: Form an additional sites subcommittee to review the potential for housing sites within the 65 dB CNEL contour in the Airport Area. Chair Tucker reported a property owner has expressed interest in developing housing on his property located within the 65 dB CNEL area. Building housing within the 65 dB CNEL is not unlawful, but the interior noise level must be mitigated to below the noise threshold. The Mayor has suggested a subcommittee explore the feasibility of developing properties within the 65 dB CNEL contour. Chair Tucker appointed Committee Members Sandland and DeSantis to the Additional Sites Subcommittee. SS3-365 Housing Element Update Advisory Committee Meeting December 2, 2020 Page 7 of 7 David Tanner advised that the noise standard for the exterior living environment is 65 dB and for the interior living environment is 45 dB. He suggested the Additional Sites Subcommittee consult with a noise consultant or the City's CEQA consultant to learn the law on this topic. This will result in nothing more than litigation for the City. Committee Member Sandland was aware of apartment buildings being constructed within the 65 dB CNEL and adjacent to freeways in other cities. Fred Fourcher indicated his office is located beneath the flight path of the left runway at John Wayne Airport and outside the 65 dB CNEL area. He cannot have his windows open and conduct phone calls because aircraft noise is too loud. The area is not hospitable for people attempting to enjoy the outdoors. VI. ADJOURNMENT — 8:25 p.m. Next Meeting: January 6, 2021, 6 p.m. in the City Council Chambers. SS3-366 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES ZOOM MEETING, NEWPORT BEACH, CA WEDNESDAY, JANUARY 20, 2021 REGULAR MEETING — 6 P.M. CALL MEETING TO ORDER — 6 p.m. II. WELCOME AND ROLL CALL MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Debbie Stevens, (Ex Officio Member) Will O'Neill MEMBERS ABSENT: Paul Fruchbom Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, Administrative Support Specialist Clarivel Rodriguez III. PUBLIC COMMENTS ON NON -AGENDA ITEMS None IV. CONSENT CALENDAR a. Minutes of the December 2, 2020 Meeting Recommended Action: Approve and file the minutes of December 2, 2020. Committee Member Sandland moved, seconded by Committee Member DeSantis to approve the minutes of the December 2, 2020 meeting as presented. AYE: Tucker, Bloom, DeSantis, Kiley, LePlastrier, Sandland, Selich, Stevens NO: None ABSTAIN: None ABSENT: Fruchbom V. CURRENT BUSINESS a. Subcommittee Progress Reports Recommended Action: Receive verbal updates from each subcommittee, as appropriate. In answer to Chair Tucker's inquiry, Senior Planner Ben Zdeba advised that the update of parcel numbers for the map of the remainder of town and information for the 65 decibel (dB) Community Noise Equivalent Level (CNEL) subcommittee hopefully will be ready on January 21, 2021. Chair Tucker indicated that he will finalize reports for the Airport Area, the Hoag industrial area, and the remainder of town and ask staff to attach them to an agenda. Committee Member Sandland SS3-367 Housing Element Update Advisory Committee Meeting January 20, 2021 Page 2 of 6 will report regarding the safety zones and the noise contour of the 65 dB CNEL area later in the meeting, and the Housing Element Update Advisory Committee (HEUAC) will review sites in the 65 dB CNEL at the next meeting. In response to Committee Member Stevens' inquiry, Committee Member Sandland stated there are approximately 200 properties in the 65 dB CNEL area. b. Housing Element Update Progress Documents Recommended Action: Discuss, receive, and file. Chair Tucker recalled that committee members did not have sufficient time to review the voluminous Community Profile and Review of Past Performance documents provided for the December 2, 2020 meeting. Consequently, he had requested this agenda item for committee members to provide comments and ask questions. C. Update on Property Owner Responses Recommended Action: Receive an update from staff on the progress being made with receiving responses from property owners of properties identified as either "potentially feasible" or "feasible." Chair Tucker recalled the HEUAC's desire to learn of property owners' interest in redeveloping their properties prior to discussing the suitability of properties for redevelopment. Deputy Community Development Director Jim Campbell reported that the letter attached to the staff report was sent to several hundred property owners and some owners of mobile homes. Staff has received many calls and some emails from owners. Senior Planner Zdeba advised that he informs mobile homeowners who respond to the letter about the Newport Together website to be involved in the process. Staff sent the letter to about 500 people, including mobile homeowners. Of note, Tait has expressed interest in redeveloping the Coyote Canyon landfill site. Some property owners have indicated no interest in redeveloping their properties. Staff does not attempt to change the property owners' minds but ensures they understand the process and the opportunities. Staff has received mixed interest from property owners in the Airport Area, Newport Center, Corporate Plaza, and the Dover Westcliff area. Staff is compiling the responses in a spreadsheet. In reply to Chair Tucker's inquiry, Senior Planner Zdeba estimated 50-75 property owners and mobile homeowners have responded to the letter. Deputy Community Development Director Campbell indicated that he has scheduled a meeting with Tait Engineering to discuss preliminary concept plans and densities for the Coyote Canyon site. The County of Orange (County), the landfill property owner, submitted a letter expressing support for the effort. Russ Fluter, who owns the Palisades Tennis Club site and several properties in Mariners' Mile, has expressed interest in redevelopment and offered to contact the Hyatt Regency about the adjacent golf course. Owners of some of the mobile home parks on 15th Street are interested in increased density. The owners of Banning Ranch continue to discuss the possibility of public acquisition of Banning Ranch for open space. If that does not occur, the owners will probably be interested in a project. Property owners in Cannery Village have responded to the letter. While the lots in Cannery Village are small, they can accommodate at least one or two SS3-368 Housing Element Update Advisory Committee Meeting January 20, 2021 Page 3 of 6 residential units. The consultant will use the spreadsheet of property owners' responses in their analysis of all sites to produce a draft list for the HEUAC in February. In answer to Chair Tucker's questions, Deputy Community Development Director Campbell related that staff can send follow-up letters to property owners who have not responded and whose properties can accommodate a significant number of units. For the February 17, 2021 meeting, staff can provide a list of acreages based on parcel sizes and propose some densities for discussion purposes. Based on Tait's representations, the 32 -acre site at Coyote Canyon is technically neither a landfill nor habitat area. Staff is attempting to confirm that it is not included in a Natural Community Conservation Plan (NCCP) / Habitat Conservation Plan. In reply to Committee Member Sandland's and Chair Tucker's questions, Deputy Community Development Director Campbell stated he will contact Newport -Mesa Unified School District (NMUSD) about its property adjacent to Banning Ranch. Most of the NMUSD property is located within the city limits. A letter was not sent to Hoag Hospital, but staff will contact Hoag immediately. Senior Planner Zdeba clarified that letters were sent to NMUSD and Hoag Hospital. Council Member O'Neill requested staff notify him of the date of the HEUAC's discussion of the Coyote Canyon site as he needs to ensure community members are aware of the discussion. In response to Chair Tucker's inquiry, Deputy Community Development Director Campbell explained that staff intends to submit a draft sites inventory with a progress draft of the Housing Element to the California Department of Housing and Community Development (HCD) in mid-May. David Barquist, Kimley-Horn and Associates, reported the submission needs to contain all requisite documents and analyses and should contain the majority of the City's policy direction. In reply to Committee Member DeSantis' query, Deputy Community Development Director Campbell indicated a letter was sent to the owners of the Newport Beach Golf Course, and they have expressed interest in redeveloping the golf course for housing, particularly the portion located south of Irvine Avenue. If the site is deemed suitable, its priority may be lower because of its proximity to John Wayne Airport (JWA). Dorothy Kraus requested the name of the entity that has expressed interest in developing Banning Ranch and notification of discussions with Newport Banning Ranch (NBR) regarding a possible project. Community Development Director Seimone Jurjis clarified that staff is actively discussing some level of development on the property with its owner, Newport Banning Ranch, LLC, as a backup plan if public acquisition of the property does not occur. Nancy Scarbrough noted the Banning Ranch and Coyote Canyon sites are located in the county and inquired regarding the City or the County counting any housing units developed on the sites toward the Regional Housing Needs Assessment (RHNA) numbers. Chair Tucker believed the County owns the Coyote Canyon site, but it is in the city. The Banning Ranch site is located almost entirely in the county. Deputy Community Development Director Campbell clarified that housing on the portion of the Banning Ranch site located in the city can be counted toward the City's RHNA. If the City annexes the remainder of the site, the City and the County will negotiate RHNA issues. SS3-369 Housing Element Update Advisory Committee Meeting January 20, 2021 Page 4of6 In answer to Chair Tucker's queries, Deputy Community Development Director Campbell explained that in order to count housing approved for the Banning Ranch site, the City has to show substantial evidence that the housing will be built during the planning cycle. Given the Coastal Commission's oversight of the site and annexation issues, convincing HCD that housing will be built may be difficult. If the number of sites for housing is limited, development of the Banning Ranch site may have to be considered. The City, Newport Banning Ranch, and the Coastal Commission are discussing possible development of the least environmentally constrained portion of the site. He indicated he has not received a response from the Irvine Company, but the Irvine Company may have responded to Community Development Director Jurjis or the Mayor. Council Member O'Neill advised that the Irvine Company contacted the City Manager, who requested the Irvine Company respond in writing. d. Affordable Housing Subcommittee Memorandum Recommended Action: Discuss the draft memorandum and receive comments from the Committee and the public. Chair Tucker reported affordable housing is a very complicated issue. Virtually all affordable housing projects are tied to 9% tax credits, which are allocated to each state on a per capita basis. Each state allocates the tax credits to projects. Affordable housing projects compete for a limited number of tax credits and typically seek multiple funding sources. Generally, a subsidy or incentive offsets the reduced rent charged for an affordable unit. There are currently two federal programs and one State program. Inclusionary housing ordinances are cities' efforts to encourage affordable housing projects through granting entitlements, waiving fees, and/or altering development standards. For an affordable housing project to be financially viable, the land cost has to be very low. The no net loss law requires a jurisdiction to account for affordable units that are listed on an approved sites inventory but not built as listed. The report contains policies and potential strategy alternatives for the Council's and public's consideration. HCD has determined that 68% of the accessory dwelling units (ADU) projected for the planning cycle may be credited toward the City's lower-income RHNA number. The City will have to achieve a performance metric for construction of ADUs or face repercussions. Principal Planner Jaime Murillo advised that since 2018, 78 ADU applications have been approved or are under review, which is approximately 25 ADUs per year. Over the next eight-year cycle, the projection is about 200 ADUs. The projection will have to be supported by a policy that aggressively promotes and incentivizes ADUs. Ultimately, HCD will want the City to commit to a monitoring program and provide a backup plan if it fails to meet estimates for ADUs. HCD will accept some assumed affordability rates for ADUs. Chair Tucker remarked that if the City seeks a higher number of ADUs, it will need to implement a program to promote ADUs. Some residents may be unhappy with the program if a neighbor constructs an ADU such that it obstructs the light and air on their property. Committee Member Kiley noted the projection of 25 ADUs per year does not consider the State law that eliminates most restrictions on ADU construction. Principal Planner Murillo explained that staff is debating the impact of the law on the number of ADUs with HCD. The number of ADU applications was small in 2018, increased in 2019, and was quite large in 2020. Staff has considered using the trend to exponentially increase the projection for ADUs. If the projection is aggressively large, HCD will probably require monitoring and support for the projection. SS3-370 Housing Element Update Advisory Committee Meeting January 20, 2021 Page 5 of 6 Committee Member Stevens appreciated the affordable housing report because it simplifies a complex issue. In response to her inquiry, Chair Tucker related that the total amount of 9% tax credits is negotiated through Congress. Federal and state governments place regulations on the use of the tax credits. Committee Member Bloom related that Amazon recently announced a $560 million investment in the preservation and protection of 2,300 units in the Seattle area. That is a subsidy of approximately $243,000 per unit and demonstrates the magnitude of subsidies required for affordable housing. Council Member O'Neill stated the City's RHNA for very -low-income units is 1,451. Using a loss of value of $494,000 per unit, constructing the RHNA requirement will require almost $717 million in subsidies. Chair Tucker clarified that the loss of value analysis in the report does not include the value enhancement of the City granting entitlements for projects. A loss of value analysis is nuanced and needs to be conducted for each project. The relevant point is that there is a limit to the number of affordable units a project can provide and remain financially viable. Hoiyin Ip remarked that some residents may not appreciate having a 100% affordable housing project in their neighborhood. The California Energy Commission is hosting a conference about sustainable affordable housing, and one of the topics is funding. Chair Tucker clarified that 100% affordable housing projects and projects with a mix of housing individually do not provide a large number of affordable units. In order to achieve the number of affordable units in the RHNA, the City will need many market -rate units to subsidize the affordable units. In answer to Committee Member DeSantis' inquiry, Principal Planner Murillo indicated a property owner related to him a cost of around $80,000 to convert a garage to an ADU. New construction could cost as much as $200,0004300,000. Mr. Barquist advised that an estimate of $10,000 for an ADU conversion is extremely low. e. Update Schedule Moving Forward Recommended Action: Receive an overview of the schedule moving forward and discuss, as necessary. Deputy Community Development Director Campbell reported on February 17, 2021, the HEUAC will begin the policy discussion. A virtual public workshop is scheduled for February 24. Staff will present a draft Housing Element Update to the HEUAC on March 17, the public on March 22, the Planning Commission on April 7, and the Council on April 27. Once HCD provides its comments on the progress draft, staff can schedule additional meetings. In response to Chair Tucker's questions, Deputy Community Development Director Campbell advised that the February 17 sites analysis discussion will begin with entitled projects that are eligible for the Housing Element Update and a placeholder for ADUs and move to sites that can provide units to fill the gap between the RHNA requirement and the number of units provided by entitled projects and ADUs. The discussion will include property owner interest, densities, and constraints. The progress draft needs to correlate policies and the availability of sites. HCD may have difficulty understanding the breadth of housing policies if the sites inventory is not part of the progress draft. The sites inventory will be refined over the summer. Also on February 17, staff will present an initial narrative and outline of the project description for the Environmental Impact Report (EIR). SS3-371 ILA Housing Element Update Advisory Committee Meeting January 20, 2021 Page 6 of 6 Chair Tucker recommended scheduling an HEUAC meeting on March 3, 2021 to continue discussion of the sites inventory and obtain additional public feedback. Committee Member Sandland suggested moving discussion of the 65 dB CNEL area, including safety zones and the contour, to February 3 to provide more time for the sites analysis discussion on February 17. In reply to Committee Member Stevens' question, Principal Planner Murillo reported the City's appeal of Santa Ana's RHNA allocation was heard and denied on Friday. The City's appeal of its RHNA allocation was heard and denied on January 19. Of the many appeals filed, the County of Riverside's appeal is the only one to be granted thus far, and it may result in a small increase in the City's allocation. The Southern California Association of Governments (SCAG) has not yet determined if it will litigate the State's regional allocations. Committee Member Kiley suggested discussions with the Irvine Company about further development of Newport Center should be a priority. Deputy Community Development Director Campbell indicated receipt of the Irvine Company's letter, depending on its content, will open discussions between the Mayor, Community Development Director Jurjis, or Deputy Community Development Director Campbell and the Irvine Company's executive management. Council Member O'Neill clarified that the Irvine Company's communication with the City Manager appears to indicate the Irvine Company does not intend to engage significantly in a discussion of the City's RHNA allocation. Consequently, the City Manager requested a written response. Committee Member DeSantis requested an update regarding housing legislation that takes effect in 2021 and requested staff update and provide the memorandum of housing legislation prepared for the General Plan Update Steering Committee. Deputy Community Development Director Campbell advised that staff will explore updating the housing legislation memorandum. An update regarding recent legislation can be scheduled for a future meeting. Chair Tucker preferred a legislative update focus on legislation that affects site selection and the sites inventory. ADJOURNMENT — 7:49 p.m. Next Meeting: February 3, 2021, 6:00 p.m. via Zoom. SS3-372 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES ZOOM MEETING, NEWPORT BEACH, CA WEDNESDAY, FEBRUARY 3, 2021 REGULAR MEETING — 6 P.M. CALL MEETING TO ORDER — 6 p.m. II. WELCOME AND ROLL CALL MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Debbie Stevens Qoined at 6:06 p.m.), Will O'Neill (Ex Officio) (joined at 6:03 P.M.) MEMBERS ABSENT: None Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, Administrative Support Specialist Clarivel Rodriguez III. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher expressed surprise to learn of an unscheduled vacancy on the Housing Element Update Advisory Committee (Committee) and the qualifications for the position. The enabling resolution does not contain a position with the qualifications listed for the vacant position. Also, the enabling resolution designates the current Mayor as the Council's representative to the Committee, and Council Member O'Neill is no longer Mayor. IV. CONSENT CALENDAR a. Minutes of January 20, 2021 Meeting Recommended Action: Approve and file the minutes of January 20, 2021. Chair Tucker moved, seconded by Committee Member Bloom to approve the minutes of the January 20, 2021 meeting with revisions proposed by Jim Mosher, Hoiyin Ip, and Chair Tucker. AYE: Tucker, Bloom, DeSantis, Fruchbom, Kiley, LePlastrier, Sandland NO: None ABSTAIN: None ABSENT: Stevens V. CURRENT BUSINESS a. Subcommittee Progress Reports Recommended Action: Receive verbal updates from each subcommittee, as appropriate. SS3-373 Housing Element Update Advisory Committee Meeting February 3, 2021 Page 2 of 6 Chair Tucker reported he provides the affordable housing memorandum to parties who contact him about affordable housing. Based on comments submitted to him, he will revise the memorandum and circulate it to the Affordable Housing Subcommittee for approval. In addition, he received requested information for the memorandum pertaining to sites in the remainder of town after the agenda deadline for the current meeting. Updated memoranda will be placed on the agenda for the next Committee meeting. b. Feasibility of Housing in the 65 dB CNEL and Subcommittee Action Report Recommended Action: Receive an update from Committee Members Sandland and DeSantis on their exploration of properties as being "potentially feasible, " "feasible, " or "infeasible" within the 65 dB CNEL areas near the John Wayne Airport. Discuss the analysis prepared and receive and file. Committee Member Sandland advised that the subcommittee only considered parcels that were physically able to accommodate housing in place of or in addition to the current use of the parcels. Parcels were designated as feasible, potentially feasible, and infeasible. He provided the subcommittee's criteria for designating sites as feasible, potentially feasible, and infeasible. Parcels that are overlaid with a CNEL contour greater than 70 dB were deemed infeasible. The Airport Land Use Commission (ALUC) has established Site Safety Compatibility policies. Zones 1 and 2, Runway Protection Zones, prohibit residential uses within the zones. Zone 3 is the Inner Turning Zone. Zone 4 is the Outer Approach/Departure Zone, and the basic compatibility indicates residential uses should be limited to low density. Zone 5 contains properties immediately adjacent to the runway and prohibits residential uses. Zone 6 is called the Traffic Pattern Zone. The compatibility policies state that residential land uses shall be allowed in this area. The subcommittee considered these basic compatibility qualities and determined that Zones 1-5 would be infeasible, and Zone 6 could be considered feasible or potentially feasible. John Wayne Airport (JWA) and the City both utilize CNEL contours of 65 and 70 dB, and the subcommittee did not explore alternatives. The subcommittee does not have all the facts regarding the various parcels; therefore, the designations are subjective. Some of the parcels could be reclassified as feasible, potentially feasible, or infeasible. Staff will contact the owners of properties identified as feasible or potentially feasible. Before the Committee approves any parcel for the site inventory list and after public input, the Committee would have to find that housing is a suitable use. Additional deliberations regarding suitability will involve density and could involve development standards. The subcommittee does not endorse housing on any particular site but has narrowed the list of sites that staff will review and that the Committee will consider adding to the site inventory after receiving public input. Jim Mosher remarked that the 65 dB contour is very old. The actual contour changes with the flight patterns of aircraft departing JWA. The 65 dB contour has contracted such that almost all of Campus Drive is located outside the contour. Chair Tucker noted the Committee did not consider the 65 dB area initially but may have to if sites are needed. Deputy Community Development Director Jim Campbell agreed with Mr. Mosher in that noise contours change with traffic at JWA. For planning purposes, the adopted Airport Environs Land Use Plan is the determining factor. Staff anticipates a change over time but not a remarkable change. Some of these sites may be needed to fill a gap between required and identified sites. Sites within the 65 dB noise contour may be the last sites included on the list because of noise. SS3-374 Housing Element Update Advisory Committee Meeting February 3, 2021 Page 3 of 6 Chair Tucker added that there may be more opportunities for more affordable units at these sites. Brett Feuerstein, owner of a portion of the Newport Beach Golf Course, indicated the property is located within the 65 dB CNEL and split between Zones 6 and 4. If the City needs to utilize sites within the 65 dB contour, the property would be perfect for some type of residential use. Based on his interpretation of the Airport Safety Zones, a residential use located in Zone 4 should have a density equal to the average density of all surrounding uses. If needed, the property could provide up to 100 units Chair Tucker requested staff review the details of Zone 4 because the summary language for Zone 4 is confusing. In response to Committee Member Kiley's inquiry, Mr. Feuerstein felt a density that provided more than 100 units might be aggressive for Zone 4. The portion of his property located in Zone 6 could provide up to 50 units per acre. Committee Member Sandland reviewed the subcommittee's designations for Parcels 1, 1.5, 2, 3, 4, 6, 7, 8, 11, 48, 50, and 9. At the Committee's request, Committee Member Sandland only went over Parcels 17, 19, 21, 22, 29, 24, 41, 41.1, 114, 115, 119, 122, 123, 124, 125, 126, 128, 129, 142, 141, 146, 147-155, 158, 163, 165-169, 156, 157, 159, 160, 161, 189, 190, and 191, which the subcommittee designated as feasible or potentially feasible. Committee Member Bloom noted that constructing a parking structure on the portion of the Newport Beach Golf Course property located in Zone 4 and constructing residential uses on the portion in Zone 6 may be feasible. Committee Member Stevens concurred with Mr. Mosher's concern about relying on old data, equipment, and aircraft and with Deputy Community Development Director Campbell's comment that this is the data we are stuck with. The subcommittee handled the analyses well and found some potentially decent -sized parcels. Chair Tucker related that the Council will have to deal with the safety issue if units within the 65 dB CNEL contour are needed to meet the Regional Housing Needs Assessment (RHNA) number. Committee Member Sandland added that the subcommittee attempted to follow policies from the Basic Compatibility Qualities. Charles Klobe remarked that Mr. Feuerstein proposed low-income housing in the form of condominiums and questioned whether Mr. Feuerstein understands that the Committee is looking for low- to very -low-income units. Chair Tucker clarified that some of the property may be condominiums, but they would not be affordable housing. Nothing will be built if the burdens of affordability render projects infeasible. The State will have to confront the low-income issues when it reviews Housing Elements submitted by 197 jurisdictions. Deborah Allen felt a residential project at the Newport Beach Golf Course would be wildly popular with the Newport Beach community regardless of density and affordability because development would constrain John Wayne Airport's (JWA) expansion. SS3-375 Housing Element Update Advisory Committee Meeting February 3, 2021 Page 4of6 C. Approach for Accessory Dwelling Units (ADU) Recommended Action: Receive an overview of the possible approaches for using ADUs to count towards the RHNA requirement. Chair Tucker commented that ADUs as potential units are different from other housing types. Assumptions have to be made in estimating the number of units that will be built. The City will receive credit for ADUs at certain affordability levels that are quite attractive. The disadvantage to ADUs is they may be built next to neighbors who are not expecting them. The Council will have to set the policies. David Barquist, Kimley Horn and Associates, reported the memorandum describes the process and considerations for ADUs. Attached to the memo are the Southern California Association of Governments' (SCAG) methodology and excerpts from the Site Inventory Guidebook developed by the California Department of Housing and Community Development (HCD). ADUs are one strategy to accommodate growth needs, and single-family residences and multifamily developments will be needed to accommodate growth. HCD's approach to counting ADUs is called the Safe Harbor Approach and utilizes historical trends to project a yearly average of production over the course of the planning period. This approach eliminates the need to calculate affordability levels. Supplemental policies and programs may be needed to encourage development of ADUs. In response to Committee Member Fruchbom's query, Mr. Barquist indicated ADU production has been approximately 25 units per year, and projecting that over the planning period provides the City's Safe Harbor. Mr. Barquist continued the presentation, stating the ADU unit yield is 200 for the planning period. The City may take a more aggressive approach and adopt policies and programs that support a more aggressive approach. HCD will review these aggressive approaches on a case-by-case basis. The City is obligated to perform to the aggressive approach through the planning period and should balance its vision with a realistic projection to avoid no net loss implications. In answer to Chair Tucker's inquiries, Mr. Barquist explained that theoretically the City could accommodate 4,834 ADUs. The question is the realistic number of ADUs that can be built during the planning period because the City is obligated to produce that number of ADUs. The Council will have to balance the tensions among the policies it creates for each type of housing. In his experience, jurisdictions are utilizing the Safe Harbor Approach. Principal Planner Jaime Murillo advised that housing laws require the City to plan and zone for a variety of housing types and different densities. ADUs are viewed as an alternative to the sites inventory. HCD staff has stated clearly that the Safe Harbor Approach is acceptable, but they are open to an aggressive approach. Because the majority of ADU applications are pending in plan check, staff has to ensure the ADU projections for the Safe Harbor Approach are appropriate. A projection of 1,000 ADUs may be aggressive. While ADUs are allowed in any residential zone, there has to be a demand for ADUs. HCD will likely request a monitoring program for an aggressive approach. If the City does not meet its production targets, HCD will require the City to find alternative sites. In reply to Committee Member Stevens' queries, Principal Planner Murillo stated HCD will probably not require monitoring for a Safe Harbor Approach. However, recent conversations with HCD staff seem to indicate monitoring may be required for a Safe Harbor Approach. Mr. Barquist indicated SS3-376 Housing Element Update Advisory Committee Meeting February 3, 2021 Page 5 of 6 the City may adjust its zoning for other housing types if ADU production exceeds projections. Basically, the City has to show it can accommodate its unaccommodated need. In answer to Committee Member Sandland's question, Chair Tucker reiterated that the City would have to justify its ADU projections regardless of the method for calculating the projections. Committee Member LePlastrier indicated he is working with family members to plan an ADU. The cost for a freestanding ADU is approximately $300 per square foot. Committee Member Kiley believed a projection of 400 ADUs is realistic with the recent changes in housing laws. An amnesty program for existing illegal ADUs could capture additional units. Projecting the number of ADUs based on a percentage of single-family lots is reasonable. Committee Member DeSantis concurred with the feasibility of a projection for more than 200 ADUs. San Diego is exploring ways to provide financing and preapproved architectural drawings and site plans for ADUs. Using best practices from other Southern California cities, the City should be able to craft a program that will support an increase in the projections. Developing a program that makes sense for Newport Beach, is supported by the community, and facilitates this is reasonable. In response to Committee Member Kiley's inquiry, Committee Member DeSantis advised that staff has access to the Turner report and the website for best practices. Nancy Scarbrough supported an aggressive approach because there is no history for ADUs. With education, Newport Beach residents would probably strongly prefer 2,000 ADUs over tens of thousands of high-density units concentrated in the City. Once the City zones for high-density projects, it will be impossible to reduce that zoning. Charles Klobe supported an aggressive approach. The report indicates Newport Beach's historical rent for an ADU is approximately half that reported in other jurisdictions. That history of low rent should support an aggressive approach for low- and very -low-income ADUs. Achieving 2,000 ADUs over the next nine years is highly likely. Chair Tucker commented that affordable units have to happen on private property, and private developers are not going to lose money to build affordable housing. The construction of affordable units just is not going to happen as designed. VI. ADJOURNMENT — 7:42 p.m. Chair Tucker noted on March 17, 2021 the Committee is scheduled to make a recommendation for the Planning Commission and City Council to consider in April. The Committee will likely continue working on the sites inventory after it makes a recommendation. Deputy Community Development Director Campbell reported a first housing opportunities list will be presented at the next meeting. A public workshop regarding the policy framework and the first sites analysis is scheduled for February 24th. The process will repeat in March. The Council study session on February 9, 2021 will include the RHNA appeal, the Committee's progress, and ADUs. In answer to Committee Member DeSantis's question, Deputy Community Development Director Campbell related that a workshop for the Circulation Element will be held on February 10. SS3-377 Housing Element Update Advisory Committee Meeting February 3, 2021 Page 6 of 6 Next Meeting: February 17, 2021, 6 p.m. via Zoom. SS3-378 City of Newport Beach 2021-2029 HOUSING ELEMENT This section contains all the public comments received regarding the Housing Element Update. Personal addresses and contact details have been redacted for piracy. [UPDATEASWE PROCEED] Appendix C: Summary of Outreach (DRAFT APRIL 2021) C-12 SS3-379 ENV ^ \�/\ ��� �E � iA 41iL fir SW -380 Attachment B Draft Minutes from the March 31, 2021, Housing Element Update Advisory Committee Meeting SS3-381 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MEETING ZOOM MEETING, NEWPORT BEACH, CA WEDNESDAY, MARCH 31, 2021 REGULAR MEETING — 6 P.M. CALL MEETING TO ORDER — 6 p.m. II. WELCOME AND ROLL CALL MEMBERS PRESENT: Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Paul Fruchbom, Elizabeth Kiley, Geoffrey LePlastrier, Stephen Sandland, Debbie Stevens, Michelle Thrakulchavee, (Ex Officio Member) Will O'Neill MEMBERS ABSENT: None Staff Present: Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, Administrative Support Specialist Clarivel Rodriguez III. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher stated that in the Zoom meeting format the public cannot tell how many other members of the public are attending the meeting. Chair Tucker stated there were eight members of the public attending via computer and one attending via telephone. IV. CONSENT CALENDAR a. Minutes of March 17, 2021 (Attachment 1) Recommended Action: Approve and file the minutes of March 17, 2021. Chair Tucker indicated Jim Mosher submitted changes to the minutes. Committee Member Sandland moved, seconded by Committee Member DeSantis, to approve the minutes of the March 17, 2021 meeting as amended by Mr. Mosher. AYE: Tucker, Bloom, DeSantis, Fruchbom, Kiley, LePlastrier, Sandland, Stevens NO: None ABSTAIN: Thrakulchavee ABSENT: None V. CURRENT BUSINESS a. Subcommittee Progress Reports Recommended Action: Receive verbal updates from each subcommittee, as appropriate. SS3-382 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 2 of 17 Chair Tucker stated that the attachments represented the finalization of the subcommittee reports on the Housing Sites Inventory. The Committee had no further comment. Jim Mosher thought that some members of the public might be confused about the updated reports. The Committee is advising the City Council and so the final reports should be given more prominence. He suggested the final memorandums be posted to the Committee's webpage. With the Remainder of Town report, he was confused about the acreage at Coyote Canyon. Page 5 refers to 32 acres and the draft Housing Element refers to 22 acres. The second memo, Page 14, points to a project in progress on Mariners' Mile and it says there are 3 units there, but he understood it to be 3 units of affordable housing and 32 units of market rate housing. On Page 16, Item 3, he questioned why the road and track property was deemed infeasible when the current zoning is for housing. Chair Tucker thanked Mr. Mosher and instructed Senior Planner Ben Zdeba to clean up the details and post the final reports on the website. In response to Committee Member Sandland's questions Chair Tucker explained that the next step is to look at and discuss the suitability aspects of sites. All the sites will be listed in the Sites Inventory. The sites are handled primarily though overlays so the unit counts for the various sites that are shown as feasible does not mean the City will reach the unit count. The details will be worked out when the overlay text is developed after the Housing Element is approved. Committee Member Sandland stated concern about Table B1 in the Adequate Site Analysis of the Housing Element and how many units are shown above moderate income. In response to Committee member Sandland's question, Deputy Community Development Director Jim Campbell explained that the draft would be submitted and California Department of Housing and Community Development (HCD) would review the comments on the draft and how the City addressed the comments. Dave Barquist of Kimley-Horn explained that HCD would review the memos and anything else of record as part of their process. There is a section in the plan about community outreach and all public conversations will be disclosed. Further, the public has the right to provide comments to the City or directly to HCD. Committee Member Sandland commented for the fourth time that the parcel on the Newport Beach Golf Course near the northeast corner of Irvine Avenue and Mesa Drive still does not show up in the draft report as a potential site. Chair Tucker instructed Senior Planner Zdeba to work with Committee Member Sandland. In response to Senior Planner Zdeba's question Committee Member Sandland stated the parcel was on the Subcommittee's recommended sites and it is in Safety Zone 6. He said it should be listed in the Adequate Site Analysis portion of the Housing Element. Senior Planner Zdeba stated that had not been modified since initial publication for the public. Staff has not made changes yet; Committee Member Sandland's comments have not been ignored. Committee Member Sandland stated that the site had potential for low- and moderate -income units Page 2 of 17 SS3-383 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 3 of 17 so he wanted to make sure it was captured. Chair Tucker clarified that the Sites Subcommittee made changes and that staff had not yet reflected those changes in the draft Housing Element. He further noted that his comments on the draft Housing Element were submitted in writing. Committee Member Sandland stated he would also make his comments in writing. Committee Member Kiley referenced the March 17' meeting and Mr. Mosher's comments regarding the Coyote Canyon site. There is confusion regarding the useable area and requested that staff clarify that point. Chair Tucker confirmed it was 22 acres. Deputy Community Development Director Campbell also confirmed that it was 22 acres and that the change would be made. Committee Member Kiley said that she thought there was still confusion on the number of units that could be developed and stressed that was what she wanted clarified. In response to Committee Member Fruchbom's question, Deputy Community Development Director Campbell said they originally thought the Coyote Canyon site was about 32 acres, but they looked at it further and that was not correct. Committee Member Fruchbom stated the landfill could be used for housing related things such as parks and parking, it just cannot have people living on it. He said that the number of acres available should not be politicized as to what might or might not be possible. He wanted to know how many acres were theoretically possible that could be built on. Deputy Community Development Director Campbell stated that he thought there was 22 acres available for development. The acreage is at the bottom of a large slope that is made of trash so anything built on that would be about a quarter of a mile from the homes built at the bottom of the landfill. In response to Committee Member Fruchbom's question, Deputy Community Development Director Campbell stated 22 acres is available to be built on. Chair Tucker indicated that some of the land on the slope was designated as habitat area, which would be a further impediment to development. Deputy Community Development Director Campbell explained that there was habitat within the 22 acres as well, which makes the parcel a complicated one to develop. There was talk of a golf course, but the County has indicated that it is supportive of housing there. Chair Tucker said it was an important parcel as it is vacant land. In response to Committee Member DeSantis' question, Chair Tucker explained that the Site Inventory is part of Appendix B. Very few people indicated that they wanted to rezone their property for housing so the way the City will do it is through overlays. That is why there are percentages in the revised document as to what portion of overlay areas the City thinks will be developed. Page 3 of 17 SS3-384 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 4 of 17 Debra Allen stated she read the draft Housing Element and the Sites Inventory and found it difficult to compare them to the Sites Subcommittee Remainder of Town report because the parcel numbers are different. She suggested that the Committee cross index the unique identification numbers that parcels are given in Table B10. Chair Tucker said in the Subcommittee reports they used the number inside of the ball on the maps and in addition they had an owner's list. Ms. Allen stated she hoped they could be put together in one place in a staff report for clarity. Deputy Community Development Director Campbell said staff would work on a companion table for cross referencing purposes. b. Virtual Housing Element Workshop Recap Recommended Action: Receive an overview of the March 22, 2021 virtual public workshop that was held to provide the community an overview of the update and to listen to feedback. Deputy Community Development Director Campbell introduced Jenna Tourje of Kearns & West to discuss the public feedback. Ms. Tourje utilized a presentation to give an overview of the March 22, 2021 virtual public workshop. There were about 48 community participants who provided over 30 comments. There were 912 unique IP addresses that visited Newport Together in March with 450 registered users receiving updates. They also used Nextdoor and Facebook to publicize the event. The participants had questions relating to the Tables in the Housing Element, especially related to percentages and distribution. There were comments on housing in the Coastal Zone, incentives and distribution of Accessory Dwelling Units (ADU), and equitable distribution of housing throughout the City. Chair Tucker called for Committee Member comment, but there was none. He then called the public comment. Jim Mosher stated that the workshop was held on March 22nd, not February as the slide indicated. He went to the Newport Together Website and said that the Frequently Asked Questions section was blank despite it stating that it would be updated weekly. The tab for the Housing Element does not refer to the Housing Element Update, only to the current Housing Element. The Home page did not mention the March 311t Housing Element Update Advisory Committee (HEUAC) meeting, but it did mention the March 22nd workshop; however, the presentation given at the workshop is not posted. He suggested they post the presentation given at the workshop for the public's review. Ms. Tourje said they would update the dates on the website and post the PowerPoint presentation. With respect to Frequently Asked Questions, the page will be updated this week. C. Discuss Initial Draft Housing Element Recommended Action: Review the initial draft Housing Element update, which was published online on March 10, 2021, and made available here: www.newportbeachca.gov/DraftHEUpdate. Discuss and provide comments to staff. Page 4 of 17 SS3-385 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 5 of 17 Chair Tucker stated the item was a continuation of the discussion started on March 17, 2021. He viewed the exercise more like an Environmental Impact Report (EIR) than a project specific document as it is led by a consultant. He instructed the Committee to make comments appropriate for the consultant and then the consultant will explain how things need to be done. Deputy Community Development Director Campbell stated the Committee was provided with the draft Housing Element at its previous meeting. He thanked Chair Tucker for his written comments and edits. He noted that the current meeting packet included another scenario for review, which they will present today. After they take feedback from the Committee, the Planning Commission and the City Council will update the document and then submit a progress draft to the State for its initial review. Mr. Barquist explained that the draft is an initial draft which will go through a process with the Committee and the public. The Planning Commission and the City Council will receive the recommendations and comments from both the Committee and the public. Based on all the input they will then put together a draft for initial review by the State. The State will review it for compliance with the law and will provide the City with a response and an explanation of how to comply with statutory provisions. The draft Element could be approved or it could require some iterations based on consultations with HCD. In response to Chair Tucker's question, Mr. Barquist explained that the Housing Element identifies the opportunities that would accommodate the City's Regional Housing Needs Assessment (RHNA) allocation. Staff will go through the tables, but they list the percentage of redevelopment. You may have a scenario showing an above moderate opportunity, but that does not necessarily mean that those are the units that will be constructed. In response to Chair Tucker's questions Mr. Barquist said that the overlay is the policy prescription to provide the regulatory allowance for the development to occur. The overlay is another layer on top of existing policy. So the entitlement underneath it is not lost, an additional entitlement is added on top. An overlay that has met its objectives in some cases can sunset. That is a policy decision for the City to make. In response to Committee Member DeSantis' questions on Coyote Canyon, Mr. Barquist explained that the City has many avenues to get to where it wants to be. If the City wants to be very prescriptive about a site, then it should have a policy and supportive evidence that shows that the strategy or method planned is feasible. If there is rationale and policy support, it should be acceptable. The bottom line is the Housing Element is a promise the City must keep. The policy support could come from affordable housing developers or it could be from a combination of public/private joint development. Chair Tucker stated that the revised schedule did not show 88 affordable units. The revised number is 308. Mr. Barquist directed the Committee's attention to the top scenario on Page 3. He stated that the percentage changes were indicated in green. Chair Tucker confirmed that in the revised scenario there are 308 low/very low units instead of 88. In response to Chair Tucker's questions, Committee Member Fruchbom said that 100 percent affordable works fine at 50, 60, 80, and 120 Area Median Income (AMI). For a 100 percent affordable project, typically 20 percent at 50 AMI and the balance 80 percent at 60 AMI works. Page 5 of 17 SS3-386 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 6 of 17 Those projects look like any other apartment complex; they are nice housing and people just need to qualify income wise. There are changes coming and there is hope that the Democratic federal administration will increase the amount of tax credits available. They will also get rid of the 50 percent rule which will increase available credits. People believe the tax credits will be extended, but no one knows to what extent. The key driver is land cost. He did not believe it would work to mix homeless with people making 50 or 60 percent AMI, but if the land is not expensive you can mix luxury units with 60 percent AMI and it would work. Chair Tucker asked if they could do a significant number of 100 percent affordable projects to really make progress on the City's numbers since those projects involve less housing units than mixed - income projects. Committee Member Fruchbom stated there were limits to how many credits a project could get, but Newport Beach's biggest issue is geographical limits. There is tremendous demand for tax credits. Committee Member Kiley commented that if Newport Beach has in lieu fees and wants to have affordable senior housing they could combine those funds with State credits and other credits. Chair Tucker said that usually in lieu fees are generated by market rate units; however, many people are looking to keep market rate units at a lower level. The City tends to grant entitlements whereas the federal control comes through tax credits. Committee Member Sandland asked staff to pull up Table B1, Summary of RHNA Status, and asked several questions. In response to Committee Member Sandland's questions, Chair Tucker referenced the revised scenario created after the draft Housing Element was published on the advice of City Council members and explained that it should be used as a starting point. There will be more affordable units in Newport Center and less in the airport area. Additionally, the unit count is reflected as if everything was built without restrictions. As stated earlier in the meeting the intention is to create opportunities and then close them once projects are built, but that is not something that is the current purview of the HEUAC. All the City must do is show that it has enough potential sites to meet RHNA and then adopt policies that promote it. Deputy Community Development Director Campbell said the revised scenario was a result of the discussion held at the March 17th HEUAC meeting. There is a decrease of units in the airport area and in increase in West Newport Mesa, a smaller increase in Dover Westcliff, and an increase in Newport Center. They also changed the affordability assumptions in Coyote Canyon to increase that. He further noted that they did not look at any other geographic locations like the peninsula. There is a 25 percent assumption in the airport area, a 30 percent assumption in West Newport, 40 percent in Dover Westcliff, 25 percent in Newport Center, and 100 percent at the 22 acres of Coyote Canyon. The percentages of redevelopment, the affordability, and the assumed densities can be changed. Another option is to look at the inventory area itself and add or subtract parcels from there. The highest density the City has assumed is 50 dwelling units per acre in the airport area. Committee Member Sandland confirmed that the policy recommendation would change as well. Deputy Community Development Director Campbell stated that was correct and that the policies in Section 4 would shift to match the scenarios in the revised tables in the memorandum. The revised scenario is the best place to look. They are not updating the draft Housing Element before every Page 6 of 17 SS3-387 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 7 of 17 meeting which has led to some confusion. Following this HEUAC meeting, there is a Planning Commission meeting on April 8` and the City Council meeting on April 27". Following the City Council review of all materials, staff will update the document and submit it to the State for review. In response to Committee Member Sandland's questions, Deputy Community Development Director Campbell stated that Table B10 would be revised if they changed the density or assumed affordability for that geographic area or if they eliminated a site for unsuitability. The acreage was changed for Newport Center due to an error. With respect to Policy 1 G and the 5` Cycle, the units are reflected in Table B10 and Table B1 under the 5t" Cycle Sites Existing Zoning Capacity. Committee Member Sandland said he wanted to line up the Tables with the policy, which was difficult. He thanked staff for their effort. In response to Committee Member LePlastrier's question regarding Banning Ranch, Deputy Community Development Director Campbell said it was theoretically possible they could reach an agreement on the value of the property that the property owner will accept. Committee Member LePlastrier said he had intelligence indicating that they have come to an agreement and half the funds have been raised. Deputy Community Development Director Campbell said that a private donor put up 50 percent of the funds, but the rest of the funds will have to come from other places and that is taking time and discussion. If they reach an agreement and the land is publicly acquired then the site is probably not suitable. If it came off the City's list, the numbers would go down and that is indicated on the table. If they were taken out, then the low/very low has about an 8 percent overage and moderate would have about a 1 percent overage and 1,375 units would not be needed. The City could go forward without Banning Ranch if it were deemed unsuitable, but there would be almost no buffer on the low, very low, and moderate -income housing. Chair Tucker believes that HCD would have something to say about Banning Ranch when it reviews the initial draft. In response to Committee Member DeSantis' question, Deputy Community Development Director Campbell explained that Policy 1 K on Page 4-8 of the draft Housing Element commits the City to adopt an inclusionary Housing Element, but it does not lay out the specifics. The City has time to develop the specifics and could do so with an ordinance that covers the entire City with different variances. Policy 1 K also states that the City could adopt a policy immediately to cover current projects as there is no current inclusionary requirement, but due to the high RHNA coming, the City might need to require inclusion of current projects. The inclusionary numbers themselves could be an impediment to housing production if they are too high. Committee Member DeSantis observed that other than the Newport Center project there has not been multi -family rental housing built in Newport Beach in many years. Deputy Community Development Director Campbell said Uptown Newport has 462 occupied units. Committee Member DeSantis said that those were the only two projects and Uptown Newport had an affordable component. She thought that if the City consulted with affordable housing developers that they would see the higher percentages are feasible in an area like Newport Beach where the demand is high. Page 7 of 17 SS3-388 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 8 of 17 In response to Committee Member DeSantis' questions, Deputy Community Development Director Campbell explained that current State law was amended and allows a developer to ask for a 50 percent density bonus. Newport Beach's current ordinance is out of date and so they will implement State law. If a developer requests 50 percent density bonus and if they provide the minimum inclusion required by law, then they would be entitled to it. Chair Tucker added that the Statute lays out the affordable factors if a developer chooses to exercise the density bonus. The law also allows an applicant to seek waivers of development standards which must be granted. He used the project at 4400 Von Karman as an example of how developers are given choices under the Statute. Mr. Barquist stated the General Plan Housing Element is adopted by resolution. It is a policy document or statement of intent that will be implemented through overlays or a similar rezone strategy. At the next level it is the ordinance or law that the City creates in support of the resolution. Over the next three years they will look at site specific criteria, funding, financing, and everything else involved in order to create an overlay or similar rezone strategy with necessary provisions to make them legal and practical. In response to Committee Member Fruchbom's question, Chair Tucker stated that the policy details are beyond the scope of the HEUAC, although in the Affordable Housing Subcommittee Memo they recommended a series of potential policies. The City Council ultimately makes the decisions. Committee Member Fruchbom suggested that it is extraordinarily difficult to have a comprehensive policy as every site is different in terms of rents and construction costs. Developers look for the best and most efficient way to get their projects built and historically in lieu fees have been woefully short of what is required. Chair Tucker agreed and added that land values and site work are different. Not having a one size fits all approach will ultimately result in more affordable housing. Committee Member Fruchbom commented that one of the subsidies that historically has not been available, but he thinks will become more available is cities waving fees. He suggested that the City consider that. Chair Tucker stated that was already in the policy documents except for school fees, which are up to the school district. Committee Member Kiley agreed that every project was different but did not want to ignore in lieu fees. She stated that they were working well in Irvine. Committee Member Fruchbom clarified that it was difficult to have an internally consistent fee. Committee Member Thrakulchavee said that having the optionality of in lieu fees is particularly important and when it comes to providing affordable units within a project, the inclusionary works well if it is for a multi -family rental project but if you are trying to produce ownership housing, it is very challenging because of the way that those homeowners have to qualify in terms of loan requirements and deed restrictions over time. Developers need to be able to calculate the in lieu fee clearly and without guesswork. Page 8 of 17 SS3-389 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 9 of 17 Chair Tucker said the Affordable Housing Subcommittee produced a report that concluded the affordable housing in Newport Beach was unlikely to be for sale housing. He thought Committee Member Thrakulchavee's point confirms that this will be a deeper policy conversation over time. Committee Member Stevens said she understood that after sites are reviewed for suitability. They might not all still be in play, but that it was concerning to send the document to HCD without caps. Currently there are about 10,000 sites in the Housing Element which she thought seemed excessive. Chair Tucker thought that was a common concern. In response to Committee Member Stevens comments and questions, Mr. Barquist said that the draft Housing Element is demonstrating the capacity to accommodate RHNA. The City is showing that as of this point and prior to developing policy programs and regulatory framework, they have capacity to meet RHNA. The overlays or other zoning programs are only intended to provide for the accommodation of the remaining RHNA need. The City has 36 months from the date of the adoption of the Housing Element to do that work. If the City shrank it down to exactly what they need for RHNA now, they would have to go parcel by parcel and show the committed affordably for each one. The way it stands is that the City will have flexibility to determine the best scenario to meet its objective. Committee Member Stevens confirmed that Table B10 would be sent to the State and stated that Table B10 was confusing. Mr. Barquist said Table B10 only listed the low-income units because Newport Beach already met its other obligations based on development in the pipeline. In response to Committee Member Stevens' question, Mr. Barquist explained the Housing Element would provide the project description that the State would evaluate. The City will provide the assumptions of growth within the focus areas. There is a theoretical number and there is a realistic number. It is a threshold that is being evaluated for California Environmental Quality Act (CEQA) purposes. Committee Member Stevens said the grand total of projected units is 10,000. Mr. Barquist said it is projected units of accommodation ability, not necessarily the sites that will be used. It is demonstrating to HCD that these are the sites that have a feasible ability to accommodate housing. The City is showing HCD that the sites in its inventory provide it with the ability to accommodate its growth need then subsequently over the next three years the City will have the requisite zoning strategy for those sites to accommodate the RHNA obligations. Committee Member Stevens stated that the number in the EIR had to be developed first before the City gets to the RHNA numbers. Mr. Barquist said it would be something below the theoretical buildout number. In response to Committee Member Sandland's questions, Policies 1A through 1 F will match and in the project description for the purposes of CEQA everything will be consistent. There is a theoretical number, but the obligation is the RHNA number. The net remaining need is the goal number. The other numbers simply demonstrate the capacity to meet the need. Page 9 of 17 SS3-390 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 10 of 17 Committee Member Sandland stated that all the charts are confusing for HEUAC members and the public. Committee Member Stevens thought it would help to see the project description in the EIR. Chair Tucker said that while the total unit count will be less than the maximum shown, they do not know where in each part of town the development will occur. Each area will develop differently. With respect to the "grand total projected units," the description needs to be better to limit confusion. It is the total units from which Newport Beach will satisfy RHNA, not the total units that will be built or approved to be built. There are 9,927 units from which they will pick 4,845 units. Seeing no further Committee Member comments, he called for the public comment. Debra Allen said regarding the draft Housing Element and the column in B10 that refers to "net units final," she did not think Mr. Barquist's explanation matched Community Development Director Jurjis' answer at the Speak Up Newport Forum. She suggested the two meet and determine the answer for the public. Secondly, she questioned how many units the City will zone for and use Newport Center as an example. Currently, the City says there is 161 acres in Newport Center, and it is uniformly zoned for 45 dwelling units an acre. She determined that came to 7,245 dwelling units in Newport Center alone. Chair Tucker stated the numbers would be true if everything were developed, but they are planning to use overlays that sunset. There is similar zoning in the Airport area from the 2006 General Plan Update that allowed 2,200 residential units on a first come first served basis. He understood that they could have overlays with caps. In response to Chair Tucker's question, Deputy Community Development Director Campbell agreed that the City could have overlays with caps but stated that there are limits to caps. Caps can be set for environmental reasons and when the RHNA is satisfied. They key is that the Housing Element includes enough sites to accommodate RHNA. Chair Tucker said that something that should be addressed in the overlay is that Newport Beach has balanced land use now. Because it is a built -out town the State has decided that some of the commercial uses should be changed to residential and the City will comply, but to do 7,000 units in Newport Center would change the land use mix and is not a balanced land use plan. Those things will be discussed later in the process and not with the Land Use Element submittal. Jim Mosher said Appendix B ends with Table B14 which should be cross referenced with a map, but the map is missing. Secondly, at the March 17th meeting many Committee Members promised to submit written comments on the draft Housing Element, but he has only seen Chair Tucker's comments. He shared Committee Member Sandland's concern about confusion around what the public is supposed to comment on. He noted the original draft still has the watermark making it difficult to attach comments. Senior and homeless housing is mentioned in Section 4 and specific projects are mentioned. He thought two of those projects were defined as congregate care and only one project was deemed to be housing and wanted to know if senior housing counted toward RHNA. He was also concerned about the undefined numbers in the draft Housing Element. Section 4 also states that anything carried over from the 5th cycle would be by right and so he wondered if that could be applied to projects in the pipeline. In response to Mr. Mosher's comments and questions, Deputy Community Development Director Page 10 of 17 SS3-391 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 11 of 17 Campbell explained there were no changes to the draft Housing Element. Staff has looked at the percentages of redevelopment and affordability in the focus areas and created the new scenario in the packet which better distributes units. He appreciated the watermark comment and stated staff was looking to change that and apologized that it was not yet available. Senior housing counts toward RHNA, but congregate care does not. Theoretically for a pipeline project to take advantage of the 5` cycle being by right, a developer would have to withdraw the project and wait until the Housing Element is adopted, certified, and for the City to create the process over three years. Mr. Barquist added that Policy Action 1 G specifies the by right requirement. There are caveats and it is contingent on a percentage of units being affordable. It is not a blanket by right. Deputy Community Development Director Campbell said that currently the document specified a 20 percent inclusion. The subcommittees have reviewed different sites and produced memos. If there are sites that are not suitable the City needs to understand that and remove them from the Inventory. Once the City receives comments back from HCD, sites might be questioned and pulled, which would adjust the numbers. Therefore, the suitability discussion must happen quickly or wait until after comments are received from HCD. With respect to the map for Table B14, staff will make sure it is included before the draft is sent to HCD. Chair Tucker stated that after going through the list of potentially feasible properties he hoped landowners would be interested, but if they were not so, the City will need an overlay approach. He suggested they look at suitability at the next Committee Meeting and not before they submit the draft to HCD. A May meeting could be possible to discuss suitability, but he would discuss that possibility with staff later. Nancy Scarbrough stated she had four main questions. First, the Revised Scenario Focus Area Strategies lists Newport Center with 544 affordable units and a total of 1,814 units. If a developer decided to pay an in lieu fee and not develop affordable units, theoretically the City could end up with an unbalanced distribution of affordable units. Second, RHNA requires 100 percent residential zone by right land with no local discretion, input, or control. She asked if the City studied how to comply with State law while still retaining local control. Third, are the density bonuses that are assumed by the State law at 50 percent considered in the number in the Revised Scenario Focus Area Table? Fourth, she wanted to know the methodology currently used to allocate low income and above moderate income in each area. In response to Ms. Scarbrough's questions, Deputy Community Development Director Campbell said that the answer to the first question really depends on how the inclusionary ordinance is written. With respect to the second question the Committee and staff are attempting to create a document that complies with State law. It is an erosion of local control in some respects, but that is why the State wants to address the housing shortage. Third, density bonus is not accounted for in the numbers, but he expected density bonus to be utilized by most projects. Mr. Barquist further explained that the density bonus could not be counted on the front end since it is discretionary on the part of the developer so HCD does not allow it to be counted as an assumption. On the back end, implementation units are being created and counted toward the RHNA obligation. Concerning Ms. Scarbrough's fourth question, Mr. Barquist stated Newport Beach has met its obligation for above moderate units. The assumption is a small portion of the sites identified will be affordable, so the above moderate and moderate are the remaining portion when the goals for low and very low are netted out. The capacity of the sites that theoretically can be produced is listed, but it does not mean the City will yield those units. Page 11 of 17 SS3-392 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 12 of 17 Chair Tucker called for additional Committee Member comments and questions. Committee Member Sandland stated he had the original document of March 10th, the document distributed for this meeting including Chair Tucker's comments, and the memo dated March 23rd. In response to Committee Member Sandland's question, Deputy Community Development Director Campbell said that Committee Members and members of the public were welcome to comment on all three documents. The scenario building is what is in flux. He understood it was a challenging task and apologized for its difficulty. Chair Tucker recommended that Committee Members work off of the original draft Housing Element. When he was on the Planning Commission, they had controversial and complex projects but there was always a continual stream of new information from staff. Committee Member Sandland stated he planned to start with Chair Tucker's comments. Chair Tucker suggested Committee Member Sandland speak to staff regarding how to format his comments. In response to Committee Member Sandland's question, Chair Tucker indicated that other Committee Members may choose not to make comments. Discussing the mechanics of comments can be done offline with staff. Committee Member DeSantis agreed with Committee Member Sandland that it would facilitate the next steps if everyone worked within the same document, including staff and consultants. Chair Tucker advised Committee Member DeSantis to work with staff and stated his comments would not change. He called for further Committee Member comments and questions. Hearing none, he moved on to the issue of which scenario should be included. Senior Planner Zdeba's memo contains tables and is consistent with what Ex Officio Member Will O'Neill suggested. In response to Chair Tucker's question, Deputy Community Development Director Campbell explained the current General Plan for the Dover/Westcliff area is mixed-use and the zoning is consistent with that. Nothing has happened in the area since the 2006 General Plan. If the density is increased then the area might get taller and more dense development, which the community must consider. Staff kept the density lower out of respect for the existing area. He suggested that density bonus could be used in this area and explained that the inclusionary requirement with a dense project is considerable. It is about finding a suitable balance for the community. Chair Tucker stated it stood out among the other parcels except for Banning Ranch. Thirty units is the minimum for the State to recognize the density, so this area stands out. Committee Member Kiley stated that she agreed with Chair Tucker and the density per acre was somewhat low and should be higher. She suggested a density of 40 to 45. In response to Committee Member Thrakulchavee's questions, Deputy Community Development Director Campbell said the density of the 880 apartments is closer to 50. He estimated that it was close to 1,400 units on about 25 acres. There is a range of density in the area and in order to have any of the sites converted to housing they may need to increase the density to 40 or 45. The parcels listed along Dover are mixed-use designation. He highlighted the differences between the published scenario and the updated scenario. Page 12 of 17 SS3-393 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 13 of 17 Committee Member Thrakulchavee advocated for a higher density of 45 or 50 to give more opportunity for the market to dictate what is feasible from a project standpoint. Chair Tucker agreed because there are currently income producing buildings in place so there needs to be a fair amount of incentive to redevelop. Committee Member Thrakulchavee added that over the past five years, the area has transformed into a pedestrian environment so it would be a good candidate for more of an urban feel. The office buildings, while income producing, sit on underutilized land. Committee Member Sandland echoed his colleague's thoughts on Dover/Westcliff that the density could be increased to 45 from 30. He was also concerned about Newport Center because at 45 a significant portion of the area is under the Sight Plane Ordinance which means only one and two- story buildings are allowed. Chair Tucker stated that 45 would be used only in the feasible parts and the Sight Plane Ordinance also covers the City Hall site, which will not be redeveloped for housing. Committee Member Sandland stated that a large area of Newport Center is covered by the ordinance and suggested that they look at this issue when discussing suitability. Chair Tucker agreed. In response to Committee Member Thrakulchavee's question, Chair Tucker clarified that the assumed density is the maximum. Deputy Community Development Director Campbell stated Chair Tucker was correct. In response to Chair Tucker's question, Deputy Community Development Director Campbell confirmed that if the Dover/Westcliff area were changed to 45 or 50 units per acre it would be in addition to the commercial entitlement on the property. Charles Klobe stated he has participated in every previous HEUAC meeting and was encouraged by the level of comments and questions from Committee Members in this meeting. With respect to Dover Shores and Westcliff, he pointed out that the population of 880 is 25 percent of the District 2 residents and are also mostly nonvoters. The 880 project is already under parked and he feared high density projects utilizing the low income 50 percent density bonus would exacerbate parking and traffic problems in the area. Westcliff also abuts a Richard Neutra designed building that should be designated as a historical building. Therefore, he questions raising the density of the area. He also warned of an uproar from wealthy neighbors who are currently unaware of the City's plans. Debra Allen seconded Committee Member Sandland's concerns about the Sight Plane over much of Newport Center. The proposed zoning overlay would add approximately 1,000 dwelling units in the Sight Plane. There are five owners that expressed interest in redeveloping with housing, so the neighborhood is concerned about high rise development and invasion of the Sight Plane. Nancy Scarbrough stated Westcliff/Dover is 14 acres at 30 units per acre. If it is raised to 45 units per acre and three developers decide to build, it would be 630 units in one concentrated area and that is without a density bonus. Page 13 of 17 SS3-394 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 14 of 17 In response to Ms. Scarbrough's question, Chair Tucker and Deputy Community Development Director Campbell explained that no matter what density the City established a developer could ask for more in exchange for including affordable housing. The maximum percentage they could request is 50 percent. Ms. Scarbrough said that if that were the case there could be 950 units. Deputy Community Development Director Campbell said theoretically that was true, but in reality the inclusionary percentages get so high at a 50 percent density bonus that those projects may not work out. In response to Ms. Scarbrough's question, Deputy Community Development Director Campbell said the marketplace and individual property's feasibility will change the assumptions. He did not believe they would get 50 percent density bonus on all the property, although they could not prohibit it. Ms. Scarbrough argued that the density should stay at 30 and not be increased to 45. The 880 project has police and fire department presence weekly because it is populated at an income level that seems problematic in that density. Chair Tucker said the issue the Committee is focused on is housing production as instructed by the State. Every area will have people that are unhappy about it and he was not sure how to resolve that. He asked the Committee whether they wanted to recommend the change or leave the question for the Planning Commission and City Council. However, it is not likely to have housing built at 30 units per acre. Committee Member Kiley said the question really was if the City would be able to meet its RHNA obligations without increasing the density in Westcliff/Dover. Chair Tucker said the schedule shows approximately 10,000 units with which to meet RHNA but noted other sites would be removed when residents attended meetings and voiced opposition. In response to Committee Member Kiley's question, Deputy Community Development Director Campbell said The Colony Apartments are around 36-40 units per acre. Uptown Newport, in the two buildings built, has a net density closer to 60 units per acre. A lot of the feasibility hinges on the size of the units. Smaller units mean higher density, but it all depends on what the developer is trying to bring to the market. Committee Member DeSantis requested that the number of units with a 50 percent density bonus be included in the charts. Chair Tucker explained that the State required a 50 percent density bonus to be available, not that it be exercised. Therefore, it might be misleading to include 50 percent when it likely would not be utilized. He suggested a footnote regarding the assumed base density with an explanation of the density bonus range. Committee Member Thrakulchavee said she would clarify that it was the maximum density with a footnote stating that California density bonus law could go into effect. If a developer utilizes density bonus, then it is also providing a significant amount of affordable housing in the project. Chair Tucker suggested saying the maximum base density. He wanted to state that there could be Page 14 of 17 SS3-395 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 15 of 17 a density bonus in addition to the base because that seems unclear to people. He asked the Committee for thoughts on assumed density of the Dover/Westcliff area. Committee Member Thrakulchavee explained that the difference between a 30 unit per acre density and 45 or 50 units per acre is in how the project is parked, like a wrap style instead of a garden style. To achieve either 30 or 45 units per acre, one would need a two to three story building. She liked the optionality of the 45 units per acre and pointed out that what would be built would be market driven and dependent on the availability of the real estate. Chair Tucker suggested the buildings with commercial components would be a podium style product rather than a wrap product. Committee Member Thrakulchavee said that was a possibility and in that instance the developer might have to consider an underground parking scenario. She appreciated the comment on the 880 apartments but argued that was a poorly designed project with poorly located parking. Chair Tucker found it difficult when he was on the Planning Commission to punish property owners for the transgressions of other surrounding properties. He thought the density in Dover/Westcliff should be lower, perhaps 40 units per acre, but acknowledged that might not yield development of units. Committee Member Thrakulchavee saw no real difference between 30 and 40 units per acre from a product standpoint. The threshold for a different product type is really 45. Committee Member Sandland noted that the shape of the parcel made a difference. He agreed with Committee Member Thrakulchavee. He would like to keep the total number of units down, so he suggested staying at 30 units per acre. Chair Tucker said that part of the exercise was to satisfy the State, not necessarily build the units. Committee Member Fruchbom questioned whether the conversation was outside the scope of the Committee, especially given that they were focusing on one site. Chair Tucker said it probably is beyond the scope and there did not seem to be enthusiasm for changing the number. The numbers were created by a consultant. He suggested leaving the number at 30 and requested a better estimation of the grand total of projected units. In response to Chair Tucker's question, Deputy Community Development Director Campbell said the City started with the focus areas based on community feedback from the original steering committee. Staff heard clearly that adding high density housing on the peninsula was a poor idea. Staff respected the committee's work and reflected on what they heard from the community. Chair Tucker confirmed that the Committee did not need to make a recommendation yet. Deputy Community Development Director Campbell explained staff was taking in all Committee and public comments and considering them. The comments are informing staff's decision making on the draft document. Everything will be summarized for the Planning Commission. Once their input is received with additional public testimony the draft will go to the City Council. Following direction from City Council, staff would update the progress draft for the State. Once comments are received from HCD, the City will repeat the process for further Committee and public comment. Page 15 of 17 SS3-396 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 16 of 17 Chair Tucker said the Committee still needed to hold a suitability discussion so he would discuss the timing of the next HEUAC meeting with staff later. It would be quite some time as the draft has to work through the Planning Commission, Council, and HCD. Deputy Community Development Director Campbell said the State had a 60 -day window within which to provide the City's comments. Staff will review and digest the comments prior to scheduling a HEUAC meeting. He stressed there would be time for additional public comment and noted that the City would not normally look to densify this way, but they are reflecting and responding to a State mandate. In response to Chair Tucker's question, Deputy Community Development Director Campbell thought the next HEUAC meeting could be held in early August 2021, at the soonest. That is assuming the City submits the draft on May 15tH In response to Committee Member DeSantis' question, Deputy Community Development Director Campbell explained that staff intended to update the draft Housing Element after the City Council's input and direction. That will be the progress draft that is submitted to HCD and it is a public document. The Committee will receive copies when the progress draft is submitted to the State. The Committee is not being asked to vote on anything at this point. Chair Tucker stated they would wait to hear from staff regarding the scheduling of the next meeting. In response to Committee Member Stevens' question, Chair Tucker explained the Committee would discuss suitability at the next meeting. d. Upcoming Schedule and Community Engagement Opportunities Recommended Action. No action. Staff to provide a brief overview of upcoming schedule for meetings and workshops. Senior Planner Zdeba shared the tentative schedule for the Housing Element with the Committee. Staff is looking to discuss the HCD review with the Committee in August and then return with an updated draft. The Planning Commission will hold two meetings on the draft prior to the City Council meeting in October 2021. City Council will ultimately adopt the document in compliance with statutory deadlines. In response to Committee Member Stevens' question, Senior Planner Zdeba said the review of the EIR would happen in the background, but he did not have a specific schedule for that. There will be meetings and additional public input related to the EIR. Chair Tucker said that the Committee would not look at the environmental aspects. Committee Member Stevens agreed, but indicated people would want to participate in the EIR process. Chair Tucker agreed, but said it was not HEUAC's purview. In response to Committee Member Stevens' questions, Senior Planner Zdeba said the project description for the EIR will be ready for HCD as they would have a good estimate of the housing pool by then. That will also basically trigger the CEQA process as well. Page 16 of 17 SS3-397 Housing Element Update Advisory Committee Meeting March 31, 2021 Page 17 of 17 Chair Tucker called for the public comment. Jim Mosher asked if the EIR would have a Notice of Preparation, a scoping meeting, and a public review period. He also asked about the differences between the current Housing Element submittal process and the last submittal process in 2013. He also inquired if staff would have a draft of the Housing Element ready to be authorized on May 11tH In response to Mr. Mosher's questions, Deputy Community Development Director Campbell said there was no schedule prepared for the EIR yet, but that there would be a complete process. He requested that Mr. Barquist explain the HCD process. Mr. Barquist said that the initial submittal is of a draft document that is an expression of the City's intent. The State would review for compliance with state law and either provide comments that indicate what needs to be changed for compliance or they will provide a letter of substantial compliance which essentially articulates upon your local adoption and submittal of the final Housing Element as adopted by the City Council that the City would have a certified Housing Element. If HCD provides a conditional letter, then certification is contingent on those conditions being met. Based on the recent experience on the 6t" Cycle, he felt that it is likely staff will receive comments back. The goal is to receive the compliance letter prior to the City Council meetings at the end of the process. Chair Tucker thanked the Committee and looked forward to seeing additional comments in the coming days. VI. ADJOURNMENT — 9:02 p.m. Next Meeting: Not scheduled at this time. Page 17 of 17 SS3-398 Attachment C Draft Minutes from the April 8, 2021, Planning Commission Study Session SS3-399 IV V NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE THURSDAY, APRIL 8, 2021 REGULAR MEETING — 6:30 P.M. CALL TO ORDER — The meeting was called to order at 6:30 p.m. PLEDGE OF ALLEGIANCE — Commissioner Klaustermeier ROLL CALL PRESENT: Chair Erik Weigand, Vice Chair Lee Lowrey, Secretary Commissioner Curtis Ellmore, Commissioner Sarah Commissioner Peter Koetting, Commissioner Mark Rosene ABSENT: None Lauren Kleiman, Klaustermeier, Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Tony Brine, Senior Planner Ben Zdeba, Assistant Planner Joselyn Perez, Administrative Support Specialist Clarivel Rodriguez PUBLIC COMMENTS Jim Mosher complimented staff on updating the online log of planning applications to include links to documents. For the past year, he has not been able to download sections of meeting documents archived on the City website, but the hyperlinks in documents are active. Perhaps staff could update the archive so that portions of documents can be downloaded with the links remaining active. Two legislators have introduced a Constitutional amendment that would make local planning ordinances supreme over State law except for the Coastal Act, siting of power plants, and the location of water and transportation infrastructure. Hopefully, the City will support the proposed Constitutional amendment. REQUEST FOR CONTINUANCES None VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF MARCH 18, 2021 Recommended Action: Approve and file Chair Weigand noted Mr. Mosher's proposed revisions to the minutes Motion made by Commissioner Ellmore and seconded by Commissioner Kleiman to approve the minutes of the March 18, 2021 meeting with Mr. Mosher's revisions. AYES: Ellmore, Klaustermeier, Koetting, Rosene, Kleiman, Lowrey, Weigand NOES: ABSTAIN: SS3-400 ABSENT: VII. PUBLIC HEARING ITEMS ITEM NO. 2 MIXED-USE DOVERIWESTCLIFF (MU -DW) ZONING DISTRICT CODE AMENDMENT (PA2020-316) Site Location: The Mixed -Use Dover/Westcliff (MU -DW) Zoning District is comprised of six parcels located along the westerly side of Dover Drive between 16th Street and Westcliff Drive Summary: An amendment to Table 2-8 (Allowed Uses and Permit Requirements) of Section 20.22.020 (Mixed -Use Zoning District Land Uses and Permit Requirements) of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code. The proposed amendment would allow eating and drinking establishments (i.e., restaurants) and larger health/fitness facilities in the MU -DW District, subject to meeting the parking requirements and obtaining a use permit. Recommended Action: 1. Conduct a public hearing; 2. Find the action proposed herein not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of the California Public Resources Code and Sections 15060(c)(2), 15060 (c)(3, and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines"). Zoning Code Amendment CA2020-009 is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2021-009 recommending the City Council approve Zoning Code Amendment No. CA2020-009 to amend Table 2-8 of Section 20.22.020 (Mixed -Use Zoning Districts Land Uses and Permit Requirements of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code (NBMC) (Attachment No. PC 1)). Vice Chair Lowrey recused himself due to business interest conflicts. Assistant Planner Joselyn Perez reported the six properties located in the MU -DW Zoning District are developed primarily with multi -tenant office buildings and one religious institution. The surrounding properties are developed with primarily residential uses but also include a park, high school, and a strip of commercial uses. Prior to the most -recent General Plan Update, the six parcels comprising the MU -DW district were zoned Administrative, Professional, and Financial (APF), which conditionally allowed eating and drinking establishments and health and fitness facilities. In late 2020, property owners within the MU - DW district approached the City about their difficulties leasing vacant office space and suggested allowing restaurants and gyms would help them lease vacant spaces. In November 2020, the City Council adopted a resolution initiating a Code amendment. The proposed Code Amendment would allow restaurants and gyms with the approval of a use permit. An application for a use permit would be evaluated on a case-by-case basis with respect to compatibility with surrounding uses and available parking. The proposed Code Amendment does not decrease off-street parking ratios. Staff analyzed these uses and found them to be consistent with the General Plan. Staff provided notice of the hearing to property owners located within a 300 -foot radius of the MU -DW district, published notice in SS3-401 the Daily Pilot, and also sent a letter requesting public comment to property owners. Staff has not received any responses. In response to Commissioner Koetting's questions, Deputy Community Development Director Jim Campbell advised that the proposed Amendment does not reference specific hours of operation. Hours of operation will be evaluated as part of each individual use permit request. A fast-food restaurant with a drive-through could be allowed with a conditional use permit. Onsite parking will be subject to existing Code requirements and will likely be greater based on the size of the restaurant or gym use. If onsite parking is not adequate, the applicant will have to seek a parking waiver or provide offsite parking. In reply to Commissioner Klaustermeier's query, Assistant Planner Perez explained that each application would be analyzed for traffic impacts individually. In answer to Commissioner Rosene's inquiry, Assistant Planner Perez indicated the Zoning Administrator would hear and potentially approve a minor use permit. A decision by the Zoning Administrator could be appealed to the Planning Commission. In response to Chair Weigand's questions, Assistant Planner Perez related that the Zoning Administrator would hear an application for a minor use permit for a fast -foot restaurant. Community Development Director Seimone Jurjis added that he has the discretion to present items to the Planning Commission for review. Deputy Community Development Director Campbell explained that the existing General Plan and zoning allow up to 26.7 dwelling units per acre, and there are no residential uses located in the MU -DW district at present. Commercial uses and mixed uses are allowed in the MU -DW district. Assistant City Attorney Yolanda Summerhill advised that a Zoning Code amendment would be needed to change the underlying zoning so that residential uses are no longer allowed. Deputy Community Development Director Campbell stated the Housing Element Update has explored increased housing density on these sites but has not explored modifying the permitted uses. If Commissioners are concerned about restaurant and gym uses in a mixed-use building in the MU -DW district, they may not want to endorse the proposed amendment. Chair Weigand believed the MU -DW District is not a candidate for fast-food uses. Commissioners have the right to appeal Zoning Administrator decisions. He expressed the belief that this item is premature in light of the Housing Element Update being finalized in the next several months. Chair Weigand opened the public hearing. Jim Mosher proposed Exhibit A, Table 2-8, state "Section 1: The rows entitled 'Eating and Drinking Establishments' and 'Health/Fitness Facilities' of Table 2-8 ...." Laura Acuna, DMP Properties and property manager for 1501 and 1515 Westcliff Drive, supported the expansion of uses in the MU -DW district. This would allow opportunities in use and leasing for property owners. David Tanner opposed the proposed amendment at the current time because of the residential uses allowed. Because the zoning allows mixed-use development and housing laws are varied and many, the City could very easily lose control of the property. The use of density bonus incentives and concessions could result in a high-rise mixed-use building with a small commercial -use component. This item should be postponed until the Council gives direction on the Housing Element Update. SS3-402 Chair Weigand closed the public hearing. In answer to Commissioner Kleiman's query, Deputy Community Development Director Campbell reiterated that property owners could redevelop their properties with a commercial or a mixed-use building under the existing zoning. Chair Weigand clarified his comments as the Housing Element Update is considering increased housing density for the MU -DW district. The new uses could impact existing uses. The church already has trouble with unauthorized parking on its property. Commissioner Rosene noted a restaurant could be a viable use in the district. Perhaps, the concern is a fast-food restaurant, in which case the Planning Commission may want to eliminate a fast-food use from the proposed amendment. In response to Chair Weigand's questions, Community Development Director Jurjis reported eliminating a fast-food use from the amendment is within the Planning Commission's discretion. The Planning Commission is making a recommendation to the City Council. Chair Weigand noted Council Member Duffield's interest in expanding uses within the MU - DW district. He advised that he does not wish to restrict property owners. The City Council can make the final decision. Commissioner Koetting explained that the Housing Element Update is considering an overlay for potential sites; therefore, the Planning Commission does need to be too concerned about increased housing. Fast-food restaurants and fast-food restaurants with a drive-through are different. A fast-food use needs to be carefully described. Chair Weigand expressed concern about vehicles entering and exiting the properties. Infrastructure adjustments will be needed to slow traffic if there is a lot of vehicles obtaining take-out orders. Commissioner Klaustermeier indicated the requirement for a use permit that could be presented to the Planning Commission should assure Commissioners that uses not compatible with the surrounding area would not be approved. Commissioner Kleiman remarked that the Planning Commission needs to do what it can to assist property owners and businesses thrive. Commissioner Ellmore concurred with Commissioners Kleiman and Klaustermeier. The use permit is a good safety net. Postponing items because of potential issues and uncertainties is not appropriate. Motion made by Commissioner Ellmore and seconded by Commissioner Kleiman to approve the staff recommendation. AYES: Ellmore, Klaustermeier, Koetting, Rosene, Kleiman NOES: Weigand RECUSED: Lowrey ABSENT: VIII. STUDY SESSION SS3-403 ITEM NO. 3 INITIAL DRAFT OF THE GENERAL PLAN HOUSING ELEMENT UPDATE (PA2017-141) Site Location: Citywide Summary: The Housing Element is a mandatory element of the City's General Plan that requires periodic review and updating. It is a comprehensive statement of housing goals and policies that are closely correlated with other elements of the General Plan. The next update to the Housing Element must be adopted by mid-October of 2021. The draft update provides for the City's 4,845 -unit allocation of the 6th Cycle of the Regional Housing Needs Assessment (RHNA), a State mandate, as well as relevant supporting policies consistent with State Housing Element laws. Recommended Action: Review, discuss and provide input and direction to staff. Deputy Community Development Director Campbell reported staff seeks the Planning Commission's input and comments regarding the draft Housing Element. Input and comments from the public have informed the draft Housing Element. Staff will present it to the City Council later in the month. Senior Planner Ben Zdeba related the history of the General Plan Update Steering Committee (GPUSC) and the Housing Element Update Advisory Committee (HEUAC) and reviewed Listen & Learn and Housing Element Update workshops and methods of advertising the Housing Element Update. Staff plans to present the draft Housing Element to the Council on April 27, 2021 and seeks authorization to submit it to the California Department of Housing and Community Development (HCD) on May 14, 2021. HCD has 60 days to review the draft Housing Element and provide their findings such that the HEUAC may review the findings and offer potential changes on August 4, 2021. Planning Commission review and recommendation are tentatively scheduled for September 9 and September 23 respectively. Finally, Council certification of the Environmental Impact Report (EIR) and adoption of the Housing Element could occur on October 12, 2021, with staff submitting the adopted Housing Element to HCD on October 15, 2021. David Barquist, Kimley-Horn & Associates, advised that the draft Housing Element is an initial draft. The first public review period closes at the end of the month. Additional revisions will be made to the draft Housing Element to comply with statutory requirements and to reflect community concerns. The Introduction section sets the stage for the policy, its relationship to the General Plan, and the overall organization of the document. The Community Profile section is a demographic, econometric analysis of the existing community and sets a framework of initial need. The Housing Constraints and Resources section relates to governmental and nongovernmental constraints, contains an analysis of fair housing, and summarizes the resources available to address housing issues. The Housing Plan section contains the policies to accommodate and implement housing growth through 2029. The Appendices support the analysis. The Adequate Sites Analysis explores the feasibility of sites accommodating future housing. The Regional Housing Needs Assessment (RHNA) is an estimate of the housing growth need for 2021-2029. The City's RHNA is 4,845 units. The City must show the capacity to accommodate future growth within its policy program. The City is required to provide the capacity for growth, not to build housing units. After subtracting projections for accessory dwelling unit (ADU) growth, projects in the pipeline, and remaining available sites in the 5` Cfoycle from the SS3-404 RHNA number, the net remaining need is 2,645 units, which the draft Housing Element accommodates. The community identified focus areas for development, and the HEUAC evaluated candidate sites, analyzed the feasibility and potential feasibility of future housing sites, and identified an inventory of sites with the highest potential for redevelopment in the future. Only the sites identified in the inventory are needed to accommodate the City's RHNA allocation. Development potential is the capacity to accommodate growth, and the City is required by law to demonstrate its ability to accommodate growth. The sites are used as a basis to frame the City's future policy and regulatory amendments to accommodate growth. He reviewed the five steps of calculating development potential for sites in a focus area. Public comment from workshops and HEUAC meetings suggested reevaluation of the sites methodology to establish a more equitable distribution of units Citywide, reconsider the distribution of affordability in each focus area, and revise assumptions for development potential. The HEUAC generally supports revising the assumptions. The Airport Area was a key strategy of the 4th and 5th Cycles; the proposed average density is 50 dwelling units per acre (du/ac); and redevelopment of 25 percent of the area is needed to accommodate growth. The West Newport Mesa Area provides opportunities for reinvestment and redevelopment, partnerships between public and private organizations, and housing for local workers of various income levels; the proposed average density is 45 du/ac; and redevelopment of 30 percent of the area is needed to accommodate growth. The Dover/Westcliff Area can support increased density that is compatible with surrounding uses; the proposed average density is 30 du/ac; and redevelopment of 40 percent of the area is needed to accommodate growth. In response to Chair Weigand's inquiry, Deputy Community Development Director Campbell indicated there are no changes proposed for Mariners' Mile. The focus area is along Dover Drive. In reply to Commissioner Koetting's request, Mr. Barquist explained the 5th Cycle as the planning period from 2014 to 2021. Mr. Barquist stated the Newport Center Area has seen recent residential developments; the City anticipates additional development opportunities for housing; the proposed density is 45 du/ac; and redevelopment of 25 percent of the area is needed to accommodate growth. Deputy Community Development Director Campbell reported the Sight Plane View Ordinance was adopted in 1972 and carried forward in three existing Planned Communities in the Newport Center Area. The ordinance basically limits buildings to a height of 32 feet. Buildings may be taller as long as they are below the sight plane. The increased densities have the potential to cross the sight plane. In answer to Chair Weigand's query, Deputy Community Development Director Campbell indicated there are multiple points where the Ordinance can be addressed. Staff hopes the Planning Commission will leave the sites in the draft Housing Element because there are opportunities for future developments not to exceed the sight plane. A future housing overlay can also identify development standards for buildings to remain below the sight plane. The Ordinance is unique in Newport Beach, but all properties are subject to the Zoning Code protections for views. In response to Vice Chair Lowrey's inquiries, Deputy Community Development Director Campbell advised that the sight plane was implemented through an ordinance rather than SS3-405 a private easement. He indicated he is not aware of the sight plane requirement appearing on real property titles. Mr. Barquist related that the Coyote Canyon Area is a closed landfill, but a portion of it is an ideal opportunity for residential development; the proposed density is 40 du/ac; and redevelopment of 100 percent of the portion is needed to accommodate growth. A developer and the County of Orange have expressed interest in redeveloping the property. In response to Chair Weigand's query, Mr. Barquist stated one entity owns and controls the Coyote Canyon property. Mr. Barquist reported the Banning Ranch Area is considered unlikely for redevelopment under Scenario 1; the proposed density is 30 du/ac; and redevelopment of 100 percent of the area is needed to accommodate growth. The total development potential for all the focus areas is 9,937 units, which is greater than need in order to provide a buffer. The buffer protects the City from the no net loss provisions of Senate Bill (SB) 166. Deputy Community Development Director Campbell reiterated that the HEUAC will review the comments from HCD in August and propose changes to the draft Housing Element, which will then undergo the review process again. The EIR will be ready for review along with the revised draft Housing Element in the fall. In answer to Commissioner Rosene's questions, Deputy Community Development Director Campbell advised that staff intends to allow property owners with ADUs to self - certify the uses of ADUs. If the self -certification complies with criteria for a particular income level, the City will take credit for the ADU. The proposed inclusionary housing policy obligates the City to adopt an inclusionary housing ordinance within 24 months and to implement an interim policy. In the 4t" Cycle, the Housing Element included an inclusionary housing policy at 15% and provided an exception for smaller housing developments. Those types of details will be discussed with the interim and permanent policies. In reply to Commissioner Kleiman's inquiries, Deputy Community Development Director Campbell indicated the policy actions contained in the draft Housing Element establish the need to take zoning actions. Development standards can be included in those zoning actions, which the Planning Commission will review as proposed ordinances. Once the Housing Element is adopted, the City has three years to create zoning strategies. The City's responsibility is to create a plan that provides opportunities to accommodate future growth required by the RHNA allocation. The City does not control the destiny of the Banning Ranch Area, but it can provide the zoning that allows residential development in the Banning Ranch Area. The HEUAC and staff reviewed each parcel in the focus areas and discussed the feasibility of redevelopment of each parcel. The proposed densities do not include density bonuses. In discussing proposed densities, staff and the HEUAC considered compatibility with the surrounding area and existing development. The financial feasibility of redeveloping sites was not considered. The EIR could be challenged, which could unravel the process. Kimley-Horn & Associates, a reputable and credible firm, is preparing the EIR and traffic analysis. In response to Commissioner Koetting's queries, Mr. Barquist explained that information in the Housing Element must conform to statutory requirements, which in many respects SS3-406 dictate the organization of the Housing Element. Most cities' Housing Elements will follow the same framework. Commissioner Koetting felt the credits for projects in the pipeline, ADU growth, and remaining 5th Cycle sites need to be emphasized to the community. Deputy Community Development Director Campbell clarified that the Housing Element will not affect existing uses but add an opportunity for housing under certain rules. Staff has sent two letters and will be sending a third letter to owners of opportunity sites inquiring about their interest in redeveloping their properties. Some property owners have replied with interest. In addition, staff has met with some property owners. The percentages for redevelopment are necessary to meet RHNA, but whether those percentages will be realized over time is unknown. The redevelopment percentages are reasonable assumptions for a planning document. The County has a development agreement with Tait and Associates to develop a golf course on the Coyote Canyon property. Staff in conjunction with Tait and Associates identified the 22 -acre area as not impacted by the landfill. If Tait and Associates determines it can provide a project with 20% affordable housing rather than the assumed 35 percent, the Housing Element has to provide the difference in other focus areas or within 180 days the City will have to rezone property to provide the difference. This is where the buffer comes into play. Vice Chair Lowrey preferred low- and very -low-income housing be distributed across focus areas instead of concentrated in the Airport Area. Because the EIR for the previous Banning Ranch project is invalid, a new development project in the Banning Ranch area may be able to provide more affordable housing than assumed. Deputy Community Development Director Campbell reported affordable housing has been reallocated slightly, but staff will look again at Banning Ranch. In answer to Commissioner Ellmore's inquiries, Deputy Community Development Director Campbell explained that the Airport Area, Newport Center, and West Newport Mesa are ripe for densification because of the proximity to transit and jobs. The Dover/Westcliff Area is a lower -density community. The density for the Banning Ranch Area is low because of the limited amount of land. In the previous project, the Coastal Commission identified less than 15 acres of development that was free of any environmental constraint. The exact number of acres available for development is unknown. Commissioner Ellmore recommended staff consider lowering the density in the Airport Area and increasing density in the Banning Ranch Area. Vice Chair Lowrey noted Fashion Island and the Airport Area are the City's business centers. The higher densities for those areas require some thought. The undeveloped Banning Ranch Area may be more appropriate for higher density. In reply to Chair Weigand's questions, Deputy Community Development Director Campbell noted that market -rate housing in a mixed -income development is necessary to finance the affordable housing. While zoning for market -rate housing is not necessary for the 6th Cycle, it is a component of financing and constructing affordable housing. Typically, developers include the minimum number of affordable housing units required and the minimum number the development can afford. Developers may be able to construct more affordable housing in a development than required. Encouraging developers to provide more affordable housing is not part of the draft Housing Element. Projects with higher affordability are financed differently, and the amount of the subsidy is small. Mr. Barquist SS3-407 added that the draft Housing Element indirectly encourages the City to meet and confer with affordable housing developers. Chair Weigand believed the projected number of ADUs could be more aggressive, and strategies need to be applied to that. Increasing senior housing and assisted living units would be good because seniors use fewer City services. The discussion needs to consider the impacts of increased housing and the omission of development impact fees for projects with less than 50 units on the City. He expressed concern about replacing recreation areas with housing. The process needs to slow down. He preferred to fight something like this because he does not want the character of the City to change to meet this arbitrary demand. Deputy Community Development Director Campbell indicated an increase in senior housing would coincide with the aging population of Newport Beach. Senior housing is usually welcomed into the community. In answer to Commissioner Koetting's query, Deputy Community Development Director Campbell indicated Sites 1-16 can be found on page B-37. The list of sites will be updated. Commissioner Kleiman agreed with the concern about this changing the character of the City, particularly proceeding with no protections. The City should zone for a maximum number of units so that applications for unwanted developments are not submitted and future RHNA allocations do not increase exponentially. Deputy Community Development Director Campbell reported the Council directed staff and the HEUAC to develop a plan to comply with the City's RHNA allocation. Staff shares the concern about changes to the community over time. The Council is reviewing other ways to push back Jim Mosher remarked that zoning overlays provide development opportunities and protections for property owners. HCD expects the City to address its comments and not much else. Because of the grace period, there is no penalty if the Council adopts the Housing Element by February 15, 2022. Adoption in December may be more reasonable than in October. He inquired whether the draft Housing Element sent to HCD for review would be made available to the public. Deputy Community Development Director Campbell explained that staff will revise the draft Housing Element to comply with HCD's comments. Chair Weigand questioned whether HCD could complete its review in 60 days. Debra Allen, Harbor View Hills Community Association, commented that the sight plane ordinance is a constraint on development, and residents want the ordinance to continue. Property owners for five sites subject to the sight plane ordinance have expressed interest in redeveloping their properties to provide residential uses. The proposed overlay may be difficult to remove in the future. Chair Weigand wanted to protect the sight plane ordinance. The residents' concerns are legitimate. Community Development Director Jurjis advised that staff would ensure the Council is aware of the sight plane ordinance. In response to Commissioner Kleiman's inquiry, Community Development Director Jurjis reported the Housing Element will not supersede the sight plane ordinance. The Council has notified him that it wants to preserve the sight plane ordinance. Commissioner Kleiman also wanted to maintain the sight plane ordinance. SS3-408 Nancy Scarbrough believed more things need to be done, such as learning whether affordable housing developers can provide projects with more than 10 percent affordable. The draft Housing Element has to be right before it is submitted to HCD. John Loper requested an overlay zone for the Via Lido Plaza. The large amount of surface parking would be a good site for housing. During the 5th Cycle, mixed-use developments were allowed on surrounding properties. In reply to Chair Weigand's query, Deputy Community Development Director Campbell reported the Via Lido Plaza site was not considered because it was not zoned for mixed use in the 5th Cycle. The Peninsula area was not considered for densification. Staff will talk with the property owner, and the Council may consider the request. In answer to Commissioner Koetting's question, Deputy Community Development Director Campbell believed the Coastal Commission is more amendable to housing in the Coastal Zone than in the past and wants to see the preservation of existing density. The Environmental Justice Policy, which the Coastal Commission recently adopted, suggests principles for the Coastal Commission's review of applications. Weighing the housing crisis with environmental constraints on Banning Ranch is within the Coastal Commission's purview. Staff addressed identification of the Banning Ranch site for housing with Coastal Commission staff and received little definitive feedback. In response to Vice Chair Lowrey's inquiries, Deputy Community Development Director Campbell related that mortgage revenue bonds from the County helped finance the Uptown Newport project and will probably be used in future projects. The draft Housing Element contains policies for homeless shelters. Most of the time, affordable housing is not feasible. Commissioner Klaustermeier noted a low percentage of parcels is projected to redevelop. An overlay is proposed for a large number of parcels and should be approached cautiously. Deputy Community Development Director Campbell clarified that the overlay would be available until production achieves the targeted number of units and then would cease to exist. Staff does not want to create an overlay that exists in perpetuity. In reply to Chair Weigand's query, Deputy Community Development Director Campbell advised that the HEUAC will be on hiatus until HCD provides its comments. To change the composition of the HEUAC would require Council action. Commissioners can voluntarily participate in HEUAC meetings. Staff could present HCD's comments to the Planning Commission as well as the HEUAC. IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 4 MOTION FOR RECONSIDERATION None ITEM NO. 5 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA. SS3-409 Deputy Community Development Director Campbell reported on March 23, 2021, the Council adopted the wine tasting ordinance, authorized the General Plan Update progress report, and approved a one-year waiver of business license fees for businesses that were forced to closed due to the pandemic. A virtual workshop regarding the Circulation Element Update was held April 5, 2021. The April 22, 2021 Planning Commission will be canceled. Currently, four applications are scheduled for the Planning Commission's May 6, 2021 meeting. Staff will present the draft Housing Element and the Mariners' Mile mixed-use project to the Council on April 27, 2021. Jim Mosher believed paper copies of the draft Housing Element would assist the public's review of the document. ITEM NO. 6 REQUESTS FOR EXCUSED ABSENCES None X. ADJOURNMENT — 8:58 p.m. The agenda for the April 8, 2021, Planning Commission meeting was posted on Friday, April 02, 2021, at 2:20 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Friday, April 02, 2021, at 2:15 p.m. Erik Weigand, Chairman Lauren Kleiman, Secretary SS3-410 Attachment D Housing Element Update Advisory Committee's Affordable Housing Subcommittee Final Memo, dated February 17, 2021 SS3-411 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports Housing Element Update Advisory Committee Report of Subcommittee on Affordable Housing Subcommittee Members Bloom, Fruchbom and Tucker February 2021 Introduction The Southern California Association of Governments ("SCAG") has assigned the City of Newport Beach (sometimes, the "City") a Regional Housing Needs Allocation ("RHNA") of 4,834 housing units for its 6th Cycle Housing Element. Accordingly, under State law the City must adopt an updated Housing Element that plans for at least 4,834 units to be built over the 8 -year planning period ending in October 2029. Each agency's RHNA must segment its allocated units into four different income categories: Very -Low (affordable to those earning less than 50% of the area median income ("AMI")), Low (earning less than 80% of AMI, but 50% or more of AMI), Moderate (earning less than 120% of AMI, but 80% or more of AMI) and Above Moderate (earning 120% or more of AMI). The City's RHNA for units affordable to those in the Very -Low income category is 1,453 units and is 928 units for those in the Low-income category. While State law does not require the City to ensure any housing is built, the City's update to its Housing Element is required to identify the specific locations where its RHNA is to be planned. Those locations are required to be listed in a Sites Inventory Form ("Form") promulgated by the State Department of Housing and Community Development ("HCD"). The Form also requires the City to identify for each location listed (each a "Site" or collectively, the "Sites") the income categories that Site is anticipated to help accommodate. The information about each location from the Form will be included in a Table in the updated Housing Element called the Sites Analysis and Inventory Summary (the "Sites Inventory"). Executive Summa The Affordable Housing Subcommittee ("Subcommittee") is comprised of members of the Housing Element Update Advisory Committee ("Committee") with experience in, and knowledge about, developing and financing affordable housing. The Subcommittee believes that the Committee and the City Council decision making process would benefit from general information about the methods used to incentivize the production of affordable housing units and the complexities involved. As noted above, housing affordability is determined based upon AMI which for Orange County cities is the countywide median income of $103,000 in 2020 for a family of four. Of course, the greater the average rents in a city, the less affordable its housing generally will be. Rents would have to be materially discounted in coastal cities such as Newport Beach to fit the definition of being affordable to the Very -Low and Low income earners. A property owner cannot be expected to voluntarily discount rent without the effects of such discount being offset by a direct subsidy and/or other incentives and/or through beneficial provisions included in any mandate for affordable housing. Such subsidies, incentives and beneficial mandates exist in Federal and State law today and could also be created by local laws at the discretion of the City Council. Simply put, affordable housing production is almost entirely dependent upon making use of the benefits found in a complex web of laws and regulation adopted by Federal, State and local governments, primarily in the Internal Revenue Code, the State Government Code and city Municipal Codes. The greater the value of land in a jurisdiction, the greater the subsidies, incentives and/or beneficial mandates that become necessary to prompt SS3-412 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports production of affordable housing units. An example of the magnitude of the reduction of value that would result from discounting rent in Newport Beach is set forth in Schedule 1 attached to this Report. There are four primary governmental programs/mandates (the "Programs") intended to provide enough incentive alone, or in connection with other Programs, to trigger development of affordable housing: (1) Federal Low Income Housing Tax Credit Program that uses 9% tax credits ("9% LIHTC"); (2) Federal Tax -Exempt Bond financing with 4% Low Income Housing Tax Credits ("4% LIHTC"); (3) State Density Bonus Law; and (4) Local inclusionary housing ordinances which require (i) affordable units to be built in new projects, (ii) contribution of Sites for affordable housing projects as part of project entitlement exactions and/or (iii) fees to be paid by project developers in lieu of providing affordable housing units. Users of 9% LIHTCs develop new projects that are 100% affordable units while those who make use of the other Programs described above develop market rate housing that also includes some affordable housing units in their projects. Because of the size of the subsidies that can be necessary, projects which use 9% LIHTCs or 4% LIHTCs may also need to avail themselves of the Density Bonus Law and/or local inclusionary zoning ordinances. The market and demand for LIHTCs is very well defined and orderly in large measure because another Federal law, the Community Reinvestment Act, provides incentives for banking institutions to be buyers of LIHTCs and otherwise provide credit facilities for affordable housing projects or projects that include affordable housing units. Since the benefits of the 9% LIHTCs, 4% LIHTCs and Density Bonus Law already exist in Federal and State law, no action is required by the City Council for such programs to be used. At the local level, additional policies and strategies described in Paragraph VII below could also be implemented by the City Council to further encourage affordable housing development in the City. Due to the high value of land in the City, the Subcommittee believes that affordable housing in the City will need to be planned as rental housing rather than for sale housing. And because candidate Sites for larger scale, or even moderately sized, rehabilitation projects do not appear to exist in the City to any meaningful extent, the various approaches to planning for affordable housing described below can be expected to generate newly constructed affordable units rather than rehabilitation of existing units. Limited Scope of Report The summary information below is not intended to be comprehensive since that would require a level of detail well beyond what the Committee and the City Council need to consider in making their recommendations and decisions, respectively. Accordingly, nuances and exceptions that are inherent in any statutory framework may not have been covered in this Report. Nonetheless the summary information should be sufficient for the reader to understand the basics of each Program and to gain an appreciation of some of the complications, limitations and restrictions involved in using one or more of the Programs to create affordable housing units. IV Availabilitv of Sites to Meet Lower -Income RHNA SS3-413 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports The first step in planning for an affordable housing project or units is of course, to identify a Site. Each potential Site will be owned by someone or some entity. Broadly speaking, Sites will be owned by the City, by other governmental agencies or by private interests (whether for profit or not for profit). Vacant sites that are under the control of a public entity are the most ideal candidates to be explored for affordable housing potential. Unfortunately, the City owns very little property that is not already developed and being used under ground lease agreements (e.g., Balboa Bay Resort, Beacon Bay, Lido House Hotel), or being used by the City itself as part of its operation (e.g., Utilities Department, Police Headquarters, Fire Stations, a Corporate Yard, Oasis Senior Center, City Hall and many parks and some open space). While some affordable units could be planned on what little property is owned by the City that is not already in use (or underutilized), and perhaps on property within the City owned by other public agencies (e.g. County of Orange), most of the City's lower-income affordable units will have to be planned on private property. And most of that property will not be owned by non-profit entities. Accordingly, most of the opportunities for affordable units will have to be planned as infill projects on existing developed properties. HCD refers to such property as "non -vacant" Sites in its Housing Element Sites Inventory Guidebook published in June 2020 (the "Guidebook"). However, it should be noted that the Guidebook (at Page 27) states that the existing use of a non -vacant Site will be presumed to impede new or additional residential development on the Site unless the Housing Element describes findings based upon "substantial evidence" that the current use of the Site will likely be discontinued during the planning period. Examples of substantial evidence are set forth in the Guidebook. The Subcommittee believes that Sites where units affordable to lower income residents may be most feasible will be locations where moderate and market rate housing can also be developed in so-called "mixed income" developments. But private property owners are under no duty to plan for or build housing, and in particular housing affordable to those in the lower income categories. Accordingly, the City and HCD should anticipate that virtually all private property owners can be expected to act in their economic self-interest, and therefore cannot be expected to plan for, redevelop or sell their properties for a housing use unless there is a clear financial benefit for the owner that more than offsets the burden (time, effort and money) and risk (construction, marketplace, future rent control and even "rent strikes") of planning for housing, including affordable housing, in place of, or in addition to, the current use of the property. V Details of Programs A. Availability of 9% LIHTC: In considering policies and strategies to address the City's lower income RHNA it will be helpful to generally understand the workings of the Programs. The Program most utilized in financing affordable housing projects is the 9% LIHTC Program, but the financing of such projects is the most complex. Under the 9% LIHTC Program, chosen projects are awarded Federal income tax credits equal to 9% of the eligible costs of that project each year for 10 years. The tax credits are made available to each State every year pursuant to Federal law. The amount of the tax credits available to projects in each State is based upon a per capita amount set by Federal law, multiplied by the number of people in the State. A housing authority in each State is empowered to decide which projects are awarded those tax credits. In California, the California Tax Credit Allocation Committee ("TCAC") awards the tax credits pursuant to a competition conducted twice per year. Each State has a Qualified Allocation Plan whereby the State publishes factors that the State finds important in allocating its tax credits. Affordable housing SS3-414 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports developers submit their projects to TCAC which selects the "winners" based upon a point scoring criteria. The tax credits are allocated to various regions in the State (Orange County is one such region) and then projects in those regions compete for the tax credits which are allocated to as few as 1-2 projects in each competition period. The 9% LIHTCs are almost always allocated only to 100% affordable housing projects since market rate units are not entitled to claim the credits, and of course the point of the tax credit program is to generate affordable units. The developer must make an election as to which of three alternative rent affordability levels its project will be bound and those restrictions on rent must stay in place for 55 years. Each 100% affordable housing project involves a non-profit entity as the developer or co -developer in order to qualify for a property tax exemption that is crucial to keeping operating costs as low as practicable. The competition for 9% LIHTCs is intense with the number of projects competing for the 9% LIHTCs far exceeding the tax credits that become available each year. It is not unusual for a project to have to apply for tax credits twice or more before succeeding, and some projects never succeed. The credits can be "sold" to investors and the money paid for the credits is used to pay a significant portion, but not nearly all, of the costs of a 100% affordable housing project. So, in addition to the proceeds from selling the tax credits, the winning developers must also arrange for one or more other sources of funding to cover the costs to develop the project not covered by the 9% LIHTCs. Traditional financing is one source but when combined with tax credits proceeds, additional financing is generally still required. Those other sources of funds can be from Community Development Block Grants, other Block Grants, State Housing Trust Funds, County or Federal Affordable Housing Programs, National Housing Trust Fund or even charitable contributions from Foundations. Typically, a 100% affordable housing project has at least 4 sources of funding, which means time, effort and money has to be spent to secure each layer of the "stack' of financing necessary to move forward with a 100% affordable housing project. If the additional money comes from certain government sources, such as State Affordable Housing Bonds approved by the electorate and sold by the State, the project labor must be paid prevailing wage which in turn means significant added labor costs which has the perverse effect of causing construction of affordable housing to be more expensive to build than other housing where paying prevailing wage is not required by law. Projects financed in part by 9% LIHTCs are typically no larger than 150 units and most are much smaller. TCAC has placed a funding cap on the amount that can be allocated to any one project. And since a goal of affordable housing is to locate residents near jobs and services, units affordable to lower income residents are not concentrated in one area. A March 2020 study by the Terner Center for Housing Innovation at UC Berkley found that of the 653 9% LIHTC projects built in California from 2008 to 2019, only 50 (7.7%) were larger than 100 units, while 155 (23.7%) were less than 40 units and 448 (68.6%) were between 40 and 100 units. According to the Terner study the average project size was 55 units mostly in buildings under 3 stories. Because of the small size of the typical 9% LIHTC project, they do not achieve economies of scale, so they are less economically efficient to build. And due to the rent structure of the units, the units do not financially work with more expensive construction techniques used to achieve higher density such as a "wrap" product where a parking structure is built in the center of a project and the housing units then wrap around the parking structure, or a "podium" product where a concrete parking structure is built below ground and/or one or two stories starting at grade with the housing units above. Because 100% affordable housing projects are generally lower density, they occupy more land per unit. In costly land locations, that can materially increase the per square foot cost of the overall project compared to locations with less costly land. SS3-415 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports Due to the competition for 9% LIHTC, and the nature of geographical competition in the State for the tax credits, the tax credits are distributed broadly across the State by TCAC, thereby ensuring that no geographical area is materially over -represented. So even if Newport Beach had an abundance of land available for 100% affordable housing projects, it would not necessarily receive enough 9% LIHTCs to help finance all or most of its 100% affordable housing Sites. Although it should be noted that if Newport Beach is deemed a so-called "high resource area" (in general, high resource areas have a lower poverty rate, are more suburban and have a greater share of non -Hispanic White households), it may be more favorably considered for 9% LIHTC if project proponents with land in Newport Beach applied. Given the economic realities of 100% affordable housing projects, as a general rule, 100% affordable housing projects need free or very low-cost land, whether in fee or via a long-term ground lease at minimal rent, so that adds to the challenge of finding Sites for such projects. Land for 100% affordable projects more often becomes available due to unique circumstances within a jurisdiction than happens with larger scale market rate or mixed income projects. Agencies, advocates and developers actively seeking to find 100% affordable housing sites look for unusual situations where land that is not being used, or is being inefficiently used, could become an affordable housing site. Some examples would be a parking lot on public property, or excess church land where serving lower income individuals is part of a Church's mission, or abandonment of a use on public land, or as part of a master development plan where perhaps there is a street abandonment or realignment that might create an available land area that could be used for affordable housing units. In other words, with 100% affordable housing projects there is more frequently an atypical source of land, and often these sites are small. Of course, the costlier the land, the more money that has to be raised to effectively reduce the land costs enough to enable a 100% affordable housing project to proceed. Lastly, because of the number of financing sources involved in putting together a stand-alone 100% affordable housing project as described above, it takes quite a bit of time to find a Site, design and entitle a project, compete for the 9% LIHTCs, assemble the remainder of the financing stack and complete a project from start to finish which means that the volume of 100% affordable housing projects that can be expected over the 6th Cycle RHNA could be somewhat limited even for agencies that make every effort to assist in the development of such projects. Given the constraints on what can be paid for land and the competition for tax credits that cannot be expected to be concentrated in one community, the Subcommittee believes it would be optimistic to plan for 100% affordable housing projects to satisfy more than a modest portion of the sizable lower-income RHNA of the City. B. Availabilitv of Tax -Exempt Bond Financine with 4% LIHTCs: Another Federal program allows the use of tax-exempt bond financing for certain "private activities" such as affordable housing if at least 50% of the eligible project costs come from such bond financing. A project that includes a stipulated amount of affordable housing and uses tax-exempt bond financing is automatically eligible for 4% LIHTCs. An important feature of bond financing arises because the interest paid on the bonds is tax exempt and therefore the interest rate that lenders are willing to accept is lower than the market rate for financing where the interest paid is taxable. The lower the interest rate on project debt, the lower the debt service payments will be. The lower the debt service, the more project debt the same net operating income of a project will be able to pay - - thus increasing financing proceeds available to cover project costs. In housing projects that use tax-exempt bond financing, the trade-off is that at least 20% of the units in the project must be affordable based upon a specified income criteria. But since most of the units in such projects would be market rate housing, the tax credit only applies to the "applicable fraction" of the eligible costs that can be allocated to the cost of developing the affordable units in a project. The SS3-416 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports applicable fraction is the lesser of the affordable units as a percentage of total units, or the affordable unit square footage as a percentage of total project square footage (so as to ensure the average square footage of affordable units will be roughly equivalent to the average square footage of other units in the project). And instead of 9% of eligible costs being the credit amount that can be taken each year for ten years, it is only 4% per annum and only then equal to the applicable fraction of the eligible costs allocable to the affordable units. However, because of the keen competition for 9% LIHTCs, 100% affordable housing projects are sometimes financed using 4% LIHTCs and tax-exempt bonds even though at 4% of eligible costs, the maximum tax credit amount for such a project would be less than half of the value of the tax credits in a project which is awarded 9% LIHTCs. 100% affordable housing projects using 4% LIHTCs would require additional grant type funds to cover much of the difference between the value of 9% credits and 4% credits. Each State has a limit on how much private activity tax-exempt bond financing can be issued by it each year since that type of financing has an effect on the Federal budget. Other private activities that are authorized to use tax-exempt bond financing and thus compete for the finite amount of such financing that is available are: certain infrastructure financing, financing of certain types of industrial facilities, funding of student loans and funding of home mortgage loans. In recent years the demand for private activity tax-exempt bond financing has also greatly exceeded supply. Since tax-exempt bonds must be issued by a governmental agency (with the permission of the State), the agencies get to decide which types of activities they prefer to see funded. Because an agency has no financial risk in issuing the bonds, the State or other agencies is at liberty to allocate the limited supply of tax-exempt bonds to uses other than affordable housing for reasons peculiar to each State (even though affordable housing is the only such use that also receives the benefit of the 4% LIHTCs). An additional important factor inherent in the use of tax-exempt bond financing is that significant additional costs are involved in the issuance of bonds. The bond buyers in many cases are retail investors so such projects will usually be burdened by an underwriter, a credit enhancer (to qualify the bond issuance for an appropriate bond rating so as to assure the bond buyers of the creditworthiness of the investment) and a trustee to hold and disburse the bond proceeds as the project work proceeds. Each of those functions has its own legal counsel and each function that must be performed represents an added cost. The benefits of a lower interest rate and a higher loan amount has to more than offset the added costs of a bond issuance and an extended period of credit enhancement costs to make tax exempt bond financing worthwhile. If the buyer for the entire bond issuance is a bank, the costs can be somewhat less than if the buyers are retail investors. The benefit of the spread in interest rates between tax-exempt financing and taxable financing available for multi -family projects has decreased rather precipitously in 2020 due to very low interest rates. So, tax-exempt bond financing for housing is not as beneficial at the moment, although the duration of that circumstance is anybody's guess. Since tax-exempt bond financing has been an important source of financing for affordable housing units, a reduction in the economic incentive for using this Program could be expected to adversely impact the number of affordable housing units that will be developed until interest rate spreads normalize. C. Densitv Bonus Law: A State law requires each jurisdiction in California to grant a density bonus of a statutorily specified percentage above and beyond the base zoning for a property in exchange for a covenant by the property owner that a statutorily specified percentage of the project will be rented at a level of affordability stipulated in the law. The Density Bonus Law allows for density bonuses generally from 20% to 35% of the base number of units allowed by the zoning of a Site, depending on the number of SS3-417 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports units to which the project developer covenants to provide at specified affordability levels. For instance, if the base zoning of land would allow a 260 -unit project, a developer would be entitled to a 20% density bonus, or 52 units (for a total of 312 units) in exchange for a covenant to develop the site with 5% of the base units (i.e. 13 units) being affordable to "very -low income" residents. If the same developer for the same project instead decided to raise the affordability level to "low-income" residents, then the density bonus law specifies that the number of affordable units would have to be 10% of the base density (i.e., 26 units). Developers can only be expected to take advantage of the Density Bonus Law if the value of the density bonus exceeds the cost of the subsidy burden of developing the affordable units. In addition to a density bonus, the Density Bonus Law also requires an agency to provide certain projects which qualify for a density bonus with one or more other "incentives" or "concessions" depending on the percentage of affordable units to which the project formally commits. An incentive or concession could be a reduction in site development standards or a modification of zoning code or architectural design requirements, such as a reduction in setbacks or minimum square footage requirements or other regulatory adjustments that result in identifiable and actual cost reductions. D. Inclusionary Housing Ordinance: Another source of affordable units in many jurisdictions is a local inclusionary housing ordinance ("IHO"). Newport Beach no longer has an IHO since it rescinded its IHO when the 5t" Cycle RHNA was a total of 5 units. The provisions of an IHO can vary materially from jurisdiction to jurisdiction but the most effective IHOs are structured to generate as much affordable housing as is feasible, while not rendering projects financially infeasible due to an excessive affordable housing mandate. In other words, affordable housing mandates should be understood as a cost of development and if those costs are too high, a project may be impeded from coming to fruition. Agencies that have IHOs generally require affordable housing in every new housing project of a minimum size. While Newport Beach does not have such a requirement citywide today, it does have an affordable housing overlay that encumbers certain land in the airport area. That land may be used for residential uses but in order to do so the overlay requires that a minimum of 30% of the project units must be affordable to lower-income households in certain instances. Most of Newport Beach has no such requirement. Administrative Burden of Using Programs: Use of any of the Programs in connection with development of affordable housing units will also include the administrative burden of detailed tenant related record keeping and income verification as well as filing of periodic reports to document compliance with Program requirements, which reports are subject to regulatory compliance audits. VI Planning Considerations Due to No Net Loss Law In 2017, a material new concept was added to State law dealing with differences between what is shown for a Site in the Sites Inventory and how that Site is actually developed. Senate Bill 166 (the "No Net Loss Law") includes provisions that limit the loss of Sites that would include housing units affordable to lower income households, or the reduction of units at stipulated affordability levels throughout the planning period. For this reason, there may be instances where rezones may be required during the planning period to accommodate the implications of this law. For example, if a Site listed on the Sites SS3-418 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports Inventory ("Subject Site") is developed but not with the unit count at the affordability levels listed in the Sites Inventory, the City must demonstrate it has the capacity to accommodate in other locations the units not so developed at Subject Site by affordability level. If the units not so developed by affordability level are not able to be provided at other Sites listed in the Sites Inventory, the City would then be required to identify and make available Sites not on the Sites Inventory to accommodate the units by affordability level that were supposed to have been, but were not, developed at Subject Site. Therefore, in order to avoid the potential need to compensate for Sites which are not developed in the number, and at the affordability levels identified in the Sites Inventory as required by SB 166, the City may want to consider planning for more units in its Sites Inventory than is required in its RHNA for 2021- 2029. In other words, the City may want to create a buffer if actual development of Sites is not consistent with the breakdown by income category set forth in the Sites Inventory. VII Potential Policies and Strategies to Achieve Lower -Income RHNA Due to the No Net Loss Law, the City may want to consider policies that not only plan for Lower -Income units, but encourage Lower -Income units to be built. Based upon the above, there are several policy options that the City could consider that would enhance the number of affordable units likely to be built in the 6t" Cycle planning period. However, since the alternatives are policy choices, the Subcommittee recommends that this Report be forwarded to the City Council for consideration since the Committee is not the body that makes policy decisions. In evaluating policy choices, the City Council may want to be mindful that in a built -out city, encouraging Sites to be rezoned for housing means that a current use will be discontinued. Prior policy goals of the City included having a jobs/housing balance. The 6t" Cycle RHNA, in effect, prioritizes housing uses in the City to a greater degree than has previously been the case. Potential policy and strategy alternatives available to the City to foster more affordable housing would be: 1. For publicly owned properties, encourage the owner to make some of the land available to an affordable housing developer at little or no cost. Some examples would be: (a) The airspace above the parking lot at the Courthouse owned by the County of Orange at the Northwest corner of Jamboree and Birch; (b) City property that might be able to accommodate housing while continuing to accommodate its current use; (c) City parking lots that could have housing built over the parking area; and (d) the vacant site at the Dunes that is owned by the County of Orange and zoned for a family inn might be able to also accommodate a site for affordable units to offset the demand for workforce housing that a family inn use will generate. Additionally, Newport -Mesa School District owns land adjacent to Banning Ranch, although that land is not currently located in the City. Because the NMUSD land is in the City's Sphere of Influence, that legal status has its own set of rules as to which jurisdiction gets RHNA credits for any units that are planned for the property under HCD guidelines. The City should ask NMUSD to plan for housing on this Site and further the City and NMUSD should ask the City to be given the RHNA credit for those units to the extent NMUSD plans the Site for housing due to the impetus of the City. 2. Non-profit users that might be able to accommodate housing in a portion of their parking lots - - such as churches if affordable housing were part of their missions. SS3-419 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports 3. For larger parcels that are not presently zoned for housing, enter into a development agreement to grant housing entitlements in exchange for an obligation by the owner of the Site to convey a portion of the Site to an affordable housing developer at little to no cost (or address in # 8 below). 4. For land in parts of town where land is very valuable due to ocean views, enter into a development agreement to grant entitlement for housing in exchange for an obligation by the owner to pay an affordable housing in lieu fee that could be used to help offset the cost of building affordable housing in areas of town where land is less expensive (or address in #8 below). 5. Grant entitlement density for housing that is somewhat less than optimal to encourage property owners to utilize the Density Bonus Law which requires that an amount of affordable housing specified in the Government Code will be built. 6. Consider modifying the existing overlay in the airport area (which requires a minimum of 30% affordable housing units) if it is found to discourage the development of projects in that overlay area that could otherwise contribute to affordable housing production in the City. 7. As suggested by the Guidebook, create one or more new Affordable Housing Overlays that grant a housing use or higher density with relaxed development standards for projects that voluntarily include some level of affordable housing within those projects. 8. Adopt an IHO that could require (i) a realistic and feasible portion of a proposed housing project to be affordable housing; (ii) payment of an affordable housing in lieu fee on proposed housing projects that are not required by the IHO to provide affordable housing units so money can be pooled to help subsidize an affordable housing project elsewhere in the City; and/or (iii) for proposed projects with a larger land area, require contribution of free and clear land for use as a 100% affordable housing project. 9. Encourage (without regulatorily requiring) larger employers based in Newport Beach to develop or help finance affordable housing for their lower income workers. 10. Expedite processing and plan review for projects that provide a stipulated amount of affordable housing to enable projects to move through the process at an accelerated pace. This could also include adoption of objective design standards and elimination of the currently existing discretionary review process. 11. Consider waiver or reduction of development related fees for projects that provide a stipulated amount of affordable housing in order to reduce project costs. 12. Apply for public and private grants to assist with funding of affordable housing units. 13. Consider adoption of policies or programs that incentivize and promote the creation Accessory Dwelling Units ("ADU") beyond the minimum State housing law requirements. HCD permits cities to apply expected new ADU development toward RHNA based upon a three-part approach: (i) development trends (considering ADUs permitted in the prior planning period or more recent trends); (ii) anticipated affordability; and (iii) providing resources and/or incentives. Regarding affordability, HCD and SCAG have formally adopted an assumed affordability that would treat 25% of new ADUs as being affordable to the Very -Low income category and 43% of new ADUs as being affordable to the Low income category. To encourage and accelerate ADU construction, the City could also consider several measures such as permit and development fee waivers, permit -ready standard plans to minimize design and construction costs, an amnesty program for owners of illegal units to bring them into compliance, and/or creation of a public information/outreach program to encourage ADU development. SS3-420 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports 14. If implementation of the policies and strategies listed above or in the Guidebook do not generate the necessary subsidies and incentives for the City to be able to create an "adequate sites program" (i.e., to identify a sufficient number of suitable and available Sites that can be planned by the City to meet its Lower -Income RHNA), then the City may need to request a financial commitment from the State or other governmental sources to fund the remaining subsidies necessary for the City to implement an adequate sites program that will enable the City to plan for its Lower -Income RHNA. VIII Potential Limiting Factors on Effectiveness of Strategies to Achieve Affordable Housi A. Motivations of Private Property Owners: In considering which policies to implement to enable planning for the lower income RHNA on private property, the City will be constrained by the financial expectations of private property owners. Private property owners are usually in business to make a profit, so to the extent affordable housing incentives are not clearly a net positive for a private property owner, private property owners may be reluctant to allow a housing use to be planned on their property. B. Financial Constraints to Development Intensification of Sites: The Guidebook suggests that if there is not sufficient land upon which affordable housing may be located that the agency consider enacting policies that will generate enough additional benefit to property owners to offset the costs associated with providing housing affordable to lower-income residents. In effect, the Guidebook suggests that allowing more density and easing development standards, such as height, setbacks, private open space to allow more housing on a Site should be coupled with a mandate that a portion of those additional units be affordable to lower income residents. The premise is that such intensification will allow the project to be financially feasible even with the burden of affordable units. While the Subcommittee agrees that enabling more units on a site can increase the value of the Site, the Subcommittee notes that at some point, adding more density in certain locations will not necessarily make a site more valuable. For example, the more densely a project is developed, generally the greater the height of the structures. But if the height of structures causes them to move into a different construction class under the building code, the more expensive per square foot the Site will become to build. Relaxing development standards could also mean a Site will feel more crowded, making the project less appealing to market rate renters who have more choices as to where to live. The less appealing a project is, the lower the rent per square foot that such a project can command. In other words, at some point, adding units/square footage to a site, or relaxing development standards will cease to generate additional economic benefit. C. Coastal Zone Prooerties Some of the sites that otherwise look to be feasible locations for housing are in the Coastal Zone. The City has found that seeking development approvals of property within the coastal zone is time- consuming, expensive and somewhat unpredictable (e.g. Banning Ranch). Given the timeframe in which HCD expects the update to the Housing Element to be achieved, the Subcommittee believes it will be challenging to identify affordable housing opportunities in the Coastal Zone within the 6th Cycle approval timeframe. Accordingly, most of the City's 6th Cycle (sizable) RHNA will have to be planned on private property outside the Coastal Zone. However, the Subcommittee suggests that City Staff nonetheless discuss Coastal Zone alternatives with HCD and Coastal Commission Staffs to ascertain if there may be opportunities for housing projects that could include affordable housing in the Coastal Zone that could be approved by the Coastal Commission in a timely fashion. SS3-421 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports IX Conclusion Public agencies such as the City are not developers, lenders or directly engaged in project -level feasibility of development projects. For affordable housing, a city may take a more active role in providing entitlements, perhaps some land, infrastructure and/or other components of a project, but the overall planning and arranging financing and other funding sources of a project is primarily that of an entity external to the City. Therefore, the City should focus on using its authority to adopt policies, programs and regulatory considerations to directly and indirectly influence the feasibility of development of affordable housing units in the City, and otherwise follow the recommendations in the Guidebook to the extent practicable. SS3-422 Housing Element Update Advisory Committee - February 17, 2021 Item No. V(a) - Attachment 2a Subcommittee Progress Reports Schedule 1 Loss of Value due to Discounted Rent The cost of the subsidy to lower the rent of a unit from market rent to an affordable rent is the loss of value that such rent discount causes to a project. Since affordable housing rent restrictions are long term, the value reduction should be viewed as permanent. Income producing assets such as an apartment project are valued based upon their annual cash flow generated from operations. The cost of the subsidy would be computed by a landowner/developer in roughly the following manner: Suppose a cursory inspection of available one -bedroom apartments in Newport Beach shows rents averaging about $3,200-$3,500 per month for new luxury apartments, down to $1,700-$1,900 per month for older projects. A developer of affordable housing has to choose one of two affordability ranges, or a combination of the two: At least 20% of the units have to be affordable to those earning 50% or less of AMI, or at least 40% of the units have to be affordable to those earning 60% or less of AMI. In Orange County, one -bedroom affordable rents are $1,149 for 50% of AMI income levels and $1,387 for 60% of AMI income levels. These rents are subject to adjustment for family size and utilities, but those adjustments will be ignored for the purposes of this example which is just to demonstrate the order of magnitude of the potential loss of value due to discounting rent. Apartments projects today are selling for 4%-5% yields tending to the lower yields as the community becomes more desirable as would be the case with projects in Newport Beach. Assuming a 4.5% yield and that market rents are only $1,900 per month (in reality a new or remodeled project could command much more), then the loss of value, or subsidy, for an apartment rent discounted to be affordable to an occupant with AMI of less than 50% of median income, would be approximately $200,000 {($1900-$1149)x12/.045)} and would be approximately $137,000 for an apartment affordable to an occupant with AMI of less than 60% of median income 1($1900- $1387)x12/.045)} and these are conservative estimates. If the estimate were more aggressive, as much as $500 might be added to market monthly rents which a selling owner might expect, and the gap would widen by an additional $133,000 per unit. A new luxury unit renting at market for $3,000 per month discounted to be affordable to the 50% AMI renter at $1,149 month would mean a subsidy of approximately $494,000 {$3,000-$1,149x12/.045} per unit. SS3-423 Attachment E Public Correspondence Received Prior to Publishing SS3-424 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:38 AM To: Avery, Brad Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Avery, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. If you 15 minute4s or so some morning later this week or weekend, I would be happy to show you the area covered by Ordinance. My home is just across MacArthur from City Hall. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-425 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:42 AM To: Muldoon, Kevin Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Fw: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Dear Mayor Protem Muldoon, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. If you 15 minute4s or so some morning later this week or weekend, I would be happy to show you the area covered by Ordinance. My home is just across MacArthur from City Hall. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-426 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:46 AM To: O'Neill, William Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Fw: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Dear Councilmember O Neill, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. If you 15 minute4s or so some morning later this week or weekend, I would be happy to show you the area covered by Ordinance. My home is just across MacArthur from City Hall. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-427 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:49 AM To: Blom, Noah Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Fw: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Dear Councilmember Blom, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. If you 15 minute4s or so some morning later this week or weekend, I would be happy to show you the area covered by Ordinance. My home is just across MacArthur from City Hall. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-428 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:51 AM To: Duffield, Duffy Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Fw: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Dear Councilmember Duffield, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. If you 15 minute4s or so some morning later this week or weekend, I would be happy to show you the area covered by Ordinance. My home is just across MacArthur from City Hall. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-429 From: Debra Allen <debraeallen@yahoo.com> Sent: Sunday, April 18, 202110:56 AM To: Dixon, Diane Cc: Jurjis, Seimone; Campbell, Jim; Debra Allen; Brenner, Joy Subject: Fw: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Attachments: 2021 Sight Plane ordinance summary and composite map.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Draft Housing Element and Sight Plane Ordinance City Council Study Session April 27 Dear Councilmember Dixon, We have been told that staff will present you the Draft Housing Element at your Study Session on April 27. The Element was considered by the Planning Commission at its Study Session on April 8.. The Commission discussed among other things the Sight Plane Ordinance which is a protected view plane granted in 1971 by the Irvine Company to Harbor View Hills. It limits building heights in Corporate Plaza and Corporate Plaza West to roughly 32 feet. It was codified into an Ordinance in 1971 and has remained as a limit on heights ever since. I am attaching Jim Campbell's memo and map explaining the history of the Sight Plane Ordinance, that was considered by the Commission. The Planning Commission concluded the Sight Plane Ordinance states a long established City Policy that should be maintained and protected in the zoning or design standards for re -development in the area it covers when the housing element is adopted. I know you have seen the view plane from my house at our Women in Government events but, if you wish to see the area again and if you 15 minute4s or so some morning later this week or weekend, I would be happy to show you. Please just let me know if you would like to come over and see the protected view. Meanwhile, please protect the Sight Plane Ordinance. Sincerely, Debra Allen President Harbor View Hills Community Association. SS3-430 Sight Plane Ordinance 1. The sight plane ordinance was first adopted in 1971 by Ordinance 1371 It covered only a small portion of what later became the Corporate Plaza Planned Community. Buildings and structures could not exceed the sight plane but a list of allowed "minor penetrations" (fewer than the zoning code would have permitted at that time) was identified. This ordinance remains in effect today as there is no record that it was rescinded; however, the Corporate Plaza PC expanded the area and modified the policy. Minor penetrations are listed in Ordinance 1371 and it makes a reference to Section 20.08.100; however, Ordinance 1371 reduces eligible structures listed in 20.08.100. 2. The Corporate Plaza PC was adopted in 1975 by Ordinance 1596. It expanded the sight plane to cover the entire planned community area within E. Coast Highway, Avocado, Farallon and Newport Center. Buildings were limited to 32 feet in height with the exception of Building 22 that was permitted to exceed 32 feet provided that it was no higher than the sight plane. What the ordinance did not do was limit other buildings or structures to be below the site plane. No exceptions to the height limit are noted in the PC, and therefore, exceptions are either allowed pursuant to Chapter 20.65. All landscaping was limited to be no higher than the sight plane. It appears possible that the height regulation within the Corporate Plaza PC was crafted in error as all building sites, with the exception of Building 22, can be higher than the sight plane provided that they are no taller than 32 feet from grade whereas Building 22 is exactly the opposite. This situation actually occurs with the buildings closest to Coast Highway being above the site place and below 32 feet. 3. The Corporate Plaza West PC was adopted in 1991 by Ordinance 91-47. Buildings and structures are limited to 32 feet in height and must not exceed the sight plane established by Ordinance 1596. All landscaping was limited to be no higher than the sight plane as well. No exceptions to the height limit are noted in the PC, and therefore, exceptions are either allowed pursuant to Chapter 20.65. 4. The Newport Village PC was established by Ordinance 83-27 in 1983 and it contained no height regulations. The Newport Village PC was amended in 1992 by Resolution 92-6 it was later amended in 1995 to add the retail site by Resolution 95- 130. Three planning areas for government uses were established (museum, library and transit facility) in 1983 and the height of buildings and structures was limited to 32 feet and must not exceed the sight plane established by Ordinance 1596. The height of buildings and structures within the retail site that was added in 1995 are limited to that of the zoning code; however, they may not exceed the sight plane established by Ordinance 1596. All landscaping within the government/institutional and retail planning areas were limited to be no higher than the sight plane as well. The open space areas designated in the PC (sites between the library and transit center) are not regulated by the sight plane but are regulated by the OS district (32/50 zone). No exceptions to the height limit are noted in the PC, and therefore, exceptions are either allowed pursuant to Chapter 20.65. J. Campbell Page 1 11/26/2008 SS3-431 RT CENTER E;Ri'j Poll NO MIGUEL AIR D�NE LOP 'Fp te Plaza West % .69 Ne' ort If Newport Center Sight Plane CD Ordinance 1371 - Sight Plane Ordinance Ordinance 1596 - Corporate Plaza PC % Ordinance 83-27 - Newport Village PC (as amended by Resolution 92-6 and 95-130) Ordinance 91-47 - Corporate Plaza West PC — — — — — -- Maximum Height Above Mean Sea Level .............. 10 Foot Contour Interval (Ground Elevation) 60, SighLPlan_0rdinanoo.mxd Auguot/2007 From: Lee, Amanda Sent: Wednesday, April 14, 20218:26 AM To: Zdeba, Benjamin Cc: Palencia, Ketshy Subject: FW: Rezoning holes 3-8 From: nicole summers <nicole-summers@live.com> Sent: Wednesday, April 14, 20217:52 AM To: CDD <CDD@newportbeachca.gov> Subject: Rezoning holes 3-8 [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Good morning, As a resident and neighbor in close proximity to the proposed location for rezoning on Birch St in Newport Beach, I'd like to let my voice be heard and vote NO to the proposed changes. This area is an extremely high traffic area. Cars can often be seen racing up and down the area. There is a lot of congestion in this area. It's not an ideal corner for walking or stopping for an entrance. The golf course keeps the lands beauty and allows for recreational rather than loading this high traffic area into an even bustier and more dangerous intersection. There have been several deaths at this intersection and countless accidents. Having small children and being so close we don't want to exacerbate the problem of high density traffic when we are already challenged with so many break-ins. In addition to keeping this portion of Newport Beach recreational is ideal. It really makes the land desirable and beautiful considering we have enough traffic and pollution living next to the airport. Please keep the space green & for recreational purposes. Please DON'T rezone holes 3-8 on the Mesa Dr side. This is a popular and irreplaceable community recreational asset that will be lost if rezoning happens. For the good of the community please reconsider and vote no to rezoning this gem. Sincerely, Nicole Summers 949-922-1526 SS3-433 Received After Agenda Printed April 13, 2021 Non -Agenda Item City Council Non Agenda Item 4/13/21 In two weeks, the Newport Beach City Council will be presented with a Draft of the Housing Element for approval to be sent to the State Housing and Community Development Department. The real due date is early in 2022. This submittal should be slowed down to give the Council time to get more education about what they are being asked to approve. This undertaking began in 2019 with the formation of a Housing Committee to begin the General Plan update. In 2020 a new committee was formed and it became the committee to focus on meeting the 4,845 RHNA housing mandate. Since that time all of us have been learning ... a lot. And with that knowledge have come more questions. Several residents have been attending meetings, reading state guidelines, talking to developers, and watching recordings of other cities Planning sessions. We now have a greater understanding of the complications of the draft the Council is being asked to submit. We are deeply concerned about the direction the City is taking with the Housing Element of our General Plan. We are not sure that the full Council is aware of the ramifications of the path they are on. With Covid this has been a challenging learning curve for all of us. However, we think the residents are beginning to take notice and if we continue this trajectory the City is in store for a devastating outcome. Today we ask residents to ask the Council to pause this process and seek some education. We believe a study session should be held as soon as possible. There are affordable housing experts that can speak to us and give us some alternate ideas about how we can meet the state mandate without devastating our precious city. SS3-434 We believe there is a compromise that is challenging to implement but can be embraced by the residents. We don't believe any of us could have known this before now. We have been working on an alternative Option for our Draft Housing Element and will share that with the council in the coming weeks. However, at this moment, we believe it is critically important that we slow down and be sure that each council member is fully informed of the potential consequences of submitting the proposed Draft Housing Element in the next few weeks. We have provided an outline of some of the things that we think each Council Member should have a thorough understanding of. These are complicated topics, and we feel that we need experts in the field of for-profit affordable housing and housing alternatives. Attached is the outline of topics that we recommend be covered and some suggestions for speakers to address these topics. We hope that you will take the concerns of unsuspecting Newport Beach residents and businesses to heart. They will begin to realize the consequences of our Housing Element when it is too late to make these changes. It is up to you to look out for the future of our precious city. We hope you will join us in gaining a full understanding of what is being proposed in our Draft Housing Element and make the necessary changes to it so we can arrive at a Draft that all of us can support and live with. Newport Beach is going to undergo a transformation in the next decade. Let's make informed decisions about what we are going to provide for our residents and businesses. Nancy Scarbrough Jean Watt Charles Klobe SS3-435 4/12/21 Suggested Topics for Study Session Page 1 of 4 Inclusionary Requirements How can inclusionary zoning assist the City to control runaway high-density development? How does a 40% affordable/60% market -rate mixed income residential development project, or a 30% affordable/70% market -rate mixed income development project work in terms of financial feasibility, exactly? How can private investors and/or state/federal grants and funding contribute to affordable housing? What are the requirements attached to various types of funding? For example: percentage of very low, low, and moderate -income units required to be made available in the project receiving funds; length of time to maintain affordability of units; other requirements imposed by federal or state grants, tax-exempt bonds or private market funding. Is there a template or prototype affordable project (e.g. project size, number of units, or number of acres) that would be needed to make a project viable? How does the land value/cost affect the viability of an affordable housing project in Newport Beach? Overlay Zones How do overlay zones work and can they be eliminated when we achieve our RHNA requirements? How would this be done? Could there be an automatic sunset clause in the zoning ordinance to accomplish this? When are changes made to the City's Land Use Element and Zoning code? How is an overlay zone different than a policy or regulatory specific plan for targeted geographic opportunity areas? Mixed Income Developments Have we studied the value of creating public policy to allocate affordable housing and market rate units intelligently throughout the City in a way that will attract mixed income, for profit developers and how are we reflecting that in our RHNA allocation? How can we allocate low-income and market rate units intelligently throughout the City in a way that will address the problems created when affordable housing is concentrated in one area? Density Bonus State Laws- summary When is a Density Bonus "by right"? How does the State law required density bonus affect the numbers in the proposed Draft Housing Element? SS3-436 4/12/21 Suggested Topics for Study Session Page 2 of 4 ADU's/JADU's State laws regarding property owner's rights and City controls — Summary What is the cost range of compliance? Hopefully, factual information provided by contractors. City ordinance vs. state requirements, basic requirements for compliance. Possible number existing, possible future numbers. What kinds of numbers are other cities using? What are the reporting requirements for the homeowner regarding affordability? What are the property tax consequences of improvements made to bring an ADU into compliance? What are the State requirements for an aggressive ADU/JADU approach in our Housing Element? Possible options for City approach to justification. 100% Affordable Projects Are 100% affordable projects created by non-profit affordable housing developers as well as market rate developers? What are the sources of funding for 100% affordable housing projects? What sources of public funding are available only for homeless and very low-income affordable housing? What sources of public/private funding are available only for moderate or "middle" income affordable housing? What is the typical density and number of units of a 100% affordable housing project? Would Newport Beach be able to achieve five 100% senior only affordable projects at approximately 90 units each, how? Could a 100% affordable housing project give a priority to Newport Beach residents who are seniors and/or essential workers, or families? SS3-437 4/12/21 Suggested Topics for Study Session Page 3 of 4 Proposed Draft Housing Element Range of possible housing units: If this Draft Element is adopted, what is the total possible number of units, including bonus units? Actual number of property owners who have agreed to rezone? Why is Coastal Zone being avoided, except for carryover, especially with interest letter from Lido Village? "By -right" status of 5th Cycle carryover sites if built with an affordable component. How does this affect Banning Ranch? Basis for excess (more than RHNA) new above -moderate units in capacity tables: do those represent the number thought necessary to achieve development of the affordable units, or something independent of that? Repercussions for failure to comply with RHNA/ Housing Element Review of State fines and penalties, and what is likelihood that the State will impose fines or penalties, and when? Lawsuits by Housing Advocacy groups. Likely reasons for a lawsuit What are the possible outcomes for non-compliance? What about a strategy of submitting something that we know needs adjustment to work, and allowing ourselves the additional time to make adjustments? Timeline Last date to adopt Housing Element without penalty? Last date to submit draft, without penalty? Will Council review and approve draft before it is submitted? Impact of new state laws going into effect on January 1, 2022, or later, on Housing Element adopted before or after that date? Scope and timeline of EIR Is it being prepared prior to scoping? Negotiating with HCD Strategic Options 1. Housing Element Base Case - (Option 3) Pros • Fully meets RHNA requirements. • Affordable units disbursed throughout the Newport Beach and not concentrated within the airport area. SS3-438 4/12/21 Suggested Topics for Study Session Page 4 of 4 • Minimum number of above -moderate units. • Addresses needs of existing residents (seniors) and local workers. • Fewer environmental impacts • Accessory Dwelling Units — existing units would be grandfathered in and brought up to code. • Acknowledges that ADU's/JADU's will be built anyway based on new state law. Cons • Inclusionary zoning minimum requirements might negatively affect for-profit residential developers. • Restricts the number of new above moderate units. 2. Housing Element Option 2 — Pros • Meets RHNA Affordable Housing Requirements • Buffer addresses "no net loss" • Variable Inclusionary Zoning Requirements provides developer flexibility. Cons • Significantly exceeds above -moderate income unit RHNA requirement. • Encourages Banning Ranch development • In -lieu fee policy could work against dispersal of the units across the city, concentrating units in fewer locations. Unintended Consequences and Oversights What have we missed? New laws in the California legislature (SB9 and SB10 specifically) — Impacts on our Housing Element once our Housing Element is adopted and we have revised our zoning code? Suggested Speakers Michael Costa, Highridge Costa Housing Companies National Community Renaissance (National Core) Steve PonTell, President and Chief Executive Officer Michael Ruane (Corona Del Mar Resident, and former planning director for the County of Orange. For the past several years, Senior/Executive Vice President for National Renaissance (National Core) www.National Rennaissance.org SS3-439 From: Palencia, Ketshy Sent: Monday, April 12, 202110:06 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Plea !!!!!! From: Bob & Elaine <rehogue@gmail.com> Sent: Sunday, April 11, 2021 12:08 PM To: CDD <CDD@newportbeachca.gov> Subject: Plea !!!!!! [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Please preserve our popular and irreplaceable community recreational asset that will be lost if you rezone the Newport Beach Golf Course on Irvine Ave. near the airport. We love it and need it far more than more housing. Thank you, The Hogues SS3-440 From: Palencia, Ketshy Sent: Monday, April 12, 202110:05 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Newport Beach Golf Course From: Kathryn Smith <ks@kensingtonsmithdesign.com> Sent: Sunday, April 11, 20218:11 AM To: CDD <CDD@newportbeachca.gov> Subject: Newport Beach Golf Course [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear City Planning Staff, Please vote against the re -zoning of Newport Beach Golf Course! This course is a staple within our community! It creates great value and beauty within our neighborhoods. It would be such a disservice to remove any part of the golf course! With having such a year of staying home due to the pandemic I know of countless Newport families who have enjoyed this course and it's beauty which helped tremendously with being able to be outside safely. What a terrible shame to take it away! Please reconsider by maintaining Newport Beach's open spaces and please don't bend to the pressure like other cities have succumbed to by jamming structures on top of one another. Thank you all in advance for your consideration in this matter! Kind regards, Kathryn Smith SS3-441 From: Palencia, Ketshy Sent: Monday, April 12, 202110:07 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Golf course rezoning -----Original Message ----- From: Susana hegstrom <susanastarr@icloud.com> Sent: Sunday, April 11, 20212:23 PM To: CDD <CDD@newportbeachca.gov> Subject: Golf course rezoning [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. NO on rezoning golf course Green space cannot be replaced. Our quality of life is at stake SS3-442 From: Palencia, Ketshy Sent: Monday, April 12, 202110:07 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Golf Course From: Craig Ima <craigima@yahoo.com> Sent: Monday, April 12, 20218:01 AM To: CDD <CDD@newportbeachca.gov> Subject: Golf Course [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I live close to the Newport Beach Golf course on Irvine avenue Please do not rezone the Newport Beach golf course off of Mesa and Irvine. It will take away from the character of the community and city and we really don't have a lot of open space. I strongly oppose the low income housing or any additional housing for that area. That golf course brings a lot of joy to the below average golfer who just wants to socialize and learn the game and that is a good thing for the sport as well. Thank you for your consideration. Craig Ima 949.701.1444 SS3-443 From: Palencia, Ketshy Sent: Monday, April 12, 202110:10 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Golf course rezoning -----Original Message ----- From: Victoria Groskreutz <prodancerl@aol.com> Sent: Monday, April 12, 20219:00 AM To: CDD <CDD@newportbeachca.gov> Subject: Golf course rezoning [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. We do not need any more high/medium density housing made out of cheap materials that are popping up all over Newport Beach. They look like units that are designed for affordable housing placed on prime real estate. Keep our green spaces exactly that and create a park with recreational facilities for our families. We do not need anymore housing in Newport Beach. This just adds to more crowded living, traffic congestion, and widening of streets. Victoria Groskreutz Sent from my iPad SS3-444 From: Palencia, Ketshy Sent: Monday, April 12, 202110:11 AM To: Zdeba, Benjamin Cc: Lee, Amanda; Rodriguez, Clarivel Subject: FW: Against Rezone of NB Golf Course From: Matt Nestlerode <nestlerode.matt@gmail.com> Sent: Monday, April 12, 20219:11 AM To: CDD <CDD@newportbeachca.gov> Cc: Lainy <lainynestlerode@gmail.com> Subject: Against Rezone of NB Golf Course [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. We are strongly against the rezone of Newport Beach Golf Course and want to see it remain as -is. It is a irreplaceable community recreational asset. Changing this for residential will set a bad precedent for development and elimination of other golf courses, parks, sports fields, beaches, open space, Back Bay, etc. Housing without such extremely negative impacts can be done with free market incentives by higher density rezoning of existing residential/commercial but never on open space, a red line that cannot be crossed. SS3-445 From: Palencia, Ketshy Sent: Tuesday, April 13, 20212:01 PM To: Zdeba, Benjamin Cc: Rodriguez, Clarivel; Lee, Amanda Subject: FW: Please Consider From: anne ima <anneima@yahoo.com> Sent: Monday, April 12, 202111:40 AM To: CDD <CDD@newportbeachca.gov> Subject: Please Consider [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. My family and I live close to the Newport Beach Golf course on Irvine avenue. Please do not rezone the Newport Beach golf course off of Mesa and Irvine. It will take away from the character of the community and city -- we really don't have a lot of open space. I strongly oppose the low income housing or any additional housing for that area. That golf course brings a lot of joy to the below average golfer who just wants to socialize and learn the game and that is a good thing for the sport as well. I've lived in Newport since 1975 and I'm saddened by all the changes - it's already too crowded and this would just add to it. Thank you for your consideration! Anne Ima SS3-446 From: Debbie Stevens <dstevens@envaudit.com> Sent: Thursday, April 08, 20214:31 PM To: Campbell, Jim; Zdeba, Benjamin Cc: Tucker, Larry; CDD Subject: Comments on the Draft Housing Element Attachments: Section3_HousingConstraintsandResources.pdf; Section4_HousingPlan DBS.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. First, I would like to thank the City staff and consultants in the preparation of a very complicated and difficult draft Housing Element. This is not an easy job and I know there has been a lot of work, strategizing, discussion and decisions made regarding the content of the Housing Element. My comments on the Draft Housing Element are attached and highlighted in the attached pdfs. In addition to the attached, I'd like to make the following general comments. I do not support the near 100% buffer and the inclusion of almost 10,000 units in the Housing Element. I understand the need for a buffer, but not more than 15-20%. 1 would rather see us have to review/revise our Housing Element in a few years, as opposed to suggesting that an extensive amount of existing commercial areas be converted to residential (or mixed uses). Further, I would like to see the path that other cities take, review comments from HCD, and see if there are any changes in state law before the City makes this kind of drastic move. Newport Beach is not alone in its concern with the RHNA allocations and requirements. While this is a Draft Housing Element, I disagree with moving forward with the planning efforts to allow this many housing units. There is currently nothing to cap the number of housing units that could be constructed in the Housing Element to 4,845 units. Before the Housing Element is approved, those caps must be in place, e.g., zoning overlays that limit the development in each study area of the city. I believe those overlay zones should recognize existing ordinances. For example the City's Sight Plane Ordinance, (#1596) that limits the height of all buildings and landscaping to a maximum of 32 feet which applies to the sites in Corporate Plaza, Corporate Plaza West, and CdM Plaza should be identified. 3. 1 believe that we should be more aggressive in the use of ADUs and JADUs to help reach our RHNA goals. While I don't think we can meet our entire RHNA goals with ADUs, I believe the number should be at least double the 334 units that are currently shown in the Housing Element. This topic has been discussed a number of times at the Housing Element Update Advisory Committee meetings and there appeared to be general support for an increase into the 700-800 unit range. The laws regarding ADUs have recently been implemented and are beginning to be used more widely throughout the City. I think we should take advantage of that in our Housing Element and that 700-800 ADUs would be easily achievable. In addition, an active program to encourage and look for unpermitted ADUs should be implemented to take credit for existing, unpermitted ADUs. Since ADUs are by definition 47% low-income, its very helpful to our RHNA compliance without impacting any one area of the City. 4. The goal of the State in developing the RHNA numbers has been to provide a better housing/jobs balance so that people do not need to drive large distances to get to work. The SS3-447 strategy in the Housing Element has been to find undeveloped space, primarily in commercial areas of the city, for development of low-income housing (since the city is largely developed). If we rezone our vibrant commercial areas for residential development, we potentially reduce the employment opportunities and further impact the housing/jobs balance. I would like to stress this point to the state. 5. 1 remain concerned that more housing has been suggested in the industrial portion of the City. Specifically, identifying a metal plating facility (Hixson) that is contaminated and undergoing remediation as a potential site for housing and increasing housing near the site, is very poor planning and potentially dangerous. While the site will likely be remediated, it is doubtful that it would be available for residential housing any time soon. I may still have additional comments, but thought that I would provide what I have to date. Thank you for your consideration. Debbie Stevens SS3-448 Section 3.0 HOUSING CONSTRAINTS, RESOURCES, AND AFFIRMATIVELY FURTHERING FAIR HOUSING SS3-449 City of Newport Beach 2021-2029 HOUSING ELEMENT As common in many communities, a variety of constraints affect the provisions and opportunities for adequate housing in the City of Newport Beach. Housing constraints consist of both governmental constraints, including but not limited to land use controls, development fees and permitting fees, development standards, building codes and permitting processes; as well as, nongovernmental or market constraints, including but not limited to land costs, construction costs, and availability of finances. Combined, these factors create barriers to availability and affordability of new housing, especially for lower and moderate -income households. Nongovernmental constraints largely affect the cost of housing in the City of Newport Beach and can produce barriers to housing production and affordability. These constraints include the availability and cost of land for residential development, the demand for housing, financing, and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing, and especially affordable housing. The following highlights the primary market factors that affect the production of housing in Newport Beach. Land Costs and Construction Costs Construction costs vary widely according to the type of development, with multi -unit housing generally less expensive to construct than single -unit homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I -Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood -frame housing. Estimates are based on "good -quality" construction, providing for materials and fixtures well above the minimum required by state and local building codes. In August 2020, the ICC estimated that the average per square -foot cost for good -quality housing was approximately $118.57 for multi -unit housing, $131.24 for single -unit homes, and $148.44 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City's adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would cost costs about $123.68 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especially when considering land costs, are not considered a major constraint to housing production in Newport Beach. Land costs can also pose a significant constraint to the development of affordable and middle-income housing and represents a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing use that must be removed. Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. There are approximately 6,000 acres of vacant and non -vacant Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-2 (DRAFT MARCH 2021) SS3-450 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• residential land (39.3 percent), out of approximately 15,238 acres of land in Newport Beach, which are not currently subject to land use constraints (airport restrictions, flood zone, fire high severity zone, NCCP conservation area, seismic hazard, and sea level rise). However, majority of the acres are developed and may require rezoning, reuse, and redevelopment due to a lack of vacant sites in the City. Additional costs may be associated with redeveloping and/or converting sites which may influence the cost of the rental units or home value. A September 2020 web search, using the Orange County Market report, for lots for sale in the City of Newport Beach returned less than five vacant lots listed for sale. Of the lots listed, the costs ranged from $600,000 for 0.075 acres near Santa Ana Heights (about $183 per square foot), to $4,995,000 for 0.27 acres with an ocean view (about $430 per square foot). Larger vacant lots reached as high as $9,995,000 for 0.77 acres inland (about $295 per square foot) to $10,500,000 for 0.51 acres of land (about $474 per square foot) closer to the coast, but not coastal. According to the same report, in September coastal lots listed for sale in the City averaged $8,000,000 for 0.6 acres. The cost of land in Newport Beach is higher than neighboring cities, such as Laguna Beach, where the median cost of land is about $115 per square foot. Therefore, land and redevelopment costs in Newport Beach create a significant constraint to the development of housing, specifically affordable housing. 2. Availability Financing The availability of financing in a community depends on several factors, including the type of lending institutions active in a community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person's ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to residents of a community. The data presented in this section include the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in Newport Beach. Table 3-1 below displays the disposition of loan applications for the Anaheim -Santa Ana -Irvine Metropolitan Statistical Area/Metropolitan Division (MSA/MD), per the 2016 Home Mortgage Disclosure Act report. According to the data, applicants in the 120 percent median income or more had the highest rates of loans approved. Of that income category, applicants who reported White had the highest percentage of approval and the number of applications. Applicants in the less than 50 percent of the MSA/MD median income categories were showed higher percentages of denied loans than loans originated. According to the data, applicants who reported white were, on average, more likely to be approved for a loan than another race or ethnicity. Given the relatively high rates of approval for home purchase, improvement, and refinance loans, home financing is generally available and not considered to be a significant constraint to the provision and maintenance of housing in Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-3 SS3-451 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-1: Disposition of Loan Applications by Race/Ethnicity- Anaheim -Santa Ana -Irvine MSA/MD Applications by Race/Ethnicity Percent Approved Percent Denied Percent Other Total (Count) LESS THAN 50% OF MSA/MD MEDIAN American Indian and Alaska Native 26.2% 52.3% 23.1% 65 Asian 33.9% 42.5% 26.7% 1,382 Black or African American 41.6% 33.7% 25.8% 89 Native Hawaiian or other Pacific Islander 25.0% 44.2% 30.8% 52 White 45.6% 31.2% 26.1% 5,240 Hispanic or Latino 37.9% 38.2% 1 26.8% 1,566 50-79% OF MSA/MD MEDIAN American Indian and Alaska Native 38.1% 34.0% 29.9% 97 Asian 53.3% 25.3% 29.4% 3,153 Black or African American 43.4% 19.1% 41.4% 152 Native Hawaiian or other Pacific Islander 49.4% 39.8% 16.9% 83 White 54.5% 23.3% 1 27.6% 8,677 Hispanic or Latino 47.6% 27.7% 29.3% 3,245 80-99% OF MSA/MD MEDIAN American Indian and Alaska Native 51.4% 25.7% 31.4% 35 Asian 59.5% 19.2% 29.3% 1,495 Black or African American 52.9% 22.1% 30.9% 68 Native Hawaiian or other Pacific Islander 43.5% 13.0% 43.5% 23 White 61.9% 17.2% 26.1% 3,873 Hispanic or Latino 54.0% 21.4% 29.1% 1,347 100-119% OF MSA/MD MEDIAN American Indian and Alaska Native 48.9% 22.7% 29.5% 88 Asian 62.3% 15.6% 28.8% 4,820 Black or African American 55.6% 20.1% 28.6% 234 Native Hawaiian or other Pacific Islander 49.4% 27.6% 31.0% 87 White 1 66.2% 1 13.8% j 25.1% j 12,607 Hispanic or Latino 1 60.8% 1 16.4% 1 26.8% 1 3,398 120% OR MORE OF MSA/MD MEDIAN American Indian and Alaska Native 59.2% 13.0% 32.0% 169 Asian 62.8% 12.9% 29.0% 17,800 Black or African American 57.7% 17.3% 27.2% 624 Native Hawaiian or other Pacific Islander 64.2% 11.4% 26.8% 254 White 68.3% 11.3% 24.9% 49,811 Hispanic or Latino 64.6% 13.3% 26.7% 6,095 Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2019. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-4 SS3-452 City of Newport Beach 2021-2029 HOUSING ELEMENT 3. Economic Constraints Market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the City and the region for the foreseeable future. Moving into 2020, the economy was growing, California was seeing a 1.6 -percent growth in jobs from 2019 and experiencing all-time lows for unemployment rates. COVID-19 had stalled much of the economy in early 2020, however, as the California economy regains momentum housing stock and prices in the Newport Beach community remain stable. A 2020 California Association of Realtors (CAR) report found that homes on the market in Orange County experienced a nine percent year to year increase and cost an average of $880,000 in February 2020; almost $300,000 higher than the State median home price in the same month ($579,770). According to the CAR First Time Buyer Housing Affordability Index, from 2018 to 2019 the median value of a home in Orange County was $703,800 with monthly payments (including taxes and insurance) of $3,630, requiring an average qualifying income of $108,900. Homes and cost of living in Newport Beach was reported higher than the State median housing and living costs. According to September 2020 data from Zillow, the median home value of single -unit homes and condos in Newport Beach is $2,407,454. According to Zillow's methodology, this value is seasonally adjusted to remove outliers and only includes the middle price -tier of homes. Newport Beach home values have gone up 0.7 percent over the past year and Zillow predicts they will rise 3.4 percent within the next year. Newport's home value index ($2,407,454) has been on a steep and steady rise since early 2012, and according to a September 2020 forecasts, they are expected to increase slightly (estimated $2,490,000) in 2021. Orange County by comparison has a median home value index of $777,000, according to the same September 2020 report, which is significantly lower than the City of Newport. Forecasted home prices in the County, through 2021 are set to see minor increases ($810,000). The cost of land and home prices in Newport are considered a major constraint to the development of and access to housing, particularly the development of and access to affordable housing. In addition to market constraints, local policies and regulations also affect the price and availability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region. Regulations related to environmental protection, building codes, and other topics have significant, often adverse, impacts on housing cost and availability. While the City of Newport Beach has no control over State and Federal Laws that affect housing, local laws including land use controls, site improvement requirements, fees and exactions, permit processing procedures, and other factors can constrain the maintenance, development, and improvement of housing create barriers to housing. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-5 (DRAFT MARCH 2021) SS3-453 City of Newport Beach - -= 2021-2029 HOUSING ELEMENT-,--~"` 1. Land Use Controls In the State of California, cities are required to prepare a comprehensive, long term General Plan to guide future development. The Land Use Element of the General Plan establishes land uses of developments within the City of Newport Beach. The Land Use Element sets for policies and regulations for guiding local development. These policies, together with existing zoning regulations, establish the amount and distribution of land to be allocated for different uses within the City. The Land Use Element of the General Plan identifies the following residential and mixed-use categories: + Single Unit Residential Detached (RS -D): The RS -D category applies to a range of detached single -unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -D category permits a density range from 0.0 to 29.9 dwelling units per acre (DU/AC). + Single Unit Residential Attached (RS -A): The RS -A category applies to a range of attached single -unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -A category permits a density range from 0.0 to 29.9 DU/AC. + Two Unit Residential (RT): The RT category applies to a range of two -unit residential dwelling units such as duplexes and townhomes. The RT permits a density range from 0.0 to 39.9 DU/AC. + Multiple Residential (RM): The RM designation is intended to provide for multi -unit residential development containing attached dwelling units The RM permits a density range from 0.0 to 52.0 DU/AC. + Multiple Residential Detached (RM -D): The RM -D designation is intended to provide primarily for multi -unit residential development exclusively containing detached dwelling units. The RM -D allows a 1.5 Floor Area Ration (FAR) where a minimum FAR 0.35 and maximum FAR if .5 may be used for nonresidential. + Mixed -Use Vertical (MU -V): The MU -V designation is intended to provide for the development of properties for mixed use structures that vertically integrate housing with retail uses including retail, office, restaurant, and similar nonresidential uses. For mixed-use structures, commercial uses characterized by noise, vibration, odors, or other activities that would adversely impact on-site residential units are prohibited. The MU -V allows a 1.5 FAR where a minimum FAR 0.35 and maximum FAR of .5 may be used for nonresidential. + Mixed -Use Horizontal (MU -H): The MU -H designation is intended to provide for the development of areas for a horizontally distributed mix of uses, which may include general or neighborhood commercial, commercial office, multi -unit residential, visitor -serving and marine -related uses, and/or buildings that vertically integrate residential with commercial uses. The MU -H allows a maximum FAR of 1.0 for residential. + Mixed -Use Water Related (MU -W): The MU -W designation is intended to provide for commercial development on or near the bay in a manner that will encourage the continuation of coastal - dependent and coastal -related uses in accordance with the Recreational and Marine Commercial (CM) designation, as well as allow for the integrated development of residential. The MU -W permits a density range from 0.0 to 29.9 DU/AC. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-6 (DRAFT MARCH 2021) SS3-454 City of Newport Beach 2021-2029 HOUSING ELEMENT These categories accommodate development of a wide range of housing types in Newport Beach. Furthermore, maintaining the existing residential categories is important for ensuring compatibility between the new and existing housing. Local Coastal Program and Land Use Plan The Local Coastal Program (LCP) is a coastal management plan that contains land use, development, public access, and resource protection policies and regulation to implement the California Coastal Act (Coastal Act). The LCP is comprised of a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP serves in conjunction with, and is considered a legislative equivalent to, the City's General Plan Land Use Element to identify land uses in the Coastal Zone. The intent of this plan is to provide for land uses and residential density limits that protect coastal resources and public access. The LUP identifies the residential categories and densities provided in Table 3-2. Table 3-2: Coastal Land Use Plan Densities Land Use Maximum Density Range per Lot Single -Unit Residential Detached — RSD RSD -A 0 — 5.9 units per acre RSD -B 6 — 9.9 units per acre RSD -C 10 —19.9 units per acre RSD -D 20 — 29.9 units per acre Single -Unit Residential Attached — RSA RSA -A 0 — 5.9 units per acre RSA -B 6 — 9.9 units per acre RSA -C 10 —19.9 units per acre RSA -D 20 — 29.9 units per acre Two Unit Residential - RT RT -A 0 — 5.9 units per acre RT -B 6 — 9.9 units per acre RT -C 10 —19.9 units per acre RT -D 20 — 29.9 units per acre RT -E 30 — 39.9 units per acre Multiple Unit Residential — RM RM -A 0 — 5.9 units per acre RM -B 6 — 9.9 units per acre RM -C 10 —19.9 units per acre RM -D 20 — 29.9 units per acre RM -E 30 — 39.9 units per acre RM -F 40 — 52 units per acre Source: City of Newport Beach Municipal Code The Coastal Act is administered by the California Coastal Commission. Over 63 percent of the City of Newport Beach is within the Coastal Zone and subject to oversight by the Coastal Commission. Although the City retains permit authority in most of the Coastal Zone, development projects located near sensitive coastal Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-7 (DRAFT MARCH 2021) SS3-455 City of Newport Beach 2021-2029 HOUSING ELEMENT resources, such as the bay, ocean, wetlands, and environmentally sensitive habitat areas, require the processing of coastal development permits and are subject to appeal by the California Coastal Commission. This additional level of review and approval process may extend the review period of development projects and increase the application and discretionary review costs. In addition, any request to increase residential densities or allow new residential housing opportunities requires the processing of a Local Coastal Program amendment through the California Coastal Commission. An illustrative example is the Master Development Plan for Banning Ranch, a housing development project that included 1,375 dwelling units, including an affordable housing component, that was adopted by the City in 2012, but denied by the California Coastal Commission in 2016 components but due to potential impacts to environmentally sensitive habitats and coastal resources. The Coastal Land Use Plan and Coastal Commission's additional review may inhibit development due to the added review time and costs, and uncertainty of approvals. John Wayne Airport Environs Land Use Plan (AELUP) The City's Airport Area may be considered as an opportunity zone to add residential neighborhoods. However, land located within the Airport Planning Area for John Wayne Airport are subject to the development restrictions of the John Wayne Airport Environs Land Use Plan (AELUP), which limits the ability to develop residential units. Approximately 391 acres are subject to these residential restrictions. An amendment to the City's General Plan or rezoning for residential use requires review and approval by the Airport Land Use Commission (ALUC) and extends the total review period of a proposed housing development and subsequently increases the cost of development. The added review time and additional costs may dissuade housing developers, and particularly affordable housing developers, from developing housing in this area. Overlay Districts An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City. An overlay district may be added to a neighborhood or corridor on a map or it may apply to the City as whole and be applied under certain circumstances. An overlay district may be initiated as a Zoning Map amendment. All proposed developments within the overlay district must comply with the district's applicable development standards in addition to the Zoning Code standards. Overlay Districts which affect housing in Newport Beach include the Mobile Home Park (MHP) Overlay Zoning District, Bluff Overlay Zoning District, and the Height Overlay District. Overlay Districts may be a constraint to the development of housing when it sets standards which are more restrictive than the Zoning Code. Overlav Coastal Districts The purposes of the individual overlay coastal zoning districts and the way they are applied are detailed below. An overlay district may be initiated as a Coastal Zoning Map amendment in compliance with Chapter 21.14 of the City's Municipal Code. All development within these zones must comply with the applicable development standards (e.g., setbacks, height) of the underlying coastal zoning district in addition to the standards provided by the respective zone as outline in the Municipal Code, where applicable. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-8 (DRAFT MARCH 2021) SS3-456 City of Newport Beach 2021-2029 HOUSING ELEMENT Mobile Home Park Overlay Coastal Zoning District The MHP Overlay Coastal Zoning District is intended to establish a mobile home district on parcels of land developed with mobile home parks. The regulations of this district are designed to maintain and protect mobile home parks in a stable environment with a desirable residential character. However, such regulations may pose a constraint to the redevelopment of existing mobile home parks and increasing density. Uses allowed in the MHP Overlay include the following: + Mobile Home Parks + Accessory Structures incidental to the operation of Mobile Home Parks Bluff Overlay Distric The Bluff (B) Overlay District is intended to establish special development standards for areas of the City where projects are proposed on identified bluff areas. The Bluff Overlay District intends to provide additional regulations and requirements in order to establish safety standards for developments in the overlay District. Specific permitted uses, development standards, and requirements are outlined in the City's Municipal Code, Chapter 21.28.040. Additional regulations and development standards may prevent increased density or intensity in areas within the Bluff Overlay District. Canyon Overlay District The Canyon (C) Overlay District is intended to establish development setbacks based on the predominant line of existing development for areas that contain a segment of the canyon edge of Buck Gully or Morning Canyon. In order to ensure safe development of housing within the Canyon Overlay Districts, development standards and requirements include the following: + Development Stringline Setback: Development may not extend beyond the predominant line of existing development on canyon faces by establishing a development stringline where a line is drawn between nearest adjacent corners of existing structures on either side of the subject property. + Swimming Pools require a double wall construction + Coastal Hazards and Geologic Stability Report + Erosion Control Plan Additional specific development standards and requirements are outlined in the City's Municipal Code, Chapter 21.28.050. The Canyon Overlay District may inhibit added density or intensity of uses to residential properties within the overlay. Height Overlay The Height (H) Overlay District is intended to establish standards for review of increased building height in conjunction with the provision of enhanced project design features and amenities. The Height Overlay District includes properties located in the Multiple Residential (RM) Zoning District within Statistical Area A2. The maximum height limit is 40 feet for a flat roof and 45 feet for a sloped roof with a three-story maximum. Additional standards, regulations, and eligibility requirements are outline the in Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-9 (DRAFT MARCH 2021) SS3-457 City of Newport Beach 2021-2029 HOUSING ELEMENT the City's Municipal Code, Chapter 21.28.060. The Height Overlay District is not considered a constraint to development as it provides for higher height limits. State Density Bonus Law Density bonuses are an additional way to increase the number of dwelling units otherwise allowed in a residentially zoned area. The City's Zoning Ordinance identifies the purpose of the Density Bonus Ordinance is to grant density bonuses and incentives for the development of housing that is affordable to very low-, low-, and moderate -income households and senior citizens. Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low income, low-income, or moderate -income households. Effective January 1, 2021, California State Assembly Bill 2345 amends the Density Bonus Law to expand and enhance development incentives for projects with affordable and senior housing components. AB 2345 amends the Density Bonus Law to increase the maximum density bonus from 35 percent to 50 percent. To be eligible for the maximum bonus, a project must set aside at least (i) 15 percent of total units for very low income households, (ii) 24 percent of total units for low income households, or (iii) 44 percent of for -sale units for moderate income households. Levels of bonus density between 35 percent and 50 percent are granted on a sliding scale. The City's currently adopted Density Bonus Ordinance is no longer consistent with State law and must be amended to comply with new statutory requirement. Implementing Action 3.1.2 of the Section 4: Housing Plan outlines the City's plan to maintain compliance with State legislation. Density Bonus Programs The currently adopted density bonuses are eligible for developments which contain five or more dwelling units and meet the requirements outlined in Chapter 20.32 of the Newport Beach Municipal Code. Units which are not eligible for density bonus include developments where affordable housing is required under the provisions of Title 19. When a development which meets the requirements, density bonuses are applicable as shown in Table 3-3 and Table 3-4 below for different income categories. Developments which meet the requirements for Senior housing will be entitled to a density bonus of twenty percent of the number of senior housing units. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-10 (DRAFT MARCH 2021) SS3-458 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-3: Density Bonus Calculations Very Low Income Percentage of Base Units Proposed Density Bonus Percentage 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 1 35 Low Income Percentage of Base Units Proposed Density Bonus Percentage 10 20 11 21.5 12 23 13 24.5 14 26 15 27.5 17 30.5 18 32 19 33.5 20 35 Source: City of Newport Beach Municipal Code Chapter 20.32 Table 3-4: Density Bonus Calculations Moderate Income Percentage of Base Units Proposed Density Bonus Percentage 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 1 24 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-11 (DRAFT MARCH 2021) SS3-459 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-4: Density Bonus Calculations Moderate Income Percentage of Base Units Proposed Density Bonus Percentage 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 Source: City of Newport Beach Municipal Code Chapter 20.32 � L• Additionally, when an applicant for a residential development agrees to donate land to the City for very low-income households, the applicant is then entitled to a density bonus for the entire market rate development, if the conditions specified in the City's Municipal Code Section 20.32.030 are met. An applicant is entitled to an increase above the maximum allowed residential density as outline in Table 3-5. Table 3-5: Density Bonus Calculations Very Low Income Percentage of Base Units Proposed Density Bonus Percentage 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 Source: City of Newport Beach Municipal Code Chapter 20.32 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-12 SS3-460 City of Newport Beach 2021-2029 HOUSING ELEMENT Additional regulations for density Bonuses include the following: + Fractional Units: The calculation of a density bonus, in compliance with any of the above requirements, that results in fractional units shall be rounded up to the next whole number. + Mixed Income Development: If the applicant desires to develop a density bonus project available to a mix of income levels, the Director determines the amount of density bonus to be granted up to a maximum of 35 percent. Concessions and Incentives When qualified for a density bonus, an applicant may request additional parking incentives beyond those provided above. When requested, the City may grant the following (inclusive of handicap and guest parking): + Zero to one bedroom: one on-site parking space per unit; or + Two or more bedrooms: two on-site parking spaces per unit. In addition to a request for parking incentives, an applicant who meets the density bonus requirements may also submit a proposal for a reduction in the site development standards or architectural design requirements; approval of mixed-use zoning in conjunction with the housing development; other regulatory incentive proposed by the client or the City that will result in identifiable, financially sufficient, and actual cost reductions; and/or a direct financial contribution granted by the Council at its sole discretion. Additional Incentives may also apply for developments with a childcare component, requirements and applicable incentives are outlines in detailed in the City's Municipal Code Section 20.32.060. Incentives and density bonuses allow for increased opportunity and feasibility for the production of affordable housing in a community, the City of Newport Beach's Incentives and Density Bonus programs are comparable to similar Southern California communities and are a constraint to the development of housing for all income levels. Residential Development Standards Citywide, outside the specific plan areas, the City regulates the type, location, density, and scale of residential development primarily through the Zoning Code. The following summarizes the City's existing residential zoning districts: + Residential -Agricultural (R -A) — Residential -Agricultural is intended to provide for single lots appropriate for detached single -unit residential dwelling units and light farming. + Single -Unit Residential (R-1) — Single -Unit Residential is intended to provide for a range of detached single -unit residential dwelling units on single lots. This land use designation does not include condominiums or cooperative housing. + Two -Unit Residential, Balboa Island (R -BI) —Two -Unit Residential Balboa Island is intended to provide for a maximum of two residential dwelling units, or duplexes. This is designation is reserved to single lots on Balboa Island. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-13 (DRAFT MARCH 2021) SS3-461 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• + Two -Unit Residential (R-2) —Two -Unit Residential is intended to provide for single lots appropriate for a maximum of two residential dwelling units, or duplexes. + Multiple Residential (RM) — Multiple Residential is intended to provide for area appropriate for multi- unit residential developments containing attached or detached dwelling units. + Medium Density Residential (RMD) — Medium Density Residential is intended to provide for areas appropriate for medium density residential developments containing attached or detached units. + Mixed -Use Vertical (MU -V) — Mixed -Use Vertical is intended to provide for area appropriate for the development of mixed-use structures that vertically include residential dwelling units. Residential dwelling units are located above the ground floor, which includes office, restaurant, retail, and similar nonresidential uses. + Mixed -Use Mariners' Mile (MU -MM) — Mixed -Use Mariners' Mile is intended to provide for areas appropriate for commercial and residential uses. Mariners' Mile is located on the inland side of Coast Highway in the Mariners' Mile Corridor. Properties that front Coast Highway may only be developed for nonresidential purposes. Properties to the rear of the commercial frontage may be developed for freestanding nonresidential uses, multi -unit residential dwelling units, or mixed-use structures that integrate residential above the ground floor with nonresidential uses on the ground floor. + Mixed -Use Cannery Village and 151h Street (MU-CV/151h St.) — Mixed -Use Cannery Village and 15th Street is intended to establish a cohesive district or neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses include multi -unity dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonresidential uses along the street frontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed -Use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots. + Mixed -Use Water (MU -W1)— Mixed -Use Water is intended to be applied to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. A minimum of 50 percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and victor -serving land uses are mixed. An approved site development review is required prior to any development to ensure uses are fully integrated and that potential impacts from their differing activities are fully mitigated. Design of nonresidential space to facilitate marine -related uses is encouraged. + Mixed -Use Water (MU -W2) — This second Mixed -Use Water designation is intended to apply to waterfront properties in which marine -related uses may be intermixed with general commercial, visitor - related commercial and residential dwelling units on the upper floors. The City's Zoning Code also regulates the development on land through minimum and maximum standards on lot size, lot width and depth, setbacks, and on lot coverage and floor -area ratio (FAR). Table 3-6 below provides the development standards for each residential zoning district in Newport Beach: Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-14 SS3-462 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-6: Development Standards in Newport Beach - Dimensions Dimensions Min. Yard Setbacks Construction Standards Min. Min. Min. Lot Max. Zone Lot Lot Front Rear Max. Site Size Side (feet) Height Max. FAL (squar Width Depth (feet) (feet) (feet) Coverage (feet) (feet) e feet) I Residential Districts R -A 87,120 125 N/A 20 5 25 24,296 N/A 40% 2.0 (Citywide) R-1 6,000, 60, N/A 20 3,42 10 24,296 1.5 N/A 5,0001 501 (Corona del Mar) R-1- 6,000 60 80 20 6 6 24,296 N/A 60% 6,000 R-1- 7,200 70 90 20 5 20 35,406 N/A 60% 7,200 R-1- 10,000 90 100 15 10 10 24,296 N/A 60% 10,000 1.5 plus R -BI 2,375 Sol N/A 20 See Note 3. 10 ft. 24,296 N/A 200 s ft. sq.ft. (Citywide) R-2 6,000, 60, N/A 20 See Note 3. 10 ft. 24, 296 1.5 N/A 5,0001 501 (Corona del Mar) R-2- 6,000 60 80 ft. 20 6 ft. 6 ft. 24,2 96 N/A 60% 6,000 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-15 SS3-463 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-6: Development Standards in Newport Beach - Dimensions Dimensions Min. Yard Setbacks Construction Standards Min. Min. Min. Lot Max. Zone Lot Lot Front Rear Max. Site Size Side (feet) Height Max. FAL (squar Width Depth (feet) (feet) (feet) Coverage (feet) (feet) e feet) RM 6,000, 60, N/A 20 See Note 3. 10 ft. 28,33 6 1.74 N/A 5,0001 501 RMD 6,000, 60, N/A 20 See note 4. 25 ft. 28,33 6 N/A N/A 5,000 1 501 RM- 60 60 80 20 6 ft. 6 ft. 28,33 6 N/A 60% 6,000 Mixed -Use Zoning Districts 1.0 (Mixed - MU -V 2,500 25 0 0-55 0-55 26,3 16 Use) MU- 1.0 (Mixed - 10,000 50 0 0-55 0-55 26,3 16 MM Use MU- 40,000 100 0 0-55 0-55 32, 376 1.0 (Mixed - DW Use) MU- CV/15t 5,000 40 0 0-55 0-55 26,3 16 1.0, 1.5 7 1 St. MU - 20,000 200 0 0-55 0-55 26,3 16 1.0, 1.5 7 W1 MU - 2,500 25 0 0-55 0-55 26,3 16 0.75,0.8 7 W2 Notes: (1) Corner Lot, Interior Lot respectively (2) lots <40 wide, lots >40 wide respectively (3) 3 ft. for lots > 40ft. wide, 4 ft. for lots 40'1" — 49'11" wide, and 8% of Average Lot Width for lots > 50 ft. respectively, (4) N/A for lots > 40ft. wide, 5 ft. for lots 40'1" — 49'11" wide, and N/A for lots > 50 ft. (5) Adjoining residential district (6) Flat roof, Sloped roof respectively (7) Mixed Use, Residential respectively Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-16 SS3-464 City of Newport Beach 2021-2029 HOUSING ELEMENT Yard Requirements Yards allow for open space, landscaping and greenery, emergency access, and pedestrian and vehicular circulation on a site. Requirements are set in order to ensure there is adequate available space designated to these elements on a property when considering new development or improvements. Included in these requirements are setbacks areas that are located between a setback line and the property line and must remain unobstructed. Setbacks provide the following: + Visibility and traffic safety + Access to and around structures + Access to natural light and ventilation + Separation of incompatible land uses + Space for privacy, landscaping, and recreation + Protection of natural resources + Safety from fire and geologic hazard The City's yard requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Site Coverage and Floor Area Limit Site coverage and Floor Area Limit (FAL) requirements maintain mass and intensity of a use for residential uses. The Newport Beach Zoning Code defines site coverage as the percentage of a site covered by structures and accessory structures, as well as decks that exceed 30 inches in height. Maximum site coverage standards limit the footprint of a building and calculates it as a percentage between the ground floor area of a building and the net area of a lot. The FAL refers to the gross floor area allowed on a residential lot and is determined by multiplying the allowed buildable area of the lot times the applicable multiplier for the lot. FAL requirements limit the total usable floor area to limit the bulk of a building to the land, other buildings, and public facilities. maximum tfuilding Height Maximum building heights are set and defined in the City's Zoning Code to maintain symmetry and compatibility between existing and proposed developments. The height is measured as the vertical distance from the grade of the pad to the highest part of the structure, including protective guardrails and parapet walls. The height limit may be increased within specific areas through the adoption of a Planned Community Development, a specific plan, a planned development permit, a coastal development permit Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-17 (DRAFT MARCH 2021) SS3-465 City of Newport Beach 2021-2029 HOUSING ELEMENT in the coastal zone, or a site development review. The deviation in maximum height limit requires approval of a discretionary action. • R -A, R-1, R -BI, and R-2 Zoning Districts have height limits of 24 feet for structures with flat roofs (including guard rails and parapet walls) and 29 feet for sloped roofs. A discretionary approval may permit height up to 28 feet for flat roofs and 33 feet for sloped roofs. • RM and RMD Zoning Districts have height limits of 28 feet for structures with flat roofs and 33 feet for sloped roofs. The height of the structure may be increased to 32 feet for foot roof and 37 feet for sloped roofs through discretionary approval. Properties located in the Height (H) Overlay District may increase height limits to 40 feet for flat roofs and 45 feet for sloped roofs. • Planned Community Districts may also propose and regulate their own height limits. The City's building height requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Usable Open Space The City's Zoning Code defines Usable Open Space as an outdoor or enclosed area on the ground, roof, balcony, deck, porch, or terrace, used for outdoor living, active or passive recreation, pedestrian access, or landscaping. This does not include parking facilities, driveways, utility, or service areas, required setbacks, and sloped or submerged land. All residential districts in Newport Beach have a maximum site coverage to allow for open space. Mixed -Use districts require 75 square feet per dwelling unit of common open space and 5 percent of the gross floor area of private open space for each unit. The City's usable open spaces requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Parking >tandards Adequate off-street parking shall be provided to avoid street overcrowding and maintain parking opportunities for the public to visit the coast. This is maintained through the City's parking requirements for each housing unit type, as shown in Table 3-7. Parking requirements may add to the development cost of a property and project as spaces and garage parking create additional costs and remove potentially livable space. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-18 (DRAFT MARCH 2021) SS3-466 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-7: Parking Requirements for Residential Uses Unit Type Number of Spaces Required Accessory Dwelling Unit 1 parking space, with exceptions 11� Junior Accessory Dwelling Unit No additional parking required Single -Unit Dwellings —Attached 2 per unit in a garage Single -Unit Dwellings — Detached and less than 4,000 sq. ft. of floor 2 per unit in a garage area Single -Unit Dwellings — Detached 3 per unit in a garage and 4,000 sq. ft. of floor area Single -Unit Dwellings — Balboa 2 per unit in a garage Island 2 per unit covered, plus guest parking Multi -Unit Dwellings — 3 units 1-2 units, no guest parking required 3 units, 1 guest parking space Multi -Unit Dwellings —4 units or 2 per unit covered, plus 0.5 space per unit for guest parking more Two -Unit Dwellings 2 per unit; 1 in a garage and 1 covered or in a garage Live/Work Units 2 per unit in a garage, plus 2 for guest/customer parking Senior Housing — Market Rate 1.2 per unit Senior Housing—Affordable 1 per unit Note: 1. Parking is waived for ADUs if the property is within %2 mile walking distance to transit (including ferry); within an architecturally or historically significant district; on -street parking permits are required and not provided to the occupant of the ADU; or within one block of a car -share vehicle pick-up/drop-off location Source: City of Newport Beach Municipal Code The City's parking requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements. Variety of Housing Types Permitted Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards in order to facilitate development of a variety of housing types for all socioeconomic levels of the population. Housing types include single -unit dwellings, multi -unit housing, accessory dwelling units, factory -built housing, mobile homes, employee and agricultural work housing, transitional and supportive housing, single -room occupancy units (SROs), and housing for persons with disabilities. Table 3-8 below identifies the various housing types permitted within each residential and Table 3-9 identified housing types permitted in mixed-use zoning district in Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-19 (DRAFT MARCH 2021) SS3-467 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-8: Various Housing Types Permitted in Residential Zones Nonresidential Residential Zones Housing Type Zones R -A R-1* R -BI 11-2 RM RMD OA PI Single -Unit Dwellings—Attached - P P P P Single-UnitDwellings— Detached P P P P P P Multi -Unit Dwellings - - - P P Two -Unit Dwellings - P P P P Accessory Dwelling Unit(s) P P P P P P Junior Accessory Dwelling Unit(s) P P P P P P - - Live -Work Units - - - -- -- - Short -Term Lodging - - P P P P - - Residential Care Facilities — P P P P P P - - Limited (6 or fewer) Licensed Residential Care Facilities — CUP- CUP- Limited (6 or fewer) Unlicensed -- -- -- -- HO HO -- -- Residential Care Facilities — CUP- CUP- General (7 or More) Licensed -- -- -- -- HO HO -- -- Residential Care Facilities — CUP- CUP- General (7 or More) Unlicensed -- -- -- -- HO HO -- -- Residential Care Facilities — CUP- CUP- Integral Facilities/Integral Uses -- -- -- -- HO HO Parolee -Probationer Home - - - -- -- - Farmworker Housing NA NA NA NA NA NA NA NA Supportive Housing NA NA NA NA NA NA NA NA Transitional Housing NA NA NA NA NA NA NA NA Emergency Shelters - - - -- P P Low Barrier Navigation Centers NA NA NA NA NA NA NA NA Notes: P — Permitted by Right A—Allowed MUP — Minor Use Permit CUP -HO — Conditional Use Permit in Residential Zoning Districts (--) - Not Allowed NA — Not Listed/Stated *Located above 1" floor Source: City of Newport Beach Municipal Code Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-20 SS3-468 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-9: Mixed -Use Housing Types Permitted in Mixed -Use Zones Zones Housing Type MU -CV/ MU -V MU -MM MU -DW 15th St. MU -W1 MU -W2 Single -Unit Dwellings — P. (1) -- - P (3) P. (1) P* (2) Attached Single -Unit Dwellings — Detached Multi -Unit Dwellings P. (1) P (1)(2) P (1) P (3) - -- Two -Unit Dwellings P. (1) -- -- P (3) -- -- Accessory Dwelling Unit(s) P P P P P P Junior Accessory Dwelling Unit(s) P P P P P P Live -Work Units P P (1)(2) P P (3) -- -- Notes: *Located above 15t floor (1) Allowed only as part of a mixed-use development. Refer to Section 20.48.130 (Mixed -Use Projects) for additional development standards. (2) Not allowed to front onto Coast Highway. Not allowed on lots at street intersections unless part of a mixed-use or live -work structure. Source: City of Newport Beach Municipal Code Single -Unit Dwelling A Single -Unit Dwelling is defined in the Newport Beach Zoning Code as a structure on a single lot containing one dwelling unit and one housekeeping unit. The structure shall be constructed in compliance with the California Building Code (CBC) and placed on a permanent foundation. Single -Unit Dwellings may be attached or detached. An attached dwelling is owned in fee, located on an individual lot, and shares a wall or roof with another structure. A detached dwelling is also owned in fee and located on an individual but is not connected to another structure in any way. iwulti-Unit uweiiing A Multi -Unit Dwelling contains three or more dwellings units within the same structure occupied on a single lot. Each dwelling unit is occupied by separate housekeeping units. This housing type includes triplexes (3 dwelling units in one structure), fourplexes (four dwelling units in one structure), and apartments (5 or more dwelling units in one structure), where each structure is owned by one entity and each dwelling unit is rented out. Condominiums are also multi -unit dwellings, but each individual dwelling unit is owned by separate entities. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC). Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-21 (DRAFT MARCH 2021) SS3-469 City of Newport Beach 2021-2029 HOUSING ELEMENT Two -Unit Dwelling A Two -Unit Dwelling contains two dwelling units, each occupied by their own housekeeping unit, and located within the same structure. This may be referred to as a duplex. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC). An Accessory Dwelling Unit is a secondary dwelling unit, attached or detached, to the primary residence(s) on a single lot. This may be referred to as a "granny flat", "in-law unit", or "carriage house". An ADU must include a kitchen, a full bathroom, a living area, and a separate entrance. The Newport Beach Zoning Code includes efficiency units and manufactured homes as ADUs. Junior ADUs (JADUs) are defined by the City's Municipal Code as a dwelling unit accessory to and entirely contained within an existing or proposed single -unit dwelling. A JADU may not be greater than 500 square feet, and it must either include its own sanitation facilities or share facilities with the single -unit dwelling. A JADU must also include its own efficiency kitchen. I ;vn_Wnrk ►snit Live -Work Units refer to structures that include both a commercial and a single dwelling unit. Commercial uses are generally located on the ground floor, with the dwelling unit located one to two stories above. Short -Term Lodainar Short -Term Lodging refers to a dwelling unit that is rented or leased as a single housekeeping unit for 30 days or less. Residential Care Facilities - General Licensed (7 or More Persons) General Licensed Residential Care Facilities provide a single housekeeping unit for individuals with a disability who reside at the facility. There may be 7 or more individuals residing at the facility, but they each reside in separate dwelling units. The facility may include a place, site or building, or groups of places, sites, or buildings, licensed by the State. Residential Care Facilities - General Unlicensed (Seven or More Persons) General Unlicensed Residential Care Facilities include a place, site or building, or groups of places, sites, or buildings, which are not licensed by the State and provide housing to 7 or more individuals with disabilities in separate dwelling units. The facility is not required by law to be licenses by the State. ttes►aent►a1 (;are i-acilities - Limitea Licensed (6 or ►-ewer rersons) Limited Licensed Residential Care Facilities provide care, services, and/or treatment in a community residential setting for six or fewer individuals. Individuals may include adults, children, or adults and children. The facility shall be considered a single housekeeping unit and must therefore be in compliance with all land use and property development regulations applicable to single housekeeping units. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-22 (DRAFT MARCH 2021) SS3-4 70 City of Newport Beach 2021-2029 HOUSING ELEMENT 1 1 At Residential Care Facilities - Small Unlicensed (6 or Fewer Persons) Small Unlicensed Residential Care Facilities include a place, site or building, or groups or places, sites, or buildings in which 6 or fewer individuals with disabilities reside in separate dwelling units. The facility is not required by law to be licensed by the State. Uom, Parolee -Probationer Home refers to a structure or dwelling unit which houses 2 or more parolees - probationers who are unrelated by blood, marriage, or legal adoption. The parolees -probationers reside here in exchange for monetary or nonmonetary consideration given and/or paid by the parolee - probationer and/or any public or private entity or person on behalf of the parolee -probationer. The residential structure may be operated by an individual, a for-profit entity, or a nonprofit entity. MnhilP HnmP PaH A Mobile Home refers to a transportable trailer that is certified under the National Manufactured Housing Construction and Safety Standards Act of 1974. The mobile home is over 8 feet in width and 40 feet in length and may or may not include a permanent foundation. A mobile home on a permanent foundation is considered a single -unit dwelling. Convalescent Home Convalescent Home refers to an establishment that provides 24-hour care for persons requiring regular medical attention. A convalescent home may be referred to as a "nursing home" or "hospice". This facility does not provide emergency medical services or surgical services. Common Interest Developmen, Common Interest Developments include community apartment projects, condominium projects, planned developments, and stock cooperative. Farmworker Housing Farmworkers are considered a special needs interest group by HCD. Farmworkers are traditionally defined as people whose primary incomes are earned through permanent or seasonal agricultural labor. Farmworkers are generally considered to have special housing needs due to their limited income and the often -unstable nature of their employment. In addition, farmworker households tend to have high rates of poverty, live disproportionately in housing that is in the poorest condition, have extremely high rates of overcrowding, and have low homeownership rates. There is a total of 1,772 farmworkers in the County of Orange, though few may reside in Newport Beach the City must consider the housing needs of this community. The Newport Beach Municipal Code does not explicitly define Farmworker Housing or outline it as a permitted use in residential or nonresidential zones. Policy Action 30 of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. .)upportive blousing California State Assembly Bill 2162 amended Section 65583, Planning and zoning law to specify that supportive housing is a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. The City of Newport Beach's Municipal Code does Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-23 (DRAFT MARCH 2021) SS3-4 71 City of Newport Beach 2021-2029 HOUSING ELEMENT not explicitly define Supportive Housing or identify zones where is it is a permitted use. Policy Action 7B of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. The City of Newport Beach defines Transitional Housing as rental housing operating under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient program at some predetermined future point in time, which shall be no less than six months. Transitional housing that is provided in single-, two- or multi -unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses shall be permitted, conditionally permitted or prohibited in the same manner as the other single-, two-, or multi- unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses under this code. The City of Newport Beach's Municipal Code does not explicitly identify Transitional Housing as a permitted use within the appropriate zones as required by state law. Policy Action 713 of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. -mArnAnr_v 4haltArc State Law existing law authorizes a political subdivision to allow persons unable to obtain housing to occupy designated public facilities, as defined, during the period of a shelter crisis. Existing law provides that certain state and local laws, regulations, and ordinances are suspended during a shelter crisis, to the extent that strict compliance would in any way prevent, hinder, or delay the mitigation of the effects of the shelter crisis. The City of Newport beach permits Emergency shelters in the OA— Office Airport zoning district and the PI — Private Institutions Coastal zoning district. Properties designated for PI are distributed throughout the City, but primarily located along major transportation corridors and offer easy access to public transportation. The PI zoning district is intended to provide for areas appropriate for privately owned facilities that serve the public, including places for assembly/meeting facilities (e.g., religious assembly), congregate care homes, cultural institutions, health care facilities, marinas, museums, private schools, yacht clubs, and comparable facilities. There are over 44 parcels totaling approximately 135 acres in the proposed PI zoning district. Several of the existing uses on these properties are religious assembly uses, many of which consist of large campuses. Given the high land costs in the City, these religious assembly facilities could provide the best means to facilitate the development and management of emergency shelters in the City. Additionally, properties designated for OA are located within three large blocks east of John Wayne Airport, west of Birch Street, north of Bristol Street/73 Freeway, and south of MacArthur Boulevard. These properties are also located along major transportation corridors and offer easy access to public transportation. The AO zoning district is intended to provide for areas appropriate for the development of properties adjoining the John Wayne Airport for uses that support or benefit from airport operations. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-24 (DRAFT MARCH 2021) SS3-4 72 City of Newport Beach 2021-2029 HOUSING ELEMENT These may include corporate and professional offices; automobile sales, rental and service; aviation sales and service; hotels; and accessory retail, restaurant, and service uses. There are over 56 parcels totaling approximately 54 acres in the AO zoning district. Several of the existing uses on these properties are low and medium density professional office buildings, many of which are aging and offer affordable rents compared to most other parts of the City. These properties should provide realistic opportunities for reuse of these structures for the development and management of emergency shelters in the City. Combined, the PI and AO zoning districts consist of over 98 parcels and 189 acres. By allowing emergency shelters as permitted uses within these districts, adequate sites are available for the potential development of emergency shelters in the City. AB 101 states that "The Legislature finds and declares that Low Barrier Navigation Center developments are essential tools for alleviating the homelessness crisis -." Low Barrier Navigation Centers are defined as a Housing First, low -barrier, service -enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low Barrier Navigation Centers are required as a use by right in areas zoned for mixed uses and nonresidential zones permitting multi -unit uses if it meets specified requirements. The City of Newport Beach's Municipal Code does not address Low Barrier Navigations Centers by definition. A program will be adopted to ensure the City's development standards allow Low Barrier Navigation Centers By -Right in all zones that permit mixed -uses and non-residential uses. Policy Action 7A of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation. Pinnncrl rnmm►initil nictrir-f The Planned Community (PC) District is intended allow for a coordinated variety of uses and allows projects to benefit from large-scale community building. PC Districts allow for greater flexibility and less restrictive development regulations, while also maintaining compliance with the intent and provisions of the Zoning Code. The Newport Beach Municipal Code states that a PC District may include various types of uses given they are consistent with the General Plan through the adoption of a development plan and text materials that identify land use relationships and associated development standards. PC Districts allow for large scale housing projects on land areas no less than 25 acres of unimproved land area or 10 acres of improved land area; however, the City Council may waive the minimum acreage requirements. Improved land area refers to parcels of land with existing permanent structures occupying at least 10 percent of the total PC District. The subject property must be reclassified as a PC District and a Development Plan must be filed with the City to initiate the development process. The Development Plans are reviewed by the Director, scheduled for a public hearing before the Planning Commission for a recommendation, and approved by the City Council. A Planned Community District must also go through an environmental review. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-25 (DRAFT MARCH 2021) SS3-4 73 City of Newport Beach 2021-2029 HOUSING ELEMENT The Development Plan must contain: � L• + A land use map containing the distribution, location, and extent of uses proposed + Land use tables designating permitted uses + Development standards + Protection measures for landforms and public views + Sustainable improvement standards + Location and extent of essential facilities including circulation and transportation, drainage, energy, sewage and waste disposal, and water + Development standards for conservation, development, and utilization of natural resources + A program of implementation measures, programs, regulations, and public works projects + A topographical map to illustrate the character of the terrain and condition of existing vegetation + A summary of the relationship between the proposed development plan and the goals, policies, and actions of the General Plan Growth Management Measures Growth management measures are techniques used by a government to regulate the rate, amount, and type of development. Growth management measures allow cities to grow responsibly and orderly, however, if overly restricted can produce constraints to the development of housing, including accessible and affordable housing. On November 7, 2000, the Newport Beach electorate approved Measure S. Measure S amended the Newport Beach City Charter by adding Section 423, which requires voter approval of certain amendments of the Newport Beach General Plan. Meaning, an amendment shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it. Charter Section 423 encourages the City Council to adopt implementing guidelines that are consistent with its purpose and intent. In the case of Charter Section 423, an amendment to the General Plan is defined as any proposed amendment of the General Plan that is first considered and/ or approved by the City Council subsequent to December 15, 2000 and that increases the number of peak hour trips (traffic), floor area (intensity), or dwelling units (density) when compared to the General Plan prior to approval. v.•... „,J... The City Council determines if an amendment requires voter approval pursuant to Section 423, based on the following conditions: + The Amendment modifies the allowed use(s) of the property or area that is the subject of the Amendment such that the proposed use(s) generate(s) more than one hundred morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) MKI-1 SS3-4 74 City of Newport Beach 2021-2029 HOUSING ELEMENT + The Amendment authorizes an increase in floor area for the property or area that is the subject of the Amendment that exceeds forty thousand (40,000) square feet when compared to the General Plan before approval of the Amendment; or + The Amendment authorizes an increase in the number of dwelling units for the property or area that is the subject of the Amendment that exceeds one hundred ( 100) dwelling units when compared to the General Plan before approval of the Amendment; or + The increase in morning or evening peak hour trips, floor area or dwelling units resulting from the Amendment when added to eighty percent (80%) of the increases in morning or evening peak hour trips, floor area or dwelling units resulting from Prior Amendments ( see definition in Section ( 2)J exceeds one or more of the voter approval thresholds in Section 423 as specified in Subsection 1, 2 or 3. If the City Council determines that the Amendment requires voter approval, the City Council then adopts a resolution calling an election on the Amendment. The City Council schedules the election on the Amendment at the next regular municipal election (as specified by the City Charter) or at a special election if the City and the proponent of the Amendment have entered into a written agreement to share the costs of the special election. The City Attorney then prepares an impartial analysis of the Amendment which contains information about the Amendment, any related project or land use approval, and the environmental analysis conducted of the Amendment that will help the electorate make an informed decision on the Amendment. In the absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code. Charter Section 423 restricts growth throughout the community as it may discourage housing development projects, and particularly affordable housing projects. Projects subject to Charter Section 423 may require significant capital investment which may yield uncertain election results. Specific Plans The purpose of a Specific Plan is to implement the goals and objectives of a city's General Plan in a more focused and detailed manner that is area and project specific. The Specific Plan promotes consistence and an enhanced aesthetic level throughout the project community. Specific Plans contain their own development standards and requirements that may be more restrictive than those defined for the city as W-31:1[-3 Canfn dna Moirrhf- The Santa Ana Heights Community is located to the north of Newport Beach between East Side Costa Mesa and the Upper Newport Bay. The area was previously within County of Orange's permitting jurisdiction and the redevelopment project area was designated to eliminate blight. The land has since been annexed into Newport Beach. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-27 (DRAFT MARCH 2021) SS3-4 75 City of Newport Beach 2021-2029 HOUSING ELEMENT The principal objectives of the Santa Ana Heights Specific Plan include: + Encourage the upgrading of existing residential neighborhoods and business development areas � L• + Ensure well-planned business park and commercial developments which are adequately buffered from adjacent residential neighborhoods + Encourage the consolidation of smaller contiguous lots in the business park area + Ensure that business park and residential traffic are separated to the maximum extent possible, while minimizing impact upon existing parcels + Ensure adequate provision of public works facilities as development occurs + Enhance equestrian opportunities with the residential equestrian neighborhood + Enhance the overall aesthetic character of the community The Santa Ana Heights Specific Plan identifies design and landscaping guidelines in Section 20.90.030 of the Newport Beach Zoning Code; the development standards are provided in Table 3-4. Table 3-6 also identifies the housing types permitted in each zoning district. Zoning district designations within the project area include the following: + Open Space and Recreational District: SP -7 (OS/R) - Open Space and Recreational District is intended to establish the long-term use and viability of the Newport Beach Golf Course. + Residential Equestrian District: SP -7 (REQ) Residential Equestrian District is intended to provide for the development and maintenance of a single -unit residential neighborhood in conjunction with limited equestrian uses. The zoning district is intended to maintain a rural character with an equestrian theme. + Residential Kennel District: SP -7 (RK) - Residential Kennel District is intended to provide for the development of a single -unit residential neighborhood in conjunction with commercial kennel businesses. + Residential Single -Family District: SP -7 (RSF) - Residential Single -Family District is intended to provide for the development of medium density single -unit detached residential neighborhoods. Permitted uses should complement and be compatible with residential neighborhoods. + Residential Multiple -Family District: SP -7 (RMF) - Residential Multiple -Family District is intended to provide for the development of high-density multi -unit residential neighborhoods with a moderate amount of open space. Permitted uses should complement and be compatible with residential neighborhoods. + Horticultural Nursery District: SP -7 (HN) - Horticultural Nursery District is intended to ensure the long- term use and viability of the horticultural nursery uses located along Orchard Drive in the western section of Santa Ana Heights. + General Commercial District: SP -7 (GC) - General Commercial District is intended to provide regulations for the commercial areas along South Bristol Street and ensure the continuation of commercial uses Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) [c1Ws3 SS3-4 76 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• which offer a wide range of goods and services to both the surrounding residential and business communities. This district is intended to promote the upgraded aesthetic image of the community and reduce conflicts between commercial and residential uses. + Business Park District: SP -7 (BP) - Business Park District is intended to provide for the development and maintenance of professional and administrative offices, commercial uses, specific uses related to product development, and limited light industrial uses. The district shall protect the adjacent residential uses through regulation of building mass and height, landscape buffers, and architectural design features. + Professional and Administrative Office District: SP -7 (PA) - Professional and Administrative Office District is intended to provide for the development of moderate intensity professional and administrative office uses and related uses on sites with large landscaped open spaces and off-street parking facilities. This district is intended to be located along heavily trafficked streets or adjacent to commercial or industrial districts. This district may also be used to buffer residential areas. + Professional, Administrative, and Commercial Consolidation District: SP -7 (PACC) - Professional, Administrative, and Commercial Consolidation District is intended to provide for the development of professional and administrative office uses and commercial uses on lots located between South Bristol Street and Zenith Avenue in a manner which ensures lot consolidation and vehicular access to and from South Bristol Street. + Planned Development Combining District (PD) - Planned Development Combining District is intended to provide a method for land to be developed using design features which take advantage of modern site planning techniques to produce an integrated development project amongst existing and potential development of the surrounding neighborhoods. Housing for Persons with Disabilities Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (that is, modifications or exceptions) to their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The Housing Element Update must also include programs that remove constraints or provide reasonable accommodations for housing designed for persons with disabilities. The analysis of constraints must touch upon each of three general categories: 1) zoning/land use; 2) permit and processing procedures; and 3) building codes and other factors, including design, location and discrimination, which could limit the availability of housing for disabled persons. Reasonable Accommodation Reasonable accommodation in the land use and zoning context means providing individuals with disabilities or developers of housing for people with disabilities, flexibility in the application of land use and zoning and building regulations, policies, practices and procedures, or even waiving certain requirements, when it is necessary to eliminate barriers to housing opportunities. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-29 (DRAFT MARCH 2021) SS3-477 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances. The Reasonable Accommodation Chapter of the City's Municipal Code provides a procedure and sets standards for disabled persons seeking a reasonable accommodation in the provision of housing and is intended to comply with federal and state fair housing laws. According to the Reasonable Accommodation Chapter of the City's Municipal Code, a request for reasonable accommodation may be made by any person with a disability, their representative, or a developer or provider of housing for individuals with a disability, and a reasonable accommodation may be approved only for the benefit of one or more individuals with a disability. Once an applicant requests reasonable accommodation via all appropriate forms and submittals (as outline in Chapter 20.25.070 of the Newport Beach Municipal Code), the following actions may be taken by the Hearing Office: + The Hearing Officer shall issue a written determination to approve, conditionally approve, or deny a request for reasonable accommodation, and the associated modification or revocation. + The reasonable accommodation request shall be heard with, and subject to, the notice, review, approval, call for review, and appeal procedures identified for any other discretionary permit. + On review the Council may sustain, reverse, or modify the decision of the Hearing Officer or remand the matter for further consideration, which remand shall include specific issues to be considered or a direction for a de novo hearing. The written decision to approve or deny a request for reasonable accommodation must be consistent with all the applicable Federal and State laws and is be based on consideration of the following findings, all of which are required for approval, the requested accommodation: + Is requested by or on the behalf of one or more individuals with a disability protected under the Fair Housing Laws. + Is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling. + Will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in Fair Housing Laws and interpretive case law. + Will not result in a fundamental alteration in the nature of a City program, as "fundamental alteration" is defined in Fair Housing Laws and interpretive case law; and + Will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. In making determinization for a request for reasonable accommodation, the hearing officer may consider a variety of factors; factors for consideration by the hearing officer are listed (but limited to) in Chapter 20.52.070 of the Newport Beach Municipal Code. Reasonable accommodation generates practical opportunity and increased feasibility for the creation of accessible housing and the Newport Beach's City process is not considered a constraint to the development of housing for all persons. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-30 (DRAFT MARCH 2021) SS3-4 78 City of Newport Beach 2021-2029 HOUSING ELEMENT 1 Definition of Family A restrictive definition of "family" that limits the number of unrelated persons and differentiates between related and unrelated individuals living together is inconsistent with the right of privacy established by the California Constitution. The City's Municipal Code defines "family" as one or more persons living together as a single housekeeping unit in a dwelling unit. The Code also defines a single housekeeping unit as the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas, and sharing household activities and responsibilities (e.g., meals, chores, household maintenance, expenses, etc.) and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager. The City's definition of family does not limit the number of unrelated persons living together, however the definition for single housekeeping unit, as it relates to family, may require an update by the City as it considers a unit the equivalent to a traditional family. Development Fees Residential developers are subject to a variety of permitting, development, and impact fees in order to access services and facilities as allowed by State law. The additional cost to develop, maintain, and improve housing due to development fees result in increased housing unit cost, and therefore is generally considered a constraint to housing development. However, fees are necessary to provide planning and public services in Newport Beach. The location of projects and housing type result in varying degrees of development fees. The presumed total cost of development is also contingent on the project meeting city policies and regulations and the circumstances involved in a particular development project application. Table 3-10 provides the planning and land use fees assessed by City of Newport Beach and Table 3-11 provides the engineering and development services fees required for development projects. Estimated total development and impact fees for a typical single -unit residential project, assuming it is not part of a subdivision and is consistent with existing city policies and regulations can range from $41,613 to $45,593. Estimated total development and Impact fees for a typical multi -unit residential project with ten units, assuming it is consistent with existing City policies and regulations range from $311,256 to $316,236. These estimates are illustrative in nature and that actual costs are contingent upon unique circumstance inherent in individual development project applications. Considering the high cost of land in Newport, and the International Code Council (ICC) estimates for cost of labor and materials, the combined costs of permits and fees range from approximately 1.04 percent to 1.14 percent of the direct cost of development for a single -unit residential project and 1.44 percent to 1.5 percent for a multi -unit residential project. Direct costs do not include, landscaping, connection fees, on/off-site improvements, shell construction or amenities, therefore the percentage of development and impact fees charged by the City may be smaller if all direct and indirect costs are included. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-31 (DRAFT MARCH 2021) SS3-4 79 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-10: Planning and Land Use Fees Type Fee Deposit Hourly Rate Amateur Radio and Satellite Dish Antenna Permit $1,379 Amendment—General Plan -- $7,500 $239 Amendment — Local Coast Program -- $3,300 $239 Amendment—Planned Community -- $7,500 $239 Amendment—Zoning Code -- $7,500 $239 Appeals to City Council $1,715 -- -- Appeals to Planning Commission $1,715 -- -- Approval in Concept Permit $839 -- -- Certificate of compliance $358 + $12 County $370 -- -- Coastal Development Permit/ Parcel Map Bundle $2,974 -- -- Coastal Development Permit Waiver/ Initial Review $1,085 -- -- Compliance Letters / Minor Records Research $382 -- -- Comprehensive / Heritage / Innovative Sign Program $1,841 -- -- Condominium Conversion Permit $1,325 -- -- Development Agreement -- $10,000 $239 Development Agreement Annual Review $1,367 -- -- Director/ Staff Approval $961 -- -- Extensions of Time (except Abatement Period) $168 -- -- Environmental Documents -- -- $166 Heritage Sign Review -- -- $166 In -Lieu Parking -- -- $150 Limited Term Permit — Less than 90 Days $592 -- -- Limited Term Permit — More than 90 Days $1,994 -- -- Limited Term Permit —Seasonal $274 -- -- Lot Line Adjustment $2,065 -- -- Lot Merger $2,065 -- -- Modification Permit $2,934 -- -- Nonconforming Abatement Period Extension $611 -- -- Operators License —Application $897 -- -- Operators License —Appeal $853 -- -- Planned Community Development Plan -- $10,000 $239 Planned Development Permit $5,518 -- -- Preliminary Application for Residential Development $760 -- -- Public Noticing Costs $497 -- Site Development Review — Major $5,219 -- Site Development Review — Minor $2,970 -- -- Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-32 SS3-480 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-10: Planning and Land Use Fees Type Fee Deposit Hourly Rate Subdivision Parcel Map $2,069 -- -- Subdivision Tentative/Vesting Tract Map $5,139 -- -- Temporary Banner Permit ($50 + $1 Recorded Management Fee) $51 -- -- Transfer of Development Rights $3,857 -- Grading Plan Review of Complex Projects by Consultant Use Permit —Conditional $5,271 -- Determination of Unreasonable Hardship Use Permit — Minor $2,970 -- -- Variance $4,637 -- -- Zoning Plan Check -- -- $185 Sources: City of Newport Beach Planning Division Fee Schedule (Effective 08/08/2020 per Council Resolution 2020-29). Table 3-11: Engineering and Development Services Fees Plan Review Type Fee Preliminary Plan Review $179 Plan Check Hourly Rate $146 Additional Plan Review and Rechecks in Excess of 2 $146 Plan Review $72% of Building Permit Fee Repetitive Plan Review $25 of Plan Check Fee Energy Compliance Review 0.06% of Construction Cost Disabled Access Compliance Review 0.1% of Construction Cost Grading Plan Review by City Staff 72% of Grading Permit Fee Grading Plan Review of Complex Projects by Consultant 120% of Consultant Fee Solar Systems Up to and Including 3KW $135 Determination of Unreasonable Hardship $248 Electrical Plan Review 72% of Total Permit Fee Mechanical Plan Review 72% of Total Permit Fee Plumbing Plan Review 72% of Total Permit Fee Drainage Plan Review for Alteration to Drainage $247 Water Quality Management Plan Review (Commercial Projects) $873 Water Quality Management Inspections (Commercial Projects) $1,206 Water Quality Management Plan Review/Inspections Building Fee (Residential Projects) $625 Water Quality Management Plan Review/Inspection Check Fee (Residential Projects) $448 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-33 (DRAFT MARCH 2021) SS3-481 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-11: Engineering and Development Services Fees Plan Review Type Fee Overtime Plan Review 1.75 X regular plan check fees ($271 minimum) Plan Check Extension $53 Harbor Construction 72% of Permit Fee Waste Management Administration Fee $16 Sources: City of Newport Beach Master Fee Schedule (2011) Impact Fees Impact fees are assessed on a case-by-case bases depending on the proposed use, location, and density. Impact fees ensure adequate maintenance and provision of public facilities and services to the project and include transportation, school, park and open space, waste management, sewage, and water. Table 3-12 provides the fees calculated based on land use in Newport Beach. Table 3-12: Development Impact fees Use Fee Transportation (Fair Share) Single -Unit Development $2,482/unit Residential -Medium Density $1,9412/unit Apartment $1,4672/unit Elderly Residential $9032/unit Mobile Home $1,3542/unit Nursing/ Convalescent Home $6092/unit School Impact Fee N-MUSD Residential Developer Fee $1.84/sq.ft.(1) Park Dedication Park Dedication $30,217/unit San Joaquin Transportation Corridor Agency (TCA) — Zone AIZI Single Unit $6,056/unit Multi -Unit $3,536/unit San Joaquin Transportation Corridor Agency (TCA) — Zone B(2) Single Unit $4,310/unit Multi -Unit $2,513/unit Sources: City of Newport Beach Planning Division Fee Schedule (Effective 08/08/2020 per Council Resolution 2020-29); Resolution No. 2020-95. Newport -Mesa Unified School District Developer Fees Notes: (1) Addition under 500 sq.ft. may be exempt (2) Effective July 1, 2020—June 30, 2021. The fee rate schedule increases by 2.667% each year on July 11t Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-34 (DRAFT MARCH 2021) SS3-482 City of Newport Beach 2021-2029 HOUSING ELEMENT On -/Off -Site Improvements � L• Site improvements in the City consist of those typically associated with development for on-site improvements (street frontage improvements, curbs, gutters, sewer/water, and sidewalks), and off-site improvements caused by project impacts (drainage, parks, traffic, schools, and sewer/water). Thus, these are costs that may influence the sale or rental price of housing. Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of development of housing within the City. Majority of cost associated with on and off-site improvements is undertaken by the City and recovered in the City's development and impact fees. ..:►�►:�� �..�►..,...� ­rnrcemeni The City's construction codes are based upon the California Code of Regulations, Title 24 that includes the California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code, Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building Standards Code, and California Referenced Standards Code. They are the minimum necessary to protect the public health, safety and welfare of the City's residents. In compliance with State law, the California Building Standards Code is revised and updated every three (3) years. The newest edition of the California Building Standards Code is the 2019 edition with an effective date of January 1, 2020. The City strives to provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits. Code enforcement is conducted by the City and is based on systematic enforcement in areas of concern and on a complaint basis throughout the city. The Code Enforcement Division works with property owners and renters to assist in meeting state health and safety codes. The Code Compliance Department investigates complaints regarding violations of the Newport Beach Municipal Codes. The following are frequent enforcement items: + Hazardous property conditions + Overgrown vegetation + Housing Code violations (broken windows, peeling paint) + Inoperable and abandoned vehicles on private property + Signs, including signs in public right-of-way and signs without permits + Solid Waste (early set -out of containers, inadequate containers, illegal dumping) + Water quality and conservation + Zoning requirements, (i.e. illegal dwelling units and use requirements) Local Processing and Permit Procedures The processing time needed to obtain development permits and required approvals is commonly cited by the development community as a prime contributor to the high cost of housing. Depending on the Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-35 (DRAFT MARCH 2021) SS3-483 City of Newport Beach 2021-2029 HOUSING ELEMENT magnitude and complexity of the development proposal, the time that elapses from application submittal to project approval may vary considerably. Factors that can affect the length of development review on a proposed project include the completeness of the development application and the responsiveness of developers to staff comments and requests for information. Approval times are substantially lengthened for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendments, encounter community opposition, or are appealed to or require approval from the Coastal Commission. Applicants for all permits or reviews are recommended to request a preapplication conference with the respective department to achieve the following: + Inform the applicant of City requirements as they apply to the proposed project. + Review the City's review process, possible project alternatives or revisions; and + Identify information and materials the City will require with the application, and any necessary technical studies and information relating to the environmental review of the project All applicable fees related to permits and reviews are established by the City Council and can be found in the City's Master fee schedule (Tables 3-10 and 3-11). All applications are first reviewed for completeness, discretionary applications require the respective department to provides a written report and recommendation, applications are then subject to review by the appropriate authority. Table 3-13 below identifies the review authority responsible for reviewing and making decisions on each type of application required by the Newport Beach Zoning Code. Permit review procedures for residential developments in the City of Newport Beach are outlined below. Table 3-13: Review Authority for Permit Application Role of Review Authority' Applicable Code Director Zoning Hearing Commission Council' Type of Action Chapter/Section Administrator Officer Administrative and Legislative Interpretations Section 20.12.020 Determination -- -- Appeal Appeal Planned Chapter 20.56 - -- -- Recommend Decision Communities Specific Plans Chapter 20.58 - -- -- Recommend Decision Zoning Code Chapter 20.66 - -- -- Recommend Decision Amendments Zoning Map Chapter 20.66 - -- -- Recommend Decision Amendments Permits and Approvals Conditional Use -- Section 20.52.020 -- -- Decision Appeal Permits Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-36 (DRAFT MARCH 2021) SS3-484 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-13: Review Authority for Permit Application Role of Review Authority' Applicable Code Director Zoning Hearing Commission Council' Type of Action Chapter/Section Administrator Officer Conditional Use Permits—Residential Section 20.52.030 - -- Decision -- Appeal Zones HO Minor Use Permits Section 20.52.020 -- Decision 3 -- Appeal Appeal Modification Permits Section 20.52.050 -- Decision -- Appeal Appeal Planned Development Section 20.52.060 -- -- -- Decision Appeal Permits Reasonable Section 20.52.070 - -- Decision -- Appeal Accommodations Site Development Section 20.52.080 -- Decision -- Decision Appeal Reviews Variances Section 20.52.090 - -- -- Decision Appeal Zoning Clearances Section 20.52.100 Determination -- -- Appeal Appeal Notes: (1) "Recommend" means that the Commission makes a recommendation to the Council; "Determination" and "Decision" mean that the review authority makes the final determination or decision on the matter; "Appeal" means that the review authority may consider and decide upon appeals to the decision of a previous decision-making body, in compliance with Chapter 20.64 (Appeals). (2) The Council is the final review authority for all applications in the City. (3) The Director or Zoning Administrator may defer action and refer the request to the Commission for consideration and final action. Source: City of Newport Beach Municipal Code, Chapter 20.50 Permit Application Filing and Processing Conditional in ResidF-,'::il Zoninc The purpose and intend of Conditional Use Permits in residential zoning districts, as identified by the Newport Beach Municipal Code Chapter 20.52.030, is to promote the public health, safety, and welfare and to implement the goals and policies of the General Plan by ensuring that conditional uses in residential neighborhoods do not change the character of the neighborhoods as primarily residential communities. As well as, to protect and implement the recovery and residential integration of the disabled, including those receiving treatment and counseling in connection with dependency recovery. In doing so, the City seeks to avoid the over -concentration of residential care facilities so that these facilities are reasonably dispersed throughout the community and are not congregated or over -concentrated in any particular area so as to institutionalize that area. A conditional use permit is required to authorize uses not previously permitted as allowable in the applicable residential zoning district or in an area where residential uses are provided for in Planned Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-37 (DRAFT MARCH 2021) SS3-485 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Community Districts or specific plan districts. An application for a conditional use permit, meeting all the requirements outline in Chapter 20.52.030 D, is then reviewed by the Director to ensure that the proposal complies with all applicable requirements. Additionally, all conditional use permit applications require a public hearing and a public notice of the hearing. The review authority identified in Table 3-9 above is designated to approve, conditionally approve, or deny applications for conditional use permits in residential zoning districts. The City of Newport Beach identifies the purpose of site development reviews as providing a process for the review of specific development projects in order to: + Ensure consistency with General Plan policies related to the preservation of established community character, and expectations for high quality development. + Respect the physical and environmental characteristics of the site. + Ensure safe and convenient access and circulation for pedestrians and vehicles. + Allow for and encourage individual identity for specific uses and structures. + Encourage the maintenance of a distinct neighborhood and/or community identity. + Minimize or eliminate negative or undesirable visual impacts. + Ensure protection of significant views from public right(s)-of-way in compliance with Section 20.30.100 (Public View Protection); and + Allow for different levels of review depending on the significance of the development project. Site development review is required before the issuance of a building or grading permit for any new structure. Structures that do not require a site development review (but instead require a zoning clearance) include, accessory structures, fences and/or walls, reconstruction or exterior remodeling of existing structures, one to four dwelling units, without a tentative or parcel map, and non-residential up to a maximum of 9,999 square feet of gross floor area. Site development review and approval is determined by either the Zoning Administrator or the Planning Commission. Table 3-14 below identifies the applicable review authority for different development types. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-38 (DRAFT MARCH 2021) SS3-486 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• Table 3-14: Review Authority and Action for Residential Construction Role of Review Authority (1) (2) Zoning Administrator Planning Type of Construction Activity (Minor Review) Commission (Major Review) Residential construction: 5 to 20 dwelling units, without a Decision Appeal tentative or parcel map. Residential construction: 5 or more dwelling units with a tentative or parcel map and 21 or more dwelling units, -- Decision without a tentative or parcel map. Residential construction: On a bluff, an increase in the boundaries of a development area in compliance with the -- Decision findings in Section 20.28.040 (Bluff (B) Overlay District). Mixed-use projects: 1 to 4 dwelling units and nonresidential construction of up to a maximum of 9,999 square feet of Decision Appeal gross floor area. Mixed-use projects: 5 or more dwelling units and/or nonresidential construction of 10,000 square feet or more of -- Decision gross floor area. Source: City of Newport Beach Municipal Code A site development review is initiated when the Department receives a complete application package including the required information and materials specified by the Director and any additional information required by the applicable review authority in order to conduct a thorough review of the project. Upon receipt of a complete application the applicable review authority shall conduct a review of the location, design, site plan configuration, and effect of the proposed project on adjacent properties by comparing the project plans to established development standards and adopted criteria and policies applicable to the use or structure. The following criteria shall be considered during the review of a site development review application: + Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure. + The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design. + The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas. + The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) KST-01 SS3-487 City of Newport Beach 2021-2029 HOUSING ELEMENT + The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and + The protection of significant views from public right(s)-of-way and compliance with Section 20.30.100 (Public View Protection). All site development reviews require a public hearing and a notice of the hearing. The review authority may approve or conditionally approve a site development review application. 7nn;nry i`lonrmnr•c A Zoning clearance is the procedure used by the City to verify that a proposed use or structure complies with the activities allowed in the applicable zoning district and the development standards and other provisions of the City's Zoning Code. A zoning clearance is required as a prerequisite to establishing a structure for the following: • Before the initiation or commencement of any use of land not requiring the construction of a structure. • Whenever a use is proposed to be changed, whether or not the new use involves a new lessee, operator, or owner, a zoning clearance shall be obtained. • Before the City issues a new or modified building permit, grading permit, or other construction - related permit required for the alteration, construction, modification, moving, or reconstruction of any structure. The Department may issue the zoning clearance after first determining that the request complies with all Zoning Code provisions and other adopted criteria and policies applicable to the proposed use or structure. An approval may be in the form of a stamp, signature, or other official notation on approved plans, a letter to the applicant, or other certification, at the discretion of the Director. Review authority for Zoning Clearances is stated in Table 3-11 above. Infrastructure Constraints Another factor that could constrain new residential construction is the requirement and cost to provide adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to serve new residential development. In most cases, where new infrastructure is required, it is funded by the developer and then dedicated to the City, which is then responsible for its maintenance. Because the cost of these facilities is generally borne by developers, it increases the cost of new construction, with much of that increased cost often "passed on" in as part of home rental or sales rates. The Utilities Department oversees, manages, and maintains the water, wastewater (sewer), storm drain and tidal valve system, street sweeping, streetlights and oil and gas operations for the City of Newport Beach. The City has water, sewer and dry utilities that exist or are planned to accommodate residential development in the community. As the City is essentially built out, the infrastructure in place is designed and located to accommodate potential for additional housing identified for the 6th Cycle Housing Element. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-40 (DRAFT MARCH 2021) SS3-488 City of Newport Beach 2021-2029 HOUSING ELEMENT Dry Utilities Dry utilities are the installation of the electric, telephone, TV, internet, and gas in a community. Of the utilities, the City must plan to provide the necessary resources, such as electric and gas, to increased households from 2021-2029, as projected by the RHNA allocation. ►,.,.sem:,. i y►, Southern California Edison (SCE) is the electrical service provider for the City of Newport Beach. SCE is regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and Southern California. The SCE reliability report identifies the reliability of electricity services to the City and identifies any dependability issues that exist in the City. There are 52 circuits that serve the City of Newport Beach, in total the 52 circuits serve 77,199 customers. SCE measure reliability by three categories: + System Average Interruption Duration Index (SAIDI) — total minutes every SCE customer was without power due to sustained power outage (outage > 5 minutes) divided by total number of customers + System Average Interruption Frequency Duration Index (SAIFI) — Number of sustained customer outages experienced by all SCE customers divided by total number of customers + Customer Average Interruption Duration Index (MAIFI) — System average interruption duration index divided by system average interruption frequency index Overall, the City of Newport Beach experience relatively low interruptions compared to the overall service provided to all SCE customers, displayed in Figure 3-1. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-41 (DRAFT MARCH 2021) SS3-489 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-1: Reliability History of Circuits Serving Newport Beach (No Exclusions) SAIDI (average minutes of sustained interruptions} SAIR (average frequency of sustained interruptions) MAM (average frequency of momentary interruptions) 200.0 150.0 100.0 50.0 0.0 1.4 1.2 1.0 0.8 0.s 0.4 0.2 0.0 2.0 1.5 1.0 0.5 0.0 2016 2017 201$ 134.5 1; g,7 13G.8 115.2 85.❑ 2014 1780 12A.8 Source: Southern California Edison, Reliability Reports, Newport Beach 2020 ■ Newport Beach ■ SCE SYSTEMWIDE —Exclusions" are days which utilities are allowed to remove from their metrics because the outages an those days were caused by acts of nature. **Data is as of 0211412620, data can be slightly different due to outage data validation process SCE will continue to provide adequate services to the City of Newport Beach including increased household growth as projected by the City's RHNA allocation. Natural Gas Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas is a gas -only utility and, in addition to serving the residential, commercial, and industrial markets, provides gas for enhanced oil recovery (EOR) and EG customers in Southern California. The SoCal Gas 2020 utility report projects total gas demand to decline at an annual rate of 1 percent from 2020-2035. From 2020- 2035, residential demand is expected to decline from 230 Bcf to 198 Bcf. The decline is approximately 1 percent per year, on average. The decline is due to declining use per meter—primarily driven by very aggressive energy efficiency goals and associated programs— offsetting new meter growth.' SoCalGas engages in several energy efficiency and conservation programs designed to help customers identify and implement ways to benefit environmentally and financially from energy efficiency investments. Programs administered by SoCalGas include services that help customers evaluate their energy efficiency options and adopt recommended solutions, as well as simple equipment -retrofit improvements, such as rebates for new hot water heaters. Additionally, the City of Newport Beach 1 SoCal Gas 2020 California Gas report, Prepared in Compliance with California Public Utilities Commission Decision D .95-01-039 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-42 (DRAFT MARCH 2021) SS3-490 City of Newport Beach 2021-2029 HOUSING ELEMENT employs programs for energy and utility conservation, outline below in Section 3: Housing Resources, Opportunities for Energy Conservation. Water Supply The City of Newport Beach Utilities Department currently serves a population of over 86,000 within a service area of approximately fifty square miles. The Department is responsible for providing a safe and reliable source of water to approximately 26,200 active connections and delivering approximately 13,500- acre feet (AF) of water per year on average.Z The City's distribution system consists of approximately 300 miles of distribution pipelines and is divided into five main pressure zones: Zone 1 through Zone 5 with 16 minor zones. Zones 1 and 2 are the largest and cover most of the system demands. Zones 3, 4 and 5 are smaller pumped zones. The system infrastructure consists of four wells, three storage reservoirs, five pump stations and 43 pressure reducing stations (PRS) that manage pressure across the system.3 The City of Newport Beach water division is separated into four sections: water maintenance and repair, water production, water quality, and water system services, each department's duties are outlined below. Together the division is responsible for providing a safe and reliable source of water. IVPwnnrt RPar_h Water 4nurr_to The City receives its water from several sources, local groundwater from the Lower Santa Ana River Groundwater Basin, imported water purchased from the Municipal Water District of Orange County (MWDOC), and recycled water purchased from Orange County Water District (OCWD). Most of the City's water supply is groundwater, pumped from four wells within the City of Fountain Valley. Imported water is treated at the Diemer Filtration Plant operated by the Metropolitan Water District of Southern California (Metropolitan). The City is not capable of treating water to produce reclaimed water but purchases water from OCWD through the Green Acres Project. 4 Water Maintenance and Repair Water Maintenance & Repair is responsible for the maintenance and operation of the City's water mains and valves that are located underground. Water Production Water Production operates, maintains, and disinfects the City of Newport Beach's water supply. The division operates two well sites which produce groundwater from the Orange County Basin as well as three water reservoirs to receive, store and distribute the City's water. Other water facilities that assist in the distribution and treatment process include: five water pump stations, five Metropolitan Water District interconnections, and 42 water pressure regulating stations. Water Production also manages SCADA (Supervisory Control and Data Acquisition) which monitors and controls the pumps in the City's water wastewater and gas systems. 2 City of Newport Beach, Water rate Study, 2019 3 City of Newport Beach, Water Master Plan, 2019 4 City of Newport Beach, Urban Water Management Plan (2015) Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-43 (DRAFT MARCH 2021) SS3-491 City of Newport Beach 2021-2029 HOUSING ELEMENT Big Canyon Reservoirs Located at 3300 Pacific View Drive in Corona Del Mar. The Big Canyon Reservoir is the largest City owned reservoir with a capacity of 600 -acre foot or 195 million gallons. Built in 1958 this reservoir was the primary water supply for Newport for many years. Although the reservoir does have the ability to supply water to the entire service area the reservoir is primarily used as a storage reservoir and supply to the City's higher -pressure zones. Spyglass Hill Reservoir Located under the Spyglass Reservoir park at the end of Muir Beach Circle in Spyglass is the 1.5 -million - gallon concrete reservoir. Built in the 1970s to supply the surrounding community this 101 -foot diameter and 27 -foot -deep reservoir is under the playground park. Large concrete support columns and thick concrete roof and walls support this reservoir. 16th Street Reservoir Located at the Utilities Yard at 949 West 16th Street in Newport Beach the newest of our reservoirs is a 3 -million -gallon underground concrete reservoir. Built in 1996 as part of the City's ground water project, this reservoir receives well water from our four City owned wells in Fountain Valley. This reservoir supplies water to the 16th Street pump station that can pump up to 12,000 gallons per minute into our distribution system. Excess water not used in the system is stored in the Big Canyon Reservoir in Corona Del Mar. Water wuality The City of Newport Beach Utilities Department is responsible for providing residents with a reliable, safe, clean, potable, and domestic water supply. Newport Beach's drinking water is safe for drinking. It meets or exceeds all Federal and California water quality standards, which are the most stringent standards of any state in the nation. The City's staff continuously monitors the City's water supply and conducts more than 1,500 tests each year on potable water drawn from different sampling points along our distribution system. Water System Services assists City of Newport Beach customers with any questions regarding water quality, water pressure, consumption usage, any concern with water meters, leak detection, utilities inspections and underground utility locating. The City's Water Systems Services webpage provides tips and information for proper water systems care for property owners as well as additional resources. Wa c tAwa tAr Wastewater is responsible for the collection of residential and commercial wastewater. This Division has three sub -sections: Pump Station Operation, Cleaning Operation and Construction Operation. These three sub -sections provide service relating to pump station repair and maintenance, sewer main, lateral and manhole cleaning, sewer blockage and odor, and sewer main and lateral breaks and repairs. The City's Wastewater department is responsible for 203 miles if sewer pipe, 120 miles of sewer laterals, approximately 5,000 manholes, 21 pump stations, and five miles of force mains. The City's 2019 Sewer System Management Plan states the department's main goals to include the following: Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-44 (DRAFT MARCH 2021) SS3-492 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• + Maintain uninterrupted sewage flow without health hazard, effluent leakage, or water infiltration and inflow. + Operate a sanitary sewer system that meets all regulatory requirements. + Avoid sanitary sewer overflows and respond to sanitary sewer overflows quickly and mitigate any impact of the overflow. + Maintain standards and specifications for the installation of new wastewater systems. + Verify the wastewater collection system has adequate capacity to convey sewage during peak flows. + Provide training for Wastewater Collection staff. + Maintain the Fats, Oil, and Grease program (FOG program) to limit fats, oils, grease, and other debris that may cause blockages in the wastewater collection system. + Identify and prioritize structural deficiencies and implement short-term and long-term maintenance and rehabilitation actions to address each deficiency. + Meet all applicable regulatory notification and reporting requirements. + Provide excellent customer service through efficient system operation and effective communication strategies. ,ewe, The Orange County Sanitation District (OCSD)provides sanitation services to the City of Newport Beach. In 2013, the sanitation district began a construction program to rehabilitate the OCSD's regional sewers in the City. The program ran through 2018 and consisted of five construction projects, including: + Dover Drive Trunk Sewer Relief (5-63): The Dover Drive Trunk sewer runs between Irvine Blvd. and Coast Highway and is in poor condition. The existing sewer pipeline also does not have efficient hydraulic capacity to handle the wastewater flow and must therefore be replaced with a larger pipeline. OCSD will also relocate a city waterline to reduce the level of impact for the community by eliminating the need for a secondary project in the area. + Balboa Trunk Sewer Rehabilitation (5-47): This project will rehabilitate the existing Balboa Trunk sewer along Newport Blvd. and Balboa Blvd. between A Street and Finley Ave. (See map: between A Street Pump Station and Lido Pump Station.) The project includes installation of a new protective lining in approximately 12,600 feet of sewer pipeline. + Newport Force Main Rehabilitation (5-60): The Newport Force Main is a critical component of our sewer system and needs to be rehabilitated. It carries the wastewater flow from various pump stations to our treatment plant in Huntington Beach. The pipelines are located on Coast Highway stretching past Dover Dr. to the Bitter Point Pump Station, approximately 1/4 mile north of Superior Ave., which is a heavily traveled thoroughfare. There are two sewer lines, one on the north side of Coast Highway and one on the south side which make the rehabilitation more complex. + District 6 Trunk Sewer Relief (6-17): The District 6 Trunk sewer runs from Pomona Ave. in the City of Costa Mesa to Newport Blvd. near Coast Highway in the City of Newport Beach. This project will increase Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-45 SS3-493 City of Newport Beach 2021-2029 HOUSING ELEMENT the capacity of the existing sewer pipeline to reduce the potential for sewer spills and to properly handle flows. + Southwest Costa Mesa Trunk (6-19): In an effort to improve efficiency in our service area, this project is looking into the design and construction of a new gravity trunk sewer. This project may lead to the abandonment of eight Costa Mesa and Newport Beach pump stations to provide more reliable service to the community The infrastructure improvements initiated by CCSD from 2013 to 2018 increased overall capacity and efficiency in the Newport Beach sewer system. The City can accommodate the increase in households as projected by the City's RHNA allocation. Water Demand In fiscal year 2014-15, the City's total water demand was approximately 16,033 acre-feet. The City's potable demand was met through 11,200 acre-feet of groundwater and 4,338 acre-feet of imported water; the remaining non -potable demand was met through recycled water. The City is projecting over five percent increase in total potable and non -potable demand in the next 25 years accompanied by a projected 13 percent population growths The 2015 UWMP found that Metropolitan is able to meet full service demands of its member agencies with existing supplies out to 2040 during a normal, single -dry, and multiple -dry year scenario. Additionally, the 2019 Water Master Plan found that though population continues to increase over the past ten years, total water demand has decreased. The 10 -year average annual demand for 2007-2016 (15,991 AF) is 14 percent less than the 1986-1996 average annual demand (18,626 AF). The City's water infrastructure and service provider is capable of meeting the water demands of its customers under the same hydrological conditions out to 2040, this includes all household growth estimated by the City's RHNA allocation. Fire and Emergency Services The City of Newport Beach's Fire Department aims to Protect life, property, and the environment with innovative professionalism and organizational effectiveness using highly trained professionals committed to unparalleled service excellence. The department has 144 full-time employees and over 200 part-time / seasonal employees provide 24-hour protection and response to the community's residents, businesses, and visitors. The department's primary goals are identified as follows: • Identify and reduce fire and environmental hazards that may threaten life and property. • Provide a safe, effective, and expeditious response to requests for assistance. • Develop an adequately trained work force to effectively perform their duties. • Participate in the community development planning process to improve fire and life safety. • Encourage department personnel to assume leadership roles in the organization. • Plan for response to natural and man-made disasters that affect the community. • Educate and train employees and the community to assist them in maintaining a safe environment. 5 City of Newport Beach, Urban Water Management Plan (2015) Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-46 (DRAFT MARCH 2021) SS3-494 City of Newport Beach 2021-2029 HOUSING ELEMENT The department's different divisions and respective duties are outlined below. � L• The Fire Operations Division is the largest of four divisions within the Newport Beach Fire Department. The primary responsibilities of its personnel are life safety, incident stabilization, and the preservation of property and the environment. The Newport Beach Fire Department operates as an "all risk" emergency responsible organization responding to the following: + Fires + Pre -hospital Medical Emergencies + Technical Rescues + Traffic Accidents + Vehicle Extrications + Major Flooding + Beach Rescues + High Rise Incidents + Wildland Fires + Disaster Operations + Hazardous Materials Incidents The Fire Department staffs eight -fire stations 24/7. The stations are strategically located throughout the city to provide the quickest and most effective response to the area served, with an average response time of five minutes. Considering the department's expansive and well-connected nature, as well as the compactness of the City of Newport, additional housing or new developments would not pose a burden on the existing Fire Department's fire operations. Therefore, fire operations are not considered a constraint to the development of housing for all income levels. The City requires Development Agreements for certain development types within the Airport area to ensure adequate safety services and ambulance units. Development Agreements include additional fees for safety service operations in the airport area due to current lack of ambulance units. The imposition of additional fees may pose a constraint to the development of housing, and particularly affordable housing. This may result in greater development fees which may subsequently influence the final rental cost of units or home value. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-47 (DRAFT MARCH 2021) SS3-495 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• 7mergency Medical Services The goal of the Emergency Medical Services (EMS) Division is to deliver the highest quality of medical care to members of the community, regardless of their ability to pay. In total, the City has eight fire stations that are strategically located to provide the best services the community. Each day there are eight fire engines, two fire trucks and the three paramedic ambulances in service. The average response time is four minutes and 22 seconds. The system's design accounts for fewer paramedic ambulances and expects a nearby fire engine or truck company to arrive on scene first to initiate basic medical care, which at times can include lifesaving cardio -pulmonary resuscitation or delivering rapid electrical shocks using automated external defibrillators (AEDs), prior to the arrival of the paramedic team. :�..�....,�► OperatiQ—.,:..:.. The City of Newport Beach's Lifeguard Division protects up to 10 million beach visitors on Newport Beach's 6.2 miles of ocean and 2.5 miles of bay beaches, with preventative actions and medical assistance. Every day of the year, lifeguards ensure safety and provide customer service to the visitors on the beach, boardwalk, piers, and in the ocean. Police Services The City of Newport Beach's Police Department intends to: + Respond positively to the Community's needs, desires, and values and in so doing be recognized as an extension and reflection of those we serve. + Strive to provide a safe and healthy environment for all, free from violence and property loss resulting from criminal acts, and injuries caused by traffic violators. + Manage inevitable change and welcome the challenge of future problems with creative solutions, which are financially prudent and consistent with Community values. The Department's is headed by Chief of Police Jon T. Lewis, who is the 101h Chief of Police in the department's history, assuming office on March 22, 2016. The City of Newport Beach's Police Department handles a wide array of services and permitting, all services are outlined in detail on the City's Police Department webpage. 3. Environmental Constraints Newport Beach is bound by the Pacific Ocean to the West and contains many different natural landscapes within the City's boundaries. Newport Beach has a variety of coastal features ranging from replenished beach sands in West Newport, to steep bluffs comprised of sandstone and siltstone to the south of Corona del Mar. The community, as most of California is, sits along some major fault traces. The City is susceptible to several potential environmental constraints to the development of housing, including geologic hazards, flood hazards, and fire hazards, all are detailed below. Coastal Hazards A goal of the California Coastal Act and the City's adopted Local Coastal Program is to assure the priority for coastal -dependent and coastal -related development over other development in the Coastal Zone. The Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-48 (DRAFT MARCH 2021) SS3-496 City of Newport Beach 2021-2029 HOUSING ELEMENT Coastal Act is an umbrella legislation designed to encourage local governments to create Local Coastal Programs (LCPs) to govern decisions that determine the short- and long-term conservation and use of coastal resources. The City of Newport Beach's LCP is considered the legislative equivalent of the City's General Plan for areas within the Coastal Zone. Local Coastal Programs are obligated by statute to be consistent with the policies of the Coastal Act and protect public access and coastal resources. Over 63 percent of Newport Beach is within the Coastal Zone and subject to the oversight by the California Coastal Commission. Newport Beach is exposed to a variety of coastal hazards including beach erosion, bluff erosion, and coastal flooding due to sea level rise (SLR) and storm inundation. The City has a significant amount of land directly adjacent to surface water that is directly affected by sea level rise and storm inundation. The effects of SLR on coastal processes, such as shoreline erosion, storm -related flooding and bluff erosion, have been evaluated using a Coastal Storm Modeling System (CoSMoS), a software tool and multi -agency effort led by the United States Geological Survey (USGS), to make detailed predictions of coastal flooding and erosion based on existing and future climate scenarios for Southern California. The mapping results from CoSMoS provide predictions of shoreline erosion (storm and non -storm), coastal flooding during extreme events, and bluff erosion for the City in community -level coastal planning and decision-making. A large portion of the City's coastal adjacent land appropriate for development is at risk of tidal flooding. Land along the coast is vulnerable to shoreline retreat, which is predicted to accelerate with Sea Level Rise. Long-term shoreline retreat coupled with storm -induced beach erosion has the potential to cause permanent damage to buildings and infrastructure in these hazard zones. As a result, the City did not utilize land within the coastal The Coastal Commission provides direct guidance on how the City of Newport Beach addresses future land use in consideration of sea level rise. According to the California Coastal Commission Sea Level Rise Policy Guidance' , local jurisdictions can "Minimize Coastal Hazards through Planning and Development Standards" through the following measures applicable to Newport Beach: + Design adaptation strategies according to local conditions and existing development patterns, in accordance with the Coastal Act. + Avoid significant coastal hazard risks to new development where feasible. + Minimize hazard risk to new development over the life of the authorized development. + Minimize coastal hazard risks and resource impacts when making redevelopment decisions. + Account for the social and economic needs of the people of the state include environmental justice, assure priority for coastal -dependent and coastal -related develop over other development The Coastal Commission has also prepared a Draft Coastal Adaptation Planning Guidance: Residential Development (dated March 2018), which will serve as the Coastal Commission's policy guidance on sea 6 California Coastal Commission Sea Level Rise Policy Guidance, 2018 Science Update Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-49 (DRAFT MARCH 2021) SS3-497 City of Newport Beach 2021-2029 HOUSING ELEMENT level rise adaptation for residential development to help facilitate planning for resilient shorelines while protecting coastal resources in LCPs Geologic Hazards According to the Newport Beach Safety Element, the geologic diversity of Newport Beach is strongly related to tectonic movement along the San Andreas Fault and its broad zone of subsidiary faults. This, along with sea level fluctuations related to changes in climate, has resulted in a landscape that is also diverse in geologic hazards. Geologic hazards are generally defined as surficial earth processes that have the potential to cause loss or harm to the community or the environment. Specific geologic hazards that may affect the development of housing in the City are detailed below. SIAM- FailllrP_S Slope failures often occur as elements of interrelated natural hazards in which one event triggers a secondary event such as a storm -induced mudflow. Slope failure can occur on natural and man-made slopes. The City's remaining natural hillsides and coastal bluff areas are generally vulnerable to slope failures that include: San Joaquin Hills; and bluffs along Upper Newport Bay, Newport Harbor, and the Pacific Ocean. Despite the abundance of landslides and new development in the San Joaquin Hills, damage from slope failures in Newport Beach has been small which may be attributed to the development of strict hillside grading ordinances, sound project design that avoid severely hazardous areas, soil engineering practices, and effective agency review of hillside grading projects. Seismic Hazards The City of Newport Beach is located in the northern part of the Peninsular Ranges Province, an area that is exposed to risk from multiple earthquake fault zones. The City of Newport Beach Safety Element determines that the highest risks originate from the Newport -Inglewood fault zone, the Whittier fault zone, the San Joaquin Hills fault zone, and the Elysian Park fault zone. Each of the aforementioned zones have the potential to cause moderate to large earthquakes that would cause ground shaking in Newport Beach and nearby communities. Earthquake -triggered geologic effects also include surface fault rupture, landslides, liquefaction, subsidence, and seiches. Specific hazards associated with seismic hazards, which can potentially be determined as a constraint to development are detailed below. Liquefaction Strong ground shaking can result in liquefaction. Liquefaction, a geologic process that causes ground failure, typically occurs in loose, saturated sediments primarily of sandy composition. According to the Newport Beach Safety Element, the areas of Newport Beach susceptible to liquefaction and related ground failure (i.e. seismically induced settlement) include areas along the coastline that includes Balboa Peninsula, in and around the Newport Bay and Upper Newport Bay, in the lower reaches of major streams in Newport Beach, and in the floodplain of the Santa Ana River. It is likely that residential or commercial development will never occur in many of the other liquefiable areas, such as Upper Newport Bay, the Newport Coast beaches, and the bottoms of stream channels. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-50 (DRAFT MARCH 2021) SS3-498 City of Newport Beach 2021-2029 HOUSING ELEMENT 1 � Seismically Induced Slop Failure Strong ground motions can also worsen existing unstable slope conditions, particularly if coupled with saturated ground conditions. Seismically induced landslides can overrun structures, people or property, sever utility lines, and block roads, thereby hindering rescue operations after an earthquake. Much of the area in eastern Newport Beach has been identified as vulnerable to seismically induced slope failure. Approximately 90 percent of the land from Los Trancos Canyon to State Park boundary is mapped as susceptible to land sliding by the California Geologic Survey. Additionally, the sedimentary bedrock that crops out in the San Joaquin Hills is locally highly weathered. In steep areas, strong ground shaking can cause slides or rockfalls in this material. Rupture along the Newport Inglewood Fault Zone and other faults in Southern California could reactivate existing landslides and cause new slope failures throughout the San Joaquin Hills. Slope failures can also be expected to occur along stream banks and coastal bluffs, such as Big Canyon, around San Joaquin Reservoir, Newport and Upper Newport Bays, and Corona del Mar. Flood Hazards The City of Newport Beach and surrounding areas are, like most of Southern California, subject to unpredictable seasonal rainfall, and every few years the region is subjected to periods of intense and sustained precipitation that result in flooding. Flooding can be a destructive natural hazard and is a recurring event. A flood is any relatively high streamflow overtopping the natural or artificial banks in any reach of a stream. Flood hazards in Newport Beach can be classified into two general categories: flash flooding from small, natural channels; and more moderate and sustained flooding from the Santa Ana River and San Diego Creek. The City of Newport Beach's Safety Element Identifies 100 -year and 500 -year flood zones in the City. Federal Emergency Management Agency (FEMA) flood zones are geographic areas that the FEMA has defined according to varying levels of flood risk. Each zone reflects the severity or type of flooding in the area .7 The 100 -year flood zone are areas with a one percent annual chance of flooding, the 500 -year flood zones are areas with a 0.2 percent annual chance of flooding. The 100- and 500 -year flood zones include the low-lying areas in West Newport at the base of the bluffs, the coastal areas which surround Newport Bay and all low-lying areas adjacent to Upper Newport Bay. 100- and 500- year flooding is also anticipated to occur along the lower reaches of Coyote Canyon, in the lower reaches of San Diego Creek and the Santa Ana Delhi Channel, and in a portion of Buck Gully. The City also recently worked with FEMA to revise proposed flood hazards maps, in which FEMA removed over 2,700 properties from flood zones. Most flooding along these second- and third -order streams is not expected to impact significant development. However, flooding in the coastal areas of the City will impact residential and commercial zones along West Newport, the Balboa Peninsula and Balboa Island and the seaward side of Pacific Coast Highway.' With increased development, there is also an increase in impervious surfaces, such as asphalt. Water that used to be absorbed into the ground becomes runoff to downstream areas. However, various flood control measures help mitigate flood damage in the City, including reservoirs in the San Joaquin Hills and 7 FEMA Flood Zone Designations, Natural resources Conservation Service - Field Office Technical Guides 8 City of Newport Beach Safety Element Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-51 (DRAFT MARCH 2021) SS3-499 City of Newport Beach 2021-2029 HOUSING ELEMENT Santa Ana Mountain foothills, and channel alterations for the Santa Ana River. These structures help regulate flow in the Santa Ana River, San Diego Creek, and smaller streams and hold back some of the flow during intense rainfall period that could otherwise overwhelm the storm drain system in Newport Beach. Fire Hazards The Newport Beach Safety Element defines a wildland fire hazard area as any geographic area that contains the type and condition of vegetation, topography, weather, and structure density that potentially increases the possibility of wildland fires. The eastern portion of the City and portions of the Newport Beach region and surrounding areas to the north, east, and southeast include grass- and brush -covered hillsides with significant topographic relief that facilitate the rapid spread of fire, especially if fanned by coastal breezes or Santa Ana winds. In those areas identified as susceptible to wildland fire, the Fire Department enforces locally developed regulations which reduce the amount and continuity of fuel (vegetation) available, firewood storage, debris clearing, proximity of vegetation to structures and other measures aimed at "Hazard Reduction." New construction and development are further protected by local amendments to the Uniform Building Code. These amendments, which are designed to increase the fire resistance of a building, include: protection of exposed eaves, noncombustible construction of exterior walls, protection of openings, and the requirement for Class "A" fireproof roofing throughout the City. Additionally, a "Fuel Modification" plan aimed at reducing fire encroachment into structures from adjacent vegetation must be developed and maintained. Affirmatively Furthering Fair Housing All Housing Elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Further Fair Housing Final Rule of July 16, 2015. Under State law, affirmatively further fair housing means "taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. These characteristics can include, but are not limited to race, religion, sex, marital status, ancestry, national origin, color, familiar status, or disability. The Orange County Analysis of Impediments (AI) to Fair Housing Choice for FY 2015-19 was approved by the City of Newport Beach City Council on Month 10, 2016 as one of the fifteen urban county program participants in partnership with the Fair Housing Council of Orange County. The Draft Regional Analysis of Impediments (AI) to Fair Housing Choice for FY 2020-25 was made available for public review in 2020. The Fair Housing Council of Orange County works under the direction of a volunteer board of directors and Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-52 (DRAFT MARCH 2021) SS3-500 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• staff to fulfill a mission of protecting the quality of life in Orange County by ensuring equal access to housing opportunities, fostering diversity and preserving dignity and human rights. The agency is a HUD Approved Housing Counseling Agency and provides one-on-one education, mediation, and counseling for individuals and families throughout the Orange County region. The Al identifies impediments that may prevent equal housing access and develops solutions to mitigate or remove such impediments. Newport Beach's 6th Cycle Housing Element references analysis from the FY 2020-2025 Al in order to identify potential impediments to housing that are specific to Newport Beach. The City also completed its FY 2020-24 Consolidated Plan, adopted by City Council on May 12, 2020, as an entitlement city for Community Development Block Grant (CDBG) funding, which identifies housing problems within the community, specifically among low and very -low income households. Fair housing is identified as a priority within the Consolidated Plan. Needs Assessment The Al contains a Countywide analysis of demographic, housing, and specifically fair housing issues for all the cities in Orange County, including Newport Beach. The City's demographic and income profile, household and housing characteristics, housing cost and availability, and special needs populations were discussed in the previous Section 2: Community Profile. Fair Housing Issues The Regional Al lists fair housing issues within the County of Orange, the Al also explicitly includes the following fair housing issues in the City of Newport Beach: + Availability, Type, Frequency, and Reliability of Public Transportation - The availability, type, frequency, and reliability of public transportation may be contributing factors to fair housing issues in Newport Beach. Public transportation in Orange County primarily consists of bus service operated by the Orange County Transportation Authority (OCTA) and Metrolink light rail service. However, Metrolink does not provide service to coastal communities in the central and northern portions of Orange County, including Newport Beach which is disproportionately White in comparison to the county as a whole. The lack of public transportation may deter members of protected classes who do not have cars and are reliant on public transportation from choosing to live there, thus reinforcing patterns of segregation. + Impediments to Mobility - Impediments to mobility may be a significant contributing factor to fair housing issues in Newport Beach. Specifically, Housing Choice Voucher payment standards that make it difficult to secure housing in many, disproportionately White areas contribute to segregation and disparities in access to opportunity. The Orange County Housing Authority, which provides Section 8 resources to Newport Beach, has three tiers based on city rather than zip code, but the highest tier - $2,280 for two-bedroom units in selected cities — falls far short of Small Area Fair Market Rents and leaves some cities targeted for that payment standard out of reach. For example, in zip code 92660, located in Newport Beach, the Small Area Fair Market Rent for two-bedroom units would be $3,120. A Zillow search for that zip code revealed advertised two-bedroom units in only two complexes available for under $2,280 but many more available between $2,280 and $3,120. + Location of Accessible Housing - The location of accessible housing may be a significant contributing factor to fair housing issues in Newport Beach. With a few exceptions the location of accessible housing Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-53 SS3-501 City of Newport Beach 2021-2029 HOUSING ELEMENT � L• tends to track areas where there are concentrations of publicly supported housing. In Orange County, publicly supported housing tends to be concentrated in areas that are disproportionately Hispanic and/or Vietnamese and that have relatively limited access to educational opportunity and environmental health. Multi -unit housing tends to be concentrated in communities of color, but there are some predominantly White communities that have significant amounts of market -rate multi -unit housing that may be accessible and affordable to middle-income and high-income persons with disabilities, including Newport Beach. Overall, permitting more multi -unit housing and assisting more publicly supported housing in predominantly White communities with proficient schools would help ensure that persons with disabilities who need accessibility features in their homes have a full range of neighborhood choices available to them. + Occupancy Codes and Restrictions - Occupancy codes and restrictions may be a significant contributing factor to fair housing issues in Newport Beach. Specifically, there is a substantial recent history of municipal ordinances targeting group homes, in general, and community residences for people in recovery from alcohol or substance abuse disorders, in particular. In 2015, the City of Newport Beach entered into a $5.25 million settlement of a challenge to its ordinance, but that settlement did not include injunctive relief calling for a repeal of that ordinance.' Although municipalities have an interest in protecting the health and safety of group home residents, these types of restrictions may be burdensome for ethical, high-quality group home operators. Occupancy codes and restrictions are not as high priority of a barrier as the factors that hinder the development of permanent supportive housing, as group homes are generally less integrated than independent living settings. The City recognizes the fair housing issues that exist within the community and is committed to reduces barriers to housing affordable to all persons. The City has outline programs to address fair housing issues in Newport Beach in the Section 4: Housing Plan. Fair Housing Enforcement and Outreach Capacity Currently, the Fair Housing Foundation provides fair housing services to the City of Newport Beach. This includes providing fair housing enforcement and landlord/tenant mediation services which are available for tenants, realtors, apartment owners and managers, lending institutions and other interested parties. For FY 2020-21, the City of Newport Beach has allocated $12,000 in Community Development Block Grant (CDBG) funds for the Fair Housing Foundation to perform the following, at no cost: + Fair housing services such as, responding to discrimination inquiries and complaints, documenting, and investigating discrimination complaints, and resolving or mediating discrimination complaints + A comprehensive, extensive, and viable education and outreach program, including: o Fair Housing Workshop o Certificate Management Training o Walk -In Clinics o Rental Housing Counseling Workshop o Community presentations, staff training, and workshops 141 Hannah Fry, Newport Will Pay Group Homes $5.25 Million Settlement, L.A. TIMES (July 16, 2015), https://www.latimes.com/socal/daily-pilot/news/tn-dpt-me-0716-newport-group-home-settlement-20150716- story.html. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-54 SS3-502 City of Newport Beach 2021-2029 HOUSING ELEMENT o Community events, booths, networking, etc. + Landlord and tenant counseling on responsibilities and rights + Rental counseling The Fair Housing Foundations offers regular walk-in counseling sessions, in addition to resources fairs, informational workshops (accessible in multiple languages), landlord and tenant workshops, and other outreach efforts. Additionally, the FHF provided virtual workshops available online to Newport Beach residents. From 2015 to 2020, the City provided 408 residents with fair housing services using CDBG funding. As part of the FY 2020-25 Consolidated Plan for the Newport Beach, the City has set a goal of assisting 625 people with fair housing issues within the five-year period using $60,000 of CDBG funding. Newport Beach has also set a goal of retaining a Fair Housing provider to promote fair housing education and outreach within the community. The U.S. Department of Housing and Urban Development (HUD) maintains a record of all housing discrimination complaints filed in local jurisdictions. These grievances can be filed on the basis of race, color, national origin, sex, disability, religion, familial status, and retaliation. As reported by the 2020- 2025 Al, one fair housing case is unresolved (as one 2020) in Newport Beach. 3. Analysis of Federal, State, and Local Data and Local Knowledge Integration and Segregation Patterns and Trends The dissimilarity index is the most used measure of segregation between two groups, reflecting their relative distributions across neighborhoods (as defined by census tracts). The index represents the percentage of the minority group that would have to move to new neighborhoods to achieve perfect integration of that group. An index score can range in value from 0 percent, indicating complete integration, to 100 percent, indicating complete segregation. An index number above 60 is considered to show high similarity and a segregated community. It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrants often depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country.10 Alternatively, when white residents leave neighborhoods that become more diverse, those neighborhoods can become segregated. Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can also cause residential segregation. Figure 3-2 shows the dissimilarity between each if the identified race and ethnic groups and Newport Beach's White population. The higher scores indicate higher levels of segregation among those racial and ethnic group. The White (non -Hispanic or Latino) population makes up most of the City's population at 10 Allen, James P. and Turner, Eugene. "Changing Faces, Changing Places: Mapping Southern California'. California State University, Northridge, (2002). Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-55 (DRAFT MARCH 2021) SS3-503 City of Newport Beach 2021-2029 HOUSING ELEMENT approximately 79.5 percent according to the 2018 ACS estimates. According to the figure, the highest levels of segregation within Newport Beach are Other Race (51.3), Native Hawaiian (44.5), Black (37.8 and Native Indian (37.4). The scores correlate with the percentage of people within that racial or ethnic group that would need to move into a predominately White census tract in order to achieve a more integrated community. For instance, 44.5 percent of the Native Hawaiian population would need to move into predominately white census tract areas to achieve "perfect" integration. As indicated above, a score of 60 or higher indicates a highly similar and segregated area. The City does not have any racial or ethnic groups with scores higher than 60. Figure 3-2: Dissimilarity Index with Whites — Newport Beach Hispanic Two or More Races* Other* Native Hawaiian* Asian* American Indian* Black* 0 10 20 30 40 50 60 American Native Two or Black* Indian* Hawaiian Asian* * Other* More Hispanic Races* Dissimilarity Index with Whites* 37.8 37.4 31.2 44.5 51.3 16.6 22.4 Source: Census Scope, Social Science Data Analysis Network, *Not Hispanic or Latino Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) To assist communities in identifying racially/ethnically concentrated areas of poverty (R/ECAPs), HUD has developed a census tract -based definition of R/ECAPs. The definition involves a racial/ethnic concentration threshold and a poverty test. The racial/ethnic concentration threshold is straightforward: R/ECAPs must have a non-white population of 50 percent or more. Regarding the poverty threshold, Wilson (1980) defines neighborhoods of extreme poverty as census tracts with 40 percent or more of individuals living at or below the poverty line. Because overall poverty levels are substantially lower in many parts of the country, HUD supplements this with an alternate criterion. Thus, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower. Location of residence can have a substantial effect on mental and physical health, education opportunities, and economic opportunities. Urban areas that are more residentially segregated by race and income tend to have lower levels of upward economic mobility than other areas. Research has found Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-56 (DRAFT MARCH 2021) SS3-504 City of Newport Beach 2021-2029 HOUSING ELEMENT that racial inequality is thus amplified by residential segregation.11 However, these areas may also provide different opportunities, such as ethnic enclaves providing proximity to centers of cultural significance, or business, social networks and communities to help immigrants preserve cultural identify and establish themselves in new places. Overall, it is important to study and identify these areas in order to understand patterns of segregation and poverty in a City. The 2020 Al performed an analysis of R/ECAPs within Orange County and found four R/ECAPs, none of which were found in Newport Beach. However, two of the four were found in the neighboring City of Irvine, adjacent to one another and near the University of California; these both bordered the City of Newport Beach. According to the Al, it is likely that they qualify as R/ECAPs due to the high proportions of students. These R/ECAPs have a much more diverse group of residents, with some White, Asian or Pacific Islander, Hispanic and Black residents. These R/ECAPs primarily contain Asian or Pacific Islander or Hispanic residents. 23.49% of residents are White, 1.63% are Black, 48.50% are Hispanic, 23.70% are Asian or Pacific Islander, and 0.14% are Native American. Figure 3-3 below identifies low poverty index with race/ethnicity and R/ECAPs in Newport Beach. The figure also identifies the R/ECAP areas (outlined in pink) bordering the City of Newport Beach, near the University of California, Irvine. The low poverty index captures the depth and intensity of poverty in a given neighborhood. The index uses both family poverty rates and public assistance receipt, in the form of cash -welfare, such as Temporary Assistance for Needy Families (TANF). The poverty rate and public assistance for neighborhoods are determined at the census tract level, and the higher the score, the less exposure to poverty in a neighborhood. The map identifies the R/ECAP and a few surrounding neighborhoods, to the south and south east, as having higher rates if poverty. The map confirms the Al anlysis of the City of Newport Beach, showing that majority of resident's identify as White, non hispanic. 11 Orange County, Analysis of Impediments to Fair Housing Choice, April 2020 DRAFT. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-57 (DRAFT MARCH 2021) SS3-505 City of Newport Beach 2021-2029 HOUSING €LEMEN' Legend Jurisdiction Region Demographics 2010 Dot = 75 White. Non -Hispanic yJ Black Non -Hispanic NatveAme•ican. Non - Hispanic .As,aNPacdio Islander. Non- Hispanic Hispanic Other. Non -Hispanic Multi -racial. Non -Hispanic TRACT RECAP L) Figure 3-3: Low Poverty Index with Race/Ethnicity and R/ECAPs, Newport Beach Low POrNb Indy= 0-10 Low Poverty Index: Data not Available * 0 Source: HUD Affirmitaevly Furthering Fair Housing Data and Mapping Tool, Data Versions: AFFHT0006, July 10, 2020 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-58 (DRAFT MARCH 2021) SS3-506 City of Newport Beach 2021-2029 HOUSING ELEMENT Disparities in Access to Opportunity The UC Davis Center for Regional Change and Rabobank partnered to develop the Regional Opportunity Index (ROI) intended to help communities understand local social and economic opportunities. The goal of the ROI is to help target resources and policies toward people and places with the greatest need to foster thriving communities. The ROI incorporates both "people" and "place components, integrating economic, infrastructure, environmental, and social indicators into a comprehensive assessment of the factors driving opportunity." As shown in Figures 3-4 and Figure 3-5 below, the majority of the City of Newport Beach is classified as a high opportunity zone. This indicates a high level of relative opportunities that people can achieve as well as a high level of relative opportunities that Newport Beach provides. While most of the census tracts within the City are areas of high opportunity, there are two census tracts within the ROI People Index shown as yellow, identifying a low opportunity area. Together these areas contain 86 sites which accommodate 1,941 potential units designated to meet the City's RHNA for lower income units (shown in Section 3: Housing Resources and outlined in Appendix B). The Data for both regions with lower opportunity show high civic life, health, transportation, economic and education access, however, both show very low housing access. Therefore, the consideration and identification of these areas for housing, affordable to low and very low-income households, will provide increased housing opportunity in high opportunity and high resources areas. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-59 (DRAFT MARCH 2021) SS3-507 City of Newport Beach 2021-2029 HOUSING ELEMENT Description The Regional Opportunity Index (ROI): People is a relative measure of people's assets in education, the economy, housing, mobility/transportation, health/environment, and civic life. Legend Regional Opportunity Index: People ❑ Some data not available Lowest Opportunity El 0 Highest Opportunity ❑ City Boundary Figure 3-4: Regional Opportunity Index: People, 2014 Regional Opportunity Index: People, 2014 Regional Opportunity Index: E Pe ple 1 1 1 each Regional Opportunity Index_ o Pe ple Date: 11/19/2626 ml 0 1.5 3 6 https://interact.regionalchange.ucdavis.edu/roi/ Source: UC Davis Center for Regional Change and Rabobank, 2014. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-60 SS3-508 City of Newport Beach 2021-2029 HOUSING ELEMENT Description The Region al Opportunity Index (l Place is a relative measure of an area's assets in education, the economy, housing, mobility/transportation, healthlenvironment, and civic life. Legend Regional Opportunity Index: Place ❑ Some data not availaLle Lowest Oppanunity ❑ ■ Highest Opportunity ❑ city Boundary Date: 11/19/2020 https://interact.regionalchange.ucdavis.edu/roi/ Figure 3-5: Regional Opportunity Index: Place, 2014 Regional Opportunity Index: Place, 2014 mi 0 1.5 3 6 Source: UC Davis Center for Regional Change and Rabobank, 2014. Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT MARCH 2021) 3-61 SS3-509 City of Newport Beach 2021-2029 HOUSING ELEMENT Additionally, the Department of Housing and Community Development (HCD) together with the California Tax Credit Allocation Committee (TCAC) established the California Fair Housing Task Force to provide research, evidence -based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further the fair housing goals (as defined by HCD). The Task force developed the TCAC/HCD opportunity Area Maps to understand how public and private resources are spatially distributed. The Task force defines opportunities as pathways to better lives, including health, education, and employment. Overall, opportunity maps are intended to display which areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. According to the Task Force's methodology, the tool allocates the 20 percent of the tracts in each region with the highest relative index scores to the "Highest Resource" designation and the next 20 percent to the "High Resource" designation. Each region then ends up with 40 percent of its total tracts as "Highest" or "High" resource. These two categories are intended to help State decision -makers identify tracts within each region that the research suggests low-income families are most likely to thrive, and where they typically do not have the option to live—but might, if given the choice. As shown in Figure 3-6 below, nearly all of Newport Beach is classified as moderate, high, and highest resource. There is one census tract in the Northwest Portion of Newport Beach classifies as low resource, the tracts scores identify high economic resources and low educational resources. Figure 3-6: TCAC/HCD Opportunity Area Maps, Newport Beach (2020) Source: California Tax Credit Allocation Committee and Department of Housing and Community Development, 2020. Section 3: Housing Constraints, Resources, and AFFH 62 (DRAFT MARCH 2021) SS3-510 City of Newport Beach 2021-2029 HOUSING ELEMENT Access to neighborhoods with higher levels of opportunity can be more difficult due to discrimination and when there may not be a sufficient range and supply of housing in such neighborhoods. In addition, the continuing legacy of discrimination and segregation can impact the availability of quality infrastructure, educational resources, environmental protections, and economic drivers, all of which can create disparities in access to opportunity. The Department of Housing and Urban Development (HUD) developed the opportunity indicators to help inform communities about disparities in access to opportunity, the scores are based on nationally available data sources and assess resident's access to key opportunity assets in the City. Table 3-16 provides the index scores (ranging from zero to 100) for the following opportunity indicator indices: + Low Poverty Index: The low poverty index captures poverty in a given neighborhood. The poverty rate is determined at the census tract level. The higher the score, the less exposure to poverty in a neighborhood. + School Proficiency Index: The school proficiency index uses school -level data on the performance of 4th grade students on state exams to describe which neighborhoods have high -performing elementary schools nearby and which are near lower performing elementary schools. The higher the score, the higher the school system quality is in a neighborhood. + Labor Market Engagement Index: The labor market engagement index provides a summary description of the relative intensity of labor market engagement and human capital in a neighborhood. This is based upon the level of employment, labor force participation, and educational attainment in a census tract. The higher the score, the higher the labor force participation and human capital in a neighborhood. + Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets the following description: a three-person single -parent family with income at 50% of the median income for renters for the region (i.e. the Core -Based Statistical Area (CBSA)). The higher the transit trips index, the more likely residents in that neighborhood utilize public transit. + Low Transportation Cost Index: This index is based on estimates of transportation costs for a family that meets the following description: a three-person single -parent family with income at 50 percent of the median income for renters for the region/CBSA. The higher the index, the lower the cost of transportation in that neighborhood. + Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region/CBSA, with larger employment centers weighted more heavily. The higher the index value, the better the access to employment opportunities for residents in a neighborhood. + Environmental Health Index: The environmental health index summarizes potential exposure to harmful toxins at a neighborhood level. The higher the index value, the less exposure to toxins harmful to human health. Therefore, the higher the value, the better the environmental quality of a neighborhood, where a neighborhood is a census block -group. Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 63 SS3-511 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-15 below displays the opportunity indices by race and ethnicity for persons in Newport Beach. According to the data, there is low poverty among the population of Newport, across all racial/ethnic groups. Additionally, the access to quality education system is high among all racial/ethnic groups (each group has an opportunity index score above 80). The data shows the City offers high labor and economic opportunity as well as sufficient access to transportation. However, while the data shows a high access to transportation, the transportation is less affordable, specifically to non -Hispanic Asian or Pacific Islander and Native American populations. The data also shows low environmental health index scores across all racial/ethnic groups, below 50. Table 3-15: Opportunity Indices by Race/Ethnicity, Newport Beach (Newport Beach, Low School Labor Low Jobs Transit Environmental CA CDBG) Poverty Proficiency Market Transportation Proximity Index Health Index Jurisdiction Index Index Index Cost Index Index Total Population White, Non - 81.31 90.17 82.88 86.59 75.16 90.40 41.36 Hispanic Black, Non - 78.86 89.72 81.85 86.92 76.61 90.54 40.65 Hispanic Hispanic 79.04 88.93 81.76 86.93 76.81 89.82 40.55 Asian or Pacific Islander, Non- 84.48 91.60 85.94 83.05 68.64 89.19 38.80 Hispanic Native American, 79.22 88.29 81.86 88.35 78.06 91.17 40.73 Non -Hispanic Population below federal poverty line White, Non - 78.99 89.20 83.30 87.76 78.81 90.38 43.27 Hispanic Black, Non - 78.71 86.38 78.21 89.58 85.43 87.99 48.46 Hispanic Hispanic 82.46 87.75 81.41 88.28 77.88 89.87 41.76 Asian or Pacific Islander, Non- 84.34 88.97 82.79 88.43 76.05 92.09 39.15 Hispanic Native American, 77.00 89.17 88.00 93.00 85.00 95.55 40.00 Non -Hispanic Source: Department of Housing and Urban Development, Affirmatively Furthering Fair Housing Online Mapping tool, Decennial Census; ACS; Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 64 SS3-512 City of Newport Beach 2021-2029 HOUSING ELEMENT Discussion of Disproportionate Housing Needs The analysis of disproportionate housing needs within Newport Beach evaluated existing housing need, need of the future housing population, and units within the community at -risk of converting to market - rate. Growth 111,, 4 The City's future growth need is based on the RHNA production of 1,456 very low and 930 low income units within the 2021-2029 planning period. Appendix B of this Housing Element shows the City's ability to meet its 2021-2029 RHNA need at all income levels. This demonstrates the City's ability to accommodate the anticipated future affordable housing needs of the community. -Yi,ztinn NPPr/ As described in Section 3.F.1 of this Housing Element, the Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors. Additionally, a variety of affordable housing opportunities currently exist in the City. In Orange County, each category of publicly supported housing (public housing, Project Based Section 8, Other Multi -unit Housing, Housing Choice Vouchers, and Low -Income Housing Tax Credit [LIHTC] units) is represented, although that representation varies greatly depending on the individual municipality. Table 3-16 below identifies the variety of publicly supported housing, by percent, in the City of Newport Beach. Table 3-16 below displays the demographics of all public ally supported housing in Newport Beach. The data shows that majority of persons who utilize and receive public housing support identify as White, with a small percentage Hispanic or Asian/Pacific Islander. Table 3-16: Publicly Supported Housing Demographics, Newport Beach Newport Asian or Pacific White Black Hispanic Beach Islander Housing Type # % # % # % # % Project -Based 85 87.63% 0 0.00% 3 3.09°% 9 9.28% Section 8 HCV Program 99 70.21% 14 9.93% 15 10.654°% 13 9.22% LIHTC 238 85.9% 8 1.99% 147 35.57% 12 2.99% Total 32,490 84.94% 135 0.35% 2,485 2,477 6.45% Households Source: County of Orange, Analysis of Impediments Notes: HVC = Housing Choice Voucher LIHTC = Low Income Housing Tax Credit Section 3: Housing Constraints, Resources, and AFFH 65 (DRAFT MARCH 2021) SS3-513 City of Newport Beach 2021-2029 HOUSING ELEMENT Displacement Risk The potential for economic displacement risk can result from a variety of factors, including large-scale development activity, neighborhood reinvestment, infrastructure investments, and changes in local and regional employment opportunity. Economic displacement can be an inadvertent result of public and private investment, where individuals and families may not be able to keep pace with increased property values and market rental rates. Table 3-17 below identifies the assisted and affordable housing units within the City of Newport Beach and identifies the end date of each covenant. According to the table, 4 locations (with a total of 112 units) were up for renewal in the previous planning period (2014-2021). Additionally, 3 locations, with a total of 45 units are set to expire and be addressed for renewal over the next planning period (2021-2029). The City of Newport Beach is committed to working with property owners and utilizing appropriate funds, as available, to review covenants set to expire for renewal. Table 3-17: City of Newport Beach Assisted (and Affordable) Housing Summary Earliest Possible Number of Project Name/ Location Type of Assistance Received Date of Change Units/Type Section 8 (rental assistance Newport Harbor Apartments vouchers) Density Bonus 2020 26 Low -Income 1538 Placentia Avenue Community Development Block Grant (CDBG) Newport Harbor II Apartments Section 8 Density Bonus CDBG 10 Low -Income 2023 1530 Placentia Avenue In -Lieu Fee Funds 4Very Low -Income Newport Seacrest Apartments Section 8 CDBG 20 Very Low -Income 2016 843 15th Street Fee Waivers Tax Credit Financing 45 Low -Income Pacific Heights Apartments 881- Section 8 Density Bonus 2019 7Low-Income 887 W. 15th Street Newport Seashore Apartments Section 8 Fee Waivers 2018 15 Low -Income 849 West 15th Street Newport Seaside Apartment 1544 Section 8 CDBG 2017 25 Very Low -Income Placentia Fee Waivers 100 Extremely Low Seaview Lutheran Plaza (Seniors) Section 202 (federal grant) 2039 and Very Low— 2800 Pacific View Drive Section 8 Income Senior Villa del Este 2 Moderate -Income 2026 401 Seaward Road — (ownership) 3 Moderate -Income Villa Siena 2101 15th Street Density Bonus 2021 (ownership) Bayview Landing (Seniors) 1121 In -lieu Fee Funds Fee Waivers 24 Very Low 2056 Back Bay Drive Tax Credit Financing 95 Low -Income Section 3: Housing Constraints, Resources, and AFFH 66 (DRAFT MARCH 2021) SS3-514 City of Newport Beach 2021-2029 HOUSING ELEMENT Assessment of Contributing Factors to Fair Housing Issues in Newport Beach The Al identifies the following regional goals for mitigating impediments to fair housing within jurisdictions in Orange County: + Goal 1: Increase the supply of affordable housing in high opportunity areas.1 + Goal 2: Prevent displacement of low- and moderate -income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities + Goal 3: Increase community integration for persons with disabilities. + Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness. + Goal 5: Expand access to opportunity for protected classes The Housing Element programs incorporates these recommended goals as they relate to Newport Beach. The analysis above regarding other fair housing issues within Newport Beach yielded the following results: + The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while there are racial and ethnic groups with higher levels of segregation than others within Newport Beach, none meet the standard set to identify segregated groups. + The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area. However, one R/ECAP was identified in the neighboring city of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. + The UC Davis Regional Opportunity Index shows that the majority of residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. + The analysis of the TCAC/HCD opportunity Area Maps show that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top forty percent in the region in terms of areas that lower-income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. + The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally, the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 67 SS3-515 City of Newport Beach 2021-2029 HOUSING ELEMENT 9. Analysis of Sites Pursuant to AB 686 AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing. The site identification requirement involves not only an analysis of site capacity to accommodate the RHNA (provided in Appendix B), but also whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity. Figure 3-7 shows the proposed candidate sites to the RHNA for Newport Beach in relation to the location of residents of Hispanic origin, and it shows the following findings: + Majority of sites (274 acres) identified to accommodate the City's RHNA are identified in areas with between 5.1 and 10 percent Hispanic population, including a total of 731 units that affordable to low and very low incomes and 2,859 units affordable to moderate and above moderate incomes. + In the northern region, a total of 162 acres identified to accommodate the City's RHNA has a 10.1 to 25 percent Hispanic population, including a total of 1,941 units affordable to low and very low-income households. + A total of 14 acres is identified in areas with less than 5 percent Hispanic populations, including a total of 92 units affordable to low and very low-income households and 829 units affordable to moderate and above moderate -income households. Section 3: Housing Constraints, Resources, and AFFH 68 (DRAFT MARCH 2021) SS3-516 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-7: Candidate Sites — Ethnicity Analysis Section 3: Housing Constraints, Resources, and AFFH 69 (DRAFT MARCH 2021) SS3-517 Newport Beach AFFH � Site Candidates City Boundary VPercent Hispanic (2018 ACS 5 -Year) e5% 10.1%-25% a 25.1%-50% > 50% IV �•:avr^- y ri tT C R s�yfnf oa � D S*N kr��t SFFQ'J'Yr��t •'.f. or x Y�. n� y - Miles NORTH 0 1 2 Sources. American Community Survey; HUD Exchange, City of Newport Beach Section 3: Housing Constraints, Resources, and AFFH 69 (DRAFT MARCH 2021) SS3-517 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-8 shows location of existing and proposed affordable units within Newport Beach in comparison with census data showing the percentage of the population within each block group that is non-white. Figure 3-8 shows the following findings: + A total of 162 acres are identified to accommodate the City's RHNA in areas with a 25.1 to 50 percent non-White population, including a total of 1,941 units affordable to low and very low-income households. + A total of 288 acres are identified to accommodate the City's RHNA in areas with 10.1 to 25 percent non-White population, including a total of 735 units affordable to low and very low-income households and 4,065 units affordable to moderate and above moderate -income households. Figure 3-8: Candidate Sites — Non -White Analysis Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 70 SS3-518 — Newport Beach AFFH fz Site Candidates ' O City Boundary P, /ua, Percent Non -White Hispanic & Non - \v/ Hispanic (2018ACS 5 -Year) a�tY c5% ��•'� - -- -� _ 10.1%-25% y o 25.1%-50% a > 50% v ` h Y4D j llN.. mr,t- 'Y DD SL.� pls'Jsti ntt�si.f; �0 f�nY - Miles NORTH 0 1 2 Sources American Community Survey, HUD Exchange, City of Newport eeacn Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 70 SS3-518 — City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-9 shows Low/Moderate Income (LMI) block groups within the City of Newport Beach. The figure shows the following: + A total of 2,494 units affordable to low and very low-income households are in areas with 40.1 to 60+ percent low- and moderate -income households. + A total of 182 units affordable to low and very low-income households are in areas with 30.1 to 40 percent low- and moderate -income households. + A total of 88 units affordable to low and very low-income households are in areas with less than 15 percent low moderate -income households. Figure 3-9: Candidate Sites — Low/Moderate Income Block Group Analysis Newport Beach AFFH Site Candidates s4 City Boundary Percent Low -and Moderate -Income \/ Persons (2015 ACS 5 -Year) o: 15.01Y. t 30.1%-40.0% s� 40.1%-60.0% 60% �z �c DS � s*N u� o/p!nr nn�sr.c x Uo o Ilk Y - 'Miles NORTH o 1 2 Sources. American Community Survey; HUD Exchange, City of Newport 13—h 5. Analysis of Fair Housing Priorities and Goals To enhance mobility and promote inclusion for protected classes, the chief strategy included in this housing element is to provide sites suitable for affordable housing in high -resource, high opportunity areas, as demonstrated by the analysis of the housing resource sites contained in this section. Other programs that affirmatively further fair housing and implement the AI's recommendations include: Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 71 SS3-519 City of Newport Beach 2021-2029 HOUSING ELEMENT 1. Regional Housing Needs Allocation This section of the Housing Element provides an overview of the resources available to the City to meet their Regional Housing Needs Allocation (RHNA). Residential Sites Inventory Appendix B of the Housing Element includes the required site analysis tables and site information for the vacant and non -vacant properties to meet the City's RHNA need through the 2021-2029 planning period. The following discussions summarize the City's site inventory and rezone plan. Above Moderate- and Moderate -Income Sites For the 2021-2029 planning period, the City's RHNA allocation is 1,050 for moderate income site and 1,409 for above moderate -income sites. The City anticipates growth, via projects already in the approval process, to entirely meet the above moderate income need within the planning period. The City will meet the moderate income need through a combination of existing capacity on residentially zoned land, through the redevelopment of parcels rezoned within the focus areas, and through the development of accessory dwelling units (ADUs). A total of 348 moderate income and 40 above moderate -income units can be accommodated through existing zoning capacity on parcels. By subtracting existing units from maximum potential unit yield per parcel, the City projected additional capacity on several parcels. Each parcel included in the inventory was then vetted for likelihood of redevelopment and to ensure all HCD criteria were met. The required descriptive information for these sites can be found within Appendix B. An additional 106 moderate and above moderate -income units can be accommodated through the development of ADUs throughout the community. This is based on the methodology described within this section and incorporates guidance from HCD's Housing Element Site Inventory Guidebook. A supplemental 4,174 moderate and above moderate -income units can be accommodated through the rezone strategies proposed for six focus areas throughout the City. Originally identified by the Housing Element Update Advisory Committee (HEAUC), the focus areas guided the development of area -specific rezone policies and City actions to ensure that Newport Beach has sufficient capacity to meet the RHNA Allocation for the 6th Cycle. Section 3: Housing Constraints, Resources, and AFFH 72 (DRAFT MARCH 2021) SS3-520 City of Newport Beach 2021-2029 HOUSING ELEMENT ANALYSIS OF THE CITY'S EXISTING CAPACITY AND ZONING Table 3-18: Residential Capacity for Moderate and Above Moderate -Income Sites Significant Zone Max Density Reasonable Density Number of Parcels Acreage Potential Units Moderate Income Sites RM 14 du/ac 13 du/ac 2 9.04 acres 14 units MU -DW 26 du/ac 26 du/ac 5 7.10 acres 187 units MU -MM 26 du/ac 26 du/ac 8 6.25 acres 119 units MU -W2 26 du/ac 26 du/ac 2 1.93 acres 20 units MU-CV/15t' Street 18 du/ac 15 du/ac 2 0.17 acres 2 units Subtotal 17 24.49 acres 340 units Above Moderate -Income Sites MU -W1 5 du/ac 5 du/ac 7 9.17 acres 40 units Subtotal 7 9.17 acres 40 units Total 25 33.66 acres 380 units REASONABLE CAPACITY ASSUMPTION This section describes the methodology developed to determine the site capacity for the moderate and above moderate -income sites. The City assumes that above moderate -income units will develop at a maximum up eight dwelling units per acre, and that moderate -income units will develop at a maximum of 26 dwelling units per acre. Reasonable capacity for sites identified to meet the City's moderate and above moderate need was calculated based on a number of factors, including site size, existing zoning requirements, vacancy and total number of units entitled, and the maximum density achievable for projects within the following zones: + RM — Multiple Residential Zoning District: The RM Zone District is intended to provide for areas appropriate for multi -unit residential developments containing attached or detached dwelling units. The zone permits a density range of 0.0 to 52 dwelling units per acre. + MU -MM — Mixed -Use Mariners' Mile: The MU -MM Zoning District is intended to provide areas for the development of mixed-use structures that vertically integrate residential dwelling units above the ground floor with retail uses including office, restaurant, and retail. The zone permits a density range of 20.1— 26.7 dwelling units per acre. + MU -DW — Mixed -Use Dover/Westcliff: This zoning district applies to properties located in the Dover Drive/Westcliff Drive area. Properties may be developed for professional office or retail uses, or as horizontal or vertical mixed-use projects that integrate multi -unit residential dwelling units with retail and/or office uses. The zone permits a density range of 20.1— 26.7 dwelling units per acre. + MU -W2 — Mixed -Use Water: This zoning district applies to waterfront properties in which marine - related uses may be intermixed with general commercial, visitor -serving commercial and residential dwelling units on the upper floors. This zone permits a density range of up to 15 dwelling units per acre. Section 3: Housing Constraints, Resources, and AFFH 73 (DRAFT MARCH 2021) SS3-521 City of Newport Beach 2021-2029 HOUSING ELEMENT + MU-CV/15th Street — Mixed -Use Cannery Village and 15`h Street: This zoning district applies to areas where it is the intent to establish a cohesively developed district or neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses may include multi -unit dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonresidential uses along the street frontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed-use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots. This zone permits a density range of 20.1— 26.7 dwelling units per acre. + MU-Wi — Mixed -Use Water: This zoning district applies to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. A minimum of fifty (50) percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and visitor -serving land uses are mixed. This zone permits a density range of up to 15 dwelling units per acre. Potential constraints, to the extent they are known, such as environmentally sensitive areas and steep slopes were considered, and deductions made where those factors decreased the net buildable area of a parcel. Additionally, existing units' non -vacant parcels were analyzed to determine the number of existing units currently on the parcel. Replacement of existing units was included as a factor to prevent no net loss of existing housing stock. nezunes to Accommodate the Modera and Above Moderate RHNA In additional to residential use on specific plans and ADUs, the City of Newport Beach has identified 133 sites to be rezones from commercial use to residential use, as well as 90 sites to be rezoned to a higher residential density. The sites for rezone are further detailed in Appendix B and a rezone program is identified in Section 4: Housing Plan. Figure XX displays the focus areas for rezone, accompanied by a corresponding table of strategy information shown below as Table 3-19. Table 3-19: Moderate/Above Moderate -Income Rezone Strategy by Focus Area Potential Moderate Potential Feasible % Projected Rezone Above Focus Area Income Moderate - Acreage (AC) to Redevelop Density Moderate - Affordability Income Units Income Units Airport 162 AC 30% 20% 50 du/ac 485 units 0 units Vicinity Area West Newport 48 AC 20% 20% 45 du/ac 86 units 0 units Mesa Area Dover - Westcliff 14 AC 10% 5% 30 du/ac 2 units 35 units Area Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 74 SS3-522 City of Newport Beach 2021-2029 HOUSING ELEMENT Table 3-19: Moderate/Above Moderate -Income Rezone Strategy by Focus Area Potential Moderate Potential Feasible % Projected Rezone Above Focus Area Income Moderate - Acreage (AC) to Redevelop Density Moderate - Affordability Income Units Income Units Newport 158 AC 25% 5% 45 du/ac 89 units 1515 units Center Area Coyote 22 AC 100% 10% 40 du/ac 88 units 704 units Canyon Area Banning 46 AC 100% 15% 30 du/ac 207 units 962 units Ranch Area TOTAL 450 AC -- -- -- 957 units 3,217 units Development of Non -Vacant Sites and Converting to Residential Uses To analyze the potential for redevelopment of non -vacant sites, the City sent out more than 500 letters to property owners. Responses to the letters were recorded and are included within the inventory of sites within Appendix B. Although a positive response to the redevelopment interest letters does not guaranty the redevelopment of a parcel to residential as a primary use within the planning period, it is a strong indicator of likelihood of redevelopment and is used as sufficient evidence for inclusion within the Adequate Sites Inventory. ACCESSORY DWELLING UNIT PRODUCTION One of the proposed methods for meeting the City's moderate and above moderate RHNA is through the promotion and development of accessory dwelling units (ADUs). A number of State Assembly and Senate Bills were passed in 2019 that promote and remove barriers that may inhibit the development of ADUs within communities. The following is a summary of those bills: + AB 68 and 881 o Prohibit minimum lot size requirements o Cap setback requirements at 4', increasing the size and location opportunities for ADUs o Prohibit the application of lot coverage, FAR, or open space requirements that would prevent an 800 square foot ADU from being developed on a lot o Remove the need for replacement parking when converting an existing garage to an ADU o Limit local discretion in establishing min and max unit size requirements o Mandate a 60 -day review period for ADU applications through a non -discretionary process + SB 13 o Prohibit owner -occupancy requirements for 5 years o Reduce impact fees applicable to ADUs Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 75 SS3-523 City of Newport Beach 2021-2029 HOUSING ELEMENT o Provide a program for homeowners to delay compliance with certain building code requirements that do not relate to health and safety + AB 670 o Prohibits Homeowner's Associations (HOAs) from barring ADUs These bills, as well as other significant legislation relating to ADUs creates a development environment that is likely to increase the number of ADUs developed within Newport Beach over the 2021-2029 planning period. Newport Beach, with a large proportion of single -unit residential properties (many on larger lots), is well-oriented for the development of ADUs. As a result of this legislation, the City expects to approve more ADUs in the 2021-2029 planning period. The City processed three ADUs in 2018, six in 2019 and 55 in 2020. Calculating the average of the three years, assumed at a rate doubled each year during the 6th Cycle, the City assumes a total of 334 ADUs from 2021-2029. Utilizing the Southern California Association of Governments (SCAG) approved ADU affordability assumptions, 228 ADUs will be allocated to the low and very low income RHNA, 100 will be allocated to the City's moderate income RHNA and 6 will be allocated to the above moderate. The complete methodology is outline in Appendix B. Through the Housing Element, Newport Beach commits to creating an ADU tracking program and performing a mid-cycle assessment of their ADU development performance. As stated in HCD guidance, the City may use other justifiable analysis to calculate anticipated ADU performance. This program is detailed in Section 4: Housing Plan. Sites Suitable for Lower Income Housing This section contains a description and listing of the candidate sites identified to meet the Newport Beach's very low and low income RHNA need. A full list of these sites is presented in Appendix B. Projects in the Pipeline and Accessory Dwelling Units The City has identified a number of projects currently in the entitlements process which are likely to be developed during the planning period and count as credit towards the 2021-2029 RHNA allocation. Projects with planned affordable components include: + Newport Airport Village (17 Very Low -Income Units Planned) + Uptown Newport (102 Very Low -Income Units Planned) + Residences at 4400 Von Karman (13 Very Low -Income Units Planned) + Newport Crossings (78 Low -Income Units Planned) The City currently has approved an average of 21 ADUs per year for development between January 1, 2018 and December 30, 2020. HCD guidance states that ADUs may be calculated based on the City's production from January 1, 2018 through December 31, 20210. To calculate a total number of ADUs assumed to be produced from 2021-2029, the average of all ADUs developed from 2018 to 2020 was Section 3: Housing Constraints, Resources, and AFFH 76 (DRAFT MARCH 2021) SS3-524 City of Newport Beach 2021-2029 HOUSING ELEMENT calculated then multiplied by two for each year of the 6th cycle. Through this method, this city identified a total of 334 ADUs assumed for the 8 years. The City of Newport Beach utilized SCAGs affordability assumptions for ADUs in Orange County. This equates to an anticipated ADU development of 334 ADUs over the next 8 years, 228 of which are anticipated to be affordable. The ADUs not designated to meet the City's lower income RHNA need are anticipated to be 100 affordable at moderate income levels and 6 affordable at the above moderate - income level. The City has identified programs within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach. The total anticipated development of Projects in the Pipeline and Accessory Dwelling Units is summarized in Table 3-20 below: Table 3-20: Low and Very Low -Income Remaining Need Very Low Income Low Income RHNA Allocation 1,456 930 Pipeline Projects 43 78 Accessory Dwelling Units 84 144 Remaining Low/Very Low -Income Need 1,326 706 Sites Identified for Rezone to Accommodate Low and Very low After the identification of projects in the pipeline and ADUs to accommodate the City's low and very low RHNA, a remaining 2,032 units must be accommodated to meet the City's RHNA. To account for this remaining need, the City conducted a community -driven process to identify several parcels for inclusion in the Adequate Sites Inventory. This process was led by the Housing Element Update Advisory Committee (HEUAC). To guide the identification of adequate sites, the committee created focus areas Sites identified by the committee and the public to meet the City's very low and low income RHNA were selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres. The 223 parcels are currently zoned as the following: + 133 parcels are zoned commercially + 90 parcels are zoned residentially at a lower density. All parcels are non -vacant and will be rezoned to higher densities (densities are specific to each focus area) able to accommodate the development of lower-income housing. Figure 3-11 below displays the sites identified to accommodate the City's low and very low income RHNA allocation. The Housing Plan section outlines actions the City will take to promote the development of affordable units within the following focus areas: + Airport Vicinity Area + West Newport Mesa Area Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 77 SS3-525 City of Newport Beach 2021-2029 HOUSING ELEMENT + Dover -Westcliff Area + Newport Center Area + Coyote Canyon Area + Banning Ranch Area The key assumptions and unit projections related to each focus area are shown below in Table 3-21 and the focus areas are shown geographically below in Figure 3-10. Table 3-21: Low/Very Low -Income Rezone Strategy by Focus Area Low/Very Low- Potential Feasible %Projected to Focus Area Income Rezone Density Low/Very Low - Acreage (AC) Redevelop Affordability Income Units Airport Vicinity 162 AC 80% 50 du/ac 30% 1,941 units Area West Newport 48 AC 80% 45 du/ac 20% 347 units Mesa Area Dover -Westcliff 14 AC 10% 30 du/ac 10% 4 units Area Newport 158 AC 10% 45 du/ac 25% 178 units Center Area Coyote Canyon 22 AC 10% 40 du/ac 100% 88 units Area Banning Ranch 46 AC 15% 30 du/ac 100% 206 units Area TOTAL 450 AC -- -- -- 2,764 units Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 78 SS3-526 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-10: Focus Areas for Rezones Development of Nonvacant Sites to Accommodate Low and Very Low Income Of the 239 non -vacant sites, 19 were also identified in the 5t" cycle. In accordance with AB 1397 the City will establish a program that permits By -Right development for projects that propose 20 percent of all units to be affordable to low and very low-income units. The program is outline in detail in Section 4: Housing Plan. REGIONAL HOUSING NEEDS ALLOCATION Future Housing Needs Future housing need refers to the share of the regional housing need that has been allocated to the City. The State Department of Housing and Community Development (HCD) supplies a regional housing goal number to the Southern California Association of Governments (SCAG). SCAG is then mandated to allocate the housing goal to city and county jurisdictions in the region through a RHNA Plan. In allocating the region's future housing needs to jurisdictions, SCAG is required to take the following factors into consideration pursuant to Section 65584 of the State Government Code: + Market demand for housing. + Employment opportunities. + Availability of suitable sites and public facilities. + Commuting patterns. Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-79 SS3-527 City of Newport Beach 2021-2029 HOUSING ELEMENT + Type and tenure of housing. + Loss of units in assisted housing developments. + Over -concentration of lower income households; and • Geological and topographical constraints. HCD, through a determination process, allocates units to each region across California. It is then up to each region to determine a methodology and process for allocating units to each jurisdiction within that region. SCAG adopted its final Regional Housing Needs Allocation (RHNA Plan) in February 2021. This RHNA covers an 8 -year planning period (starting in 2021) and addresses housing issues that are related to future growth in the region. The RHNA allocates to each city and county a "fair share" of the region's projected housing needs by household income group. The major goal of the RHNA is to assure a fair distribution of housing among cities and counties within the Southern California region, so that every community provides an opportunity for a mix of housing for all economic segments. Newport Beach's share of the SCAG regional growth allocation is 4,845 new units for the current planning period (2021-2029). Table 3-22, Housing Needs for 2021-2029, indicates the City's RHNA need for the stated planning period. Table 3-22: Housing Needs for 2021-2029 Income Category (% of County AMI) Number of Units Percent Extremely Low (30% or less) 728 units 15% Very Low (31 to 50%)1 728 units 15% Low (51 to 80%) 930 units 19% Moderate (81% to 120%) 1,050 units 22% Above Moderate (Over 120%) 1,409 units 29% Total 4,845 units 100% Note 1: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low-income households (0-30%AMI). In estimating the number of extremely low- income households, a jurisdiction can use 50% of the very low-income allocation or apportion the very low-income figure based on Census data. ADEQUACY OF SITES FOR RHW Newport Beach has identified sites with a capacity to accommodate 4,512 lower income dwelling units, which is in excess of its 2,386 -unit lower income housing need. Sites designated are on parcels that permit residential development as a primary use up to 50 dwelling units per acre. The City of Newport Beach has a total 2021-2029 RHNA allocation of 4,845 units. As demonstrated previously, the City can take credit for 2,815 units currently within the planning process, lowering the total RHNA obligation to 2,632 units as shown in Table 3-23. The Housing Element update lists sites that can accommodate approximately 7,407 additional units, in excess of the required 2,632 units. As described in this section, the City believes that due to recent State legislation and local efforts to promote accessory Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-80 SS3-528 City of Newport Beach 2021-2029 HOUSING ELEMENT living unit production, the City can realistically anticipate the development of 336 ADUs within the 8 -year planning period. Overall, the City has adequate capacity to accommodate its 2021-2029 RHNA. Table 3-23: Summary of RHNA Status and Sites Inventory Extremely Low/ Very Low Income Low Income Moderate Income Above Moderate Income Total 2021-2029 RHNA 1,456 930 1,050 1,409 4,845 RHNA Credit (Units Built) TBD TBD TBD TBD TBD Remaining RHNA 1,456 930 1,050 1,409 4,845 Total RHNA Obligations 1,456 930 1,050 1,409 4,845 Sites Available Projects in the Pipeline 121 0 2,183 2,304 Accessory Dwelling Units 228 100 6 334 Existing Zoning Capacity (No Rezones) 0 342 40 382 Remaining RHNA 2,037 608 -- 2,645 Airport Vicinity Rezone 1,941 485 0 2,426 West Newport Mesa Rezone 347 86 0 433 Dover -Westcliff Rezone 4 2 35 41 Newport Center Rezone 178 89 1,515 1,782 Coyote Canyon Rezone 88 88 704 880 Banning Ranch Rezone 206 207 962 1,375 Total Potential Capacity of Rezones 2,764 957 3,216 6,937 Sites Surplus/Shortfall (+/-) +727 +349 +3,217 1 +4,292 Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-81 SS3-529 City of Newport Beach 2021-2029 HOUSING ELEMENT Figure 3-11: Sites Inventory and RHNA Obligations Summary of Sites Inventory and RHNA Obligations The data and map detailed in Figure 3-11 above shows the City of Newport Beach's ability to meet the 4,845 RHNA allocation in full capacity with a 4,306 -unit buffer. Along with the identifying appropriate sites to meet the current and future housing needs, the City has established a Housing Plan to support its efforts in providing housing opportunities for all income levels in Newport Beach. Financial Resources Providing an adequate supply of decent and affordable housing requires funding from various sources, the City has access to the following finding sources. Section 8 Housing Choice Voucher The Section 8 Housing Choice Voucher program is a Federal government program to assist very low- income families, the elderly, and the disabled with rent subsidy payments in privately owned rental housing units. Section 8 participants can choose any housing that meets the requirements of the program and are not limited to units located within subsidized housing projects. They typically pay 30 to 40 percent of their income for rent and utilities. The Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-82 SS3-530 City of Newport Beach 2021-2029 HOUSING ELEMENT r - — Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors. Community Development Block Grants (CDBG) The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to cities to develop viable urban communities by providing a suitable living environment and by expanding economic opportunities, principally for low- and moderate -income persons (up to 80 percent AMI). CDBG funds can be used for a wide array of activities, including: • Housing rehabilitation. • Lead-based paint screening and abatement. • Acquisition of buildings and land. • Construction or rehabilitation of public facilities and infrastructure, and: • Public services for low income households and those with special needs. According to the Federal regulations, the City of Newport Beach is allowed to spend no more than of 20% of CDBG funding on program administration, and 15% on community services such as senior meal delivery or homeless prevention programs. The remaining amount must be used other eligible projects that meet national objectives that principally benefit low- and moderate -income households or the disabled. HUD requires Newport Beach to complete a Five -Year Consolidated Plan (Con Plan) to receive HUD's formula grant programs. The Con Plan identifies the City's 5 -year strategies related to priority needs in housing, homelessness, community development, and economic development. It also identifies short - and long-term goals and objectives, strategies, and timetables for achieving its goals. Developed with the input of citizens and community groups, the Con Plan serves four basic functions: • It is a planning document for the community built upon public participation and input. • It is the application for funds under the CDBG Program. • It articulates local priorities. • It is a five-year strategy the City will follow in implementing HUD programs. Additionally, HUD requires the City to prepare a One -Year Action Plan for each of the five years covered by the Con Plan. The City of Newport Beach reports a total of $372,831 CDBG funds from HUD in the 2020- 2021 Action Plan. In same report, the City reports an anticipated $2.07 million of CDBG resources during the five-year period from July 1, 2020, through June 30, 2025. HOME Investment Partnership Program (HOME) The HOME program provides federal funds for the development and rehabilitation of affordable rental and ownership housing for households with incomes not exceeding 80 percent of area median income. The program gives local governments the flexibility to fund a wide range of affordable housing activities through housing partnerships with private industry and non-profit organizations. HOME funds can be used for activities that promote affordable rental housing and homeownership by low income households. The City of Newport Beach does not currently receive HOME funds. Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-83 SS3-531 City of Newport Beach 2021-2029 HOUSING ELEMENT 3. Opportunities for Energy Conservation Energy Use and Providers The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating and cooling. The high cost of energy demands that efforts be taken to reduce or minimize the overall level of urban energy consumption. Energy conservation is important in preserving non-renewable fuels to ensure that these resources are available for use by future generations. There are also a number of benefits associated with energy conservation including improved air quality and lower energy costs. Southern California Gas Company (SCG) provides natural gas service for the City. Natural gas is a "fossil fuel" and is a non-renewable resource. Most of the major natural gas transmission pipelines within the City are owned and operated by SCG. SCG has the capacity and resources to deliver gas except in certain situations that are noted in state law. As development occurs, SCG will continue to extend its service to accommodate development and supply the necessary gas lines. Electricity is provided on an as -needed basis to customers within existing structures in the City. Southern California Edison Company (SCE) is the distribution provider for electricity in Newport Beach. Currently, SCE has no immediate plans for expansion of infrastructure, as most of the City is built out. However, every year SCE expands and improves existing facilities according to demand cnvigy Lonservatior, The City's energy goals, stated in the Natural Resources Element of the General Plan, make every effort to conserve energy in the City thus reducing dependence on fossil fuels. The City's policies relating to energy include increasing energy efficiency in City facilities and operations and in private developments and reducing the City's reliance on fossil fuels. In order to reach the City's goals, objectives include the following: • Develop incentives that encourage the use of energy conservation strategies by private and public developments, • Promote energy-efficient design features, • Promote or provide incentives for "Green Building" programs that go beyond the requirements of Title 24 of the California Administrative Code and encourage energy efficient design elements as appropriate to achieve "green building" status; and, • Provide incentives for implementing Leadership in Environmental and Energy Design (LEED) certified building such as fee waivers, bonus densities, and/or awards recognition programs.12 The City of Newport Beach's Energy Action Plan (EAP) is identified as a roadmap for the City of Newport Beach to reduce GHG through reductions in energy used in facility buildings and operations. According to the City's EAP, the City's long-term vision for energy efficiency focusses on the following objectives: • Reduce the City's carbon footprint and its adverse effect on the environment • Conserve energy at the local government facilities • Raise energy conservation awareness in local community and improve the quality of life 12 City of Newport Beach Natural Resource Element, 2006. Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-84 SS3-532 City of Newport Beach 2021-2029 HOUSING ELEMENT s .�, � A. v t7.4 - Currently, the City of Newport Beach has developed the "Building Green" construction manual, created by the City's Task Force on Green Development. The City has also enacted a City-wide streetlight LED replacement program, replacing 400 units to date, and is continuing marketing. Education, and outreach to the community regarding every efficiency and conservation. Section 3: Housing Constraints, Resources, and AFFH (DRAFT MARCH 2021) 3-85 SS3-533 - - A4 ,:: i � iI ��' �i"'•�� arc �„ n 117 4 'xn J Item Vib- 167 IFx i �. _ _r z .A gage r not pri :) n eve nacres •IZk, :1 9 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies, and programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goal is to Inspire a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City's share of the affordable housing needs for the Orange County region. The RHNA quantifies Newport Beach's local share housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The current 2020 MFI (for an assumed family of 4 persons) for Orange County is $103,000. The MFI may change periodically, as it is updated on an annual basis. The City's 2021-2029 RHNA growth need of 4,845 housing units is allocated into the following income categories: • 1,456 units - Very low income (0-50% County MFI) • 930 units - Low income (51-80% of County MFI) • 1,050 units - Moderate income (81-120% of County MFI) • 1,409 units - Above moderate income (120% or more of County MFI) A. Housing Goals The City of Newport Beach has identified the following housing goals as part of this Housing Element Update: Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA. Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock. Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments, while protecting the quality of life in the City. (These goals are overly broad and there should be at least some type of consideration of other equally important issues.) Housing Goal #4: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Goal #5: Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Section 4: Housing Plan (DRAFT MARCH 2021) 4-2 SS3-535 City of Newport Beach 2021-2029 HOUSING ELEMENT Housing Goal #6: Housing opportunities for special needs populations. Housing Goal #7: Equal housing opportunities in the City for all people. Housing Goal #8: Effective and responsive housing programs and policies. - - -�,..; ...�� • _ =: ler_�— The goals listed above are described below and on following pages with accompanying policies and programs to achieve them. Housing Policies and Program Actions This Housing Element expresses the Newport Beach community's overall housing goals and supporting policies, and programs actions to achieve them. The stated Housing Program Actions are based on a review of past performance of the 5th Cycle Housing Element, analysis of current constraints and resources, and input from Newport Beach residents and stakeholders. Housing Goal #1 Provision of adequate sites to accommodate projected housing unit growth needs. Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories to serve the needs of the entire community IMPLEMENTATION ACTIONS Adequate Sites to Accommodate 2021-2029 RHNA The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the City's Housing Element Update Advisory Committee, interested residents at a variety of workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that has been determined as "feasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. Not sure I would call the site evaluation rigorous as the only thing really considered at this point is the size and/or if the site could potentially be converted to residential uses. As pert 0A*wbAabAi6riviadequate sites, the City has comprehen6i6 btimw[opportunity sites citywide and liavWd§VKjk0ebt ptjwry areas of opportunity: • Coyote Canyon • Dover/Westcliff • • Newport Center • Section 4: Housing Plan (DRAFT MARCH 2021) 5th Cycle Housing Element Sites Accessory Dwelling Units 4-3 SS3-536 City of Newport Beach 2021-2029 HOUSING ELEMENT In addition, the City has identified several opportunity sites in the 5th Cycle that will be utilized in the 6th Cycle Housing Element. These sites will require additional policy considerations as stated in this Policy Program These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. Policy Action 1A: Airport Environs Sub Area The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport Environs area for 162 acres of land to provide for the accommodation of at least 2,426 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of variety of residential product types at a permitted density of 50 dwelling units per acre. Implementation of this program will also include development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions. . Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1B: Newport Mesa The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Mesa area for 48 acres of land to provide for the accommodation of at least 433 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of variety of residential product types at a permitted density of 45 dwelling units per acre. Implementation of this program will also include development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund SS3-537 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action IC: Newport Center The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 158 acres of land to provide for the accommodation of at least 1,782 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of variety of residential product types at a permitted density of 45 dwelling units per acre. Implementation of this program will also provide for development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1D: Dover/ Westcliff The City will establish an overlay, or similar rezoning strategy, in the Dover / Westcliff an area for 14 acres of land to provide for the accommodation of at least 41 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will permit development of variety of residential product types at a permitted density of 30 dwelling units per acre. Implementation of this program will also include development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1E: Banning Ranch The City has identified the Banning Ranch area as a potential site to accommodate future housing need. The City has previously approved housing development on this site, but the approved project was subsequently denied by the California Coastal Commission. The City believes this site is still a viable opportunity to provide housing for a variety of income levels and will continue to support development potential in the Banning Ranch Area. Section 4: Housing Plan (DRAFT MARCH 2021) 4-5 SS3-538 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: The site is currently within the City's Sphere of Influence. The City will work collaboratively with the County of Orange for annexation of the property and pursue entitlement of the area to provide opportunities for up to 1,357 units at an average density of 30 dwelling units per acre. Implementation of this program will also include development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. Timeframe: Complete necessary Code, General Plan and LCP Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action IF: Coyote Canyon The Coyote Canyon area is a closed landfill that is owned and managed by the County or Orange. The area is of substantial acreage and has limitation of growth and development due to various environmental considerations. The City evaluated the entire landfill area and has concluded that 22 acres of the area are not subject to environmental constraints. Additionally, the County has expressed interest in participating in a transfer of a portion of the property to accommodate residential opportunity. The City will rezone at least 22 acres of land on the Coyote Canyon site, as shown in Appendix B, to accommodate up to 880 housing units at an average density of 40 dwelling units per acre. Implementation of this program will also include development standards, entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1G: 5t" Cycle Housing Element Sites The City has identified 28 acres of sites in its sites inventory contained in Appendix B of this Housing Element that contain infill sites that were identified in the 5th Cycle Housing Element. To comply with State law, the City will amend Title 20 of the Newport Beach Municipal Code (NBMC) to permit residential uses by -right for housing development projects in which at least 20 -percent of the units are affordable to lower income households. For the purpose of implementation of this program, by -right shall mean the City will not require a Site Development Review, Conditional Use Permit, a Planned Unit Development Permit, or other discretionary permit application that what would constitute a "project" as described in Section 21100 of the Public Resources Code. For sites in the coastal zone, the City will continue to require coastal development permits to determine compliance with the City's certified Local Coastal Program. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-6 SS3-539 City of Newport Beach 2021-2029 HOUSING ELEMENT �A_ Policy Action 1H: Accessory Dwelling Unit Cons truction(shouldn't this include JADUs) The City of Newport Beach believes Accessory Dwelling Units (ADUs) are a demonstrated method to provide affordable housing in the City. Due to recent legislation, the ability to entitle and construct ADUs has increased significantly. The City recognizes the significance of this legislation as evidenced by a marked increase in ADU permit applications. Due to this legislation, the City believes aggressive support for ADU construction will result in increased opportunities for housing including affordable units. The City will aggressively support and accommodate the construction of at least 336 ADUs by a variety of methods, including but not limited to: (The ADUs should be closer to 800 - we can do better than 336) • Developing a implementing a public awareness campaign for construction of ADUs with a systematic approach utilizing all forms of media and outreach distribution • Preparing and maintaining a user-friendly website committed to information related to codes, processes, and incentives pertaining to the development of ADUs and JADUs in the City. • Evaluating and assessing the appropriateness of additional incentives to encourage ADU development. • and implement Developing permit -ready standard plans to permit new ADU and JADU construction to minimize design costs, expedite permit processing, and provide development certainty for property owners. Policy Action 11: Accessory Dwelling Units Monitoring Program (include JADUs?) The City will establish an ADU Monitoring Program during the 2021-2029 Housing Element Planning Perioc to formally track ADU development. The analysis will track applications for ADUs, location, and other important features. The intent of the Monitoring Program is to track progress in meeting 2021-2029 ADU construction goals and to evaluate the need to adjust programs and policies if the pace of construction is less than anticipated. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1J: Accessory Dwelling Units Amnesty Program (include JADUs too) The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to legalize the ADUs during the 2021-2029 planning period. The intent of the Amnesty Program's is permit, inspect, and legalize existing unpermitted ADUs of any size. Timeframe: Develop Amnesty Program within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-7 SS3-540 City of Newport Beach 2021-2029 HOUSING ELEMENT ler_ ,..; ...�� • _ =: Policy Action 1K: Inclusionary Housing The City has a substantial RHNA obligation of affordable housing that will be challenged by project development costs to accommodate them. Therefore, the City must evaluate a variety of policy prescriptions that will encourage and facilitate the construction of below market -rate workforce housing. The City will investigate inclusionary housing policy options as a means to provide a variety of housing types and opportunities for very low, low- and moderate -income households in Newport Beach. The City will adopt an interim inclusionary policy and then assess and analyze a variety of inclusionary housing policy options as appropriate. Based upon this assessment, the City will determine the appropriateness and application of inclusionary policies, and adopt policies, programs or regulations addressing inclusionary housing. The City has determined that a base inclusionary requirement of 15-percnt percent for new residential development to be affordable to very low, low- and moderate -income households is appropriate. Applicability of this requirement will not be limited to projects of a certain size. Timeframe: Adopt interim inclusionary policy within 6 months of Housing Element adoption. Evaluate Inclusionary Options within 24 months of Housing Element adoption. Adopt Inclusionary Policies, as appropriate within 36 months of Housing Element Adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #2 Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock. Housing Policy 2.1: Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically feasible. IMPLEMENTATION ACTIONS Policy Action 2A: Neighborhood Preservation The City will continue to improve housing quality and prevent deterioration of existing neighborhoods by strictly enforcing applicable Building Code, Fire Code, and Zoning Code regulations and abating Code violations and nuisances. The City of Newport Beach will continue to prepare a quarterly report on code enforcement activities in the 6t" cycle. Timeframe: Ongoing, Semi -Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-8 SS3-541 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action 2B: Residential Building Record Program The City will maintain and continue to implement the Residential Building Records (RBR) program to reduce and prevent violations of building and zoning ordinances by providing a report to the all parties involved in a transaction of sale of residential properties, and providing an opportunity to inspect properties to identify potentially hazardous conditions, resources permitting. The report provides information as to permitted and illegal uses/construction, and verification that buildings meet applicable zoning and building requirements The City will continue to implement program as RBR applications are submitted to the City. The City will continue to promote the availability of program to the public and local real estate professionals by maintaining information on website and developing brochure and other promotional materials. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3C: Preservation of At -Risk Units The City shall maintain registration as a Qualified Preservation Entity with HCD to ensure that the City will receive notices from all owners intending to opt out of their Section 8 contracts and/or prepay their HUD - insured mortgages. The City will consult with the property owners and potential preservation organizations regarding the potential use of Community Development Block Grant (CDBG) funds and/or Affordable Housing Fund monies to maintain affordable housing opportunities in those developments listed in Table 3-17 of Chapter 3 of this Housing Element. The City may assist in the non-profit acquisition of the units to ensure long-term affordability, upon receiving notice that a property owner of an existing affordable housing development intends to convert the units to a market -rate development. The City will maintain registration as a Qualified Preservation entity with HCD and continuously the implement policy as notices are received from property owners in the 6th Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #3 A variety of housing types, designs, and opportunities for all social and economic segments. Housing Policy 3.1: Encourage preservation of existing and provision of new housing affordable to extremely low-, very low-, low-, and moderate -income households. Housing Policy 3.2: Encourage housing developments to offer a wide spectrum of housing choices, designs, and configurations. Section 4: Housing Plan (DRAFT MARCH 2021) 4-9 SS3-542 City of Newport Beach 2021-2029 HOUSING ELEMENT 1 IMPLEMENTATION ACTIONS ler_ ,..; ...�� • _ =: �t_. Policy Action 3A: Objective Design Standards State Housing law includes various exemptions for projects with an affordable housing component, which limits the City's ability to apply discretionary design review requirements to certain residential projects. State Housing law specifies having objective design standards available to apply to housing projects where the City's discretion over design review is otherwise preempted per State law. The City of Newport Beach will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include affordable housing. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards with appropriate objective standards to support the type and density of housing it is intended to allow. Policy Action 3B: SB 35 Streamlining The City will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35, Chapter 366 Statues 2017. These requirements apply at any point in time when the City does not meet the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA)., the City will process development projects with at least 50 percent affordable units through a streamlined permit process (i.e., 90 days for projects with up to 150 units). All projects covered by SB 35 are still subject to the objective development standards of the Newport Beach Municipal Code that includes the Building and Fire Codes. However, qualifying projects cannot be subject to Design Review or public hearings; and in many cases the City cannot require parking. Per SB 35 requirements, no parking requirements may be imposed on a SB 35 qualified streamlining project if it is located: 1. within a half -mile of public transit; 2. within an architecturally and historically significant historic district; 3. in an area where on -street parking permits are required but not offered to the occupants of the development; or 4. where there is a car -share vehicle located within one block of the proposed project. One parking space per unit may be required of all other SB 35 projects. The City currently has consistently exceeded RHNA performance goals during the 5th Cycle. The City's status regarding SB 35 could change during the 6th Cycle dependent upon RHNA progress throughout the 2021-2029 Planning Period. Timeframe: Adopt procedures within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-10 SS3-543 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action 3C: Preservation of Rental Opportunities The City will continue to maintain rental opportunities by restricting conversions, demolition and reconstruction/reconfiguration of rental units to condominiums in a development containing 15 or more units unless the vacancy rate in Newport Beach for rental housing is an average of 5 percent or higher for four (4) consecutive quarters, and unless the property owner complies with condominium conversion regulations contained in Newport Beach Municipal Code Chapter 19.64. The City will complete a vacancy rate survey upon submittal of condominium conversion application of 15 or more units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3D: Priority of Affordable Housing The City will continue to take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with lower- and moderate -income housing requirements. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3E: Mortgage Revenue Bonds The City will continue to participate with the County of Orange in the issuance of tax-exempt mortgage revenue bonds to facilitate and assist in financing, development, and construction of housing affordable to low and moderate -income households. The City will continue to implement program per project submittal as the developer applies for these bonds. The City will adjust this policy to include the promotion of available bonds to the public and developers in the 6t" Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3F: Annual Reporting Program The City will conduct an annual compliance -monitoring program for units required to be occupied by very low-, low-, and moderate -income households. The City of Newport will complete review by the last quarter of each year and report within the annual General Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing. Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-11 SS3-544 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action 3G: Entitlement Assistance The City will provide entitlement assistance, expedited entitlement processing, and waive application processing fees for developments in which 5 percent of units are affordable to extremely low-income households. To be eligible for a fee waiver, the units shall be subject to an affordability covenant for a minimum duration of 55 years . The affordable units provided shall be granted a waiver of park in -lieu fees (if applicable) and City traffic fair share fees. The City will continue to implement this program as affordable housing projects are submitted to the City in the 6th cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3H: Prioritization of Affordable Housing Funds The City will continue to give highest priority for use of Affordable Housing Fund monies to affordable housing developments providing units affordable to extremely low-income households. The City will continue to implement program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: Affordable Housing Fund Policy Action 31: Public Information About Affordable Housing The City will continue to maintain a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. Provide a copy of this brochure at the Planning Counter, the website and also provide a copy to potential developers and other interested parties. The City will update the brochure as needed to provide updated information regarding incentives including updated fees and a reference to the most up to date Site Analysis and Inventory. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-12 SS3-545 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action 3J: Priority in Kind Assistance for Affordability The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant (CDBG) funds or the City's Affordable Housing Fund. The City will continue to implement program as housing projects are submitted to the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3K: Coastal Zone Development Affordability The City shall follow Government Code Section 65590 and implement Municipal Code Titles 20.34 and 2134 "Conversion or Demolition of Affordable Housing" for new developments proposed in the Coastal Zone areas of the City. All required affordable units shall have restrictions to maintain their affordability for a minimum of 55 years. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3L: Proactive Education and Outreach to Prospective Developers The City will continue to advise and educate existing landowners and prospective developers of affordable housing development opportunities available within Banning Ranch, the Airport Area, West Newport Mesa, Newport Center, Mariners' Mile, and Balboa Peninsula areas. The City of Newport Beach will continue to implement program as prospective developers contact City seeking development information. The City will maintain designated staff persons that can be contacted to provide housing opportunity information and incentives for development of affordable housing within the 6th cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3M: Regional Coordination of Housing Issues The City will continue to participate in other programs that assist production of housing. The City will attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock in the 6th cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-13 SS3-546 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 3N: Housing Impact Studies The City will continue to study housing impacts of proposed larger -scale, significant commercial/industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the "Charter Section 423" initiative. The City will continue to implement program as major commercial/industrial projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #4 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Policy 4.1: Mitigate potential governmental constraints to housing production and affordability by increasing the City's role in facilitating construction of market -rate housing and affordable housing for all income groups. Housing Policy 4.2: Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. IMPLciviENTATI01v HL i i0rV_ Policy Action 4A: Affirmatively Furthering Fair Housing Pursuant to AB 686, Chapter 958, Statutes 2018, the City will affirmatively further fair housing by taking meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected classes, as defined by State law. To accomplish this, the City or designated contracted organization will collaborate with local and regional organizations to review any housing discrimination complaints, assist in dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and resolution. Section 3 of this Housing Element contains an analysis of fair housing activities in Newport Beach and the Orange County region. The analysis found that: ► The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while there are racial and ethnic groups with higher levels of segregation Section 4: Housing Plan (DRAFT MARCH 2021) 4-14 SS3-547 City of Newport Beach. 2021-2029 HOUSING ELEMENT - than others within Newport Beach, none meet the standard score to identify segregated groups. ► The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area. However, one R/ECAP was identified in the neighboring City of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. ► The UC Davis Regional Opportunity Index shows that most residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. ► The analysis of the TCAC/HCD opportunity Area Maps shows that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top 40 percent in the region in terms of areas that lower-income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. ► The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally, the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). The City will continue to collaborate with the community, stakeholders, and appropriate organizations to address potential constraints to fair housing. This may include, but not limited to: • Analysis and identification of barriers to entry into homeownership or rental opportunities, • Review of historic policies or restrictions that may have prevented and/or may still prevent disadvantaged groups from locating in Newport Beach • Specific actions that contribute to Newport Beach's ability to foster a more inclusive community to all racial, social, and economic groups. Timeframe: Ongoing 2021-2029 Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-15 SS3-548 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: Policy Action 4B: Streamlined Project Review The City will provide a streamlined "fast-track" development review process for proposed affordable housing developments. The City of Newport will continue to implement this program as affordable housing projects are submitted to the City in the 6th Cycle. Timeframe: Evaluate program features within 24 months, Adopt updated procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4C: Density Bonus and Incentives for Affordable Housing The City will update its Density Bonus Ordinance to be consistent with State Law, as amended. Additionally, the City shall either grant a density bonus as required by state law if requested, or provide other incentives of equivalent financial value when a residential developer agrees to construct housing for persons and families of very low, low, and moderate income above mandated requirements. The City will continue to implement provisions of Chapter 20.32, as amended (Density Bonus) of the Zoning Code as housing projects are submitted to the City during the 6th Cycle. The City will further encourage affordable housing and the potential use of density bonus statutes to accommodate additional affordable units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4D: List of Pre -Approved Development Incentives The City will develop a pre -approved list of incentives and qualifications for such incentives to promote the development of affordable housing. Such incentives include the waiver of application and development fees or modification to development standards (e.g., setbacks, lot coverage, etc.). The City will continue to work with the Affordable Housing Task Force to develop the list within the 6th Cycle. Timeframe: Evaluate program features within 24 months, Adopt procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4E: Airport Area Policy Exceptions for Affordable Housing The City recognizes that General Plan Policy LU6.15.6 may result in a potential constraint to the development of affordable housing in the Airport Area, and as a result, the City shall maintain an exception to the minimum 10 -acre village requirement for projects that include a minimum of 30 percent of the units affordable to lower income households. It is recognized that allowing a smaller scale development within an established commercial and industrial area may result in land use compatibility problems and result in a residential development that does not provide sufficient amenities (i.e. parks) and/or necessary improvements (i.e. pedestrian walkways). Therefore, it is imperative that the exception includes Section 4: Housing Plan (DRAFT MARCH 2021) 4-16 SS3-549 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: provisions for adequate amenities, design considerations for the future integration into a larger residential village, and a requirement to ensure collaboration with future developers in the area. The City of Newport Beach will maintain the exception and continue to implement this program as projects are submitted to the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4F: Encourage Development of Opportunity Sites The City will continue to encourage and facilitate residential and mixed-use development on sites listed in Appendix B by providing technical assistance to interested developers with site identification and entitlement processing. The City will continue to support developers funding applications from other agencies and programs. The City shall post the Sites Inventory, as showing in Appendix B on the City's webpage and produce marketing materials for residential and mixed-use opportunity sites, and it will equally encourage and market the sites for both for -sale development and rental development. The City shall educate developers of the benefits of density bonuses and related incentives, identify potential funding opportunities, offer expedited entitlement processing, and offer fee waivers and/or deferrals to encourage the development of affordable housing within residential and mixed-use developments. The City will continuously implement program as housing projects are submitted to the City. Review and update as necessary the Site Inventory and provide information to interested developers. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4G: Annual RHNA Sites Inventory Monitoring The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual basis and report the success of strategies to encourage residential development in its Annual Progress Reports required pursuant to Government Code 65400. The City of Newport will respond to market conditions and will revise or add additional sites where appropriate or add additional incentives, if identified strategies are not successful in generating development interest. The City will include the report in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-17 SS3-550 City of Newport Beach 2021-2029 HOUSING ELEMENT Policy Action 4H: Definition of Family Pursuant to State law, the City will update, as appropriate, the definition of "family" and "single - housekeeping unit" and "Dwelling, single unit" to ensure compliance with all federal and state fair housing laws. To comply with State law, the definitions should not distinguish between related and unrelated persons and should not impose limitations on the number of people that may constitute a family. Timeframe: Complete Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #5 Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Housing Policy 5.1: Continue or undertake the following programs to mitigate potential loss of "at risk" units due to conversion to market -rate units. These efforts utilize existing City and local resources. They include efforts to secure additional resources from public and private sectors should they become available. Housing Policy 5.2: Improve energy efficiency of all housing unit types (including mobile homes). IMPLEMENTATION ACTION:, Policy Action 5A: Preservation of Affordability Covenants The City will contact owners of affordable units approaching the expiration of affordability covenants to obtain information regarding their plans for continuing affordability on their properties, inform them of financial resources available, and to encourage the extension of the affordability agreements for the developments listed beyond the years noted. The City will conduct an annual compliance monitoring program and a contact list shall be maintained on City website and updated annually during the 6th Cycle Timeframe: Ongoing, as necessary Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-18 SS3-551 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: �— Policy Action 5B: Section 8 Participation The City shall maintain information on the City's website and prepare written communication for tenants and other interested parties about Orange County Housing Authority Section 8 opportunities and to assist tenants and prospective tenants acquire additional understanding of housing law and related policy issues. The City will attend quarterly OCHA (Cities Advisory Committee) that provide updates on OCHA Section 8 waiting list and housing opportunities to ensure information provided on City website is up to date. If Section 8 waiting list is opened, promote the availability of the program through marketing materials made available to the public. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5D: Incentivize for Preserving of Affordability Covenants The City will investigate the potential for providing additional modify its current policy to incentivize to property owners for the maintenance of the affordability of units on their property during the 6t" Cycle. Timeframe: Investigate and adopt incentives, as appropriate, within 24 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5E: Mobile Home Park Conversions The City will continue to employ the provisions of NBMC Title 20 provision of the Mobile Home Park Overlay to maintain and protect mobile home parks in a stable environment with a desirable residential character. The City will review the existing provisions of the Mobile Home Park Overlay for consistency with State law in accordance with Government Code Section 65863.7. The City will continue to implement the program as projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5F: Orange County Housing Authority Advisory Committee The City of Newport Beach will continue to participate as a member of the Orange County Housing Authority (OCHA) Advisory Committee and work in cooperation with the OCHA to provide Section 8 Rental Housing Assistance to residents of the community. The City will continue to attend quarterly OCHA (Cities Advisory Committee). Continue to maintain information on City's website informing landlords of the program benefits of accepting Section 8 Certificate holders. The City will, in cooperation with the Housing Authority, recommend and request use of modified fair - market rent limits to increase the number of housing units within the City that will be eligible to participate Section 4: Housing Plan (DRAFT MARCH 2021) 4-19 SS3-552 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: in the Section 8 program. The Newport Beach Planning Division will prepare and implement a publicity program to educate and encourage landlords within the City to rent their units to Section 8 Certificate holders, and to make very low-income households aware of availability of the Section 8 Rental Housing Assistance Program. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5G: Water Efficiency for Residential Projects The City will continue to implement and enforce the Water Efficient Landscape Ordinance and Landscape and Irrigation Design Standards in compliance with AB 1881 (Chapter 559 Statutes 2006). The ordinance establishes standards for planning, designing, installing, and maintaining and managing water -efficient landscapes in new construction and rehabilitated projects. The City will continue to implement the program as housing projects are submitted to the City. The City will also encourage the retrofit of existing residential developments to install water efficient appliances and fixtures. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5H: Energy Efficiency in Residential Projects The City of Newport Beach will continue to require that any affordable housing developments that receive City assistance from Community Development Block Grant (CDBG) funds or from the City's Affordable Housing Fund shall be required, to the extent feasible, include installation of energy efficient appliances and devices that will contribute to reduced housing costs for future occupants of the units. The City will continue to implement program as housing projects are awarded funds from the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund & Community Development Block Grant (CDBG) funds Housing Goal #6 Housing opportunities for special needs populations. Housing Policy 6.1: Encourage approval of housing opportunities for senior citizens and other special needs populations. Section 4: Housing Plan (DRAFT MARCH 2021) 4-20 SS3-553 City of Newport Beach 2021-2029 HOUSING ELEMENT IMPLEMENTATION ACTIONS 11W *Orml �— Policy Action 6A: Homeless Program Assistance In the 5th Cycle, the City was successful in providing funding to local organizations for providing shelter and services the individuals experiencing homelessness. The City will continue to apply annually for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to subrecipients who provide shelter and other services for the homeless as well as submit Annual Action Plan to HUD in May of each year. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6B: Repair Loans and Grant Programs for Seniors, Persons with Physical and Development Disabilities and Lower Income Households The City, in partnership with OASIS Senior Center and Habitat for Humanity Orange County, has developed a Senior Home Repair Assistance Program (SHARP) that is aimed at assisting low income seniors in need of critical home repair or modifications due to accessibility needs, safety concerns, health and well-being. The program is available to homeowners aged 60 and older who fall withing the 501h percentile of the Orange County median income. Additionally, The City will continue to cooperate with the Orange County Housing Authority to pursue establishment of a Senior/Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. The City will continue to attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6C: Leverage CDGB and other Federal Formula Grant Funding The City receives annual allocation of CDBG and Funds for use in a variety of housing -related activities. The City shall make every effort to leverage these annual funds from various agencies to further the City's housing goals. These may include, but are not limited to, the follow State, Regional and private resources: Section 4: Housing Plan (DRAFT MARCH 2021) 4-21 SS3-554 City of Newport Beach 2021-2029 HOUSING ELEMENT State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program • Multifamily Housing Program (MHP) • Housing Related Parks Grant • CaIHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Regional Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding • Private Contributions • Public -Private Partnerships In addition, the City of Newport Beach will continue to maintain a list of "Public and Private Resources Available for Housing and Community Development Activities" and maintain a list of resources on City website and update as necessary in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6D: Child Daycare Facilities The City will continue to encourage the development of day care centers as a component of new affordable housing developments and grant additional incentives in conjunction with the review and approval of density bonus projects pursuant to NBMC Chapter 20.32 (Density Bonus). Timeframe: Modify Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6E: Housing Assistance for Seniors The City of Newport Beach was successful in assisting the funding of senior housing services through the 5th Cycle including Atria, Vivante and Harbor Pointe senior housing developments . The City shall continue to encourage senior citizen independence through the promotion of housing and services related to in - Section 4: Housing Plan (DRAFT MARCH 2021) 4-22 SS3-555 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ler_ -�,..; � ...�� • _ =: home care, meal programs, and counseling, and maintain a senior center that affords seniors opportunities to live healthy, active, and productive lives in the City. The City will encourage and approve senior housing developments if there is a market demand provided the projects include appropriate support services including transportation. Projects that provide housing and services for low- and moderate -income seniors shall take precedence over market -rate senior housing. The City will continue to provide social services, support groups, health screenings, fitness classes, and educational services at the City's OASIS Senior Center or other facilities. Offer affordable ride -share transportation and meal services to seniors who are unable to drive and/or prepare their own meals or dine out and have little assistance in obtaining adequate meals during the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6F: Emergency Shelters, Transitional and Supportive Housing To comply with State law, the City of Newport Beach will amend certain sections of its Municipal Code to address the following requirements: • Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753, Statues 2018), the City of Newport Beach will amend its Municipal Code to permit supportive housing as a use permitted by right in all zones where multiple family and mixed-use development is permitted. • Emergency and Transitional Housing Act of 2019 (AB 139) —The City will update its Municipal Code to comply with the requirements of Gov Code 65583 to address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions. • Amend the City of Newport Beach Municipal Code to comply with the definitions for "Supportive Housing", Supportive Services", "Target Population" consistent with applicable sections the California Government Code. • Amend the Newport Beach Municipal Code to ensure Emergency Shelters, Transitional and Supportive Housing are permitted in appropriate zones, consistent with State law. Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-23 SS3-556 City of Newport Beach 2021-2029 HOUSING ELEMENT Housing Goal #7 Equal housing opportunities in the City for all people. Housing Policy 6.1: Support fair and equal housing opportunities, and environmental justice considerations for all housing opportunities in the City. ii✓II-'Lciviciv iA IIUiv HL.IIUNJ Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers State law has been updated to require approval 'by right' of supportive housing with up to 50 units and low barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are generally defined as service -enriched shelters focused on the transition of persons into permanent housing. Low barrier navigation centers provide temporary living facilities will persons experiencing homelessness to income, public benefits, health services, shelter, and housing. (fix this sentence - it doesn't make sense). To comply with State law, the City of Newport Beach will adopt policies, procedures, and regulations for processing this type of use as to establish a non -discretionary local permit approval process must be provided (delete) to accommodate supportive housing and lower barrier navigation centers per State law. In the interim, any submitted application for this use type will be processed in accordance with State law. The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted policies. Should any amendments be warranted to existing policies pursuant to State law, the City will modify its existing policies, as appropriate. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7B: Transitional and Supportive Housing In compliance with Senate Bill 2 (Chapter 364, Statutes 2017)and SB 745 Chapter 185, Statutes 2013 )the City will ensure the Zoning Code is amended to encourage and facilitates emergency shelters and limits the denial of emergency shelters and transitional and supportive housing under the Housing Accountability Act. This Program would permit transitional and supportive housing by -right in all zones allowing residential uses, subject only to those regulations that apply to other residential uses of the same type in the same zone. In addition, the Zoning Code will be amended to define "supportive housing', "target population" and "transitional housing" pursuant to state law. The City will continue to monitor the inventory of sites appropriate to accommodate transitional and supportive housing and will work with the appropriate organizations to ensure the needs of homeless and extremely low-income residents are met. The City if committed to prioritizing funding and other available incentives for projects that provide housing for homeless and extremely low-income residents whenever possible. Section 4: Housing Plan (DRAFT MARCH 2021) 4-24 SS3-557 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund - - ler_ -�,..; � ...�� • _ =: Policy Action 7C: Housing for Persons with Developmental Disabilities The housing needs of persons with developmental disabilities are typically not fully addressed by local zoning regulations. Persons with disabilities may require, in addition to basic affordability, slight modifications to existing units, and in some instances, a varying range of supportive housing facilities. To accommodate residents with developmental disabilities, the City will review and prioritize housing construction and rehabilitation including supportive services targeted for persons with developmental disabilities. Newport Beach will also explore the granting of regulatory incentives, such as expedited permit processing, and fee waivers and deferrals, to projects targeted for persons with developmental disabilities. To further facilitate the development of units to accommodate persons with developmental disabilities, the City will encourage development of projects targeted for special needs groups. As housing is developed or identified, Newport Beach will collaborate with the Regional Center of Orange County (RCOC) to implement an outreach program informing families within the City of housing and services available for persons with developmental disabilities. The City will provide information at City Hall and on the City's website. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7D: Fair Housing Services The City was successful in reaching out to the community about fair housing services during the 5th Cycle. The City of Newport Beach will continue to contract with an appropriate fair housing service agency for the provision of fair housing services for Newport Beach residents. The City will also work with the fair housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing document required by HUD. The City will continue to provide a minimum two public outreach and educational workshops a year, and distribute pamphlets containing information related to fair housing in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (DRAFT MARCH 2021) 4-25 SS3-558 City of Newport Beach 2021-2029 HOUSING ELEMENT Housing Goal #8 Effective and responsive housing programs and policies. - - ler_ -�,..; � ...�� • _ =: Housing Policy 8.1 (not 7.1): Review the Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. IMPLEMENTATION ACTIONS Policy Action 8A: Annual Reporting Program The City of Newport Beach shall report on the status of all housing programs as part of its annual General Plan Review and Annual Progress Report (APR). The Annual Progress Report discusses Housing Programs and is submitted to the California Department of Housing and Community Development in accordance with California state law. The City will continue to annually report its efforts within the annual General Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 8B: Water and Sewer Service Providers Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Newport Beach is required to deliver its adopted housing element and any amendments thereto to local water and sewer service providers. This legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects, to ensure that the providers have an opportunity to provide input on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households. The City will submit the adopted 6th Cycle Housing Element to local water and sewer providers for their review and input. Timeframe: Transmit document immediately upon adoption of future amendment Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Summary of Quantified Objectives [TBD] Section 4: Housing Plan (DRAFT MARCH 2021) 4-26 SS3-559 From: Rick Westberg <rfwestberg@hotmail.com> Sent: Thursday, April 08, 20214:26 PM To: Planning Commissioners; Zdeba, Benjamin; Avery, Brad Subject: Feedback: Initial Draft of the General Housing Element Update [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello Mr. Zdeba & Planning Commissioners, Thank you for your hard work and service on the Housing Element Update. This stuff is so complicated, I'm not sure many people understand it - I have certain insights, but there is certainly a lot of information corresponding to SCAG and RHNA that require a knowledge of state and local policy that I am lacking. I'd like to give a little feedback on the draft. It's interesting to see so many units assigned to Banning Ranch after the saga over the last 10 years and added complication of Coastal Commission oversight. I would like to share the following observations / opinions: - I assume the "inventory area" is acreage, I see Banning Ranch is listed at 46 acres. Is this net acres, not inclusive of sensitive habitat? If this has not been vetted, the assumed density may not be accurate or comparable if you have to cram more units on less footprint. - It doesn't seem logical to me to include Banning Ranch as 1 of 3 major focus areas (ie. Airport Area - 2,022 units, Newport Center - 1,814 units and Banning Ranch - 1,375). These are fairly comparable total net unit numbers, but the locations are vastly different. The Airport Area and Newport Center both clearly meet the SCAG/RHNA requirements for focusing 50% on transit - oriented locations and 50% on those with job accessibility. The allocation of units between these 3 areas doesn't seem to be proportionate to the goals. Beyond this, Banning Ranch seems to be a much more environmentally sensitive area. - Lastly, it seems very aggressive and unfeasible to propose 1,375 units on Banning Ranch after the last plan that Coastal Commission voted down was based on a developer -proposed "reasonable" number of 895 units. Increasing the proposed unit target over what has already been rejected seems like an exercise in futility. We need housing. The Banning Ranch site needs to be considered. But perhaps it is more practical to target +/-895 units. Good luck with proceeding on your planning. Thank you, SS3-560 Rick Westberg 304 Colton Street Newport Beach, CA 92663 619-708-8797 SS3-561 Planning Commission - April 8, 2021 Item No. 3b - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2014-141) From: Jan Varner To: Plannina Commissioners Cc: Dent - City Council; Avery, Brad Subject: Re: RHNA Development in Corporate Plaza, Newport Center Date: Monday, April 5, 20216:14:53 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Avery and Members of the City Council Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the City has a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Jan Varner varnerjanmarie am� ailsom SS3-562 Planning Commission - April 8, 2021 Item No. 3b - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2014-141) From: Kenneth Tye To: Plannina Commissioners Subject: RE;RHNA Development in Corporate Plaza, Newport Center Date: Monday, April 5, 2021 7:18:42 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Weigland and Members of the Commission: Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the City has a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Thank you. Sincerely yours Kenneth Tye 1114 Sea Lane Corona Del Mar SS3-563 Planning Commission - April 8, 2021 Item No. 3b - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2014-141) From: Karen & Bruce To: Planning Commissioners Subject: HV Hills sight line Date: Tuesday, April 6, 20219:36:35 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Weigland and Members of the Commission: > The Harbor View Hills Community Association, along with our friends in > Harbor View Broadmoor, consist of over 500 Newport Beach residents who > have for over 60 years enjoyed the height limit protection of the > City's Sight Plane Ordinance (# 1596). This group of residents are > relying on the City to honors its commitment to us. The ordinance > limits the height of all buildings and landscaping to a maximum height > of 32 feet and promises to never invade the Sight Plane. > > The historical basis for this ordinance was the understanding and > agreement in 1960, when it began selling homes in Harbor View Hills > with views of the Bay, Ocean and City, that it would not be ethical to > sell the same view twice. Since TIC owned most of the vacant land in > Newport Center, it agreed to the Sight Plane Ordinance to protect the > views from Harbor View Hills across the land that is now Corporate > Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall > sites, so that the view it sold to our homeowners would not be > obstructed in the future. For over 60 years, hundreds of residents of > Harbor View Hills have purchased their homes and paid a very > substantial premium for this protected view. The loss of this view > would certainly have an extremely adverse impact on the value of our > homes > While we understand that the City has a difficult task to accommodate > the demands of the state in the RHNA numbers, it is simply not right > to ignore our long-standing rights. We ask that your planning and > recommendations to the City Council respect the the residents of > Newport Beach and honor the long established height limits reflected > in the Sight Plane Ordinance. > Bruce and Karen Clark > Residents of Harbor View Hills SS3-564 Planning Commission - April 8, 2021 Item No. 3b - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2014-141) From: Shirley Celtik To: Plannina Commissioners Subject: RHNA Development in Corporate Plaza, Newport Center Date: Tuesday, April 6, 2021 12:21:49 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Weigland and Members of the Commission: Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the City has a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Sincerely, Shirley Celtik 1026 White Sails Way Corona del Mar, CA 92625 SS3-565 Planning Commission - April 8, 2021 Item No. 3b - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2014-141) From: Margaret Cunningham To: Planning Commissioners Subject: Please do not allow high rise towers that block the view plane Date: Tuesday, April 6, 2021 1:23:11 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Newport Beach Planning Commission: My home is in Harbor View Hills, and I urge you not to change the 60 -year old City's Sight Plane Ordinance (1596). The current height limits should not be changed. Thank you, Margaret Thielemeir SS3-566 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) From: Elizabeth Hallett To: Housina Element Update Advisory Committee; Dept - City Council; Dixon, Diane; Duffield, Duffv; Muldoon, Kevin; Blom, Noah; Brenner, Joy; C"Neill, William; Avery, Brad Subject: RHNA Development in Corporate Plaza, Newport Center Date: Tuesday, April 6, 20218:41:53 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker, Members of the HE Update Advisory Committee, Mayor Avery and Newport Beach City Council Members, Our Harbor View Hills Community Association is made up of 146 homes. Our homeowners, along with residents of 100 homes in Harbor View Broadmoor, have, for more than 60 years, enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and it forbids invasion of the Sight Plane. Please note the historical basis for this ordinance: In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Irvine Company also owned most of the vacant land in Newport Center. The Irvine Company recognized that the company could not sell the same view twice, so it agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For more than 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the HE Update Advisory Committee and the City Council have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that you respect the long-established height limits reflected in the Sight Plane Ordinance. Thank you for your consideration. Best regards, Beth Hallett SS3-567 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) From: Sally Chesebro To: Plannina Commissioners Subject: RHNA Development in Corporate Plaza, Newport Center Date: Wednesday, April 7, 20219:52:16 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Weigland and Members of the Commission: Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). Our home is one of the 146 homes. The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. We feel it is important to know the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. As longtime homeowners of Harbor View Hills it would mean a lot to us if we could continue to enjoy this protected view that we have loved so much. We understand that the City has a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane ordinance. Oren J. and Sally L. Chesebro 1032 White Sails Way ®❑ Virus -free. www.avast.com SS3-568 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) From: Sally Chesebro To: Plannina Commissioners Cc: Dixon. Diane; ddduffield; Muldoon. Kevin; Blom, Noah; Brenner. Joy; woneill Subject: RHNA Development in Corporate Plaza, Newport Center Date: Wednesday, April 7, 2021 10:07:31 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Weiglan and Members of the Commission: Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). Our home is one of the 146 homes. The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. We feel it is important to know the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. As longtime homeowners of Harbor View Hills it would mean a lot to us if we could continue to enjoy this protected view that we have loved so much. We understand that the City has a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane ordinance. Oren J. and Sally L. Chesebro 1032 White Sails Way EN7 Virus -free. www.avast.com SS3-569 PUBLIC Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) • LAW CENTER PROVIDINC ACCESS TO JUSTICE FOR ORANGE COUNTY'S LOW INCOME RESIDENTS April 7, 2021 City of Newport Beach Planning Commission 100 Civic Center Drive, Newport Beach, CA 92660 Dear Commission Members: The Public Law Center ("PLC") is a 501(c)(3) legal services organization that provides free civil legal services to low-income individuals and families across Orange County. Our services are provided across a range of substantive areas of law, including consumer, family, immigration, housing, and health law. Additionally, PLC provides legal assistance to community organizations. Further, the mission of our Housing and Homelessness Prevention Unit includes preserving and expanding affordable housing. Thus, we write on behalf of individuals in need of affordable housing in Orange County to comment on the City of Newport Beach's ("the City") Draft 6th Cycle Housing Element (the "Draft"). Through the housing element process, local governments must assess their existing and projected housing needs and constraints and create a detailed plan to meet those needs and address any constraints. Some of the requirements include addressing the need for emergency shelter, identifying adequate sites to meet the jurisdiction's housing need, and implementing programs and policies to achieve these goals. While we are still in the process of reviewing all of the Draft, we wish to provide some preliminary comments for the Planning Commission and City Staff to consider as they continue to revise the Draft. Additionally, we understand from the Staff Report for the Planning Commission Agenda that the City has already made some changes to the previously released Draft in an attempt to reduce concentrations of affordable housing in the vicinity of the airport and distribute affordable housing throughout other areas of focus in the City. However, we have not been able to locate a copy of any revised Draft as a revised Draft or more details on these specific changes were not attached to the Staff Report, only data describing the proposed revisions. Having not had a chance to review these revisions to the Draft, all of our comments are based on the previously issued Draft without the proposed revisions referenced in the Staff Report. We have, however, kept in mind that the City is attempting to address previous comments about the distribution of affordable housing in the site selection. Housing Need Emergency Shelters Under Government Code Section 65583(a)(4)(A), a housing element shall contain an identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-570 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) include sufficient capacity to accommodate the need for emergency shelter.' Each local government must identify a zone or zones that can accommodate at least one year-round emergency shelter.2 The City identifies that the Office Airport zoning district ("OA") and the Private Institutions Coastal zoning district ("PI") permit emergency shelters. By allowing emergency shelters to be placed on any of the 98 parcels in these districts, the City claims there are adequate sites available "for the potential development of emergency shelters in the City."3 However, these claims do not specifically explain whether these zoning districts allow emergency shelters without a conditional use or other discretionary permit, whether these zones will be able to accommodate the City's need for emergency shelter, or whether the zone could accommodate a year-round emergency shelter. To better demonstrate that the City has met this requirement, it should include more detail about OA and PI zoning and how these zones allow for the required emergency shelters and what parcels within those zones are realistically available for development of or conversion to a shelter. Additionally, the local government must demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters.4 Here, the City does not provide the requisite information about its existing permit processing, development, or management standards for emergency shelters. The City should include this information to better demonstrate its ability to encourage and facilitate emergency shelters. Although State law allows local governments to include a program to amend its zoning ordinance to meet these requirements, the City's program is vague, making it difficult to assess whether the City can comply with housing element law in the future.5 Specifically, "Policy Action 617: Emergency Shelters, Transitional and Supportive Housing" is intended to amend the City's Municipal Code to "permit supportive housing as a use permitted by right in all zones where multiple family and mixed-use development is permitted," "address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions," and "ensure Emergency Shelters, Transitional and Supportive Housing are permitted in appropriate zones, consistent with State law."6 This proposed policy action simply states that the City will comply with State law within 12 months of the Housing Element adoption. It does not provide details about what the standards will contain or how the standards will encourage and facilitate the development of, or conversion to, emergency shelters. 1 Cal. Gov. Code Section 65583(a)(4)(A). 2 Cal. Gov. Code Section 65583(a)(4)(A). 3 City of Newport Beach, Draft 2021-2029 Housing Element, 3-25 (March 2021). 4 Cal. Gov. Code Section 65583(a)(4)(A). 5 Cal. Gov. Code Section 65583(a)(4)(A). 6 City of Newport Beach, Draft 2021-2029 Housing Element, 4-23 (March 2021). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-571 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) Assessing Emergency Shelter Need The need for emergency shelter shall be assessed based on (1) the most recent point -in - time count conducted before the start of the planning period, (2) the need for emergency shelter based on number of beds available on a year-round and seasonal basis, (3) the number of shelter beds that go unused on an average monthly basis within a one-year period, and (4) the percentage of those in emergency shelters that move to permanent housing solutions.7 Here, the City has used a point -in -time count to identify 64 unsheltered people experiencing homelessness within the jurisdiction.$ However, the City fails to analyze the need for emergency shelter, the number of shelter beds that are unused, or how many people in emergency shelters move to permanent housing solutions. Such an analysis would help the City better determine which of the 98 available parcels are needed to accommodate its need. Site Inventory A housing element must include an inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality's housing need for all income levels.9 A jurisdiction may identify sites by a variety of methods, such as redesignating property to a more intense land use category, increasing the density allowed within one or more categories, and identifying sites for accessory dwelling units ("ADUs").10 The site inventory must provide for a variety of types of housing, including multifamily rental housing, factory - built housing, mobilehomes, housing for agricultural employees, supportive housing, single - room occupancy units, emergency shelters, and transitional housing. I I Lower Income Sites If a jurisdiction designates sites that have been previously identified, sites smaller than half an acre, or sites larger than ten acres to accommodate its lower income housing needs, the sites must satisfy extra criteria. 12 Previously Identified Sites If a jurisdiction identifies nonvacant sites to satisfy its lower income housing need, it must note whether the site has been identified in a prior housing element or has been included in two or more consecutive planning periods that was not approved to develop a portion of the locality's housing need. The City has marked the following lower income sites as identified in its 5th Cycle Housing Element: Site 132, 133, and 134.13 However, from our review of the Draft and the 5th Cycle Housing Element, the City failed to acknowledge that the following sites were also previously identified: 7 Cal. Gov. Code Section 65583(a)(7). 8 City of Newport Beach, Draft 2021-2029 Housing Element, 2-28 (March 2021). 9 Cal. Gov. Code Section 65583(a)(3). 10 Cal. Gov. Code Section 65583.1(a). 11 Cal. Gov. Code Section 65583.2(c). 12 Cal. Gov. Code Section 65583.2(c). 13 City of Newport Beach, Draft 2021-2029 Housing Element, B-25 (March 2021). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-572 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) • Site 66: formerly Area 9 John Wayne Airport Area Site 2b; • Site 69: formerly Area 9 John Wayne Airport Area Site 2c; • Site 71: formerly Area 9 John Wayne Airport Area Site lh; • Site 72: formerly Area 9 John Wayne Airport Area Site If; • Site 75: formerly Area 9 John Wayne Airport Area Site 2i; • Site 76: formerly Area 9 John Wayne Airport Area Site 2f; • Site 79: formerly Area 9 John Wayne Airport Area Site 1 e; • Site 81: formerly Area 9 John Wayne Airport Area Site 2h; • Site 84: formerly Area 9 John Wayne Airport Area Site 2j; • Site 88: formerly Area 9 John Wayne Airport Area Site 2e; • Site 89: formerly Area 9 John Wayne Airport Area Site 2a; • Site 137: formerly Area 2 Dover Drive/Westcliff Drive Site 2; • Site 138: formerly Area 2 Dover Drive/Westcliff Drive Site 3; • Site 139: formerly Area 2 Dover Drive/Westcliff Drive Site 1; and • Site 214: formerly Area 8 Newport Center Site 8.14 Further, a nonvacant site identified in a prior housing element cannot be deemed adequate to accommodate a portion of the housing need for lower income households unless the site is zoned at an appropriate density and the site is subject to a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income units. 15 Although these sites are subject to "Policy Action 1G: 5th Cycle Housing Element Sites", which requires rezoning within three years of the beginning of the planning period to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income units, the units are not appropriately zoned. 16 The appropriate residential density is based on whether the jurisdiction is an unincorporated area within a metropolitan county, an incorporated city within a nonmetropolitan county, a nonmetropolitan county with a micropolitan area, a suburban jurisdiction, or a jurisdiction within a metropolitan county.17 According to the U.S. Census Bureau, Orange County is a metropolitan county within the Los Angeles -Long Beach -Anaheim Metropolitan Statistical Area.18 As a jurisdiction within a metropolitan county, the appropriate residential density is at least 30 units per acre. 19 As seen below, none of the City's previously identified nonvacant sites for lower income households are currently zoned at the appropriate density: • Site 66: existing density - 0, rezoned density - 50; 14 City of Newport Beach, Draft 2021-2029 Housing Element, B -20-B-31 (March 2021). 15 Cal. Gov. Code Section 65583.2(c). 16 City of Newport Beach, Draft 2021-2029 Housing Element, 4-6 (March 2021). 17 Cal. Gov. Code Section 65583.2(c)(3)(B). 18 U.S. Census Bureau, https://www2.census.gov/geo/maps/metroarea/us_wall/Mar2020/CBSA_WallMap_Mar2020.pdf (last visited Mar. 16, 2021); Employment Development Department of State of California, https://www.labormarketinfo.edd.ca.gov/definitions/metropolitan-statistical-areas.html (last visited Mar. 16, 2021). 19 Cal. Gov. Code Section 65583.2(c)(3)(B). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-573 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) • Site 69: existing density - 0, rezoned density - 50; • Site 71: existing density - 0, rezoned density - 50; • Site 72: existing density - 0, rezoned density - 50; • Site 75: existing density - 0, rezoned density - 50; • Site 76: existing density - 0, rezoned density - 50; • Site 79: existing density - 0, rezoned density - 50; • Site 81: existing density - 0, rezoned density - 50; • Site 84: existing density - 0, rezoned density - 50; • Site 88: existing density - 0, rezoned density - 50; • Site 89: existing density - 0, rezoned density - 50; • Site 132: existing density - 21, rezoned density - 30; • Site 133: existing density - 18, rezoned density - 30; • Site 134: existing density - 15, rezoned density - 30; • Site 137: existing density - 26, rezoned density - 30; • Site 138: existing density - 26, rezoned density - 30; • Site 139: existing density - 26, rezoned density - 30; and • Site 214: existing density - 0, rezoned density - 45.20 Without meeting the appropriate density, these sites cannot be deemed adequate to accommodate a portion of the housing need for lower income households. We assume that the "rezoned density" is the proposed density at which the sites will be rezoned through the "Policy Action 1G," this program should be clearer and include more specifics about how and what sites will be rezoned to meet state requirements. Site Size If a site is smaller than half an acre or larger than ten acres, it cannot be deemed adequate to accommodate lower income housing unless the locality can demonstrate that sites of an equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site.21 Alternatively, the locality may provide other evidence to the California Department for Housing and Community Development ("HCD") that the site is adequate to accommodate lower income housing. 22 The following identified sites are either smaller than half an acre or larger than ten acres: • Site 56: gross acreage - .26, net acreage - .26; • Site 103: gross acreage - .29, net acreage - .29; • Site 105: gross acreage - .29, net acreage - .29; • Site 110: gross acreage - 130.87, net acreage - 0; • Site 111: gross acreage - 74.64, net acreage - 0; • Site 112: gross acreage - 65.05, net acreage - 0; • Site 113: gross acreage - 51, net acreage - 0; • Site 114: gross acreage - 44.78, net acreage - 0; • Site 115: gross acreage - 41.2, net acreage - 0; 20 City of Newport Beach, Draft 2021-2029 Housing Element, B -20-B-31 (March 2021). 21 Cal. Gov. Code Section 65583.2(c)(2). 22 Cal. Gov. Code Section 65583.2(c)(2). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-574 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) • Site 116: gross acreage - 19.35, net acreage - 0; • Site 117: gross acreage - 15.76, net acreage - 0; • Site 118: gross acreage - 14.32, net acreage - 0; • Site 119: gross acreage - 12.5 1, net acreage - 0; • Site 120: gross acreage - 11.48, net acreage - 0; • Site 121: gross acreage - 10.81, net acreage - 0; • Site 122: gross acreage - 6.52, net acreage - 46; • Site 126: gross acreage - .37, net acreage - .37; • Site 128: gross acreage - .21, net acreage - .21; • Site 131: gross acreage - 243.23, net acreage - 22; • Site 132: gross acreage - .14, net acreage - .14; • Site 133: gross acreage - .11, net acreage - .11; • Site 134: gross acreage - .06, net acreage - .06; • Site 216: gross acreage - .23, net acreage - .23; and • Site 133: gross acreage - .23, net acreage - .23.23 While the Draft is not clear on what is the difference between gross acreage and net acreage of identified sites or on which acreage is being used to calculate capacity, regardless the Draft does not meet the requirements for identifying sites less than 0.5 acres or greater than 10 acres. The City has not demonstrated that similarly sized sites were successfully developed during the 5th Cycle for an equivalent number of lower income housing units and has not stated that it is able to provide HCD with other evidence that the sites are adequate to accommodate lower income housing. Without this information, these sites cannot be considered adequate for lower income housing. Nonvacant Sites If a jurisdiction designates a site that is nonvacant, it must describe the existing use of the property. 24 Most of the sites included in the City's site inventory are nonvacant. Further, if a jurisdiction designates a site that is nonvacant and owned by the jurisdiction, the jurisdiction must describe the existing use of the property, whether there are any plans to dispose of the property during the planning period, and how the jurisdiction will comply with the Surplus Lands Act .25 The City owns the following sites and included them in its site inventory: • Site 102; • Site 119; • Site 124; • Site 125; • Site 127; • Site 222; • Site 223; and • Site 224.26 23 City of Newport Beach, Draft 2021-2029 Housing Element, B -20-B-25 (March 2021). 24 Cal. Gov. Code Section 65583.2(b)(3). 25 Cal. Gov. Code Section 65583.2(b)(3). 26 City of Newport Beach, Draft 2021-2029 Housing Element, B -23-B-32 (March 2021). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-575 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) However, the City has not described the existing use for any of the nonvacant sites, has not described any plans to dispose of the City owned properties, and has not described any plans to comply with the Surplus Lands Act. Without this information, these sites should not be deemed adequate to accommodate the City's housing need. Moreover, for nonvacant sites, the jurisdiction shall specify the additional development potential for each site within the planning period and explain the methodology used to determine the development potential .2' The methodology shall consider multiple factors, including: (1) the extent to which existing uses may constitute an impediment to additional residential development; (2) the jurisdiction's past experience with converting existing uses to higher density residential development; (3) the current market demand for the existing use; (4) an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development; (5) development trends; (6) market conditions; and (7) regulatory or other incentives or standards to encourage additional residential development on these sites.28 The City general states that it took into account development standards, net acreage and assumed density, and previous development trends when calculating the unit capacity for each site .29 However, the City does not include any of the other requisite factors in its methodology. Without further consideration, it is difficult to assess whether the unit capacity reflects realistic development potential. To better predict how much of its RHNA can be accommodated on its identified sites, the City should incorporate more information into its analysis. Accessory Dwelling Units The number of ADUs identified is based on the number of ADUs developed in the prior housing element planning period, whether or not the units are permitted by right; the need for these units in the community; the resources or incentives available for their department; and any other relevant factors determined by HCD.30 To predict its ADU production, the City calculated the average of production over the last planning cycle and assumed the rate doubled each year during the 6th Cycle. As a result, the City predicts that 334 ADUs will be constructed from 2021 to 2029. However, the City only took into account prior production and did not consider any of the other factors. Without considering this information, the City's 334 ADU prediction is unreliable and should be recalculated. Nonvacant Sites for 50% or More of Housing Need If the jurisdiction is relying on nonvacant sites to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional 27 Cal. Gov. Code Section 65583.2(g)(1). 28 Cal. Gov. Code Section 65583.2(g)(1). 29 City of Newport Beach, Draft 2021-2029 Housing Element, B-17, B-36 (March 2021). 30 Cal. Gov. Code Section 65583.1(a). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-576 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) development potential shall demonstrate that the existing use identified does not constitute an impediment to additional residential development during the planning period.31 The City has accommodated almost all of its lower income housing need on nonvacant sites. However, the City has not addressed any of the existing uses on these sites and has not explained its methodology to determine whether existing uses are impediments to development. The City must include this information to continue utilizing a high percentage of nonvacant sites to accommodate its lower housing need. Programs The housing element must include programs that allow the jurisdiction to achieve its stated housing goals and objectives.32 Programs must set forth a schedule of actions for the planning period, each with a timeline for implementation. 33 The programs may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period.34 The programs may also recognize that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through: (1) the administration of land use and development controls; (2) the provision of regulatory concessions and incentives; (3) the utilization of appropriate federal and state financing and subsidy programs, when available; and (4) the utilization of moneys in a low - and moderate -income housing fund of an agency if the locality has established a redevelopment project area pursuant to Community Redevelopment Law. 3' To make adequate provision for the housing needs of all economic segments of the community, the program shall address housing issues such as inadequate site inventories, meeting lower income housing needs, removing constraints, maintaining affordable housing, promoting affirmatively furthering fair housing, preserving assisted housing developments, encouraging accessory dwelling units, and facilitating public participation. 36 While the City identified numerous policies to meet its housing need, many of these programs are only vaguely described. The City's programs tend to state that the City will meet the statutory requirements, but does not specifically explain how the City will do so. For example, "Policy Action 1H: Accessory Dwelling Unit Construction" describes how the City will "aggressively support and accommodate the construction of at least 336 ADUs by a variety of methods. ,31 While the City explains they will engage in a public awareness campaign, provide a user-friendly website, and provide pre -approved plans, one of these methods is described as "evaluating and assessing the appropriateness of additional incentives to encourage ADU development. ,38 Here, the City does not explain what other incentives it is considering or how it 31 Cal. Gov. Code Section 65583.2(g)(2). 32 California Department of Housing and Community Development, Building Blocks, Program Overview and Quantified Objectives, hiips:Hhcd.ca.gov/community-development/building-blocks/pro rag m-requirements/program- overview.shtml (last visited Apr. 4, 2021). 33 Cal. Gov. Code Section 65583(c). 34 Cal. Gov. Code Section 65583(c). 35 Cal. Gov. Code Section 65583(c). 36 Cal. Gov. Code Section 65583(c). 37 City of Newport Beach, Draft 2021-2029 Housing Element, 4-7 (March 2021). 38 City of Newport Beach, Draft 2021-2029 Housing Element, 4-7 (March 2021). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-577 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) will determine the appropriateness of additional incentives. Without such specificity, the City avoids committing to pro -housing policies by merely making a plan to make a plan. By doing so, it is not clear whether the City is prepared to adequately provide for the housing needs of all economic segments of the community. To create effective programs, HCD recommends jurisdictions include the following: • Definite time frames for implementation; • Identification of agencies and officials responsible for implementation; • Description of the local government's specific role in program implementation; • Description of the specific action steps to implement the program; • Proposed measurable outcomes; • Demonstration of a firm commitment to implement the program; and • Identification of specific funding sources, where appropriate. 39 By following HCD Guidance and committing to more detailed plans, the City will be able to enter the planning period with a list of specific policies and actions in mind to provide more mindful housing opportunities with more realistic chances for development. Affirmatively Furthering Fair Housing As mentioned above, we are still in review of the Draft and intend to provide comments that are more detailed at a later date. As the changes to the distribution of affordable housing referenced in the Staff Report directly impact the City's obligation to affirmatively further fair housing, we look forward to discuss this aspect of the Draft when we have had an opportunity to review those proposed revisions. However, we do want to take the moment to mention that by limiting the Draft's analysis of fair housing issues to City -specific data and not analyzing these issues on a regional level, the City fails to truly recognize and address fair housing issues. While the City did not identify any areas within its borders with concentrations of racial or ethnic minorities, it failed to recognize that the City as a whole has failed to integrate other populations, which is evident from a regional perspective. The City must revise its fair housing analysis to more carefully analyze the issue on a regional level and the role that it has historically played in promoting segregation throughout Orange County. 39 California Department of Housing and Community Development, Building Blocks, Program Overview and Quantified Objectives, hl!ps:Hhcd.ca.gov/community-development/buildina-blocks/pro rag m-requirements/pro rg am- overview.shtml (last visited Apr. 4, 2021) (emphasis added). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-578 Planning Commission - April 8, 2021 Item No. 3c - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) Conclusion We are optimistic about the City's intentions to revise the Draft and the receptiveness to feedback thus far. We look forward to continuing to work with the City to ensure that the final 6th Cycle Housing Element complies with state law, meets the needs of all community members, and creates realistic opportunities for the development of affordable housing. Sincerely, THE PUBLIC LAW CENTER, BY: /s/ Richard Walker, Housing and Homelessness Prevention Unit, Senior Staff Attorney Alexis Mondares, Housing and Homelessness Prevention Unit, Legal Fellow 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 SS3-579 From: Lee, Amanda Sent: Friday, April 02, 202111:11 AM To: Zdeba, Benjamin Cc: Palencia, Ketshy Subject: FW: Low income housing concerns -----Original Message ----- From: HANAN BUTLER <hananbutler@yahoo.co.uk> Sent: Friday, April 02, 202110:45 AM To: CDD <CDD@newportbeachca.gov> Subject: Low income housing concerns [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hi, I am a resident of Newport Beach and have concerns regarding the low income housing project. I picked Newport Beach to be my home for its exquisite style and I pay a hefty tax fee to keep it this way. Adding low income housing will impact us negatively so please stop this project. If you need more information from me or I need to sign an ongoing petition please let me know. Thanks Hanan Butler Newport Coast SS3-580 From: Lee, Amanda Sent: Tuesday, March 30, 20217:47 AM To: Zdeba, Benjamin Cc: Palencia, Ketshy Subject: FW: Noise Element From: Joseph Curren <josephcurren@license-defense.org> Sent: Tuesday, March 30, 20215:06 AM To: CDD <CDD@newportbeachca.gov> Subject: Noise Element [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I'd like to make suggestions about noise reduction in neighborhoods along the PCH corridor. How would I submit those? Would they be considered under the sound or traffic or housing elements or all three? Thank you. Joseph Curren, Attorney at Law www.license-defense.org ioseahcurren(@license-defense.orE 407 Poppy Avenue Corona del Mar, California 92625 Telephone 1-916-873-9237 Fax 1-800-819-7782 CONFIDENTIALITY NOTICE: Do not read this e-mail if you are not the intended recipient. This e-mail transmission and any documents, files, or previous e-mail messages attached to it may contain confidential information that is legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify me by reply e-mail and destroy the original transmission and its attachments without reading or saving in any manner. Legal advice is only given to my established clients; in order to become my client there must first be a written fee agreement signed both by attorney and client formally establishing that relationship; email communications and/or phone conversations with attorney do not establish an attorney/client relationship and, in the absence of a formal written fee agreement, should not be construed as legal advice. Legal matters may have statutes -of -limitation and other time -sensitive deadlines requiring a timely response in order to preserve your rights; retaining an attorney immediately is recommended if you are uncertain of your legal rights in any legal matter. Thank you. SS3-581 From: Lee, Amanda Sent: Monday, March 29, 20212:55 PM To: Zdeba, Benjamin Cc: Palencia, Ketshy Subject: FW: Feedback for City of Newport Beach From: City of NB Questions <questions@newportbeachca.gov> Sent: Monday, March 29, 20218:35 AM To: CDD <CDD@newportbeachca.gov> Subject: FW: Feedback for City of Newport Beach From: City of Newport Beach <NoReply@newportbeachca.gov> Sent: Friday, March 26, 20216:27 AM To: City of NB Questions <questions@newportbeachca.gov> Subject: Feedback for City of Newport Beach You have received this feedback from Christy Sullins < Sullinschristy@gmaiI.com > for the following page: https://www.newportbeachca.gov/government/departments/community-development/planning- division/general-plan-codes-and-regulations/general-plan-update/housing-element-screencheck-draft- march-10- 2020?utm source=eha&utm medium=email&utm campaign=website&fbclid=lwAR3bXkrlWd5844Ko58 LR4TI75SvRLrsTxOR-bkJ4CYJTUelwca2fUNUMuY I ask that you please consider a different site area than one near my child's school and around the corner from our home. We work so hard to live in a safe community and putting this in at this location negates all we, and our neighbors, have worked so hard for. Thank you, Christy Sullins SS3-582 Planning Commission - April 8, 2021 Item No. 3d - Additional Materials Received Intitial Draft of the General Plan Housing Element Update (PA2017-141) Danielle Silhanek From: Danielle Silhanek Sent: Tuesday, March 30, 2021 5:02 PM To: 'bzdeba@newportbeachca.gov' Cc: Paul Tanguay; John LoperOloper@palmtreecommunities.com); 'GPUpdate@newportbeachca.gov' Subject: Housing Element - March 2021 Draft Comments Attachments: 3-30-21.(LDO)FOR PUBLIC RECORD -Housing Element Inclusion Letter -Via Lido Plaza, NB.pdf Mr. Zdeba, Please see the attached letter for your consideration. Sincerely, Danielle Silhanek Fritz Duda Company 3425 Via Lido, Suite 250 Newport Beach, CA 92663 P: 949.723.7102 F: 949.723.1141 dsilhanek@fritzduda.com www.fritzduda.com SS3-583 Planning Commission - April 8, 2021 Item No. 3d - Additional Materials Received ial Draft of the General Plan Housing Element Update (PA2017-141) 1 A March 30, 2021 • James Campbell Benjamin Zdeba City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Re: Housing Element — March 2021 Draft Comments After reviewing the March 2021 Draft Housing Element, we request that the Housing Element include a mixed-use zone for Via Lido Plaza to allow up to 30 units per acre plus commercial uses for the property bounded by Newport Blvd, Via Lido, Via Oporto and the shared property line with the Lido House Hotel. Via Lido Plaza includes the following addresses: 3415 - 3475 Via Lido, Newport Beach. The current zoning on the property is Commercial General (CG) with a 0.5 FAR for commercial uses. The property contains several retail and office buildings including West Marine and Via Lido Drugs. The property also includes the Lido Theater which would remain in a mixed-use redevelopment. The property is surrounded with mixed use or residential zoning including: ■ North — Lido Marina Village with MU -W2 zone which allows 26 du/acre and commercial uses ■ South — South of 32"d Street is the MU -CV 15t' Street zoning which allows 26 du/acre and commercial uses ■ East - Along Via Oporto is MU -V zone which allows 26 du/ac and commercial uses and PC -59 which allows attached 3 -story residential project of for -sale units. In addition, the March 2021 Draft Housing Element is proposing to increase the zoning from 15 du/acre to 30 du/acre for property on the south side of 32nd street (Site #134, Parcel 047-041-25 on page B-10 of Appendix B - March 2021 Draft Housing Element). The Draft Housing Element also includes several parcels in Lido Marina Village (Parcels 2 & 14 on Page B-10 of Appendix B) as potential development sites so Via Lido Plaza is surrounded on the north and south by sites identified for housing in the current March draft. Besides being surrounded by mixed use or residential zoned property, the property is an ideal candidate for being redeveloped into a mixed-use development with a significant residential component. The property currently consists of functionally obsolete multi-level retail spaces and has very large surface parking fields. We have developed plans to redevelop the project as a mixed-use project with retail/office uses fronting Via Lido and Newport Blvd, residential uses fronting Via Oporto and residential on the upper floors. The centerpiece of the redevelopment would be the rejuvenated Lido Theater. Accordingly, we request that Via Lido Plaza be included in the Draft Housing Element with a mixed-use zoning that would provide for 30 du/acre plus a mixture of retail and office uses. Sincerel Pau a ay Vice President 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 • 949.723.7100 • Fax 949.723.1141 Dallas, Texas I Newport Beach, California I Reno, Nevada www.FritzDuda.com SS3-584 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received March 31, 2021 Chair Larry Tucker and Committee Members City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 RE: Item c. Discuss Initial Draft Housing Element (Attachment 3) Dear Chair Tucker and Members of the Committee: www.kennedyconmiission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 The Kennedy Commission (the Commission) is a broad-based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land -use policies that has led to the new construction of homes affordable to lower income working families. During the current 5th cycle planning period the City had a total Regional Housing Needs Assessment (RHNA) of five, one at very low-income, one at low-income, one at moderate and two at above moderate. To date, the City has approved two housing units at moderate and 1,744 at above moderate..'. At very -low income the City has approved 92 units and five at low-income. Although the City had exceeded 5th Cycle targets for each income category, there is an unbalanced production of moderate and above moderate units. The number of moderate and above moderate units approved in the last seven years was 17 times more than those at low and very low income. The need for an inclusionary requirement is exemplified by the City's current disproportionate production numbers. As the Committee reviews the proposed scenario to redistribute housing among the focus areas, we recommend the adoption of an inclusionary requirement ensure these sites are truly feasible and effectively provide affordable housing. The City will also have to consider No Net Loss when it identifies opportunity sites. It is crucial that affordable housing moves along with market -rate housing given the limited sites that are available. In light of the state's No Net Loss requirements, if the sites identified for affordable housing are developed for market -rate housing, the City will have to rezone new sites for the appropriate density..2 We ask that the City prioritize the housing needs of large families of very low and extremely low income, who encounter difficulties in finding decent, affordable housing during the development of its new Housing Element. The Commission looks forward to partnering with the City of Newport Beach to create opportunities to increase affordable homes for lower income households in the City. If you have any questions, please free to contact me at (949) 250-0909 or cesarcAkennedycommission.org. 'Newport Beach 2020 Housing Element Annual Progress Report, Table B 2 Government Code § 65863 SS3-585 Page 2 of 2 Sincerely, Cesar Covarrubias Executive Director Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received Discuss Initial Draft Housing Element SS3-586 Z Air IW - I L Mau -44—, v "- Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies, and programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goals to encourage ire a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City's share of the affordable housing needs for the Orange County region. The RHNA quantifies Newport Beach's local share housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The current 2020 MFI (for an assumed family of 4 persons)- for Orange County is $103,000. The MFI may change periodically, as it is updated on an annual basis. The City's 2021-2029 RHNA growth need of 4,845 housing units is allocated into the following income categories: • 1,456 units -Very low income (0-50% County MFI) • 930 units - Low income (51-80% of County MFI) • 1,050 units - Moderate income (81-120% of County MFI) • 1,409 units - Above moderate income (120% or more of County MFI) 4. Housing Goals The City of Newport Beach has identified the following housing goals as part of this Housing Element Update: Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA. Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock. Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments. Housing Goal #4: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Goal #5: Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. SS3-588 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Housing Goal #6: Housing opportunities for special needs populations. Housing Goal #7: Equal housing opportunities in the City for all people. Housing Goal #8: Effective and responsive housing programs and policies. The goals listed above are described below and on following pages with accompanying policies and programs to achieve them. Housing Policies and Program Actions This Housing Element expresses the Newport Beach community's overall housing goals and supporting policies; and programs actions to achieve them. The stated Housing Program Actions are based on a review of past performance of the 5th Cycle Housing Element, analysis of current constraints and resources, and input from Newport Beach residents and stakeholders. Housing Goal #1 Provision of adequate sites to accommodate projected housing unit growth needs. Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories to serve the needs of the entire community IMPLEMENTATION ACTIONS Adequate Sites to Accommodate 2021-2029 RHNA The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the City's Housing Element Update Advisory Committee (Committee), interested residents at a variety of Housing Committee public meetings, workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that has been determined by the Committee as "fFeasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. [Note, the Committee still needs to review the sites to reach a conclusion as to their "suitabilitv." Since most will arobably be found suitable. a submittal can be made to the State. but before the final version of the Housine Element can be submitted. the Committee will need accent input from Committee members and the public.l As part of the analysis o4s adequate sites, the City has comprehensively reviewed opportunity sites citywide and has#a-ve identifiedy eight primary areas of opportunity: • Airport Area Environs • West Newport Mesa SS3-589 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element • Dover/Westcliff • Coyote Canyon • Newport Center • 5th Cycle Housing Element Sites • Banning Ranch • Accessory Dwelling Units Sincein addition, the City has identified several opportunity sites in the 5t" Cycle that will be utilized in the 6t" Cycle Housing Element,_. These sites will Feq iFe additional policy considerations will need to bea-s stated in this Policy Program. These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. Policy Action 1A: Airport Environs Sub Area The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport Environs area for 162 acres of land to provide for the accommodation of at least 2,426 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted density of 50 dwelling units per acre. Implementation of this program will also include but not be limited to development standards, overlay text and entitlement procedures to among other things encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. - Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1B: West Newport Mesa The City will establish a housing opportunity overlay, or similar rezoning strategy, in the West Newport Mesa area for 48 acres of land to provide for the accommodation of at least 433 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted density of 45 dwelling units per acre. Implementation of this program will also include but not be limited to development standards, overlay text and entitlement procedures to among other things encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. SS3-590 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 C: Newport Center The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 158 acres of land to provide for the accommodation of at least 1,782 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted density of 45 dwelling units per acre. Implementation of this program will also include but not be limited toprevidefer development standards, overlay text and entitlement procedures to among other things encourage the development of housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1D: Dover/ Westcliff The City will establish an overlay, or similar rezoning strategy, in the Dover / Westcliff an area for 14 acres of land to provide for the accommodation of at least 41 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will permit development of a variety of residential product types at a permitted density of 30 dwelling units per acre. Implementation of this program will also include but not be limited to development standards, overlay text and entitlement procedures to among other things encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund SS3-591 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 1E: Banning Ranch The City has identified the Banning Ranch area as a potential site to accommodate future housing needs. The City has previously approved housing development on this site, but the approved project was subsequently denied by the California Coastal Commission. The City believes this site is still a viable opportunity to provide housing for a variety of income levels and will continue to support development potential in the Banning Ranch Area. The site is currently within the City's Sphere of Influence. The City will work collaboratively with the County of Orange for annexation of the property and pursue entitlement of the area to provide opportunities for up to 1,375 ? 57 units at an average density of 30 dwelling units per acre. Implementation of this program will also include development standards and; entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. Timeframe: Complete necessary Code, General Plan and LCP Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1F.- Coyote Canyon The Coyote Canyon propertyafea is a closed landfill that is owned and managed by the County or Orange but leased to a private developer. The area is of substantial acreage buta+�4 has limitedatien of glcewt a+�d development potential due to various environmental considerations. The developer hascity evaluated the entire landfill area and- has concluded that 22 acres of the propertya+,e a e is not subject to environmental constraints. Additionally, the City has been advised that the County has expressed interest in participating in a transfer of a portion of the property to accommodate residential opportunity. The City will rezone at least 22 acres of land on the Coyote Canyon site, as shown in Appendix B, to accommodate up to 880 housing units at an average density of 40 dwelling units per acre. Implementation of this program will also include development standards and; entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 G: 51 Cycle Housing Element Sites The City has identified 28 acres of sites in its sites inventory contained in Appendix B of this Housing Element that contain infill sites that were identified in the 5th Cycle Housing Element. To comply with State law, the City will amend Title 20 of the Newport Beach Municipal Code (NBMC) to permit residential uses by -right for housing development projects in which at least 20 -percent of the units are affordable to lower income households. For the purpose of implementation of this program, by -right shall mean the SS3-592 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element City will not require a Site Development Review, Conditional Use Permit, a Planned Unit Development Permit, or other discretionary permit application that -what would constitute a "project" as described in Section 21100 of the Public Resources Code. For sites in the coastal zone, the City will continue to require coastal development permits to determine compliance with the City's certified Local Coastal Program. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1H: Accessory Dwelling Unit Construction The City of Al.,wpeFt geaeh heli.yes Accessory Dwelling Units (ADUs) are an accepted , d-^^,^^-s+ra � method oft -9 providinge affordable housing in the City. Due to recent legislation, the ability to entitle and construct ADUs has increased significantly. The City recognizes the significance of this legislation as evidenced by a marked increase in ADU permit applications. Due to this legislation, the City believes aggressive support for ADU construction will result in increased opportunities for housing including affordable units. The City will aggressively support and accommodate the construction of at least 3346 ADUs by a variety of methods, including but not limited to: • Developing and implementing a public awareness campaign for construction of ADUs with a systematic approach utilizing all forms of media and outreach distribution • Preparing and maintaining a user-friendly website committed to information related to codes, processes, and incentives pertaining to the development of ADUs and JADUs in the City. • Evaluating and assessing the appropriateness of additional incentives to encourage ADU development. • Approlgand implement Develeping permit -ready standard plans to permit new ADU construction to minimize design costs, expedite permit processing, and provide development certainty for property owners. Timeframe: Analyze methods within 12 months of Housing Element adoption; Establish programs within 24 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 11: Accessory Dwelling Units Monitoring Program The City will establish an ADU Monitoring Program during the 2021-2029 Housing Element Planning Period to formally track ADU development. The analysis will track applications for ADUs, location, and other important features. The intent of the Monitoring Program is to track progress in meeting 2021-2029 ADU construction goals and to evaluate the need to adjust programs and policies if the pace of construction is less than anticipated. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund SS3-593 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 1J: Accessory Dwelling Units Amnesty Program The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to legalize the ADUs during the 2021-2029 planning period. The intent of the Amnesty Program's is to permit, inspect, and legalize existing unpermitted ADUs of any size to the extent feasible. Timeframe: Develop Amnesty Program within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 K. Inclusionary Housing The City has a substantial RHNA obligation of affordable housing that will be a challengedby r=t dove'^.,... ent eests to accommodate due to prosect development coststhem. Therefore, the City must evaluate a variety of policy prescriptions that will encourage and facilitate the construction of below market -rate weickfeicee housing. The City will investigate inclusionary housing policy options as a means to provide a variety of housing types and opportunities for very low, low- and moderate -income households in Newport Beach. The City will adopt an interim inclusionary policy and then assess and analyze a variety of inclusionary housing policy options as appropriate. Based upon this assessment, the City will determine the appropriateness and application of inclusionary policies, and adopt policies, programs or regulations encouraging developments that are affordable to very low, low and moderate income householdsaddF^«i^^ inelusienaFy he ng The City has determined that a base interim inclusionary requirement of 104r5 -percent for new residential development to be affordable to very low and; low- -And medera+lic-AMP income households is appropriate. Applicability -of this requirement will apply^^+ beprojects of a certain size, with smaller projects paying an in -lieu fee. Timeframe: Adopt interim inclusionary policy within 6 months of Housing Element adoption. Evaluate Inclusionary Options within 24 months of Housing Element adoption. Adopt Inclusionary Policies, as appropriate within 36 months of Housing Element Adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #2 Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock. Housing Policy 2.1: Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically feasible. SS3-594 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element IMPLEMENTATION ACTIONS Policy Action 2A: Neighborhood Preservation The City will continue to improve housing quality and prevent deterioration of existing neighborhoods by strictly enforcing applicable Building Code, Fire Code, and Zoning Code regulations and abating Code violations and nuisances. The City of Newport Beach will continue to prepare a quarterly report on code enforcement activities in the 6th c -Cycle. Timeframe: Ongoing, Semi -Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 2B: Residential Building Record Program The City will maintain and continue to implement the Residential Building Records (RBR) program to reduce and prevent violations of building and zoning ordinances by providing a report to the_ all parties involved in a transaction of sale of residential properties, and providing an opportunity to inspect properties to identify potentially hazardous conditions, resources permitting. The report provides information as to permitted and illegal uses/construction, and verification that buildings meet applicable zoning and building requirements. The City will continue to implement this program as RBR applications are submitted to the City. The City will continue to promote the availability of program to the public and local real estate professionals by maintaining information on its website and developing brochures and other promotional materials. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 23C: Preservation of At -Risk Units The City shall maintain registration as a Qualified Preservation Entity with HCD to ensure that the City will receive notices from all owners intending to opt out of their Section 8 contracts and/or prepay their HUD - insured mortgages. The City will consult with the property owners and potential preservation organizations regarding the potential use of Community Development Block Grant (CDBG) funds and/or Affordable Housing Fund monies to maintain affordable housing opportunities in those developments listed in Table 3-17 of Chapter 3 of this Housing Element. The City may assist in the non-profit acquisition of the units to ensure long-term affordability, upon receiving notice that a property owner of an existing affordable housing development intends to convert the units to a market -rate development. The City will maintain registration as a Qualified Preservation entity with HCD and continuously-t#e implement such policy as notices are received from property owners in the 6th Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development SS3-595 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Funding Sources: General Fund Housing Goal #3 A variety of housing types, designs, and opportunities for all social and economic segments. Housing Policy 3.1: Encourage preservation of existing and provision of new housing affordable to extremely low-, very low-, low-, and moderate -income households. Housing Policy 3.2: Encourage housing developments to offer a wide spectrum of housing choices, designs, and configurations. IMPLEMENTATION ACTIONS Policy Action 3A: Objective Design Standards State Housing law includes various exemptions for projects with an affordable housing component, which limits the City's ability to apply discretionary design review requirements to certain residential projects. State Housing law specifies having objective design standards available to apply to housing projects where the City's discretion over design review is otherwise preempted per State law. The City of Newport Beach will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards for protects with a minimum affordable housing component with appropriate objective standards to support the type and density of housing it is intended to allow. Policy Action 3B: SB 35 Streamlining The City will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35, Chapter 366 Statues 2017. These requirements apply at any point in time when the City does not meet the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA)., the City will process development projects with at least 50 percent affordable units through a streamlined permit process (i.e., 90 days for projects with up to 150 units). All projects covered by SB 35 are still subject to the objective development standards of the Newport Beach Municipal Code that includes the Building and Fire Codes. However, qualifying projects cannot be subject to Design Review or public hearings; and in many cases the City cannot require parking. PeF S9 35 requirements, n Parking requirements would notes be imposed on a SB 35 qualified streamlining project to the extent SB 35 prohibits such a parking requirement:{ i+{ is lArp pd: 1. within a half -mile of public transit; 2. within an architecturally and historically significant historic district; SS3-596 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element 3. in an area where on -street parking permits are required but not offered to the occupants of the development; or 4. where there is a car -share vehicle located within one block of the proposed project. One parking space per unit may be required of all other SB 35 projects. The City currently has consistently exceeded RHNA performance goals during the 5t" Cycle. The City's status regarding SB 35 could change during the 6t" Cycle dependent upon RHNA progress throughout the 2021-2029 Planning Period. Timeframe: Adopt procedures within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund SS3-597 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 3C: Preservation of Rental Opportunities The City will continue to maintain rental opportunities by restricting conversions, demolition and reconstruction/reconfiguration of rental units to condominiums in a development containing 15 or more units unless the vacancy rate in Newport Beach for rental housing is an average of 5 percent or higher for four (4) consecutive quarters [where did 15 or more units and 5% vacancy rate and 4 quarter duration come from?], and unless the property owner complies with condominium conversion regulations contained in Newport Beach Municipal Code Chapter 19.64. The City will complete a vacancy rate survey upon submittal of a condominium conversion application of 15 or more units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3D: Priority of Affordable Housing The City will continue to take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with lower- and moderate -income housing requirements. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3E: Mortgage Revenue Bonds The City will continue to participate with the County of Orange in the issuance of tax-exempt mortgage revenue bonds to facilitate and assist in financing, development, and construction of housing affordable to low and moderate -income households. The City will continue to implement program per project submittal as the developer applies for these bonds. The City will adjust this policy to include the promotion of available bonds to the public and developers in the 6t" Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3F: Annual Reporting Program The City will conduct an annual compliance -monitoring program for units required to be occupied by very low-, low-, and moderate -income households. The City of Newport will complete review by the last quarter of each year and report within the annual General Plan Status Report including the Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing. Annual SS3-598 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3G: Entitlement Assistance The City will provide entitlement assistance, expedited entitlement processing, and waive application processing fees for developments in which 5 percent of units are affordable to jextremely�l low-income households. To be eligible for a fee waiver, the units shall be subject to an affordability covenant for a minimum duration of 55 years-. The affordable units provided shall be granted a waiver of park in -lieu fees (if applicable) and City traffic fair share fees. The City will continue to implement this program as affordable housing projects are submitted to the City in the 6t" CCycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3H: Prioritization of Affordable Housing Funds The City will continue to give highest priority for use of Affordable Housing Fund monies to affordable housing developments providing units affordable to extremely --low-income households. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: Affordable Housing Fund Policy Action 31: Public Information About Affordable Housing The City will continue to maintain a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. APrevide a copy of this brochure shall be located at the Planning Counter, on the City's website and shall also be provided oto potential developers. The City will update the brochure as needed to provide updated information regarding incentives including updated fees and a reference to the most up to date Site Analysis and Inventory. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-599 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 3J: Priority in Kind Assistance for Affordability The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant (CDBG) funds or the City's Affordable Housing Fund. The City will continue to implement the program as housing projects are submitted to the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3K: Coastal Zone Development Affordability The City shall follow Government Code Section 65590 and implement Municipal Code Titles 20.34 and 2134 "Conversion or Demolition of Affordable Housing" for new developments proposed in the Coastal Zone areas of the City. All required affordable units shall have restrictions to maintain their affordability for a minimum of 55 years. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3L: Proactive Education and Outreach to Prospective Developers The City will continue to advise and educate existing landowners and prospective developers of affordable housing development opportunities available within Banning Ranch, the Airport Area, West Newport Mesa, Dover -Westcliff, Newport Center, Mariners' Mile, and Balboa Peninsula areas. The City of Newport Beach will continue to implement its program as prospective developers contact the City seeking development information. The City will maintain designated staff persons that can be contacted to provide housing opportunity information and incentives for development of affordable housing durin wry the 6th CCycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3114: Regional Coordination of Housing Issues The City will continue to participate in other programs that assist production of housing. The City will attend quarterly CICHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock in the 6th CCycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-600 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 3N: Housing Impact Studies The City will continue to study housing impacts of proposed larger -scale, significant commercial/industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to CLityt#e —"Charter Section 423" initiative. The City will continue to implement such program as major commercial/industrial projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #4 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City. Housing Policy 4.1: Mitigate potential governmental constraints to housing production and affordability by increasing the City's role in facilitating construction of market -rate housing and affordable housing for all income groups. Housing Policy 4.2: Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. IMPLEMENTATION AGT10fv_ Policy Action 4A: Affirmatively Furthering Fair Housing Pursuant to AB 686, Chapter 958, Statutes 2018, -the City will affirmatively further fair housing by taking meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and fosters inclusive communities free from barriers that restrict access to opportunity based on protected classes, as defined by State law. To accomplish this, the City or designated contracted organization will collaborate with local and regional organizations to review any housing discrimination complaints, assist in dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and resolution. Section 3 of this Housing Element contains an analysis of fair housing activities in Newport Beach and the Orange County region. The analysis found that: ► The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while there are racial and ethnic groups with higher levels of segregation SS3-601 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element than others within Newport Beach, none meet the standard score to identify segregated groups. ► The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area. However, one R/ECAP was identified in the neighboring City of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. ► The UC Davis Regional Opportunity Index shows that most residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. ► The analysis of the TCAC/HCD opportunity Area Maps shows that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top 40 percent in the region in terms of areas that lower-income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. ► The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally, the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). The City will continue to collaborate with the community, stakeholders, and appropriate organizations to address potential constraints to fair housing. This may include, but not limited to: • Analysis and identification of barriers to entry into homeownership or rental opportunities, • Review of historic policies or restrictions that may have prevented and/or may still prevent disadvantaged groups from locating in Newport Beach, • Specific actions that contribute to Newport Beach's ability to foster a more inclusive community to all racial, social, and economic groups. Timeframe: Ongoing 2021-2029 Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-602 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 4B: Streamlined Project Review The City will provide a streamlined "fast-track" development review process for proposed affordable housing developments. The City of Newport will continue to implement this program as affordable housing projects are submitted to the City in the 6th Cycle. Timeframe: Evaluate program features within 24 months, Adopt updated procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4C: Density Bonus and Incentives for Affordable Housing The City will update its Density Bonus Ordinance to be consistent with State Law, as amended. Additionally, the City -shall either -grant a density bonus as required by state law if requested, or- provide other incentives of equivalent financial value when a residential developer agrees to construct housing for persons and families of very low, low, and moderate income above mandated requirements. The City will continue to implement provisions of Chapter 20.32, as amended (Density Bonus) of the Zoning Code as housing projects are submitted to the City during the 6th Cycle. The City will further encourage affordable housing and the potential use of density bonus statutes to accommodate additional affordable units. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4D: List of Pre -Approved Development Incentives The City will develop a pre -approved list of incentives and qualifications for such incentives to promote the development of affordable housing. Such incentives could include the waiver of application and development fees or modification to development standards (e.g., setbacks, lot coverage, etc.). The City will continue to work with the Affordable Housing Task Force to develop the list within the 6th Cycle. Timeframe: Evaluate program features within 24 months, Adopt procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4E: Airport Area Policy Exceptions for Affordable Housing The City recognizes that General Plan Policy LU6.15.6 may result in a potential constraint to the development of affordable housing in the Airport Area, and as a result, the City shall maintain an exception to the minimum 10 -acre village requirement for projects that include a minimum of 30 percent of the units affordable to lower income households. It is recognized that allowing a smaller scale development within an established commercial and industrial area may result in land use compatibility problems and result in a residential development that does not provide sufficient amenities (i.e., parks) and/or necessary improvements (i.e., pedestrian walkways). Therefore, it is imperative that the exception SS3-603 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element includes provisions for adequate amenities, design considerations for the future integration into a larger residential village, and a requirement to ensure collaboration with future developers in the area. The City of Newport Beach will maintain the exception and continue to implement this program as projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4F: Encourage Development of Opportunity Sites The City will continue to encourage and facilitate residential and/or mixed-use development on sites listed in Appendix B by providing technical assistance to interested developers with site identification and entitlement processing. The City will continue to support developers funding applications from other agencies and programs. The City shall post the Sites Inventory, as showing in Appendix B on the City's webpage and produce marketing materials for residential and mixed-use opportunity sites, and it will equally encourage and market the sites for both for -sale development and rental development. The City shall educate developers of the benefits of density bonuses and related incentives, identify potential funding opportunities, offer expedited entitlement processing, and offer fee waivers and/or deferrals to encourage the development of affordable housing within residential and mixed-use developments. The City will continuously implement this program as housing projects are submitted to the City. Review and update as necessary the Site Inventory and provide information to interested developers. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4G: Annual RHNA Sites Inventory Monitoring The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual basis and report the success of strategies to encourage residential development in its Annual Progress Reports required pursuant to Government Code 65400. The City of Newport will respond to market conditions and will revise or add additional sites where appropriate or add additional incentives, if identified strategies are not successful in generating development interest. The City will include the report in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-604 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 4H: Definition of Family Pursuant to State law, the City will update, as appropriate, the definition of "family" and "single - housekeeping unit" and "Dwelling, single unit" to ensure compliance with all federal and state fair housing laws. To comply with State law, the definitions should not distinguish between related and unrelated persons and should not impose limitations on the number of people that may constitute a family. Timeframe: Complete Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #5 Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Housing Policy 5.1: Continue or undertake the following programs to mitigate potential loss of "at risk" units due to conversion to market -rate units. These efforts utilize existing City and local resources. They include efforts to secure additional resources from public and private sectors should they become available. Housing Policy 5.2: Improve energy efficiency of all housing unit types (including mobile homes). Policy Action 5A: Preservation of Affordability Covenants The City will contact owners of affordable units approaching the expiration of affordability covenants to obtain information regarding their plans for continuing affordability on their properties, inform them of financial resources available, and to encourage the extension of the affordability agreements for the developments listed beyond the years noted. The City will conduct an annual compliance monitoring program and a contact list shall be maintained on City website and updated annually during the 6t" Cycle_ Timeframe: Ongoing, as necessary Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-605 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Policy Action 5B: Section 8 Participation The City shall maintain information on the City's website and prepare written communication for tenants and other interested parties about Orange County Housing Authority Section 8 opportunities and to assist tenants and prospective tenants acquire additional understanding of housing law and related policy issues. The City will attend quarterly OCHA (Cities Advisory Committee) that provide updates on OCHA Section 8 waiting list and housing opportunities to ensure information provided on City website is up to date. If Section 8 waiting list is opened, promote the availability of the program through marketing materials made available to the public. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund [What happened to 501 Policy Action 5D: Incentivize for Preserving of Affordability Covenants The City will investigate the potential for providing additional incentives or modify its current policy to incentivize -to property owners to maintainF^F the imaintenanee e the affordability of units on their property during the 6t" Cycle. Timeframe: Investigate and adopt incentives, as appropriate, within 24 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5E: Mobile Home Park Conversions The City will continue to employ the provisions of NBMC Title 20 provision of the Mobile Home Park Overlay to maintain and protect mobile home parks in a stable environment with a desirable residential character. The City will review the existing provisions of the Mobile Home Park Overlay for consistency with State law in accordance with Government Code Section 65863.7. The City will continue to implement program as projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5F: Orange County Housing Authority Advisory Committee The City of Newport Beach will continue to participate as a member of the Orange County Housing Authority (OCHA) Advisory Committee and work in cooperation with the OCHA to provide Section 8 Rental Housing Assistance to residents of the community. The City will continue to attend quarterly OCHA (Cities Advisory Committee). Continue to maintain information on City's website informing landlords of the program benefits of accepting Section 8 Certificate holders. SS3-606 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element The City will, in cooperation with the Housing Authority, recommend and request use of modified fair - market rent limits to increase the number of housing units within the City that will be eligible to participate in the Section 8 program. The Newport Beach Planning Division will prepare and implement a publicity program to educate and encourage landlords within the City to rent their units to Section 8 Certificate holders, and to make very low-income households aware of availability of the Section 8 Rental Housing Assistance Program. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5G: Water Efficiency for Residential Projects The City will continue to implement and enforce the Water Efficient Landscape Ordinance and Landscape and Irrigation Design Standards in compliance with AB 1881 (Chapter 559 Statutes 2006). The ordinance establishes standards for planning, designing, installing, and maintaining and managing water -efficient landscapes in new construction and rehabilitated projects. The City will continue to implement such program as housing projects are submitted to the City. The City will also encourage the retrofit of existing residential developments to install water efficient appliances and fixtures. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5H: Energy Efficiency in Residential Projects The City of Newport Beach will continue to require that any affordable housing developments that receive City assistance from Community Development Block Grant (CDBG) funds or from the City's Affordable Housing Fund shall be required, to the extent feasible, to include installation of energy efficient appliances and devices that will contribute to reduced housing costs for future occupants of the units. The City will continue to implement program as housing projects are awarded funds from the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund & Community Development Block Grant (CDBG) funds Housing Goal #6 Housing opportunities for special needs populations. Housing Policy 6.1: Encourage approval of housing opportunities for senior citizens and other special needs populations. SS3-607 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element IMPLEMENTATION ACTIONS Policy Action 6A: Homeless Program Assistance In the 5th Cycle, the City was successful in providing funding to local organizations for providing shelter and services the individuals experiencing homelessness. The City will continue to apply annually for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to subrecipients who provide shelter and other services for the homeless as well as submit Annual Action Plan to HUD in May of each year. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6B: Repair Loans and Grant Programs for Seniors, Persons with Physical and Developmental Disabilities and Lower Income Households The City, in partnership with OASIS Senior Center and Habitat for Humanity Orange County, has developed a Senior Home Repair Assistance Program (SHARP) that is aimed at assisting low --income seniors in need of critical home repair or modifications due to accessibility needs, safety concerns, health and well-being. The program is available to homeowners aged 60 and older who fall withing the 501h percentile of the Orange County median income. Additionally, Tthe City- will continue to cooperate with the Orange County Housing Authority to pursue establishment of a Senior/Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. The City will continue to attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6C: Leverage CDGB and other Federal Formula Grant Funding The City receives annual allocation of CDBG and other Federal formula grant funds for use in a variety of housing -related activities. The City shall make every effort to leverage these annual funds from various agencies to further the City's housing goals. These may include, but are not limited to, the followiDE State, Regional and private resources: SS3-608 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program • Multifamily Housing Program (MHP) • Housing Related Parks Grant • CalHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Regional Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding • Private Contributions • Public -Private Partnerships In addition, the City of Newport Beach will continue to maintain a list of "Public and Private Resources Available for Housing and Community Development Activities" and maintain a list of resources on City website and update as necessary in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6D: Child Daycare Facilities The City will continue to encourage the development of day care centers as a component of new affordable housing developments and grant additional incentives in conjunction with the review and approval of density bonus projects pursuant to NBMC Chapter 20.32 (Density Bonus). Timeframe: Modify Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6E: Housing Assistance for Seniors The City of Newport Beach was successful in assisting the funding of senior housing services through the 5t" Cycle including Atria, Vivante [isn't Vivante in Costa Mesa?land Harbor Pointe senior housing developments -. The City shall continue to encourage senior citizen independence through the promotion SS3-609 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element of housing and services related to in-home care, meal programs, and counseling, and maintain a senior center that affords seniors opportunities to live healthy, active, and productive lives in the City. The City will encourage and approve senior housing developments if there is a market demand provided the projects include appropriate support services including transportation. Projects that provide housing and services for low- and moderate -income seniors shall take precedence over market -rate senior housing. The City will continue to provide social services, support groups, health screenings, fitness classes, and educational services at the City's OASIS Senior Center or other facilities, ander offer affordable ride -share transportation and meal services to seniors who are unable to drive and/or prepare their own meals or dine out and have little assistance in obtaining adequate meals during the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6F: Emergency Shelters, Transitional and Supportive Housing To comply with State law, the City of Newport Beach will amend certain sections of its Municipal Code to address the following requirements: • Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753, Statues 2018), the City of Newport Beach will amend its Municipal Code to permit supportive housing as a use permitted by right in all zones where multiple family and mixed-use development is permitted. • Emergency and Transitional Housing Act of 2019 (AB 139) —The City will update its Municipal Code to comply with the requirements of Gov Code 65583 to address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions. • Amend the City of Newport Beach Municipal Code to comply with the definitions for "Supportive Housing", Supportive Services", "Target Population" consistent with applicable sections the California Government Code. • Amend the Newport Beach Municipal Code to ensure Emergency Shelters, Transitional and Supportive Housing are permitted in appropriate zones, consistent with State law. Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-610 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Housing Goal #7 Equal housing opportunities in the City for all people. Housing Policy 6.1: Support fair and equal housing opportunities, and environmental justice considerations for all housing opportunities in the City. IIV1PLt1V/tN I A I IUN A(:IIUNS Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers State law has been updated to require approval 'by right' of supportive housing with up to 50 units and low barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are generally defined as service -enriched shelters focused on the transition of persons into permanent housing. Low barrier navigation centers provide temporary living facilities will persons experiencing homelessness to income, public benefits, health services, shelter, and housing. To comply with State law, The City of Newport Beach will adopt policies, procedures, and regulations for processing this type of use as to establish a -non-discretionary local permit approval process must be provided to accommodate supportive housing and lower barrier navigation centers per State law. In the interim, any submitted application for this use type will be processed in accordance with State law. The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted policies. Should any amendments be warranted to existing policies pursuant to State law, the City will modify its existing policies, as appropriate. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7B: Transitional and Supportive Housing In compliance with Senate Bill 2 -(Chapter 364-, Statutes 2017)_and SB 745 -Chapter 185, Statutes 2013-) the City will ensure the Zoning Code is amended to encourage and facilitates emergency shelters and limits the denial of emergency shelters and transitional and supportive housing under the Housing Accountability Act. This Program would permit transitional and supportive housing by -right in all zones allowing residential uses, subject onlyto those regulations that apply to other residential uses of the same type in the same zone. In addition, the Zoning Code will be amended to define "supportive housing", "target population" and "transitional housing" pursuant to state law. The City will continue to monitor the inventory of sites appropriate to accommodate transitional and supportive housing and will work with the appropriate organizations to ensure the needs of homeless and extremely low-income residents are met. The City if committed to prioritizing funding and other available incentives for projects that provide housing for homeless and extremely low-income residents whenever possible. SS3-611 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7C: Housing for Persons with Developmental Disabilities The housing needs of persons with developmental disabilities are typically not fully addressed by local zoning regulations. Persons with disabilities may require, in addition to basic affordability, slight modifications to existing units, and in some instances, a varying range of supportive housing facilities. To accommodate residents with developmental disabilities, the City will review and prioritize housing construction and rehabilitation including supportive services targeted for persons with developmental disabilities. Newport Beach will also explore the granting of regulatory incentives, such as expedited permit processing, and fee waivers and deferrals, to projects targeted for persons with developmental disabilities. To further facilitate the development of units to accommodate persons with developmental disabilities, the City will encourage development of projects targeted for special needs groups. As housing is developed or identified, Newport Beach will collaborate with the Regional Center of Orange County (RCOC) to implement an outreach program informing families within the City of housing and services available for persons with developmental disabilities. The City will provide information at City Hall and on the City's website. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7D: Fair Housing Services The City was successful in reaching out to the community about fair housing services during the 5th Cycle. The City of Newport Beach will continue to contract with an appropriate fair housing service agency for the provision of fair housing services for Newport Beach residents. The City will also work with the fair housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing document required by HUD. The City will continue to provide a minimum two public outreach and educational workshops a year, and distribute pamphlets containing information related to fair housing in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund SS3-612 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Housing Goal #8 Effective and responsive housing programs and policies. Housing Policy 7.1: Review the Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. IMPLEMENTATION ACTIONS Policy Action 8A: Annual Reporting Program The City of Newport Beach shall report on the status of all housing programs as part of its annual General Plan Review and Annual Progress Report (APR). The Annual Progress Report discusses Housing Programs and is submitted to the California Department of Housing and Community Development in accordance with California state law. The City will continue to annually report its efforts within the annual General Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 8B: Water and Sewer Service Providers Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Newport Beach is required to deliver its adopted housing element and any amendments thereto to local water and sewer service providers. This legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects, to ensure that the providers have an opportunity to provide input on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households. The City will submit the adopted 6t" Cycle Housing Element to local water and sewer providers for their review and input. Timeframe: Transmit document immediately upon adoption of future amendment Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Summary of Quantified Objectives [TBD] SS3-613 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element SS3-614 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Candidate Sites Analysis Overview The Candidate Sites Analysis process in Newport Beach was community -driven and lead by the Housing Element Update Advisory Committee (HEWACCommittee)chaired h., Mr. Larry Tweke he ECommittee consistsed of a variety of professionals with relevant experience in affordable housing development and financing, housing policy, local development, environmental matters and community engagement. The primary role of the c -Committee was to provide analysis and feedback on the selection of sites to be included in the Adequate Sites Inventory. The "Focus Areas" for housing development, which are detailed in this document, were identifiedeFeated by the CommitteeC. Within each €Focus aArea,-t#e subcommittees of the c -Committees assigned parcels a feasibility rating— analyzing the parcel's propensity to redevelop during the planning period. T^ f-A-1heir beelst ,.-+his ssees-w ent +The City then sent letters to each property owner whose property was deemed "fFeasible" or "Potentially Feasible" for residential development by the CommitteeHEAUC. This information iswas the basis for the sites inventory presented in this document. The Housing Element is required to identify sites by income category to meet the City's RHNA Allocation. The sites identified within the Housing Element represent the City's ability to develop housing at the designated income levels within the planning period (2021-2029). These sites are e+t#er-LiLresidentially zoned but for which no project has been proposed, ,.•;+"i^ c--Feeifae plan (ii) have been entitled for a residential development project (but will not yet have received building permits and a certificate of occupancy by June 30, 2021) or (iii) have been identified fora a rezone to a residential use from a non- residential use, or (b) for an overlay to allow affordable housing and potentially other housing uses in addition to or in the place of a non-residential use. A summary of this information is included within the Housing Resources section (Section 3) of the City's 2021-2029 Housing Element. Table B-1 shows the City's 2021-2029 RHNA need by income category as well as a summary of the sites identified to meet that need. The analysis within Appendix B shows that the City of has the capacity to meet its#�e4 2021-2029 RHNA allocation through a variety of methods, including: + Identification of additional increased capacity on existing, residentially zoned sites + Identification of residential property for rezone to higher -density residential primary use + Identification of non-residential property for rezone to residential primary use + Development of approved projects which do not have certificates of occupancy + Future development of accessory dwelling units (ADUs) Water, Sewer, And Dry Utility Availability SS3-615 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Each site has been evaluated to ensure there is adequate access to water and sewer connections as well as dry utilities. Each site is situated with a direct connection to a public street that has the appropriate water and sewer mains and other infrastructure to service the candidate site. The City's Sewer System Management Plan provides for the identification of sewer system distribution throughout the community. All sites identified in the sites inventory have existing sewer system capacity and a sewer system capacity assurance plan is provide as part of the Management Plan to ensure the availability of future capacity citywide. Threshold criteria have been adopted to trigger any capacity enhancements necessary based upon changes to land use and other considerations. The City's Jurisdictional Runoff Management Plan addresses stormwater management throughout the City as it provides for the identification and management of facilities to manage stormwater throughout the community. According to the City's Runoff Management Plan, facilities and mitigations for potential peak stormwater flows are not deemed a constraint to future residential development. The Newport Beach Utilities Department, the Municipal Water District of Orange County, and the Irvine Ranch Water District provide water service and management of the City's potable water system. As a built -out community, the City's existing water system services all areas within the City limits through various trunk lines and mains. Fire flow considerations are the primary factor in determining the adequacy of service for future residential development. The City conducts regular monitoring of the water system in the community and provides for system upgrades via capital improvement program to ensure continued adequate water availability and service to existing and future planned residential development. Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas is a gas -only utility and, in addition to serving the residential, commercial, and industrial markets, provides gas for enhanced oil recovery (EOR) and EG customers in Southern California. Southern California Edison (SCE) is the electrical service provider for Newport Beach. SCE is regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and Southern California. SCE will continue to provide adequate services to Newport Beach including increased household growth as projected by the City's RHNA allocation. In accordance with the California Public Utilities Commission all electric and gas service will be provided for future development in Newport Beach as requested. SoCal Gas and Southern California Edison regularly partner with the City to provide services and obtain authorization to construct any required facilities. The City has a mature energy distribution system that will be able to add additional service connections for future residential land uses. Adequacy of Sites to Accommodate RHNA Newport Beach has identified sites with a capacity to accommodate 4,512 lower income dwelling units, which is in excess of its 2,386 -unit lower income housing need. The identified sitesSites desig^a are on parcels that will permit residential development as a primary use at a base density of between 30 andae 50 dwelling units per acre. SS3-616 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element The City has a total 2021-2029 RHNA allocation of 4,845 units. AS ^elmleRsArated pFevioust�, +The City is able to take credit for 2,815 units currently within the planning process, lowering the total RHNA planning needebiga#e-p to 2,632 units as shown in Table B-1. The Housing Element update lists sites that would be able toe-aR accommodate as many asa �ately 7,407 additional units, well in excess of the remainingfeq-u4ed 2,632 units RHNA need. -As described later in this section, the City believes that due to recent State legislation and local efforts to promote accessory dwelling4v+Rg unit ADI production, the City can realistically anticipate the development of 334 ADUs within the 8 -year planning period. Overall, the City has adequate capacity to accommodate its 2021-2029 RHNA. Table B-1: Summary of RHNA Status and Sites Inventory Extremely Low/ Very Low Income Low Income Moderate Income Above Moderate Income Total 2021-2029 RHNA 1,456 930 1,050 1,409 4,845 RHNA Credit (Units Built) TBD TBD TBD TBD TBD Total RHNA Obligations 1,456 930 1,050 1,409 4,845 Sites Available Projects in the Pipeline 121 0 2,183 2,304 Accessory Dwelling Units 228 100 6 334 Existing Zoning Capacity (No Rezones) 0 342 40 382 Remaining RHNA 2,037 608 -- 2,645 Airport Area Environs Rezone 1,941 485 0 2,426 West Newport Mesa Rezone 347 86 0 433 Dover -Westcliff Rezone 4 2 35 41 Newport Center Rezone 178 89 1,515 1,782 Coyote Canyon Rezone 88 88 704 880 Banning Ranch Rezone 206 207 962 1,375 Total Potential Capacity of Rezones 2,764 957 3,216 6,937 Sites Surplus/Shortfall (+/-) +727 +349 +3,217 +4,292 3. Very Low- and Low -Income Sites Inventory This section contains a description and listing of the candidate sites identified to meet the City's very low and low income RHNA need. A full list of these sites is presented in Table B-10. Projects in the Pipeline The City has identified a number of projects currently in, or that have completed the entitlements process which are likely to be developed and/or first occupied during the planning period and count as credit towards the 2021-2029 RHNA allocation. Projects with planned affordable components include: SS3-617 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element + Newport Airport Village (" VeFy Low InEeme Units Planned) + Uptown Newport, Second Phase (1 02 very Low Incerne Units Planned) + Residences at 4400 Von Karman (" VeFy Lew Ince-me Units Planned) + Newport Crossings (78 Lew (neem^ D1anne_E Accessory Dwelling Units (ADUs) The City currently has approved an average of 21 ADUs per year for development between January 1, 2018 and December 30, 2020. HCD guidance states that ADUs may be calculated based on the City's production from January 1, 2018 through December 31, 202-10. To calculate a total number of ADUs assumed to be produced from 2021-2029, the average of all ADUs developed from 2018 to 2020 was calculated then multiplied by 2 for each year of the 6t" CCycle. Through this method, the City identified a total of 334 ADUs assumed for the 8 years. In accordance with State law, ADUs are allowed in all zones that allow single dwelling unit or multiple dwelling unit development. Junior Accessory Dwelling Units JADU (JrADUs) are permitted only in single dwelling unit zones. As part of the site's analysis found within this aAppendix, the City has accounted for future ADU and JADU production using the City's 2020 performance to date. SCAG conducted a regional analysis of current market rents that can be used to assign ADUs to income categories in Sixth Cycle Housing Elements, the analysis surveyed, market rents of 158 existing ADUs. The analysis then determined the proportion of ADUs within each income category for both one-person and two -person households and made assumptions for what percentage of ADUs are rented for free based on existing literature and allocate those towards extremely low income€14. Finally, the analysis combined rented and non -rented ADUs into single affordability breakdown by county. Newport Beach utilized SCAGs affordability assumptions for ADUs in Orange County. This equates to an anticipated ADU development of 334 ADUs over the next 8 years, 228 of which are anticipated to be affordable. The ADUs not designated to meet the City's lower income RHNA need are anticipated to be 100 affordable at moderate income levels and 6 affordable at the above moderate -income level. The City has identified the following program within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach: + Policy Action 1H: Accessory Dwelling Units Construction + Policy Action 11: Accessory Dwelling Units Monitoring Program + Policy Action 1J: Accessory Dwelling Units Amnesty Program Remaining Need Table B-2 below displays the City's total RHNA allocation ^",s for the years 2021-2029 as well as the City's net RHNA allocationabligatiens after the inclusion of Projects in the Pipeline and ADUs. Table B-2: Low and Very Low -Income Remaining Need Very Low Income Low Income SS3-618 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element RHNA Allocation 1,456 930 Pipeline Projects 43 78 Existing Zoning 0 0 Accessory Dwelling Units 84 144 Remaining Low/Very Low -Income Need 1,326 1 329?? 706 708?? SS3-619 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Selection of Sites Sites identified to meet the City's very low and low income RHNA were selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres. Based on a public process, sites were selected based on their realistic viability to accommodate lower income housing within the 2021-2029 planning period. Sites were also evaluated based on access to resources, proximity to additional residential development, transportation and major streetway access, and resources and opportunity indicators. Section 3: Affirmatively Furthering Fair Housing, outlines all fair housing, opportunity indicators, and environmental resources in Newport Beach. The City has identified sites with capacity to accommodate the City's 2021-2029 RHNA. This capacity is based on a rezone strategy for several Focus Areas throughout the City. These Focus Areas are as follows: + Airport Area Environs + West Newport Mesa Area + Dover -Westcliff Area + Newport Center Area + Coyote Canyon Area + Banning Ranch Area The City has analyzed potential capacity based on rezone strategies specific to each area. Each of the following sections describes the identified areas and contains a table of redevelopment assumptions and projected unit capacities. Additionally, each #Focus aArea is followed by a map detailing the adequate sites inventory, organized by area. Airport Area Environs The Airport Area Environs has been an active area feeds for development infe+the City for several years. The development of higher -density residential units within this (Focus aArea can be expectedwill crmtcal to accommodatei+ng lower income units. Increasing density within the Airport Area was also a key strategy as part of the City's 4th and 5th Cycle Housing Element Updates. Table B-3 below displays the capacity and opportunity in this Focus aArea which can help accommodate the City's RHNA allocation. Figure B-1 below maps the sites identified within this Focus Area which can help accommodate a portion of the City's RHNA allocation. FigWFe-B-1- maps -the s+i*^ � iIdcn ocf d-�ci*"ir^ this FcgieR wi " can .ddat. the City's DLI NIA -IL r_-a*Ol ., Table B-3: Airport Area Environs - Redevelopment Analysis Feasible Projected Affordability Assumed Net Units Lower Income Moderate Income Low Very Low Moderate Above Moderate Total Acreage to Redevelop Density SS3-620 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element 162 2,426 30% 80% 20% 50 du/ac 1,941 units 485 units 0 units acres units SS3-621 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Figure B-1: Airport Area Environs — Sites Inventory Newport Housing Element - 6th CycEe March 20211 DRAFT Site Inventory: Airport Area Environs LEGEND -- City Boundary Project in Pipeline 5th Housing Cycle Site Consideration Parcels SS3-622 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element West Newport Mesa Area West Newport Mesa has been identified by the City as aFRajeF reinvestment and redevelopment opportunity, where older industrial, smaller scale development can transition to support future residential development. The adjacent Hoag hospital and supportive medical -related activities supports the opportunity to provide housing OPPOPWRities for local workers of various income levels. Table B-4 below displays the capacity and opportunity in this Focus aArea which can help accommodate the City's RHNA allocation. Figure B-2 below maps the sites identified within this Focus Areareg+en which can help accommodate the City's RHNA allocation. Table B-4: West Newport Mesa Area - Redevelopment Analysis % Affordability Net Units Feasible Projected Assumed Lower Moderate Low Very Above Acreage to Density Moderate Total Income Income Low Moderate Redevelop 433 48 acres 20% 80% 20% 45 du/ac 347 units 86 units 0 units units SS3-623 est Ne, A Ms � �. � _� r� � :,;+ter � ■ ■+rr �._-•_ �.�..,,,�- =� - 1� -Tal I w'w ow Alr _N. �' Air w 4F w OO —•ate• ks : , ;.�:+ � i� A /ate � * ..: i•` ��:� �.- - �•. ¢ air_ i�7. Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Dover -Westcliff Area Dover -Westcliff has been identified as an area with opportunity to support increased density that is compatible with adjacent higher density residential uses and other uses that will support residential development. Table B-5 below displays the capacity and opportunity in this Focus aArea which can help accommodate the City's RHNA allocation. Figure B-3 below maps the sites identified within this Focus Area -I:,-- � which can help accommodate the City's RHNA allocation. Table B-5: Dover -Westcliff Area - Redevelopment Analysis Affordability Net Units Feasible Projected Assumed Lower Moderate Low Very Above Acreage to Density Moderate Total Income Income Low Moderate Redevelop 14 acres 10%41 10/ 5/ 30 du/ac 4 units 2 units 35 units units SS3-625 q !, ALJ kvr w. } ..T 1 ��� � f � � i � ��TT'� � J(��J,,yP/ �yx ■ Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element AJawnnrf Canfiar drag Newport Center has recently had construction of several new residential developments. The City expects the continuation of these development opportunities that creates housing adjacent to major employment opportunities and support retail. Table B-6 below displays the capacity and opportunity in this Focus aArea which can help accommodate the City's RHNA allocation. Figure B-4 below maps the sites identified within this Focus AreaFegieR which can accommodate the City's RHNA allocation. Table B-6: Newport Center Area - Redevelopment Analysis % Affordability Net Units Projected Feasible Assumed to Lower Moderate Low Very Above Acreage Density Moderate Total Redevelo Income Income Low Moderate p 158 1,515 1,782 25% 10% 5% 45 du/ac 178 units 89 units acres units units SS3-627 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Figure B-4: Newport Center Area — Sites Inventory Newport Housing Element - 6th Cycie Ma rth 20211 aRAFr Site Inventory: Newport Center Area LEGEND -- City Boundary Project in Pipeline 5th Housing Cycle Site Consideratim Parcels SS3-628 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element 3oyote Canyon Area Coyote Canyon property is mostly a closed landfill area with limited opportunities for active uses. However, Aa portion of the propertyarea is not subject to these restrictions and is considered an ideal opportunity for future residential development. Table B-7 below displays the capacity and opportunity in this Focus aArea which can help accommodate the City's RHNA allocation. Figure B-5 below maps the portion of the property within Coyote Canyon -sites *d'^„tif*P_ _ i.yathmp this Fegien which can help accommodate the City's RHNA allocation. Table B-7: Coyote Canyon Area - Redevelopment Analysis Affordability Net Units Feasible Projected Assumed Acreage to Redevelop Lower Income Moderate Income Density Low Very Low Moderate Above Moderate Total 22 100% 10% 10% 40 du/ac 88 units 88 units 704 units 880 units SS3-629 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Banning Ranch has been identifieclutilized in prior planning periods as a site to accommodate future housing needs. Banning Ranch was approved for development by the City, but the project was subsequently denied by the Coastal Commissionpin . The City understands that future opportunities may still exist for housing development on+4the Banning Ranch aFea and would like to keep the site under consideration for the 2021-2029 planning period. Table B-8 below displays the capacity and opportunity for Banning Ranch^, area which can help accommodate the City's RHNA allocation. Figure B-6 below maps the Sitesy.oithO^ *" TBanning Ranch—i^^ —ki," GaR accemmedate the City Table B-8: Banning Ranch Area - Redevelopment Analysis % Affordability Net Units Feasible Projected Assumed Above Lower Moderate Low Very Moderat Acreage to Density Moderat Total Income Income Low e Redevelo p e 1,375 46 30% 15% 15% 30 du/ac 206 units 207 units 962 units units SS3-631 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Figure B-6: Banning Ranch Area — Sites Inventory Newport Housing Element • 6th Cycle Me rah 2821 I ORAFT Site Inventory: Banning Ranch Area LEGEND -- City Boundary Project in Pipeline 5th Housing Cycle Site Consideration Parcels SS3-632 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Through a public process, the City has assessed the feasibility of parcels in the Focus Areas to redevelop residentially during the planning period. Those parcels deemed fFeasible were then analyzed to ensure compliance with HCD's criteria for sites designated to accommodate lower income development (including sizing criteria). The inventory of feasible acreageat=ea for redevelopment within each fFocus aArea was developed with this process. Table B-9 below summarizes the key statistics for the rezone strategies for all Focus Areas. Table 13-9: Low/Very Low -Income Rezone Strategy by Focus Area Focus Area Feasible Acreage % Projected to Redevelop Low/Very Low -Income Affordability Rezone Density Potential Low/Very Low -Income Units Airport Area Environs 162 30% 80% 50 du/ac 1,941 units West Newport Mesa Area 48 20% 80% 45 du/ac 347 units Dover -Westcliff Area 14 10% 10% 30 du/ac 4 units Newport Center Area 158 25% 10% 45 du/ac 178 units Coyote Canyon Area 22 100% 10% 40 du/ac 88 units Banning Ranch Area 46 100% 15% 30 du/ac 206 units TOTAL 450 -- -- -- 2,764 units The City's recent history of granting entitlement tod^veleping residential uses with affordable units is shown below: + Newport Airport Village (17 Very Low -Income Units Planned) + Uptown Newport (102 Very Low -Income Units Planned) + Residences at 4400 Von Karman (13 Very Low -Income Units Planned) + Newport Crossings (78 Low -Income Units Planned) These projects show that affordable units can be developed at this density. The Section 4: Housing Plan outlines actions the City will take to promote the development of affordable units within the Focus Areas. Calculation of Unit Capacity Taking into account development standards, unit capacity for sites identified to accommodate low and very low units was calculated by multiplying the net acreage of the site by the assumed density, as established in the City's General Plan Land Use buildout [is that true?l. Depending on the Focus Area, the City assumes that each identified site will develop with between 10% and -80% percent (The 80% number may be changingl affordable units. To support this assumption, the City has identified programs and policies to encourage affordable—developer interest and financial feasibility_; _tThese programs and policies are detailed in Section 4: Housing Plan. Additionally, based on previous development trends, the City assigneds each (Focus aArea a percentage of its land area which the City projectse4 to redevelop — meaningthe percentage of land areaslte-s within eacht4e f Focus aArea expected to "turn over", ordevelop with residential units during the planning period. SS3-633 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area 439 241 Palm Mesa Low and Airport 17 SP -7 RM No 148 5.88 5.88 Yes 0 50 6 20 Ltd Very Low Area 427 121 Beachwood Low and Airport 18 OA AO No 0 0.67 0.67 Yes 0 50 9 24 Properties LLC Very Low Area 427 121 Beachwood Low and Airport 19 OA AO No 0 0.67 0.67 Yes 0 50 9 24 Properties LLC Very Low Area 445 121 Low and Airport 20 Irvine Co PC CO -G No 0 0.91 0.91 Yes 0 50 13 17 Very Low Area 445 161 Todd MU- Low and Airport 21 PC No 0 0.69 0.69 Yes 0 50 10 03 Schiffman H2 Very Low Area 445 161 Todd MU- Low and Airport 22 PC No 0 1.04 1.04 Yes 0 50 15 03 Schiffman H2 Very Low Area 119 300 Newport Golf Low and Airport 23 SP -7 PR No 0 1.38 1.38 Yes 0 50 20 Y 17 Club LLC Very Low Area 119 310 Newport Golf Low and Airport 24 SP -7 PR No 0 3.70 3.70 Yes 0 50 55 Y 04 Club LLC Very Low Area 119 300 Newport Golf Low and Airport 25 SP -7 PR No 0 1.52 1.52 Yes 0 50 22 Y 15 Club LLC Very Low Area 119 300 Newport Golf Low and Airport 26 SP -7 PR No 0 7.30 7.30 Yes 0 50 109 Y 16 Club LLC Very Low Area Birch 427 131 Low and Airport 27 Development OA AO No 0 0.67 0.67 Yes 0 50 9 16 Very Low Area Co 427 121 Dekk Low and Airport 28 OA AO No 0 0.73 0.73 Yes 0 50 10 01 Associates LP Very Low Area 427 131 Low and Airport 29 Chiappero OA AO No 0 0.67 0.67 Yes 0 50 9 14 Very Low Area 427 121 Low and Airport 30 Birch OA AO No 0 0.67 0.67 Yes 0 50 9 02 Very Low Area 427 131 Low and Airport 31 Chiappero OA AO No 0 0.67 0.67 Yes 0 50 9 15 Very Low Area 445 131 City National MU- Low and Airport 32 PC No 0 1.10 1.10 Yes 0 50 16 26 Bank H2 Very Low Area 4400 445 122 MU- Low and Airport 33 Macarthur PC No 0 0.71 0.71 Yes 0 50 10 13 H2 Very Low Area Property SS3-634 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Mandarin 445 133 MU- Low and Airport 34 Investment PC No 0 0.75 0.75 Yes 0 50 11 Y 06 H2 Very Low Area Group 445 131 Von Karman MU- Low and Airport 35 PC No 0 1.19 1.19 Yes 0 50 17 21 Ventures LLC H2 Very Low Area Carl's Jr 445 121 Low and Airport 36 Restaurants PC CG No 0 1.38 1.38 Yes 0 50 20 11 Very Low Area LLC 445 122 MU- Low and Airport 37 Mizan LLC PC No 0 0.79 0.79 Yes 0 50 11 06 H2 Very Low Area 445 131 Big Man On MU- Low and Airport 38 PC No 0 0.53 0.53 Yes 0 50 7 23 Campus LLC H2 Very Low Area 445 131 Hg Newport MU- Low and Airport 39 PC No 0 2.01 2.01 Yes 0 50 30 15 Owner LLC H2 Very Low Area 445 122 MU Low and Airport 40 Craig Realty PC No 0 0.80 0.80 Yes 0 50 11 05 H2 Very Low Area 445 131 John Hancock MU- Low and Airport 41 PC No 0 1.61 1.61 Yes 0 50 24 18 Life H2 Very Low Area 445 131 John Hancock MU- Low and Airport 42 PC No 0 2.30 2.30 Yes 0 50 34 19 Life H2 Very Low Area Olen 445 131 MU- Low and Airport 43 Properties PC No 0 0.64 0.64 Yes 0 50 9 08 H2 Very Low Area Corp 4400 445 122 MU- Low and Airport 44 Macarthur PC No 0 1.17 1.17 Yes 0 50 17 12 H2 Very Low Area Property Hoag Mem 445 151 MU- Low and Airport 45 Hosp PC No 0 1.35 1.35 Yes 0 50 20 09 H2 Very Low Area Presbyterian 445 122 Ferrado MU- Low and Airport 46 PC No 0 1.03 1.03 Yes 0 50 15 09 Newport LLC H2 Very Low Area Kcn 445 131 MU- Low and Airport 47 Management PC No 0 2.58 2.58 Yes 0 50 38 31 H2 Very Low Area LLC 445 131 MU- Low and Airport 48 PC No 0 0.74 0.74 Yes 0 50 10 34 H2 Very Low Area 445 121 Mac Arthur Low and Airport 49 PC CO -G No 0 0.74 0.74 Yes 0 50 11 05 Court LLC Very Low Area SS3-635 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area 445 131 4440 Vka Tic 3 MU- Low and Airport 50 PC Yes 0 0.66 0.66 Yes 0 50 9 Y 09 LLC H2 Very Low Area Comac 445 131 MU- Low and Airport 51 America PC No 0 0.74 0.74 Yes 0 50 10 10 H2 Very Low Area Corporation 445 151 County Of Low and Airport 52 PC PF No 0 7.78 7.78 Yes 0 50 116 01 Orange Very Low Area 445 121 Mac Arthur Low and Airport 53 PC CO -G No 0 7.81 7.81 Yes 0 50 117 14 Court LLC Very Low Area 445 121 Bre & Esa Low and Airport 54 PC CG No 0 2.65 2.65 Yes 0 50 39 18 Properties LLC Very Low Area 445 161 4425 MU- Low and Airport 55 PC No 0 1.69 1.69 Yes 0 50 25 04 Jamboree LLC H2 Very Low Area 445 141 Coastal Azul MU- Low and Airport 56 PC No 0 0.26 0.26 No 0 50 3 Y 04 Management H2 Very Low Area 445 131 Tst Mac Low and Airport 57 PC No 0 059 .59 0.59 Yes 0 50 8 13 Arthur LLC H2 Very Low Area 445 122 MU- Low and Airport 58 Pacific Club PC No 0 1.95 1.95 Yes 0 50 29 17 H2 Very Low Area 445 121 Nf Von Low and Airport 59 PC CG No 0 1.00 1.00 Yes 0 50 14 09 Karman LLC Very Low Area 445 122 M4 Macarthur MU- Low and Airport 60 PC No 0 0.51 0.51 Yes 0 50 7 19 LLC H2 Very Low Area 427 121 Low and Airport 61 Birch OA AO No 0 1.41 1.41 Yes 0 50 21 27 Very Low Area 427 173 Bank First And MU- Low and Airport 62 PC No 0 1.00 1.00 Yes 0 50 14 01 Inc H2 Very Low Area 427 332 Low and Airport 63 Bsp Bristol LLC PC CO -G No 0 2.38 2.38 Yes 0 50 35 02 Very Low Area Newport 427 332 Low and Airport 64 Place PC CO -G No 0 1.70 1.70 Yes 0 50 25 04 Very Low Area Investment 427 332 Crown Low and Airport 65 PC CO -G No 0 1.41 1.41 Yes 0 50 21 03 Building Very Low Area 427 221 Ndh America MU- Low and Airport 66 PC No 0 1.50 1.50 Yes 0 50 22 14 Inc H2 Very Low Area 427 181 Macarthur MU- Low and Airport 67 PC No 0 1.45 1.45 Yes 0 50 21 01 Pacific Plaza H2 Very Low Area SS3-636 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area 427 241 Newport Plaza Low and Airport 68 PC CG No 0 3.95 3.95 Yes 0 50 59 Y 13 Office LLC Very Low Area 427 221 1200 Quail St MU- Low and Airport 69 PC No 0 1.00 1.00 Yes 0 50 14 13 LLC H2 Very Low Area 427 174 MU- Low and Airport 70 Elite West LLC PC No 0 6.32 6.32 Yes 0 50 94 04 H2 Very Low Area 427 221 MU- Low and Airport 71 Nf Dove LLC PC No 0 3.99 3.99 Yes 0 50 59 01 H2 Very Low Area S andher 427 181 MU- Low and Airport 72 Gurcharan PC No 0 0.72 0.72 Yes 0 50 10 Y 08 H2 Very Low Area Singh 427 222 MU Low and Airport 73 Malaguena PC No 0 0.90 0.90 Yes 0 50 13 Y 05 H2 Very Low Area 427 222 Pmc Mu Low and Airport 74 PC No 0 1.56 1.56 Yes 0 50 23 Y 06 Macarthur LLC H2 Very Low Area Sbs Dove 427 221 MU- Low and Airport 75 Street PC No 0 1.71 1.71 Yes 0 50 25 10 H2 Very Low Area Partners Hankey 427 221 MU- Low and Airport 76 Investment PC No 0 1.52 1.52 Yes 0 50 22 11 H2 Very Low Area Company 427 221 Ag Dove MU- Low and Airport 77 PC No 0 3.59 3.59 Yes 0 50 53 06 Owner H2 Very Low Area Sanderson J 427 174 MU- Low and Airport 78 Ray PC No 0 0.94 0.94 Yes 0 50 14 06 H2 Very Low Area Macarthur 427 181 Ridgeway Real MU- Low and Airport 79 PC No 0 1.10 1.10 Yes 0 50 16 07 Estate H2 Very Low Area 427 181 Gs 1600 Dove MU- Low and Airport 80 PC No 0 2.49 2.49 Yes 0 50 37 03 LLC H2 Very Low Area Feb Dove 427 221 MU- Low and Airport 81 Street PC No 0 1.51 1.51 Yes 0 50 22 09 H2 Very Low Area Partners 427 221 Ow -Aberdeen Low and Airport 82 PC CO -G No 0 1.46 1.46 Yes 0 50 21 02 Westerly Very Low Area Sanderson J 427 174 MU- Low and Airport 83 Ray PC No 0 1.50 1.50 Yes 0 50 22 05 H2 Very Low Area Macarthur SS3-637 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area 427 342 Fletcher Jr. MU- Low and Airport 84 PC No 0 3.70 3.70 Yes 0 50 55 02 Jones H2 Very Low Area 427 342 Hilbert MU- Low and Airport 85 PC No 0 1.97 1.97 Yes 0 50 29 01 Properties II H2 Very Low Area 427 221 1500 Quail Low and Airport 86 PC CO -G No 0 4.76 4.76 Yes 0 50 71 16 Property LLC Very Low Area 439 401 Young Men's Low and Airport 87 PF PF No 0 4.03 4.03 Yes 0 50 60 01 Christian Very Low Area Hankey 427 221 MU- Low and Airport 88 Investment PC No 0 1.75 1.75 Yes 0 50 26 07 H2 Very Low Area Company 427 221 Davenport MU- Low and Airport 89 PC No 0 1.47 1.47 Yes 0 50 21 Y 15 Quail Partners H2 Very Low Area 427 141 Sa Abanoub Low and Airport 90 PC CO -G No 0 0.64 0.64 Yes 0 50 9 14 LLC Very Low Area Jrj 936 790 Low and Airport 91 Investments PC CO -G No 0 0.97 0.97 Yes 0 50 14 44 Very Low Area LP 936 790 Sa Abanoub Low and Airport 92 PC CO -G No 0 0.86 0.86 Yes 0 50 12 50 LLC Very Low Area 427 141 Sa Abanoub Low and Airport 93 PC CO -G No 0 0.52 0.52 Yes 0 50 7 04 LLC Very Low Area 427 141 Sa Abanoub Low and Airport 94 PC CO -G No 0 0.52 0.52 Yes 0 50 7 11 LLC Very Low Area 936 790 Sa Abanoub Low and Airport 95 PC CO -G No 0 0.72 0.72 Yes 0 50 10 48 LLC Very Low Area 427 141 Sa Abanoub Low and Airport 96 PC CO -G No 0 0.58 0.58 Yes 0 50 8 07 LLC Very Low Area 427 141 Sa Abanoub Low and Airport 97 PC CO -G No 0 0.51 0.51 Yes 0 50 7 08 LLC Very Low Area 427 141 Sa Abanoub Low and Airport 98 PC CO -G No 0 8.61 8.61 Yes 0 50 129 16 LLC Very Low Area 445 134 MU Low and Airport 99 Tsg-Parcel LLC PC No 0 2.58 2.58 Yes 0 50 38 17 H2 Very Low Area Uptown 445 134 MU- Low and Airport 100 Newport PC No 0 0.67 0.67 Yes 0 50 9 22 H2 Very Low Area Jamboree LLC SS3-638 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area 445 134 Tpg & Tsg MU- Low and Airport 101 PC No 0 0.53 0.53 Yes 0 50 7 14 Venture H2 Very Low Area City Of 445 134 MU- Low and Airport 102 Newport PC No 0 1.03 1.03 Yes 0 50 15 18 H2 Very Low Area Beach 445 141 Ncp GI Owner MU- Low and Airport 103 PC No 0 0.29 0.29 N/A 0 0 Y 11 LLC H2 Very Low Area 445 141 Lyon Housing MU- Low and Airport 104 PC No 0 0.48 0.48 N/A 0 0 Y 12 LLC H2 Very Low Area 445 141 Ncp GI Owner MU- Low and Airport 105 PC No 0 0.29 0.29 N/A 0 0 Y 13 LLC H2 Very Low Area 427 171 Caesar Global Low and Airport 106 PC CG No 0 1.20 1.20 Yes 0 50 17 02 Alliance Very Low Area 427 221 Ow -Aberdeen Low and Airport 107 PC CO -G No 0 1.46 1.46 Yes 0 50 21 03 Westerly Very Low Area Beni 427 171 Low and Airport 108 Investments PC CG No 0 1.40 1.40 Yes 0 50 20 03 Very Low Area stm 936 790 Orange Low and Airport 109 PC CO -G No 0 0.97 0.97 Yes 0 50 14 46 County Bar Very Low Area Cherokee 114 170 Low and Banning 110 Newport PC OS(RV) No 0 130.87 0.00 No 0 1,375* 72 Very Low Ranch Beach Cherokee 114 170 Low and Banning 111 Newport PC OS(RV) No 0 74.64 0.00 No 0 0 0 52 Very Low Ranch Beach Cherokee 114 170 Low and Banning 112 Newport PC OS(RV) No 0 65.05 0.00 No 0 0 0 S0 Very Low Ranch Beach Cherokee 114 170 Low and Banning 113 Newport PC OS(RV) No 0 51.00 0.00 No 0 0 0 S2 Very Low Ranch Beach Cherokee 114 170 Low and Banning 114 Newport PC OS(RV) No 0 44.78 0.00 No 0 0 0 83 Very Low Ranch Beach 114 170 United States Low and Banning 115 PC OS(RV) No 0 41.20 0.00 No 0 0 0 71 Of America Very Low Ranch SS3-639 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation Unique Parcel 5th Existing Gross Net HCD Density Density Net Income Income RezoneLetter ID Number Owner Zoning GPLU Vacancy Cycle Units Acreage Acreage Size (Existing) (Rezoned) Units Category Category Focus Interest? Criteria Final (Zoned) (Rezoned) Area 114 170 United States Low and Banning 116 OS OS(RV) No 0 19.35 0.00 No 0 0 0 76 Of America Very Low Ranch Low and Banning 117 NO AP # PC OS(RV) No 0 15.76 0.00 No 0 0 0 Very Low Ranch 114 170 United States Low and Banning 118 PC OS(RV) No 0 14.32 0.00 No 0 0 0 74 Of America Very Low Ranch City Of 424 041 Low and Banning 119 10 Newport PR PR No 0 12.51 0.00 No 0 0 0 Very Low Ranch Beach 114 170 United States Low and Banning 120 OS OS(RV) No 0 11.48 0.00 No 0 0 0 78 Of America Very Low Ranch 424 041 Low and Banning 121 PC OS(RV) No 0 10.81 0.00 No 0 0 0 04 Very Low Ranch Cherokee 114 170 Low and Banning 122 Newport PC OS(RV) No 0 6.52 46.00 Yes 0 0 0 43 Beach Very Low Ranch 114 170 United States Low and Banning 123 65 Of America OS OS No 0 5.79 5.79 Yes 0 0 0 Very Low Ranch City Of 124 114 170 Newport OS OS(RV) No 0 3.86 3.86 Yes 0 0 0 Low and Banning 80 Very Low Ranch Beach City Of 424 041 Low and Banning 125 08 Newport PR PR No 0 1.14 1.14 Yes 0 0 0 Very Low Ranch Beach Cherokee 114 170 Low and Banning 126 Newport PC OS(RV) No 0 0.37 0.37 No 0 0 0 24 Very Low Ranch Beach City Of 127 114 170 Newport PC OS(RV) No 0 5.33 5.33 N/A 0 0 Low and Banning 81 Very Low Ranch Beach Cherokee 128 114 170 Newport PC OS(RV) No 0 0.21 0.21 N/A 0 0 Low and Banning 75 Very Low Ranch Beach Cherokee 129 114 170 Newport PC OS(RV) No 0 1.10 1.10 N/A 0 0 Low and Banning 49 Very Low Ranch Beach 130 114 170 Orange OS OS No 0 1.49 1.49 N/A 0 0 Low and Banning 66 County Flood Very Low Ranch SS3-640 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Coyote 120 571 County Of Low and 131 PR PR No 0 243.23 22.00 No 0 40 880 Canyon, 12 Orange Very Low etc. 049 122 Carpenter MU- Low and Dover - 132 MU -MM No Yes 0 0.14 0.14 No 21 30 0 Moderate Y 03 Donna H1 Very Low Westcliff Newport MU- 047 041 MU- Low and Dover - 133 Beach Alano CV/15TH No Yes 0 0.11 0.11 No 18 30 0 Moderate Y 05 H4 Very Low Westcliff Club ST MU 047 041 Chamberlain MU- Low and Dover - 134 CV/51T5TH No Yes 0 0.06 0.06 No 15 30 0 Moderate Y 25 Patrick H4 Very Low Westcliff 117 631 Corp Of The Low and Dover - 135 MU -DW No 0 215 .15 2.15 Yes 26 30 5 Moderate 12 Presiding H1 Very Low Westcliff 117 631 Westcliff MU Low and Dover - 136 MU -DW No 0 1.67 1.67 Yes 26 30 4 Moderate 22 Properties LLC H1 Very Low Westcliff 117 631 MU Low and Dover - 137 Horning Jr. M MU -DW No 0 1.30 1.30 Yes 26 30 3 Moderate 17 H1 Very Low Westcliff 117 631 901 Dover Ltd MU Low and Dover - 138 MU -DW No 0 1.10 1.10 Yes 26 30 2 Moderate 18 Partnership H1 Very Low Westcliff 117 631 MU Low and Dover- 139 Yee Lincoln MU -DW No 0 0.87 0.87 Yes 26 30 2 Moderate Y 11 H1 Very Low Westcliff 117 811 Environmental Low and Dover - 140 OG CO -G No 0 1.25 1.25 Yes 0 30 3 20 Nature Very Low Westcliff 458 361 Low and Dover - 141 #N/A PF PF No 0 1.29 1.29 Yes 0 30 3 10 Very Low Westcliff 117 811 Gallant Donna Low and Dover - 142 OG CO -G No 0 1.51 1.51 Yes 0 30 4 18 Adele Very Low Westcliff 117 811 Fluter Russell Low and Dover- 143 OG CO -G No 0 0.79 0.79 Yes 0 30 2 Y 19 E R Very Low Westcliff 049 271 Reynolds Low and Dover - 144 OG CO -G No 0 1.64 1.64 Yes 0 30 4 30 Carol Rex Very Low Westcliff Newport 440 281 Low and 145 Ath LLC PC PR No 0 7.60 7.60 N/A 0 45 85 Center 02 Ver Low Y Area Church Newport 458 341 Low and 146 Newport PI PI No 0 3.03 3.03 Yes 0 45 34 Center 02 Very Low Center I I I I I I I I I I I I I I Area SS3-641 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 458 341 Rector Low and 147 PI PI No 0 3.60 3.60 Yes 0 45 40 Center 01 Wardens Very Low Area Newport 442 271 Irvine Low and 148 PC CO -R No 0 0.75 - No 0 45 8 Center 30 Company Very Low Area Newport 442 271 Irvine Low and 149 PC CO -R No 0 1.08 1.08 Yes 0 45 12 Center 30 Company Very Low Area Newport 442 091 Trail Low and 150 OR CO -R No 0 0.79 0.79 Yes 0 45 8 Center 16 Properties LLC Very Low Area Newport 442 091 Trail Low and 151 OR CO -R No 0 1.42 1.42 Yes 0 45 16 Center 16 Properties LLC Very Low Area Newport 442 021 The Irvine Low and 152 PC CR No 0 0.54 0.54 Yes 0 45 6 Center 47 Company LLC Very Low Area Newport 442 021 The Irvine Low and 153 PC CR No 0 1.76 1.76 Yes 0 45 19 Center 47 Company LLC Very Low Area Newport 440 132 Jgkallins Low and 154 PR PR No 0 1.79 1.79 Yes 0 45 20 Center 40 Investments Very Low Area Newport 442 231 180 Investors Low and 155 OR CO -R No 0 1.17 1.17 Yes 0 45 13 Center 08 LLC Very Low Area Newport 442 091 Trail Low and 156 OR CO -R No 0 1.75 1.75 Yes 0 45 19 Center 12 Properties LLC Very Low Area Newport 442 082 Low and 157 Ncmb No LLC PC CO -M No 0 2.72 2.72 Yes 0 45 30 Center 11 Very Low Area Newport 442 082 Low and 158 Ncmb No LLC PC CO -M No 0 4.05 4.05 Yes 0 45 45 Center 14 Ver Low Very Area Newport 442 082 Low and 159 Ncmb No LLC PC CO -M No 0 3.46 3.46 Yes 0 45 38 Center 08 Ver Low Very Area SS3-642 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 442 082 Low and 160 Ncmb No LLC PC CO -M No 0 1.17 1.17 Yes 0 45 13 Center 12 Very Ver Low Area Amalfi Newport 442 081 Low and 161 Investments PC No 0 0.75 0.75 Yes 0 45 g Center 05 H3 H3 Very Low Gp Area Newport 442 271 17 Corporate Low and 162 PC CO -R No 0 1.04 1.04 Yes 0 45 11 Center 17 Plaza Assoc Very Low Area Mark Newport 442 271 Low and 163 Robinson Jr PC CO -R No 0 0.55 0.55 Yes 0 45 6 Center 23 Very Low LLC Area Newport 442 271 Junkins Low and 164 PC CO -R No 0 0.76 0.76 Yes 0 45 8 Center 12 Mitchell Very Low Area Newport 442 271 Property Low and 165 PC CO -R No 0 0.89 0.89 Yes 0 45 9 Center Y 05 Reserve Inc Very Low Area Newport 442 271 Property Low and 166 PC CO -R No 0 0.89 0.89 Yes 0 45 10 Center Y 03 Reserve Inc Very Low Area Newport 442 271 Burnham- Low and 167 PC CO -R No 0 0.98 0.98 Yes 0 45 11 Center 32 Newport LLC Very Low Area Newport Newport 442 271 Low and 168 Corporate PC CO -R No 0 1.02 1.02 Yes 0 45 11 Center 16 Very Low Plaza Area Newport 442 271 Heritage One Low and 169 PC CO -R No 0 0.68 0.68 Yes 0 45 7 Center 15 LLC Very Low Area Pacific Newport 442 271 Low and 170 Development PC CO -R No 0 0.84 0.84 Yes 0 45 9 Center 01 Very Low Group Area Olen Newport 442 271 Low and 171 Properties PC CO -R No 0 0.75 0.75 Yes 0 45 8 Center 02 Very Low Corp Area Newport 442 271 Low and 172 Boras Scott PC CO -R No 0 0.51 0.51 Yes 0 45 5 Center 34 Ver Low Very Area SS3-643 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 442 271 Kinkle George Low and 173 PC CO -R No 0 0.88 0.88 Yes 0 45 9 Center 14 Randy Very Low Area Newport 442 271 Low and 174 Tax Division PC CO -R No 0 0.97 0.97 Yes 0 45 10 Center Y 04 Very Low Area Newport 442 271 Chico Low and 175 PC CO -R No 0 0.76 0.76 Yes 0 45 8 Center 13 Associates Inc Very Low Area Newport 442 271 Low and 176 Irvine Co PC CO -R No 0 1.13 1.13 Yes 0 45 12 Center 19 Ver Low Y Area Olen Newport 442 271 Low and 177 Properties PC CO -R No 0 1.17 1.17 Yes 0 45 13 Center 29 Very Low Corp Area Newport 442 271 Irvine Low and 178 PC CO -R No 0 3.00 3.00 Yes 0 45 33 Center 31 Company Very Low Area Newport 442 271 24 Corporate Low and 179 PC CO -R No 0 0.98 0.98 Yes 0 45 11 Center 33 Plaza II LLC Very Low Area Newport 442 271 Baldwin Bone Low and 180 PC CO -R No 0 0.70 0.70 Yes 0 45 7 Center 24 Properties Very Low Area Newport 442 011 Low and 181 Fainbarg PC PR No 0 2.98 2.98 Yes 0 45 33 Center 53 Ver Low Y Area Newport 442 011 Golf Realty MU- Low and 182 64 Fund LP PC H3/PR No 0 2.96 2.96 Yes 0 45 33 Very Low Center Y Area Newport 442 262 Pacific Mutual Low and 183 OR CO -R No 0 9.99 9.99 Yes 0 45 112 Center 01 Life Very Low Area Newport 440 132 Low and 184 Fluter Russell PR PR No 0 2.80 2.80 Yes 0 45 31 Center ? 48 Very Ver Low Area Newport 442 231 Southwest Low and 185 OR CO -R No 0 0.51 0.51 Yes 0 45 5 Center 09 Investors Very Low Area SS3-644 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 442 161 Design Plaza Low and 186 OR CO -R No 0 7.17 7.17 Yes 0 45 80 Center 17 Owners Assn Very Low Area 100 Newport Newport 442 231 Low and 187 Center Drive OR CO -R No 0 0.61 0.61 Yes 0 45 6 Center 13 Very Low LLC Area Newport 442 491 Hhr Newport Low and 188 CV CV No 0 9.54 9.54 Yes 0 45 107 Center 02 Beach LLC Very Low Area Newport 442 082 Low and 189 Irvine Co PC COW No 0 4.10 4.10 Yes 0 45 46 Center 05 Ver Low Y Area Newport 442 021 Low and 190 Irvine Co PC CR No 0 1.74 1.74 Yes 0 45 19 Center 28 Ver Low Y Area Newport 442 021 Irvine Low and 191 PC CR No 0 2.50 2.50 Yes 0 45 28 Center 26 Company LLC Very Low Area Newport 442 231 Low and 192 Irvine Co PC CO -R No 0 2.83 2.83 Yes 0 45 31 Center 11 Ver Low Y Area Newport 442 021 Irvine Low and 193 PC CR No 0 1.73 1.73 Yes 0 45 19 Center 13 Company LLC Very Low Area Newport 442 021 Low and 194 Irvine Co PC CR No 0 0.80 0.80 Yes 0 45 9 Center 08 Ver Low Y Area Newport 442 021 Low and 195 Irvine Co PC CR No 0 0.63 0.63 Yes 0 45 7 Center 32 Ver Low Y Area Newport 442 021 Irvine Low and 196 PC CR No 0 4.09 4.09 Yes 0 45 46 Center 29 Company LLC Very Low Area Newport 442 021 Low and 197 Irvine Co PC CR No 0 1.24 1.24 Yes 0 45 13 Center 30 Very Low Area Newport 442 021 Low and 198 Irvine Co PC CR No 0 1.17 1.17 Yes 0 45 13 Center 27 Ver Low Very Area SS3-645 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 442 021 The Irvine Low and 199 PC CR No 0 0.87 0.87 Yes 0 45 9 Center 40 Company LLC Very Low Area Newport 442 021 The Irvine Low and 200 PC CR No 0 4.11 4.11 Yes 0 45 46 Center 46 Company LLC Very Low Area Newport 442 021 Low and 201 Irvine Co PC CR No 0 0.56 0.56 Yes 0 45 6 Center 35 Very Ver Low Area Newport 442 021 Low and 202 Irvine Co PC CR No 0 4.03 4.03 Yes 0 45 45 Center 33 Ver Low Y Area Newport 442 231 Low and 203 Irvine Co PC CO -R Yes 0 4.10 4.10 Yes 0 45 46 Center 14 Ver Low Y Area Newport 442 101 Island Hotel MU- Low and 204 PC No 0 5.37 5.37 Yes 0 45 60 Center 27 Finance LLC H3 Very Low Area Newport 442 021 Low and 205 Irvine Co PC CR No 0 8.25 8.25 Yes 0 45 92 Center 31 Ver Low Y Area Newport 442 021 Low and 206 Irvine Co PC CR No 0 0.56 0.56 Yes 0 45 6 Center 11 Ver Low Y Area Newport 442 021 Irvine Low and 207 PC CR No 0 1.74 1.74 Yes 0 45 19 Center 17 Company Very Low Area Newport 442 021 The Irvine Low and 208 PC CR No 0 5.43 5.43 Yes 0 45 61 Center 43 Company LLC Very Low Area Newport 442 021 The Irvine Low and 209 PC CR No 0 0.99 0.99 Yes 0 45 11 Center 45 Company LLC Very Low Area Newport 442 021 Irvine Co LLC Low and 210 PC CR No 0 1.25 1.25 Yes 0 45 14 Center 44 The Very Low Area Newport 442 021 The Irvine Low and 211 PC CR No 0 4.16 4.16 Yes 0 45 46 Center 42 Company LLC Very Low Area SS3-646 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Newport 442 411 Feuerstein Low and 212 PC CG No 0 1.12 1.12 Yes 0 45 12 Center 01 Brett Very Low Area Newport 442 261 MU- Low and 213 Irvine Co No 0 2.23 2.23 Yes 0 45 25 Center 21 H3 Very Ver Low Area Newport 442 011 Golf Realty MU- Low and 214 No 0 1.11 1.11 Yes 0 45 12 Center Y 65 Fund LP H3/PR Very Low Area West 114 170 School Costa Low and Newport 215 PF PF No 0 11.56 11.56 No 0 45 104 51 Mesa Union Very Low Mesa Area West 424 141 Taormina Low and Newport 216 IG IG No 0 0.23 0.23 No 0 45 2 Y 17 Property Very Low Mesa Area West 424 141 Taormina Low and Newport 217 IG IG No 0 0.23 0.23 No 0 45 2 Y 17 Property Very Low Mesa Area West 892 080 Chi Ltd Low and Newport 218 RM RM No 61 4.34 4.34 Yes 13 45 26 Moderate Y 02 Ptnrship Very Low Mesa Area West 424 151 Low and Newport 219 Chi Limited RM RM No 56 4.77 4.77 Yes 14 45 2 Moderate Y 01 Very Low Mesa Area West 892 090 Bellerose Low and Newport 220 RM RM No 56 4.27 4.27 Yes 13 45 0 Moderate 55 Brian Very Low Mesa Area West 892 109 Patronite Low and Newport 221 RM RM No 36 1.90 1.90 Yes 13 45 9 Moderate 03 Charlotte Very Low Mesa Area SS3-647 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area City Of West 114 170 Low and Newport 222 Newport PF PF No 0 3.05 0.92 Yes 0 45 27 82 Very Low Mesa Beach Area City Of West 424 401 Low and Newport 223 Newport PF PF No 0 2.00 0.60 Yes 0 45 17 12 Very Low Mesa Beach Area City Of West 425 171 Low and Newport 224 Newport PF PF No 0 7.95 2.38 Yes 0 45 71 01 Very Low Mesa Beach Area West 424 111 Voorhees Low and Newport 225 IG IG No 0 0.55 0.55 Yes 0 45 4 05 Michael Very Low Mesa Area West 424 141 Low and Newport 226 Scab Wrks LLC IG IG No 0 0.52 0.52 Yes 0 45 4 06 Very Low Mesa Area West 424 111 Trico Newport Low and Newport 227 IG IG No 0 3.23 3.23 Yes 0 45 29 Y 06 Properties Very Low Mesa Area West 424 401 Howland Low and Newport 228 IG IG No 0 1.86 0.56 Yes 0 45 16 04 Associates LLC Very Low Mesa Area West 424 141 Low and Newport 229 Flores Alan IG IG No 0 2.73 2.73 Yes 0 45 24 01 Very Low Mesa Area West 424 142 Horness Lois Low and Newport 230 IG IG No 0 0.74 0.74 Yes 0 45 6 14 For Very Low Mesa Area 424 141 Orangethorpe Low and West 231 IG IG No 0 0.69 0.69 Yes 0 45 6 04 Properties Very Low Newport SS3-648 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-10: Sites Inventory to Accommodate Low and Very Low -Income RHNA Allocation HCD Net Income Income RezoneLetter Unique Parcel 5th Existing Gross Net Density Density Owner Zoning GPLU Vacancy Size Units Category Category Focus ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Interest? Criteria Final (Zoned) (Rezoned) Area Mesa Area West 424 141 Ducoing Brent Low and Newport 232 IG IG No 0 0.53 0.53 Yes 0 45 4 05 & Ami Very Low Mesa Area West 424 131 Riverport Low and Newport 233 OM CO -M No 0 1.07 1.07 Yes 0 45 9 16 Properties LLC Very Low Mesa Area West 424 141 DeGraw Low and Newport 234 IG IG No 0 1.08 1.08 Yes 0 45 9 03 James Very Low Mesa Area West 424 142 Hixson Metal Low and Newport 235 IG IG No 0 1.31 1.31 Yes 0 45 11 235 11 Finishing Very Low Mesa Area West Newport 424 401 Low and Newport 236 Business IG IG No 0 1.14 1.14 Yes 0 45 10 236 06 Very Low Mesa Center Area West 424 141 Hunsaker Low and Newport 237 IG IG No 0 1.61 1.61 Yes 0 45 14 237 02 Richard Very Low Mesa Area West 424 401 Allred Low and Newport 238 IG IG No 0 0.76 0.76 Yes 0 45 6 238 08 Newport LLC Very Low Mesa Area West 424 141 Van De Low and Newport 239 IG IG No 0 0.56 0.56 Yes 0 45 5 239 09 Walker Glynn Very Low Mesa Area Notes: Banning Ranch numbers have not yet been assigned to specific parcels. These numbers will be adjusted before HCD submittal SS3-649 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Moderate and Above Moderate Sites Inventory This section contains a description and listing of the candidate sites identified to meet the City's moderateveFy Iew and above moderatelew income RHNA need. A full list of these sites is presented in Table B-14. Projects in the Pipeline The City has identified a number of projects currently in the entitlements process which are likely to be developed and/or first occupied during the planning period and count as credit towards the 2021-2029 RHNA allocation. Notably, Projects in the Pipeline can completely accommodate the City's Above Moderate RHNA allocation. Table B-11 below summarizes the potential units from -pProjects in the pPipeline: Table B-11: Moderate and Above Moderate -Income Projects in the Pipeline Moderate Income Above Moderate Income Pipeline Projects 0 units 2,183 units Accessory Dwelling Units For Moderate and Above Moderate Income Households (ADUs) 20-1-8 Pecember 30, 2020. MCD g6lidaRee stater-, that may be hasp_d_ eR the City's calculated rheR multiplied by 2 fee each year of +h 9t4 GYcIe Thre gh this ., ethed this city i. entified a te-t-al ef -3-311 ADL)s assu.m.ed- fn -.r the _8 years. 1 n aGce-Indance viith State law, A -DI -Is are al le-vVed- in All zene As part ef the site's aRalysis feund within this appendix, the Gity h -as -ar--ce-i-Inted- fel, fi-Iture ADIJ and jADIJ pFE)draEti()R as+rag the City's ^^ nEe tete. As noted in Paragraph A3 of this Appendix, Tthe City anticipates a total of 100 ADUs affordable at moderate income levels and 6 ADUs affordable at the above moderate -income level. The City has identified programs within the Section 4: Housing Plan to encourage the production of ADUs in Newport Beach. Remaining Need Table B-12 below displays the City's total RHNA allocation need affordable to moderate and above moderate income house holdseb4ga#en-s for the years 2021-2029 as well as the City's net RHNA allocation need affordable to moderate and above moderate households^hs after the inclusion of Projects in the Pipeline and ADUs. Table B-12: Moderate and Above Moderate -Income Remaining Need Moderate Income I Above Moderate Income SS3-650 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element RHNA Allocation 1,050 units 1,409 units Pipeline Projects 0 units 2,183 units Existing Zoning 348 units 40 units Accessory Dwelling Units 100 units 6 units Remaining Low/Very Low -Income Need 600 units No remaining need Selection of Sites Pursuant tol3ased erg a public process, sites were selected based on their realistic viability to accommodate lower income housing within the 2021-2029 planning period. Sites were also evaluated based on access to resources, proximity to additional residential development, transportation and major streetway access, and resources and opportunity indicators. Section 3: Affirmatively Furthering Fair Housing, outlines all fair housing, opportunity indicators, and environmental resources in Newport Beach. _A detailed map and list of candidate sites can be found on the City's website. The City has identified sites with capacity to accommodate the City's 2021-2029 RHNA. This capacity is based on a rezone strategy for several Focus Areas throughout the City. These Focus Areas are as follows: + Airport Area Environs + West Newport Mesa Area + Dover -Westcliff Area + Newport Center Area + Coyote Canyon Area + Banning Ranch Area The City has developed analyzed potential capacity based on rezone strategies specific to each Focus aArea. Through a public process, the City has assessed the feasibility of parcels to redevelop residentially during the planning period. Those parcels deemed feasible were then analyzed to ensure compliance with HCD's criteria for sites designated to accommodate lower income development (including sizing criteria). The inventory of feasible sitearea for redevelopment within each #Focus aArea was developed with this process. Table B-13 below summarizes the key statistics for the rezone strategies. SS3-651 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-13: Moderate/Above Moderate -Income Rezone Strategy by Focus Area Potential Moderate Potential Feasible Projected Rezone Above Focus Area Income Moderate - Acreage to Density Moderate - Affordability Income Units Redevelop Income Units Airport Area 162 30% 20% 50 485 units 0 units Environs West Newport 48 20% 20% 45 86 units 0 units Mesa Area Dover - Westcliff 14 10% 5% 30 2 units 35 units Area Newport 158 25% 5% 45 89 units 1,515 units Center Area Coyote 22 100% 10% 40 88 units 704 units Canyon Area Banning 46 100% 15% 30 207 units 962 units Ranch Area TOTAL 450 -- -- -- 957 units 3,217 units Calculation of Unit Capacity Taking into account development standards, unit capacity for sites identified to accommodate moderate and above moderate -income units was calculated by multiplying the net acreage of the site by the assumed density, as established in the City's General Plan Land Use buildout [Is that true?l. Depending on the Focus Area, the City assumes that each identified site will develop with between 10% and -80% peFeeRt affordable units (the remainder developing as moderate and above moderate income units . To support this assumption, the City has identified programs and policies to encourage;;f#erd;;hle developer interest and financial feasibility_,4These programs and policies are detailed in Section 4. Additionally, based on previous development trends, the City assigneds each #Focus Aarea a percentage of its land area which the City projectsed to redevelop — meaning the percentage of land areas+tes within eacht4e (Focus a -Area expected to "turn over", or develop with residential units during the planning period. SS3-652 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element Table B-14: Sites Inventory to Accommodate Moderate and Above Moderate -Income RHNA Allocation HCD Net Income IncomeRezone Unique Parcel 5th Existing Gross Net Density Density Focus Letter Owner Zoning GPLU Vacancy Size Units Category Category ID Number Cycle Units Acreage Acreage (Existing) (Rezoned) Area Interest? Criteria Final (Zoned) (Rezoned) Mariners 1 049 110 30 MU -MM MU -H1 No Yes 0 1.68 1.68 Yes 26 1 Moderate Center M2 LLC Lido Group 2 423 122 01 MU -W2 MU -W2 Yes Yes 0 1.34 1.34 Yes 26 5 Moderate Retail LLC Nb Mariner's Above 3 049 150 26 MU -W1 MU -W1 No Yes 0 2.18 2.18 Yes 5 1 Mile LLC Moderate Mariners Mile Above 4 049 150 29 MU -W1 MU -W1 No Yes 0 1.65 1.65 Yes 5 9 LLC Moderate Golden Hills Above 5 049 130 22 MU -W1 MU -W1 No Yes 0 1.39 1.39 Yes 5 8 Towers LLC Moderate Nb Mariner's Above 6 049 150 21 MU -W1 MU -W1 No Yes 0 0.92 0.92 Yes 5 5 Mile LLC Moderate Chino Hills Above 7 049 150 16 MU -W1 MU -W1 No Yes 0 0.52 0.52 Yes 5 3 Mall LLC Moderate Mariners Mile 8 425 471 26 MU -MM MU -H1 No Yes 0 0.95 0.95 Yes 26 25 Moderate North LLC MarinCrrs Mile 9 049 121 23 MU -MM MU -H1 No Yes 0 0.96 0.96 Yes 26 25 Moderate o MarinCrrs Mile 10 049 121 24 MU -MM MU -H1 No Yes 0 0.88 0.88 Yes 26 23 Moderate o 11 42547157 2436pch LLC MU -MM MU -H1 No Yes 0 0.56 0.56 Yes 26 15 Moderate 12 425 471 23 Susan Cuse Inc MU -MM MU -H1 No Yes 0 0.53 0.53 Yes 26 14 Moderate Stegmann 13 425 471 24 MU-MMMU-H1 No Yes 0 0.54 0.54 Yes 25 14 Moderate Sadie Mary Wypark 14 423 123 08 Investments MU -W2 MU -W2 No Yes 0 0.59 0.59 Yes 25 15 Moderate Pc Quay Works Above 15 049 130 18 MU -W1 MU -W1 No Yes 0 1.31 1.31 Yes 5 7 LLC Moderate Waterfront Above 16 04913014 Newport MU -W1 MU -W1 No Yes 0 1.21 1.21 Yes 5 7 Moderate Beach SS3-653 Housing Element Update Advisory Committee - March 31, 2021 Item No. V(c) - Additional Materials Received from Larry Tucker Discuss Initial Draft Housing Element SS3-654 Housing Element Update Advisory Committee - March 31, 2021 Item No. III - Additional Materials Received Public Comments on Non -Agenda Items From: Jack Finnell To: Housina Element Update Advisory Committee Subject: Please Don"t Ruin Our View Date: Thursday, March 25, 2021 10:56:43 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello, I live at 2601 Blue Water Drive, CCM 92625. 1 understand that you are considering giving the okay to condos that would block our ocean views and damage the value of our family's home. Please don't! Thanks, Jack Finnell GROWTH ACCELERATORS, LLC http://www.growthaccelerators.com (714)658-1866 SS3-655 From: Sonja Trauss <sonja@yimbylaw.org> Sent: Monday, March 22, 20215:37 PM To: CDD Subject: Missing Page in the housing element? [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello, I am reading the housing element, and I got to the bottom of page 72 here: https://www.newportbeachca.gov/PLN/Housing Element Update/March 10 2021 Draft/Section3 Ho usingConstraintsandResources. pdf At the bottom of the page, the last sentence says, "Other programs that affirmatively further fair housing and implement the AI's recommendations include:" But the next page is the next section. There is no list of programs. Thanks Sonja SS3-656 From: Linda Giedt <Iclemensgiedt@gmail.com> Sent: Saturday, March 20, 20213:08 PM To: CDD Subject: Proposed changes in zoning of the Airport Vicinity [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello, I am against the City of Newport Beach changing the land use of the Newport Beach Golf Course and possibly the YMCA to make way for new housing in the Bayview Heights neighborhood. We do not want or need the zoning changed to make our area more dense. Our community is a small one already and now you want to over build it and make it more dense. The city has already approved rezoning for a multi story senior care facility where Kitayama was on Bristol even though the neighborhood was against it. Now you want to build 100's of houses on the other side of our neighborhood on Mesa Dr. Where does it end? It's a total money grab for millions of dollars once the land is sold for development. Plus, residents enjoy the recreation facilities like the public golf course and the YMCA. The city is rezoning plenty around other parts of Newport Beach so please leave the Back Bay alone so we may enjoy the little open space we do have. Thank you, Linda Giedt SS3-657 From: steven fischer <stevenfis@gmail.com> Sent: Friday, March 19, 20214:47 PM To: CDD Subject: 4845 Residental units [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. This is not going to happen...???? How where and why? Can I build a 60 story 300 unit high rise oceanfront in Com??? You get me the land I can get it built rediculous Steven Fischer 510 Poinsettia Ave Corona del Mar, Ca. 92625 (818)621-7691 stevenfis@gmail.com SS3-658 From: William Cope <cope2003@sbcgloba1.net> Sent: Wednesday, March 17, 20215:38 PM To: CDD Subject: Housing [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. WE ARE EMPHATICALLY OPPOSED TO NEW CONSTRUCTION AT THE NEWPORT BEACH GOLF COURSE (Birch Street/Mesa). This type of development will negatively impact our neighborhood on many levels. Bill and Lisa Cope 20142 Bayview Ave Newport Beach, CA 92660 SS3-659 From: Jim Auster <jimauster@hotmail.com> Sent: Wednesday, March 17, 20213:30 PM To: CDD Cc: carrera mullinax bayview group Subject: Re: City of Newport Beach - DRAFT Circulation and Housing Element Updates [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Rezoning Newport Beach Golf Course, a popular and irreplaceable community recreational asset, for residential will set precedent for development and elimination of other golf courses, parks, sports fields, beaches, open space, Back Bay, etc. Housing without such extremely negative impacts can be done with free market incentives by higher density rezoning of existing residential/commercial but never on open space, a red line that cannot be crossed. Jim Auster and Merrilee Bliss 20401 Bayview Ave Newport Beach 9706187692 On Mar 17, 2021, at 1:41 PM, carreramullinax@gmail.com wrote: Hi All: After exploring the City's Newport, Together page, where the public outreach for the update to the City's General Plan is located (which includes the Housing Element, Circulation Element, etc.), I found a page that specifically discusses the various City areas where the changes to land use/zoning are being proposed. This page is probably the most succinct one that sets forth the areas more clearly and shows what the proposed intent is. Best of all, if you go all the way down to the bottom of the page, you can click on "Go to Discussion" and leave comments about any of the City areas discussed. (Sadly, there has been no feedback posted to date!) This is probably the easiest and most efficient way to leave feedback. After reviewing the information about the proposed updated Housing Element, I would encourage you to submit some sort of feedback to the City so that your voice is heard! Sincerely, Carrera Mullinax (949) 230-4119 SS3-660 From: Jim Auster <jimauster@hotmail.com> Sent: Wednesday, March 17, 202110:38 AM To: Sam Hoelscher <sam.hoelscher@gmail.com> Cc: Andrea Kane <californiakane@yahoo.com>; Andrea Pronk-Dunn <apronkdunn@yahoo.com>; Angie Vazirian <angievazirian@gmail.com>; Anne Ima <anneima@yahoo.com>; Anthony Nguyen <blueporsche3@yahoo.com>; Barb & Bill Goring <bjsihilling@gmail.com>; Beth Darling <bdarling001@road run ner.com>; Bill & Lisa Cope <cope2003@sbcglobal.net>; Brad Larkins <brad.larkins@outlook.com>; Brett Mullinax <brettmullinax3@gmail.com>; Brian Barson <brianbarson@gmail.com>; Bruce & Donna McMeikan <donnamcmeikan@gmail.com>; Caroline Dobbins <carolinedobbins@icloud.com>; Carrera Mullinax <carreramullinax@gmail.com>; Christina Larkins <christina_larkins@hotmail.com>; Cole Cannon <colepcannon@gmail.com>; Craig Ima <craigima@yahoo.com>; Curtis Murrell <curtism@pcwservices.com>; Cyle Kasper <cylekspr@gmail.com>; Dan & Christy Walker <cityroofing1357@gmail.com>; David Doyle <DDoyle@avcity.org>; Devon Niccole <dniccole@gmail.com>; Donovan McReynolds <dcmcreynolds@yahoo.com>; Ed Matthias <ematthias@sbcgloba1.net>; Heather Proud <hproud949@gmail.com>; Jackie Land <jackieland@sbcgloba1.net>; Jake Winkle <jakewinkle@gmail.com>; Janice Burns <JanBurns@msn.com>; Jeff Roberts <2jeffroberts@gmail.com>; Jennifer Michelle Hoelscher <jennifer@ams-ca.com>; Jim Panetta <jpanetta24@gmail.com>; John Chapman <john.chapman@wpwm.com>; Johnson Andrews <andrewsadvisory@gmail.com>; Julie Lowery <lowerynewport@yahoo.com>; Justin Cable <jcable@gmail.com>; Kady Carson <kadycarson@yahoo.com>; Karen & Gary Martin <kymartin@uci.edu>; Kerry Simpson <ksimpson@moffattnichol.com>; Kimberly Wright <kimberlycabo09@gmail.com>; Kurt Kawczynski <kurt_kawczynski@yahoo.com>; Kyle Robar <ktrobar@gmail.com>; Lance Emery <lance.emery@steadfastco.com>; Laura Caputo <caputogirls@yahoo.com>; Leland Berggren <Iberggren23@gmail.com>; Linda Giedt <Iclemensgiedt@gmail.com>; Louise Grimm <louisemgrimm@yahoo.com>; Marlene Hester <marlenehester@cox.net>; Matt Clark <mjlclark@road runner.com>; Matt Nestlerode <nestlerode. matt@gmail.com>; Maureen & Pat Peters <mo@gsainfo.com>; Meleah Johnson <meleahmail@gmail.com>; Merrilee Bliss <merrileebliss@gmail.com>; Mickey Steinmeyer <mickeysteinmeyer@gmail.com>; Mike Smith <mws.aspenroyal@gmail.com>; Nancy Kaufman <nankaufman@gmail.com>; Neil Treffers <ntreffers@yahoo.com>; Nick Kerr <nkerr22@hotmail.com>; Patricia Delgado <pdelgadol5@gmail.com>; Peggy Kerr <peggykerr22@hotmail.com>; Philippa Wagoner <phiIiwag@yahoo.com>; Ray Kang <raykangl0@gmail.com>; Romin Rad <rominrad@gmail.com>; Ron Mariano <ronmariano@earthlink.net>; Ryan Schleiger <schleige@yahoo.com>; Scott Proud <Proud858@hotmail.com>; Season Leech <sleech@nmusd.us>; Shane Bradley <shane.d.bradley@gmail.com>; Stephanie Simpson <kersteph@aol.com>; Summer Ball <greylikesweddings@gmail.com>; Ted Farry <tedfarry@gmail.com>; Todd Wilson <toddmwca@aol.com>; Treb Heining <treb@glasshouseballoon.com>; Troy Grover <troygrover@gmail.com>; Troy Johnson <troy@troyjohnsonstudios.com>; Vince Do <vincesdo@gmail.com> Subject: Re: City of Newport Beach - DRAFT Circulation and Housing Element Updates Sam, City may move quickly to rezone NB golf course recreational open space for residential, a big loss that will change character of our neighborhood. SS3-661 We should respond immediately with strong opposition. Housing can be done with market incentives for higher densities on existing residential and commercial, but never set precedent for residential rezoning anywhere on open space, golf courses, sport facilities, beaches, parks, Back Bay, etc. Jim Auster 20401 Bayview 9706187692 On Mar 17, 2021, at 10:34 AM, Sam Hoelscher <sam.hoelscher@gmail.com> wrote: Neighbors, hope everyone is well. I'm providing you this information for your awareness - there's a lot of information attached and will take some time to digest. I'm no expert nor will I pretend to be educated on the City's process for these updates, so I'll refrain from offering an opinion or analysis for the time being. The only information that caught my attention after a quick scan was the Housing Element update, specifically Section 4: Housing Update (beginning on page 135). The City has included our neighborhood in the "Airport Area" (their definition). It appears the City has identified 162 acres of possible new housing sites; the closest parcels to us located within the existing golf course on the opposite side of Birch across the street from the driving range (reference the map on page 209). The draft plan calls for a total of 2,426 new units, 80% of which are to be lower income affordability units and 20% moderate affordability income units. Most of these are likely to be situated closer to the airport, but as you see in the map a part of the golf course is being considered. I'm posting these documents in our group's google drive folder to the file size (sorry for the additional clicks). https://drive.google.com/drive/folders/llybBvE6WhvFnLGliHo3xXlxphClcTIfa?usp=sharing Below is the link to the City website where I grabbed the information. https://www.newportbeachca.gov/government/departments/community-development/planning- division Orange Tier here we come! Sam Virus -free. www.avq.com SS3-662 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Debbie To: Housina Element Update Advisory Committee Cc: ddixon(abneportbeachca.gov; Duffield. Duffy; Muldoon, Kevin; Blom, Noah; Brenner, Jov; 0"Neill, William Subject: RHNA Development in Corporate Plaza, Newport Center Date: Thursday, March 4, 2021 11:58:12 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and Members of the Committee: I've been a resident of Harbor View Hills for 20 years and I can't believe how much our quality of life here in Newport Beach has changed from over population, pollution from the airplanes, homelessness issues and it seems to keep getting worse. I implore you to preserve at least the views we paid a dear price to enjoy from our community. Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Regards, Debbie Rincon 1006 Sea Lane Corona Del Mar, CA 92625 SS3-663 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 -Additional Materials Received Public Comments on Non -Agenda Items From: drbeloveCcbaol.com To: Housing Element Update Advisory Committee Subject: RHNA Development in Corporate Plaza, Newport Center Date: Thursday, March 4, 2021 12:26:31 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. TO: Housing Element Update Advisory Committee HEupdate@newportbeachca . gov Dear Chair Tucker and Members of the Committee: TO: Newport Beach City Council citycouncil@newdortbeachca.gov bevery@newnortbeachca.gov Re: RHNA Development in Corporate Plaza, Newport Center Dear Mayor Avery and Members of the City Council Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. As a resident who would greatly suffer by the change, I urge you to consider the long standing ordinance and vote accordingly. Sincerely, Rochelle Belove, DC SS3-664 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Sally Chesebro To: Housina Element Update Advisory Committee Subject: Harbor View Hills Site Plane Date: Thursday, March 4, 20212:27:31 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. We have been homeowners in Harbor View Hills since 1984. One of the reasons we purchased our home was because of the protected ocean, bay and city views provided by the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. We sincerely hope that we can continue enjoying this view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. It would mean a lot for us to continue enjoying this community so much. Respectfully, Oren James Chesebro and Sally L. Chesebro 01 Virus -free. www.avast.com SS3-665 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Jan Landstrom To: Housina Element Update Advisory Committee Subject: Sight Plane Ordinance Date: Thursday, March 4, 20215:39:02 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chairman Tucker and Committee Members, * I am one of the 146 Harbor View Hills homeowners who are very concerned about the height limit protection of the city's Sight Plane Ordinance (#1596). * Please make FIRM your recommendation to the City Council that the Ordinance is to limit the height of all buildings and landscape to a MAXIMUM of 32 feet and never to invade the Sight Plane. * Your cooperation re: this matter will be very much appreciated. Thank you, Jan Landstrom 1133 Ebbtide Road SS3-666 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Lin He To: Housina Element Update Advisory Committee Subject: Re: RHNA Development in Corporate Plaza, Newport Center Date: Thursday, March 4, 20216:27:47 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and Members of the Committee, Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean, and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza, and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long-established height limits reflected in the Sight Plane Ordinance. Thanks, Lin He, a long-time resident of the Harbor View Hills (Original) Community "Design * Build * Investment" httD://www.Rellioninc.com Cell: (949) 209-9896 Office: (949) 209-9610 LHe@Rellionlnc.com DRE #: 01872102 CSLB #: 996937 SS3-667 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: aolfcarrsCabaol.com To: Housina Element Update Advisory Committee Subject: Newport Beach Sight Plane Ordinance Date: Friday, March 5, 2021 12:42:54 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and members of the Housing Element Update Advisory Committee: I have been a resident of the Harbor View Hills community, for 43 years, having purchased my home in 1978. 1 have been fortunate to enjoy the height limit protection of the City's Sight Plane Ordinance. I ask that you and your committee respect and follow the long established height limits reflected in the Sight Plane Ordinance. Thank you, Joan Carr 1038 Sea Lane Corona del Mar, Ca. 92625 SS3-668 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Andrea Olson To: Housina Element Update Advisory Committee Cc: ddixon(abneportbeachca.gov; Duffield. Duffy; Muldoon, Kevin; Blom, Noah; Brenner, Jov; 0"Neill, William Subject: RHNA Development in Corporate Plaza, Newport Center Date: Friday, March 5, 20217:35:48 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and Members of the Committee - Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Thank you, Andrea & Nate Olson Homeowners SS3-669 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: fleetwind(cbreaaan.com To: Housina Element Update Advisory Committee Subject: City"s Sight Plane Ordinance #1596 Date: Sunday, March 7, 2021 12:35:26 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and Members of the Committee: The City's Sight Plane Ordinance was established for the residents to have protected views of the bay, ocean and city. Hundreds of residents for more than 60 years have purchased these homes in Harbor View Hills Community Association and Harbor View Broadmoor for a protected view. In addition, recent resales have been in the multi millions. We are sure you are able to find a way to meet the State's RHNA numbers without changing height limits in the City's Sight Plane Ordinance. We certainly respect and appreciate your efforts keeping our Ordinance viable. John and Sue Patterson Harbor View Hills Community Association resident SS3-670 Housing Element Update Advisory Committee - March 17, 2021 Item III 1 - Additional Materials Received Public Comments on Non -Agenda Items From: Peggy To: Housing Element Update Advisory Committee; Dent - City Council; Avery. Brad Cc: Dixon. Diane; Duffield. Duffy; Muldoon, Kevin; Blom, Noah; Brenner, Joy; 0"Neill, William Subject: RHNA Development in Corporate Plaza, Newport Center Date: Sunday, March 7, 20212:37:55 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Sincerely, Peggy Phillips 3007 Harbor View Dr SS3-671 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Andv To: Housing Element Update Advisory Committee Subject: Please Honor the Newport Beach Sight Plane Ordinance (#1596) Date: Friday, March 12, 20213:34:11 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Committee Members: In 1985, I purchased my home in Harbor View Hills, rather than in another less expensive location, because of the views it afforded AND because of the protections embodied in the City of Newport Beach Sight Plane Ordinance (#1596), the building height and landscaping limits of which assured me that our views would be protected. We realize that that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the city's Sight Plane Ordinance. ANDREW CAMPBELL ANN CAMPBELL 1133 White Sails Way Corona Del Mar, CA 92625 areavercaD(d)rnsn.com M: 714-325-6659 SS3-672 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Chris Kalivas To: Housina Element Update Advisory Committee Subject: RHNA Development in Corporate Plaza, Newport Center Date: Sunday, March 14, 20215:04:08 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker and Members of the Committee: I am a concerned citizen residing on Harbor View Drive, Corona Del Mar, CA. My wife and I have been homeowners here since 2004 and we love our residence and its view. Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, Corona del Mar Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we respectfully ask that your planning and recommendations to the City Council, respect the long established height limits reflected in the Sight Plane Ordinance. Sincerely, Chris and Pamela Kalivas cjkalivas&cox.net (949)701-6344 SS3-673 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Carroll Hochschild To: Housing Element Update Advisory Committee Subject: sightlines Date: Monday, March 15, 2021 10:36:51 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Our Harbor View Hills Community Association is made up of 146 homes, who along with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and never to invade the Sight Plane. It is important to remember the historical basis for this ordinance. In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Company also owned most of the vacant land in Newport Center. Agreeing they could not sell the same view twice, The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For over 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. ®❑ Virus -free. www.avast.com SS3-674 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Jim Tucker To: Housing Element Update Advisory Committee Cc: Brenner, Joy Subject: RHNA Development in Corporate Plaza, Newport Center Date: Monday, March 15, 20213:10:42 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Our Harbor View Hills Community Association consists of 146 homes, in addition with residents of 100 homes in Harbor View Broadmoor, have for over 60 years enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscape to a maximum of 32 feet and never invade the Sight Plane. The Irvine Company agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is Corport Plaza, the Library and City Hall. We understand that your committee and the City have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that your planning and recommendations to the City Council respect the long established height limits reflected in the Sight Plane Ordinance. Jim Tucker 2821 Pebble Drive Corona del Mar Sent from my iPad SS3-675 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Debra Allen To: Housing Element Update Advisory Committee Subject: Fwd: San Diego case dealing with voter approval of housing development and RHNA Date: Monday, March 15, 2021 11:01:21 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Re: San Diego case dealing with voter approval of housing development and RHNA Dear Chair Tucker and members of the Committee' Several times in the HEUAC meetings, staff and some members of the committee have referred to a case from North San Diego County where apparently the court held that a voter initiative similar to our Greenlight ((City Charter Sec. 423) could not be used to avoid the mandates of the state in the RHNA housing numbers. I have now discovered that case is not a published opinion. I don't think you meant any harm, but I think you should stop referring to that case. First of all because it is against the law in California to cite or rely on any case that is not a published opinion. [CRC 8.1115(a)] Therefore your reference to that case could be misleading to the public. I know I was led to believe that case had some application to Newport Beach. Since it is not a published opinion, nothing in that case would prevent the citizens of Newport Beach from voting down this outrageous state RHNA demand to add over 4,800 new housing units and tens of thousands of new residents to our City's already congested roads and overtaxed infrastructure. Thanks you for your consideration. Debra Allen SS3-676 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items From: Debra Allen To: O"Neill. William; Housing Element Update Advisory Committee Cc: Tucker, Larry; Harp, Aaron Subject: Re: San Diego case dealing with voter approval of housing development and RHNA Date: Monday, March 15, 2021 1:03:49 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To Attorneys for the HEUAC, In response to Councilmember Will O'Neill's e-mail, I said in my e-mail the reference to an unpublished decision from some other city in an official public hearing of a Newport Beach official committee was misleading and I think it is. I didn't say anyone on staff or the committee ever said the case was "binding." . However, I know of no purpose for which that case is relevant to the HEUAC proceedings unless discussed as a court opinion with some authority. Your response refers to none. Even to suggest the unpublished decision is persuasive or relevant to Newport Beach for any purpose is to place some reliance on the case and I submit that is a violation of the California rule I cited.. I do not think anyone on staff or the committee intended to mislead the public but I think that could be the result. So I suggest the staff and committee refrain from discussing the case in official public hearings of the HEUAC, unless and until the case has some legal authority, which very clearly under the Ca law I cited it does not. Sincerely, Debra Allen On Monday, March 15, 2021, 11:18:08 AM PDT, O'Neill, William <woneill@newportbeachca.gov> wrote: Debra - we are all attorneys on this response. We all know that it's not illegal to reference legal proceedings that have occurred. That rule of court cited has to do with legal briefings. No one has said that it's binding. When it is referenced, it is discussed as a cautionary tale. If you're going to push back on us for a legal issue, please don't overstate a citation. Will O'Neill Newport Beach City Council Visit www.newportbeachca.gov/covid19 to see our City's response to the coronavirus pandemic. Please sign up for City updates. On Mar 15, 2021, at 12:01 PM, Debra Allen <debraeallen@yahoo.com> wrote: [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Subject: Re: San Diego case dealing with voter approval of housing development and RHNA Dear Chair Tucker and members of the Committee' Several times in the HEUAC meetings, staff and some members of the committee SS3-677 Housing Element Update Advisory Committee - March 17, 2021 Item III 2 - Additional Materials Received Public Comments on Non -Agenda Items have referred to a case from North San Diego County where apparently the court held that a voter initiative similar to our Greenlight ((City Charter Sec. 423) could not be used to avoid the mandates of the state in the RHNA housing numbers. I have now discovered that case is not a published opinion. I don't think you meant any harm, but I think you should stop referring to that case. First of all because it is against the law in California to cite or rely on any case that is not a published opinion. [CRC 8.1115(a)] Therefore your reference to that case could be misleading to the public. I know I was led to believe that case had some application to Newport Beach. Since it is not a published opinion, nothing in that case would prevent the citizens of Newport Beach from voting down this outrageous state RHNA demand to add over 4,800 new housing units and tens of thousands of new residents to our City's already congested roads and overtaxed infrastructure. Thanks you for your consideration. Debra Allen SS3-678 Housing Element Update Advisory Committee - March 17, 2021 Item III 3 - Additional Materials Received Public Comments on Non -Agenda Items From: Elizabeth Hallett To: Housina Element Update Advisory Committee; Dept - City Council; Dixon, Diane; Duffield, Duffv; Muldoon, Kevin; Blom, Noah; Brenner, Joy; C"Neill, William; Avery, Brad Subject: RHNA Development in Corporate Plaza, Newport Center Date: Monday, March 15, 20218:23:02 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker, Members of the HE Update Advisory Committee, Mayor Avery and Newport Beach City Council Members, Our Harbor View Hills Community Association is made up of 146 homes. Our homeowners, along with residents of 100 homes in Harbor View Broadmoor, have, for more than 60 years, enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and it forbids invasion of the Sight Plane. Please note the historical basis for this ordinance: In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Irvine Company also owned most of the vacant land in Newport Center. The Irvine Company recognized that the company could not sell the same view twice, so it agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CdM Plaza and the Library and City Hall sites. For more than 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the HE Update Advisory Committee and the City Council have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that you respect the long-established height limits reflected in the Sight Plane Ordinance. Thank you for your consideration. Best regards, Beth Hallett SS3-679 Housing Element Update Advisory Committee - March 17, 2021 Item III 3 - Additional Materials Received Public Comments on Non -Agenda Items From: Bruce Hallett To: Housina Element Update Advisory Committee; Dept - City Council; Dixon, Diane; Duffield, Duffy; Muldoon, Kevin; Blom, Noah; Brenner, Joy; 0"Neill, William Subject: Please Stop RHNA Development in Corporate Plaza, Newport Center! Date: Tuesday, March 16, 20212:51:03 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Tucker, Members of the HE Update Advisory Committee, Mayor Avery and Newport Beach City Council Members, Our Harbor View Hills Community Association is made up of 146 homes. Our homeowners, along with residents of 100 homes in Harbor View Broadmoor, have, for more than 60 years, enjoyed the height limit protection of the City's Sight Plane Ordinance (#1596). The ordinance limits the height of all buildings and landscaping to a maximum height of 32 feet and it forbids invasion of the Sight Plane. Please note the historical basis for this ordinance: In 1960, The Irvine Company began selling homes in Harbor View Hills with views of the Bay, Ocean and City. The Irvine Company also owned most of the vacant land in Newport Center. The Irvine Company recognized that the company could not sell the same view twice, so it agreed to the Sight Plane Ordinance to protect the views from Harbor View Hills across the land that is now Corporate Plaza, Corporate Plaza West, CBM Plaza and the Library and City Hall sites. For more than 60 years, hundreds of residents of Harbor View Hills have purchased their homes and paid a very substantial premium for this protected view. We understand that the HE Update Advisory Committee and the City Council have a difficult task to accommodate the demands of the state in the RHNA numbers. However, we ask that you respect the long-established height limits reflected in the Sight Plane Ordinance. Thank you for your consideration. Bruce Hallett SS3-680 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Additional Materials Received Initial Draft Housing Element Overview From: dave(.aearsi.com To: Housing Element Update Advisory Committee Subject: HE Update Comments - Questions Date: Friday, March 12, 2021 11:11:03 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Mr. Chairman, Members of the Committee, In advance of the March 17th Committee meeting on the draft Housing Element Update, I had the following questions. 1. Compared to the existing Land se Element, what is the maximum increase in housing units permitted by the draft Housing Element Update? 2. Compared to the existing Land Use Element, what is the maximum increase in housing units with the addition of the maximum number of density bonus units permitted by the draft Housing Element update? 3. In determining the increase in units above, what are the assumptions used? • For example what is the ratio of affordable to market rate units assumed for new development? Current projects have provided these levels: o The 2510 WCH project provided approximately 9% affordability o The Uptown Newport project provided approximately 3.75% affordability 4. In determining compliance with the City RHNA allocation, is the Committee taking into consideration the mandate for the City to reduce total GHG emissions 40% below 1990 levels by 2030? The more units permitted, the greater this challenge. Thanks, Dave David J. Tanner, President Environmental & Regulatory Specialists, Inc. 223 62nd Street Newport Beach, CA 92663 949 646-8958 wk 949 233-0895 cell Notice of Confidentiality: This e-mail and any attachments thereto, is intended only for use by the address(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me by e-mail by replying to this message and permanently delete the original and any copy of any email and any printout thereof. SS3-681 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview From: Hoiyin Ip To: Housina Element Update Advisory Committee Subject: public comment: gas stations Date: Tuesday, March 16, 20219:33:49 AM Attachments: Screen Shot 2021-03-16 at 9.24.46 Wma [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Housing Element Update Advisory Committee, Could gas stations become potential housing sites? California will stop selling gas -powered cars by 2035, that's 14 year away. More people driving EVs meaning less business for gas stations. There's a movement of banning new gas stations. I quickly looked into 2009-2019 data in Newport Beach (also Irvine and Laguna Beach). Trends show the cities have had decreased number of gas stations and gasoline sales. Below is Newport Beach data. And City website shows population increased from 84,595 to 85,706 for the same period. SS3-682 21000000 20000000 19000000 18000000 IM00000 1&000000 19000000 14000000 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Gasoline Sales (Gallons) 2009 2414 2011 2412 2013 2414 2015 2016 2017 2018 2419 Gas Stations 2009 2010 2411 2412 2413 2414 2015 2016 2017 2018 2019 Thanks! Hoiyin SS3-683 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview From: dave(@earsi.com To: Housing Element Update Advisory Committee Cc: Avery, Brad; Juriis, Seimone; Campbell, Jim; Zdeba, Benjamin Subject: Comments on Draft Housing Element Date: Tuesday, March 16, 2021 12:32:29 PM Attachments: Draft Housing Element Comments 3-16-21.odf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. IN Attached are my comments and recommendations following review of the draft Housing Element. Cheers, Dave David J. Tanner 223 62nd Street Newport Beach, CA 92663 949 646-8958 home 949 233-0895 cell Notice of Confidentiality: This e-mail and any attachments thereto, is intended only for use by the address(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this e-mail, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me by e-mail by replying to this message and permanently delete the original and any copy of any email and any printout thereof. SS3-684 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 General Top Priorities Satisfying the state mandated housing requirement is the predominant factor driving the direction of the Housing Element/General Plan update. The City has chosen to proceed with the Housing Element and Circulation Element updates first, followed by the Land Use other and remaining Elements. In updating the Housing and Circulation Elements the City needs to incorporate additional mandates beyond accommodating RHNA. The direction the Country is going, is to reduce GHG emissions to reduce mankind's impact on climate change. To become carbon neutral by 2050, if not sooner. The Country's Climate change polices are largely being driven by California law (SB32). These policies mandate California reduce its statewide GHG emissions to 40% below 1990 levels by 2030. Local Governments must do their fair share. Federal and state funds will be allocated to this goal. Achieving the state GHG reduction mandate and achieving state RHNA/housing affordability mandate should be the top priorities of the General Plan Update. The existing General Plan vision includes a significant reduction of ADT. Combining reductions in ADT, VMT and GHG emissions city-wide, should be top priorities of the City's Housing and Circulation Element Updates. 2030 Vision Circumstances has changed significantly since the last General Plan update. The City needs to project a vision of the City in 2030 to serve as a blueprint for this General Plan Update. What will the City's population be? Where will the City's population growth be distributed? How many additional cars will be on the City's roadways? What percentage of the population will be driving electric vehicles? What will the City's circulation needs be given the mandated reduction in total VMT of 40% below 1990 levels?' What will the City's carbon footprint be? What is Newport Beach's plan to reach carbon neutrality? California Air Resources Board 2000-2018 GHG Inventory (2020 Edition) 24%, Indust 9q, E!actricky '�TA?r 41 % • Transportation 1 A good example of a Climate Action Plan is the City of San Luis Obispo: https://www.slocity.org/home/showpublisheddocument?id=27835 David Tanner Page 1 of 8 Ctricity Moors %- Agriculture & Pores" 5% • COMML4 lal % Residential SS3-685 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 We need to project these changes, not only in the City, but in the region? What types of measures will local governments within SCAG implement to achieve these Housing, GHG and VMT reduction mandates? How will the region's population growth impact the City? Simply stated, we need to establish a 2030 Vision of where and how people and goods will move from one place to another, how the City is going to accommodate state mandated housing/population growth, maintain a jobs housing balance and protect, preserve and enhance where feasible, our quality of life, health and safety. Based on the 2030 Vision, we should craft the Housing Element, Circulation Element and other General Plan Elements to be internally consistent. Without the Vision, we have no blueprint! Top priority — Establish the City 2030 Vision now. When the City has a draft "2030 Vision", it should be shared with the public for comment and later adopted by the City Council. Implementation Operation Warp Speed — we only have 9 years to achieve the 2030 Vision mandates. We cannot kick this can down the road! Specific Comments: It is my belief the scope of the Housing Element Update should be limited to satisfying the statutory housing requirements and RHNA. The intended scope is not to open the City up to construction of thousands of additional new housing unit beyond what is needed to satisfy statutory requirements and the City's RHNA requirement. Housing legislation such as the Housing Accountability Act and AB 32 has made it difficult for local governments to deny qualified housing development applications. Given land values, market factors and landowner decisions which are beyond the City's control, achieving the affordable housing mandates will be extremely difficult. Despite the City's best intensions, the City's development history shows housing developments provide a low percentage of affordable to market rate housing. Housing developers utilize affordable housing legislation, incentives, density bonuses allowances, concessions, grant funding, etc. to establish project feasibility and profitability. This circumstance is not limited to Newport Beach. A good example is the City of Long Beach. Portions of Long Beach are undergoing a major transformation including high density housing and hotel projects. The link below provides a description of the variety of City housing projects and affordability to market rate housing achieved. https://la.curbed.com/maps/long-beach-development-downtown-project-map The City of Newport Beach needs to come to terms with weather the current strategy for the Housing Element Update will result in a Housing Element in full compliance with house legislation. It is a "Yes", or "No" answer. I believe the current draft Housing Element Update is not in full compliance because 1) it does not have sufficient landowner support, 2) the City will be unable to construct the number of affordable housing units required within the timeframe, and as a result 3) the City will not be able to meet the annual monitoring/performance levels. In my opinion, state intervention appears inevitable. Even if the City could find a way to meet the Housing Element affordability requirement it David Tanner Page 2 of 8 SS3-686 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 does not have the infrastructure to accommodate 20,000 + new units and its population that would be required to meet the affordability requirement using the City's target affordability ratio of 20% affordable to market rate units. The reality is to achieve the 2,400± affordable unit mandate, the City will have to authorize construction of thousands more units than the total RHNA mandate of 4,800 ± units. The State could choose to pursue its police powers to challenge the City if it fails to provide an adequate Housing Element. There will likely be many cities within SCAG that will challenge the state housing mandates. The state is attempting to adopt "Streamlined Ministerial Approval Process, Government Code Section 65913.4 Guidelines". If adopted, these Guidelines will make housing approvals ministerial except in certain locations such as the coastal zone. For the City's Housing Element Update to have "effect" it must have voter approval if it is subject to Greenlight. Voter approval will be difficult, if not impossible to achieve once the voters understand the level of development that would occur under the current approach. Finally, the City has police powers it can exercise to protect the public's health, safety and welfare. Preferred Compliance Strategy - Under the circumstances, I believe the best strategy to satisfy the City's RHNA requirement is to sacrifice the minimum number of housing opportunity sites. Sites that have landowner support and construct 100% affordable housing projects on these sites facilitated by government financing. This is opposed to the current compliance strategy of attempting to rezone numerous properties throughout the City some of which do not have landowner support, which will allow construction of thousands more market -rate housing units than are needed to satisfy RHNA. Alternative Housing Element Compliance Strategy o I suggest the City provide HCD with an updated Housing Element limited to new statutory and updated demographic information, Goals and Policies. Add a new policy stating the City's intent to comply with all housing legislation. The City Council could certify the Housing Element Update in this form which would be exempt from CEQA and Greenlight. o Included with the Housing Element submittal to HCD is a separate "Streamline Housing Implementation Plan Ordinance" (It could be titled Affordable Housing IP, or RHNA IP, or whatever). The Streamline Housing Implement Plan Ordinance will identify the intent to comply with state legislation and the procedures the City will implement to satisfy housing legislation should a landowner/developer approach the City with a housing development application. The Streamline Housing Implementation Plan Ordinance should be exempt from CEQA (Section 15060(c)(2), 15060(c)(3) & 15378) and Greenlight. Alternatively, consider use of a "Resolution" because the City considers the housing shortage a temporary condition (some of the housing legislation expires in 2025) and the order is a directive relating primarily to internal municipal governmental affairs. o Include with the Housing Element submittal to HCD the Streamline Housing Implementation Plan. The Streamline Housing Implement Plan will identify the state housing legislation and the procedures the City will implement to satisfy housing legislation should a landowner/developer approach the City with a housing development application. The Plan will include the RHNA David Tanner Page 3 of 8 SS3-687 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 requirements, a list of candidate housing opportunity sites, their constraints, and the range of residential units that could potentially occur on each site. The Plan will identify which of those housing opportunity sites has landowner support. Describe the steps the City will take consistent with state law and the City's Charter to accommodate housing on these sites should a property owner submit a development application to develop the site for housing. The plan would include the annual reporting and monitoring procedures. The Plan would not propose a General Plan Amendment or Zone Change. The Plan will include streamline/fast-track procedures when a qualified development application is submitted. The Streamline Housing Implementation Plan would be considered during the Land Use Element Update and CEQA documentation. The Land Use Element Update will likely be subject to Greenlight. The Streamline Housing Implementation Plan could be the High -Density Alternative in the EIR. Since the City does not control the housing market or the decisions of landowners, the actual number of housing units constructed would be speculative. Individual housing development project applications submitted prior to the adoption of the Updated Land Use Element would continue to be processed individually as they are today. Submit this material to HCD and see what they say. Negotiate from this point and provide additional information as needed. Given the ongoing effort by HCD to adopt "Streamlined Ministerial Approval Process, Government Code Section 65913.4 Guidelines" the City's intent to comply should be clear by these documents. I doubt HCD will ask the State Attorney General to sue the City or cut off its share of state tax revenues. Local government challenges to the RHNA allocations are certain to occur, as well as challenges to the Streamlined Ministerial Approval Process Guidelines if passed. If these Guidelines are passed, they will make the Housing Element/Land Use Element mute. By pursuing this strategy, the City will be able to take advantage of any changes in HCD policies as these challenges are resolved. This strategy will be consistent with the LCP, (there will be no basis to support an LCP challenge to the Coastal Commission). This strategy will allow the City to meet its Housing Element submittal deadline, minimize expense to the City, minimizing the potential for significant community unrest and not overly burden the City's efforts to meet the 2030 GHG reduction mandate by rezoning properties which could generate higher levels of GHG emissions unnecessarily for housing that may never be developed. This strategy will be compatible with the City's other 2 housing strategies, regulatory change and adoption of measures to protect public health, safety and welfare. The following comments are directed to the Draft Housing Element as written, but could be incorporated into the Streamline Housing Implementation Plan above, should the City decide to pursue this or a similar path. • Housing opportunity sites should be prioritized. (rated on a 1-10 scale or by class I, II, III, etc.) • Provide the minimum number of housing sites to satisfy RHNA + a housing buffer (the Banning Ranch and/or the lowest priority site(s). HCD can always pressure the City to add more. David Tanner Page 4 of 8 SS3-688 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 • Housing Element in -fill sites should provide a Table with a column showing the maximum land use/zoning density, a column showing the maximum density bonus density and a column showing the total density/housing opportunity site. Remember any increase in allowable emissions (density) beyond the 1990 levels will impact the City GHG emissions reduction requirement (40% below 1990 levels by 2030). The more properties are re- zoned to uses allowing higher GHG emissions, the bigger the City's challenge to meet 2030 mandates. I don't know what the 1990 GHG levels were (probably those contained in the GP final EIR). I'm guessing they did not project the maximum residential buildout permitted for those properties today. Therefore, the measures needed to meet City's required reduction will likely be greater than currently anticipated. • Utilize development agreement(s) for prioritized sites (allow special incentives above and beyond for the right project at the right site with a high level of affordability). Allow density transfers from non-priority sites to priority sites. (example: away from Mariners Mile where there is limited transportation infrastructure, higher risks to public safety from additional housing development and a high probability, if not certainty of Coastal Development Permit appeals to the Coastal Commission or triggering a Greenlight II movement.) Note: HCD Draft "Streamlined Ministerial Approval Process, Government Code Section 65913.4 Guidelines" contain the following site restrictions: "ARTICLE IV. DEVELOPMENT ELIGIBILITY Section 401. Site Requirements (b) The development proponent shall demonstrate that, as of the date the application is submitted, the development is not located on a legal parcel(s) that is any of the following: (1) Within a coastal zone, as defined in Division 20 (commencing with section 30000) of the Public Resources Code." • As an affordable housing incentive, consider allowing mixed-use with no garage/carport/on-site parking (except for emergency vehicles and a limited number of guests) and allowing design modifications to increase the family size the unit can accommodate. Residents would be dependent on services like Uber, mass transit or other forms of transportation (UCI students might like to rent space in this type of unit or large family units where the kids share a room). In the future when autonomous cars are available, individuals of all income levels may choose not to own a car, not to have a driver's license and not incur the cost of car insurance. These measures will help achieve affordability and reduce total VMT and GHG emissions. It will be up to the developer to request these incentives. This could be a position taken by the City to shift the requirement from total number of housing units required to meet RHNA, to total population housed in its Housing Element. • If possible, incorporate language into the Housing Element Update or it monitoring plan to allow the City to cancel/terminate incentives as the RHNA requirements are satisfied. Alternatively, delay the GPA/Zoning for these opportunity sites until an application is submitted, then Streamline/fast track David Tanner Page 5 of 8 SS3-689 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 the entitlement. Once the properties are designated for residential use, state law may permanently prohibit the City from downzoning the property in the future. The Housing Element and other elements should state the GP update reflects the State mandated vision, not the vision of the residents. • Identify disadvantaged communities within the Housing Element. • Disadvantaged Communities - The City should consider establishing new disadvantaged community(s) to protect these communities from the adverse effects from new development and to meet environmental justice standards. From my research, disadvantaged communities are defined by state laws and entities like the California PUC to qualify for specific government funding programs. They are normally tied to minorities and income levels, but the definitions all indicate there could be other factors (again, the term disadvantaged communities, and their definitions are tied to specific governmental funding programs). Example: CPUC https://www.cpuc.ca.gov/discom/#:—:text=Disadvantaged%20communities/`20refers/`2Oto%20the, of%20asthma%20and%20heart%20disease. "Disadvantaged Communities The Clean Energy and Pollution Reduction Act of 2015 (also known as Senate Bill 350 or SB 350) calls upon the CPUC to help improve air quality and economic conditions in communities identified as "disadvantaged." For example, changing the way we plan the development and future operations of power plants around the state, or rethinking the location of clean energy technologies to benefit burdened communities. Additionally, SB 350 requires that the CPUC and the California Energy Commission create a Disadvantaged Communities Advisory Group, which assists the two Commissions in understanding how energy programs impact these areas and could be improved. Read the CPUC's press release on the creation of the Advisory Group. What Is A Disadvantaged Community? Disadvantaged communities refers to the areas throughout California which most suffer from a combination of economic, health, and environmental burdens. These burdens include poverty, high unemployment, air and water pollution, presence of hazardous wastes as well as high incidence of asthma and heart disease. One way that the state identifies these areas is by collecting and analyzing information from communities all over the state. CalEnviroScreen, an analytical tool created by the California Environmental Protection Agency (CaIEPA), combines different types of census tract -specific information into a score to determine which communities are the most burdened or "disadvantaged." Insert a city or town in the CalEnviroScreen map's search box here to see if it is considered a disadvantaged community in this context. How do Environmental Justice and Social Justice relate to Disadvantaged Communities? David Tanner Page 6 of 8 SS3-690 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 Environmental and social justice seeks to come to terms with, and remedy, a history of unfair treatment of communities, predominantly communities of people of color and/or low-income residents. These communities have been subjected to disproportionate impacts from one or more environmental hazards, socio-economic burdens, or both. Residents have been excluded in policy setting or decision-making processes and have lacked protections and benefits afforded to other communities by the implementation of environmental and other regulations, such as those enacted to control polluting activities. See CPUC Environmental and Social Justice (ESJ) Action Plan web page. ESJ communities include, but are not limited to: • Disadvantaged communities, as identified by CalEPA's CalEnviroScreen tool,- All ool;All Tribal lands; • Low-income households (Household incomes below 80 percent of the area median income); and • Low-income census tracts (Census tracts where aggregated household incomes are less than 80 percent of area or state median income)." I have found no restriction on the ability of a city/local government to create one or more disadvantaged communities for its own reasons, based on its own definition(s), defined by its standards for quality of life, level of protection for public health, safety and welfare. Depending on the City's reasons, its disadvantage community(s) may or may not qualify for government funding. One such reason for the City to designate its own disadvantaged community(s) would be to satisfy the requirements of environmental justice. Disadvantaged communities would not be an acceptable location for new housing. Examples of reasons why the City may want to designate certain areas within the City as disadvantaged include: o Areas subject to natural hazards (high fire risk, sea level rise, flooding, tsunami, ability to evacuation quickly in the event of a disaster, earthquake risk) o Areas subject to high noise levels o Areas subject to Public Safety Power Shutoffs o Areas subject to chronic public parking shortages o Commercial zones subject to deficient parking o Areas under the takeoff and departure paths from JWA (exposure to noise, unburnt fuel and emissions) o Areas in non-compliance with current development standards or have aging infrastructure o Areas containing natural resources under stress from urbanization • Master General Plan Update Schedule - Based on the available information, staff should develop a Master General Plan Update schedule/timeline which itemizes the Housing Element Update and all other element updates, zone changes, CEQA compliance, Greenlight vote, etc. The anticipated description/scope of the Greenlight vote should be provided based on the information know at this time. A cost estimate should be provided along with a preliminary risk assessment. The Master Schedule should be updated periodically. Based on the available information, one or more alternatives strategies (Master General Plan Update schedule/timeline) should be evaluated and presented to the public for comment and to the City Council for guidance. David Tanner Page 7 of 8 SS3-691 Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c)- 2 - Additional Materials Received Initial Draft Housing Element Overview Draft Housing Element Comments March 16, 2021 • House Cleaning - We should be going through the Housing Element eliminating policies that are no longer necessary, have been fully implemented or are infeasible. We should summarize much of the data in the Draft Housing Element and attach the bulk of the information to the Housing Element as appendices. • Fear - Anything that is proposed/changed in favor of housing in the General Plan and Municipal Code is likely to be made permanent by the state. If the City is going to take steps to protect certain areas from the over -reach of state government, the time to do so is before the State passes legislation to prevent the City from doing so. David Tanner Page 8 of 8 SS3-692