Costa Mesa City Council
May 20, 2025

SECOND AMENDMENT TO WASTE DISPOSAL AGREEMENT
THIS SECOND AMENDMENT TO THE WASTE DISPOSAL AGREEMENT (“Second Amendment”) is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the “County”), and the City of Costa Mesa, a general law city, designated on the cover page of this Agreement and party to this Agreement (the “City”).

RECITALS
The County owns, manages , and operates a Waste Infrastructure System to manage municipal and solid waste generated within Orange County, California or imported from outside Orange County, California pursuant to contractual agreements (hereafter used referred to as “Disposal System” or “Waste Infrastructure System”). The Waste Infrastructure System collectively includes active Class III sanitary landfills (“County Landfills”), resource recovery, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County.

The County is also responsible for the long-term management of 20 closed landfills as required under Applicable Law.

County Landfills are used for the management of municipal solid waste pursuant to legislation including, but not limited to , the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the “Act”) and the Short -lived Climate Pollutants Reduction Act ( “SB 1383”). County Landfills are also subject to other state and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment.

The City, in the exercise of its police power, its powers under the Act, and other Applicable Law, has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection, recycling, diversion, and disposal of municipal solid waste generated within the City.

The City and the County have historically provided for the management of municipal solid waste through Waste Disposal Agreements (“WDAs”), wherein the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of the WDAs. In 2009, the Parties entered into a new WDA (referred to as the “Original WDA”). In 2016, the Original WDA was amended by the Parties (“ First Amendment”), whereby the Parties updated certain terms and extended the term through June 30, 2025. ( The Original WDA and its corresponding First Amendment are referred to in this Second Amendment as the “Current WDA”.) In response to passage of several pieces of legislation that require significant reductions in the disposal of organic waste, and in light of the approaching expiration of the Current WDA, the County held two City Manager Summits in November 2024 proposing terms of a new WDA.

The Orange County City Manager Association (“OCCMA”) has established a Committee (“OCCMA Committee”) including representatives of cities and sanitary districts to review the terms of the proposed new WDA. The OCCMA Committee requested a 12-month extension of the Current WDA to allow for additional time to negotiate mutually agreeable terms for a new WDA, and obtain approval from the respective governing bodies. The County is agreeable to OCCMA’s requested extension to the Current WDA on terms as 197

provided in this Second Amendment.

The City has determined that the execution of this Second Amendment by the City is in the best interest of the City and will serve the public health, safety , and welfare by continuing the waste disposal services historically provided under the Current WDA while the Parties: (1) engage in due diligence related to a new WDA, in order for the City to evaluate the cost/benefit of a new WDA, which is expected to include the City and OCCMA obtaining more comprehensive and detailed information on the County’s plan s for infrastructure expansion and improvements, the financial and operational conditions of the existing Waste Infrastructure System, and the components, timing, and procedures for future contract fee increases; and, (2) negotiate the terms and conditions of a new WDA.

The County has determined that the execution by the County of this Second Amendment will serve the public health, safety , and welfare by continuing to provide a stable, predictable, and reliable supply of municipal solid waste and the resulting service payment revenue to the Disposal System, while the Parties exchange information and conduct negotiations with the County goal of ensuring that any negotiated Contract Rate in the new WDA covers the full cost of operations and infrastructure O&M and development needed to ensure indemnification and regulatory compliance..

Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof.

Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof.

It is, therefore, agreed as follows:

1. Extended Term.
(a) Section 6.1 (A) of the Current WDA is deleted in its entirety and replaced with the following:
“Extended Term. This Agreement shall continue in full force and effect until 11:59 p.m. on June 30, 2026 (the “Extended Term”), unless earlier terminated in accordance with its terms, in which event the Extended Term shall be deemed to have expired as of the date of such termination.” (b) Section 6.1 (B) is deleted in its entirety.

(c) Section 6.1 (C) of the Current WDA is deleted in its entirety and replaced with the following:
“Contract Rate Negotiations During Extended Term. If the Orange County City Manager Association’s committee tasked with negotiating the terms of a successor to this Agreement with the County and recommending approval of the same to the Parties (the “Committee”) and the County have not reached mutually agreeable terms of a successor to this Agreement including, but not limited to, proposed revisions to the Contract Rate, by September 30, 2025, the County shall, and it is expected that the Committee will prov ide, updates to all Participating Cities , and their respective governing bodies as may be deemed necessary, regarding the status of negotiations on a monthly basis until mutually agreeable terms are reached or the Extended Term expires.” 198

In recommending any revisions to the Contract Rate, in addition to the circumstances described in Section 4.2(A), the Committee and County may take into consideration factors including, but not limited to, the following:
(i) actual cost of operations;
(ii) population growth;
(iii) increase or decrease in available tonnage;
(iv) economic and disposal market conditions in the Southern California region; (v) changes in transportation and technology;
(vi) changes in transportation costs;
(vii) closure and expansion of nearby landfills;
(viii) capacity of the Disposal System;
(ix) long-term infrastructure needs; and
(x) available reserves which are in excess of the amount reasonably required as reserves. (d) Appendix 2 of the Current WDA is deleted in its entirety and replaced with the following:

APPENDIX 2
Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B)

Fiscal Year County Acceptable Waste Tonnage Cumulative County Acceptable Waste Tonnage FY 2025-26 3,166,659 3,166,659

2. Contract Rate.
(a) The first paragraph of Section 4.2(A) of the Current WDA is deleted in its entirety and replaced with the following:

“(A) Establishment of Contract Rate. During the Extended Term, the Contract Rate payable by each Franchise Hauler shall be $43.76 per ton, contingent on the delivery to the Disposal System of an amount of Acceptable Waste at least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to adjustment necessary to reflect the circumstances set forth in this Section 4.2 , subjections (i) through (z).”

Note: Subsections (i) through (z) found in the Current WDA remain unchanged.

3. Effectiveness of Second Amendment.

The provisions of this Second Amendment s hall not become effective unless and until this Second Amendment has been executed by the County and all of the Participating Cities , and shall become effective once that occurs.
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4. Representations and Warranties of the Parties.

Each of the parties to this Second Amendment represent and warrant that it is a political subdivision of the State of California validly existing under the Constitution and laws of the State and that it has duly authorized the execution and delivery of this Second Amendment to each other party.

5. Remaining Terms.

All other terms and conditions of the Current WDA not specifically changed by this Second Amendment, shall remain in full force and effect.

IN WITNESS WHEREOF, COUNTY and CITY have caused this Second Amendment to be executed by their duly authorized officers or representatives as of the day and year first above written.

County of Orange

By _______________________________
Director, OC Waste & Recycling

Date _____________________

Approved as to Form

By _______________________________
County Counsel

Date _____________________
City of Costa Mesa

By _______________________________
John Stephens, Mayor

Date _____________________

Approved as to Form

By _______________________________
Kimberly Hall Barlow, City Attorney

Date _____________________

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-263 Meeting Date: 5/20/2025
TITLE:

PROFESSIONAL SERVICES AGREEMENT FOR ON-CALL ENVIRONMENTAL AND TECHNICAL

SERVICES LIST
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING

DIVISION
PRESENTED BY: ANNA MCGILL, PLANNING & SUSTAINABLE DEVELOPMENT MANAGER CONTACT INFORMATION: ANNA MCGILL, PLANNING & SUSTAINABLE DEVELOPMENT MANAGER, (714) 754-5609
RECOMMENDATION:

Staff recommends the City Council:

1. Approve and authorize the City Manager and City Clerk to execute a three-year Professional Services Agreement (PSA) with two one-year renewals with each consulting firm listed below from July 1, 2025 - June 30, 2030, in substantially the form as attached and in such final form as approved by the City Attorney for on-call staff support for environmental and technical services:
· Ascent Environmental, Inc.
· Chambers Group, Inc.
· Dudek
· EPD Solutions, Inc.
· First Carbon Solutions
· Kimley-Horn and Associates, Inc.
· LSA Associates, Inc.
· Michael Baker International

2. Authorize the City Manager, or designee, and City Clerk to execute the PSA and future amendments with the above listed firms including any potential increases in compensation as long as the amendments are within the annual budget.

BACKGROUND:

The City’s Economic and Development Services Department seeks to establish agreements with consultants for on-call environmental and technical services, in connection with major development projects as well as key policy projects. This on-call list would streamline the consulting selection process and overall project timeframe to expedite technical studies and environmental review and is used by the City to fulfill any demands on future or existing projects for technical review and

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California Environmental Quality Act (CEQA) related analysis.

As the City continues to process and implement key planning projects, the City has begun and will continue to see major development projects submitted to the City for review. Major development projects require discretionary review, which involve environmental review in accordance with CEQA regulations. Due to the complexity of environmental review, the City uses technical and environmental consultants to assist staff in the preparation and peer review of CEQA documents, including Environmental Impact Reports, Mitigated Negative Declarations, and technical studies to assess impacts to environmental areas including but not limited to air quality, biological resources, noise, traffic/transportation, and water quality, etc.

The City’scurrent on-call list for environmental and technical consultants expires on June 30, 2025.

On March 4, 2025, the City issued a Request for Proposals (RFP) for environmental and technical services with the goal of putting in place a new on-call list by July 1, 2025.

ANALYSIS:

On March 20, 2025 the City received seventeen (17) proposals to provide the environmental and technical services. Proposals were screened for compliance with the City’sRFP, and proposals were evaluated based on the method of approach, qualifications, and experience, staffing and cost proposal. One consideration was the Department’slimited administrative ability to manage more than eight (8) consultant contracts for a particular service, including contract management, expenditure tracking, invoice tracking, and ensuring consistent quality of work product across different consultants.

To ensure an objective selection process, an evaluation committee was assembled to evaluate proposals independently, to assess qualifications and experience to address the City’s needs.

Proposals were evaluated on the firm’s overall track record to conduct CEQA and technical analyses/studies, ability to conduct services in house or with reputable and efficient subconsultants, demonstrated related experience, particularly within Orange County and surrounding Los Angeles/San Diego areas, and ability to provide sufficient resources to respond to the City’s requests.

Based on the City’scriteria and selection procedures set forth in the RFP, the evaluation committee recommended that agreements be awarded to the top ranking following eight (8) firms for staff support for general planning services:

Staff Support for Environmental and Technical Services
· Ascent Environmental, Inc.
· Chambers Group, Inc.
· Dudek
· EPD Solutions, Inc.
· First Carbon Solutions
· Kimley-Horn and Associates, Inc.
· LSA Associates, Inc.
· Michael Baker International

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When the City requires services, City staff would contact two or more on-call consultants to secure a cost proposal and proposed staffing for the needed service. Under the proposed agreements, consultants will provide support for general environmental and technical services, either at hourly rates in accordance with their contracts or using a not-to-exceed contract amount as stated in cost proposal responses.

Establishing on-call lists would allow the City to quickly secure outside expertise for preparation or peer review of environmental documents or technical studies in any one of the environmental topics covered by CEQA, including air quality, noise, transportation, and water quality.

The proposed on-call list of consultants provides the Department with the spectrum of expertise necessary to support the ongoing and anticipated advanced and current planning projects. An example Professional Services Agreement (PSA) has been attached for reference. Individual PSAs will be executed with each awarded firm. Certain provisions will be customized and/or adapted to the needs of the consultant, but such minor changes will not impact the protections afforded to the City in the agreement.

ALTERNATIVES:

An alternative would be to not move forward with the contracts for on-call technical studies and environmental review services. This decision would impact the City’sability to move development projects quickly and efficiently through environmental review under CEQA, as an RFP would need to be released for each project, resulting in increases to entitlement review timelines. Also, there are several active development projects that would be delayed, as their environmental review processes are currently supported by on-call consultants whose contract(s) will expire prior to the completion of project public hearings.

FISCAL REVIEW:

Consultant services for the preparation or peer review of CEQA documents, including technical documents/studies for parking, traffic/transportation, noise, air quality, etc. are regularly utilized by the Economic and Development Services Department on an as-needed basis. When associated with a development project, the cost for environmental and technical consultant services is paid for by the project applicants as a “pass-through cost”. For projects requiring environmental review that are directed by the City Council and the Department, funding is available in the Department’sGeneral Fund (Fund 101) and is included in the City’sProposed Fiscal Year 2025-26 Operating Budget. Use of contract services is on an as-needed basis, and the cost of each service varies by subject and task.

LEGAL REVIEW:

The attached sample PSA was prepared by the City Attorney’sOffice and the staff report has been reviewed and approved as to form.

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CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goals:
· Diversify, stabilize, and increase housing to reflect community needs. · Advance environmental sustainability and climate resiliency.

CONCLUSION:

Staff recommends the City Council approve and authorize the City Manager and City Attorney to execute a three-year Professional Service Agreements (PSA) with two one-year renewals for as- needed staff support for environmental and technical services, as well as future amendments to those agreements so long as such amendments are within the annual budget.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-293 Meeting Date: 5/20/2025
TITLE:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,

DESIGNATING LOCAL RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONES IN THE CITY

OF COSTA MESA, AS IDENTIFIED BY THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 51178 DEPARTMENT: COSTA MESA FIRE & RESCUE DEPARTMENT / COMMUNITY

RISK REDUCTION DIVISION
PRESENTED BY: JON NEAL, FIRE MARSHAL / ASSISTANT FIRE CHIEF AND

JASON PYLE, ASSISTANT FIRE CHIEF OPERATIONS
CONTACT INFORMATION: JON NEAL, FIRE MARSHAL (714) 754-5049 RECOMMENDATION:

Staff recommends the City Council introduce for first reading, by title only and further reading waived, Ordinance 2025-xx of the City Council of the City of Costa Mesa, California, designating moderate and high Local Responsibility Area Fire Hazard Severity Zones by map within the jurisdiction of the City of Costa Mesa.

BACKGROUND:

Assembly Bill 337 (Bates 1992), prompted by the devastating Oakland Hills fire of 1991, called for CAL FIRE to evaluate fire hazard severity in local responsibility area and to make a recommendation to the local jurisdiction where Very High Fire Hazard Severity Zones exist. The maps evaluated "Hazard", not "Risk." Hazard is based on physical conditions that create expected fire behavior over a 50-year period without considering short-term modifications. Risk is the potential damage a fire can do to the area under existing conditions, including fuel reduction projects, defensible space, and ignition resistant building construction. The fire hazard severity model for wildland fire has two key elements: probability of an area burning and expected fire behavior under extreme fuel and weather conditions. The zones reflect areas that have similar burn probabilities and fire behavior characteristics.

According to Public Resources Code section 4202: The State Fire Marshal shall classify lands within State Responsibility Areas into Fire Hazard Severity Zones. Each zone shall embrace relatively homogeneous lands and shall be based on fuel loading, slope, fire weather, and other relevant factors present, including areas where winds have been identified by the department as a major cause of wildfire spread. California Government Code section 51178 requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. The zones are used for several purposes including to designate areas where

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those areas. The zones are used for several purposes including to designate areas where California’sdefensible space standards and wildland urban interface building codes are required.

They can be a factor in real estate disclosure, and local governments may consider them in their general plan.

In 2007, CAL FIRE updated the FHSZs for the entire State Responsibility Area (SRA). Between 2008 -2011 the CAL FIRE worked with local governments to make recommendations of the Very High Fire Hazard Severity Zones within Local Responsibility Area (LRA). The factors considered in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather, and potential fuel over a 50-year period. Outside of wildlands, the model considers factors that might lead to buildings being threatened, including terrain, weather, urban vegetation cover, blowing embers, proximity to wildland, fire history, and fire hazard in nearby wildlands. FHSZs are not a structure loss model, as key information regarding structure ignition (such as roof type, etc.) is not included.

California Senate Bill 63 (SB 63) was signed into law on September 28, 2021, after the tragic 2020 wildfire season brought national attention to California and put a spotlight on the wildland-urban interface. SB 63 included multiple changes to state law to enhance fire prevention efforts by CAL FIRE, including among other things, improved vegetation management, and expanding the areas where enhanced fire safety building standards apply. At the time of implementation of SB 63, the requirements applied to all State Responsibility Areas and Local Responsibility Areas with High or Very High Hazard Severity Zones. The City of Costa Mesa was not impacted by the legislation at the time of implementation, as no hazard severity zones were identified by CAL FIRE modeling within the jurisdiction of Costa Mesa.

In 2023, CAL FIRE notified agencies throughout the state that an updated model was being created to more accurately reflect local conditions and incorporate additional factors that had been identified following recent wildfires. A 2 km grid of climate data covering the years 2003-2018 was used in the update. The previous model used stock weather inputs across the state to calculate wildland fire intensity scores. The updated model adjusted fire intensity scores based on the most extreme fire weather at a given location, considering temperature, humidity, and wind speed. In addition, ember transport was modeled based on local distributions of observed wind speed and direction values instead of using a generic buffer distance for urban areas adjacent to wildlands. The Local Responsibility Area hazard rating reflects flame and ember intrusion from adjacent wildlands and from flammable vegetation in the urban area.

ANALYSIS:

On March 24, 2025, the CAL FIRE Land Use Planning Division published an updated map of fire hazard severity zones (FHSZs) as required by Government Code 51178. The afternoon of March 24, the Costa Mesa Fire & Rescue Department received official transmittal of the revised and updated FHSZ map from CAL FIRE-Office of State Fire Marshal. The map included new areas of Costa Mesa identified as Moderate and High Hazard Severity Zones.

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Costa Mesa LRA FHSZ Map received on 03/24/2025 (left), and Orange County FHZA map (right):

Per Government Code 51178.5: Within 30 days after receiving a transmittal from the State Fire Marshal that identifies fire hazard severity zones pursuant to Section 51178, a local agency shall make the information available for public review and comment. The information shall be presented in a format that is understandable and accessible to the general public, including, but not limited to, maps.

Per Government Code 51179. (a) A local agency shall designate, by ordinance, moderate, high, and very high fire hazard severity zones in its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal pursuant to Section 51178.
(b) (1) A local agency may, at its discretion, include areas within the jurisdiction of the local agency, not identified as very high fire hazard severity zones by the State Fire Marshal, as very high fire hazard severity zones following a finding supported by
substantial evidence in the record that the requirements of Section 51182 are necessary for effective fire protection within the area.
(2) A local agency may, at its discretion, include areas within the jurisdiction of the local agency, not identified as moderate and high fire hazard severity zones by the State Fire Marshal, as moderate and high fire hazard severity zones, respectively. (3) A local agency shall not decrease the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency, and, in exercising its discretion pursuant to paragraph (2), may only increase the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency. (c) The local agency shall transmit a copy of an ordinance adopted pursuant to subdivision to the State Board of Forestry and Fire Protection within 30 days of adoption. (d) Changes made by a local agency to the recommendations made by the State Fire Marshal shall

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(d) Changes made by a local agency to the recommendations made by the State Fire Marshal shall be final and shall not be rebuttable by the State Fire Marshal. (e) The State Fire Marshal shall prepare and adopt a model ordinance that provides for the establishment of very high fire hazard severity zones.
(f) Any ordinance adopted by a local agency pursuant to this section that substantially conforms to the model ordinance of the State Fire Marshal shall be presumed to be in compliance with the requirements of this section.
(g) A local agency shall post a notice at the office of the county recorder, county assessor, and county planning agency identifying the location of the map provided by the State Fire Marshal pursuant to Section 51178. If the agency amends the map, pursuant to subdivision (b) or (c) of this section, the notice shall instead identify the location of the amended map.

MODERATE FIRE HAZARD SEVERITY ZONE:

Moderate FHSZ area minimum code requirements are currently no more restrictive than model Building and Fire Code requirements for other areas of the city. The moderate zone is identified for knowledge and awareness of adjacent hazards. Adoption of the map through ordinance is required.

CMFR will continue to monitor and participate in future wildland and FHSZ Fire Code development and highlight code changes through the triennial adoption process.

HIGH FIRE HAZARD SEVERITY ZONE:

High FHSZ area minimum code requirements are currently no more restrictive than model Building and Fire code requirements for other areas of the city. If a property is in a High Fire Hazard Severity Zone, new construction is not subject to wildland-urban interface building standards. CMFR will continue to monitor and participate in future wildland and FHSZ Fire Code development and highlight code changes through the triennial adoption process.

In addition, the seller of any real property in a high or very high fire severity zone must provide a disclosure notice to the buyer of information relating to fire hardening improvements on the property and a list of specified features that may make the home vulnerable to wildfire and flying embers.

Starting on July 1, 2025, the real estate disclosure will also include a list of low-cost retrofits, available for free from the California State Fire Marshal. A seller must provide a final inspection report to the buyer. The purpose of the inspection is to provide a report to the buyer evaluating a property's surrounding vegetation, also known as defensible space. The inspection will also report on existing home hardening improvements.

While parcels in the High FHSZ are not mandated by law to meet defensible space requirements, it is recommended that home and building owners consider low-cost home hardening retrofits and creating a defensible space voluntarily. The inspection may be performed by the Fire Department, and the seller will be billed in accordance with the Master Fee Schedule.

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FUTURE CODE CONSIDERATIONS:

Future application of more restrictive Building and Fire Code requirements are currently being reviewed by the Office of the State Fire Marshal for High FHSZ classification. The Office of the State Fire Marshal has been tasked to develop new building standards for High Fire Severity Zones and recommendations for Moderate zones. New codes will address exterior wildfire exposure, including ignition resistant construction roofing, vents, exterior coverings, windows, doors, decking and accessory structures. Enforcement of defensible space codes in wildland-urban interface areas may also be applicable to FHSZs in the future. The City does not know which triennial code cycle the State's new building codes will come into effect. Application of codes in wildland-urban interface areas may also apply in the future based on FHSZ adoption.

COMMUNITY OUTREACH:

On March 31, 2025, Costa Mesa Fire & Rescue (CMFR) partnered with the City’s Emergency Services Manager to host a Community Preparedness Town Hall meeting where a review of newly received map was available for public review and comment. On April 10, 2025, CMFR published a website and posted a GIS map for public review and comment. Two additional Community Preparedness Town Hall meetings were completed on April 29,2025 at Estancia High School and May 15, 2025, at Balearic Community Center where CMFR staff was available to review the map and receive comments in person with members of the public. Copies of the Map were also posted in the City Clerk’s office for public viewing and comment.

ALTERNATIVES:

There are no alternatives considered for this item.

FISCAL REVIEW:

There are no fiscal impacts to the Fiscal Year 2024-25 City Budget.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this Report and the attached ordinance and approved them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council goal:
· Strengthen the Public's Safety and Improve the Quality of Life.

CONCLUSION:

CMFR recommends that the City Council introduce for first reading, by title only and further reading waived an ordinance designating moderate and high Local Responsibility Area Fire Hazard Severity Zones by map within the jurisdiction of the City of Costa Mesa.

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Attachment 1
Ordinance No. 2025-xx Page 1 of 4

ORDINANCE NO. 2025-xx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,

DESIGNATING LOCAL RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONES IN THE

CITY OF COSTA MESA AS IDENTIFIED BY THE CALIFORNIA DEPARTMENT OF

FORESTRY AND FIRE PROTECTION PERSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 51178.

THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND DECLARES AS FOLLOWS:

WHEREAS, California Government Code Section 51178 requires that the State Fire Marshal identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. M oderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread; and WHEREAS, California Government Code Section 51179 (a) requires that a local agency shall designate, by ordinance, moderate, high, and very high fire hazard severity zones in its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal pursuant to Section 51178; and
WHEREAS, The Local Fire Hazard Severity Zone map was transmitted to the City of Costa Mesa on March 24, 2025, and is now located electronically on the City’s website at:
https://www.costamesaca.gov/government/departments-and-divisions/fire-hazard-severity-zone- map; and
WHEREAS, California Government Code Section 51179 (b) clarifies that:
(1) A local agency may, at its discretion, include areas within the jurisdiction of the local agency, not identified as very high fire hazard severity zones by the State Fire Marshal, as very high fire hazard severity zones following a finding supported by substantial evidence in the record that the requirements of Section 51182 are necessary for effective fire protection within the area. (2) A local agency may, at its discretion, include areas within the jurisdiction of the local agency, not identified as moderate and high fire hazard severity zones by the State Fire Marshal, as moderate and high fire hazard severity zones, respectively. (3) A local agency shall not decrease the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency, and, in exercising its discretion pursuant to paragraph (2), may onl y increase the level of fire hazard severity zone as identified by the State Fire Marshal for any area within the jurisdiction of the local agency; and WHEREAS, pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) the City Council has determined that the ordinance is not a "project" and further, that it is exempt from the provisions of CEQA pursuant to CEAQ Guidelines Secti on 15061(b)(3) (because it can be seen with certainty that the adoption of this Ordinance will not 234
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Ordinance No. 2025-xx Page 2 of 4

have an effect on the environment) such that no environmental review under CEQA is required; and

WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The Fire Hazard Severity Zones as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178 are hereby designated as depicted on the Costa Mesa Fire Hazard Severity Zon e Map, attached hereto as Exhibit “A” and incorporated herein by this reference.

Section 2. Environmental Compliance. Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and CEQA Guidelines (Sections 15000 et seq.) this Ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment, either directly or indirectly, and that therefore no environm ental review is required, pursuant to CEQA Guidelines Section 15061(b)(3).

Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.

Section 4. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ord inance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional. No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

Section 4. Codification. This Ordinance shall not be codified in the Costa Mesa Municipal Code unless and until the City Council so ordains.

Section 5. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 6. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law.

235
Attachment 1
Ordinance No. 2025-xx Page 3 of 4

PASSED AND ADOPTED this _____ day of _____, 2025.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

236
Attachment 1
Ordinance No. 2025-xx Page 4 of 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2025-______duly adopted at a regular meeting of the City Council held on the _____ day of June, 2025, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _____ day of March, 2025.

________________________________

BRENDA GREEN, CITY CLERK

(SEAL)

237
City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:

Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency Gavin Newsom, Governor, State of CaliforniaThe State of California and the Department of Forestry and Fire Pro
tection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
hav
e been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expect
ed to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal t
o identify areas in the state as moderate, high,
and very high fire hazard severity zones based on consistent Federal Responsibility
Area (FRA)
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:37,000 at 1
1" x 17"
0 1 2 3Km
0 1Mi
High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the S
tate Fire Marshal
Costa Mesa
405
Harbor Blvd
55 73

UNINCORPORATED
ORANGE CO.

UNINCORPORATED
ORANGE
CO.

FOUNTAIN
VALLEY

HUNTINGTON
BEACH
IRVINE

NEWPORT BEACH

SANTA ANA
O R A N G E C O .

March 24, 2025
As Identified by the
St
ate Fire Marshal
Local Responsibility Area
Fire Hazard Sev
erity Zones
CITY OF COSTA MESA – ORANGE COUNTY
Attachment 2
238

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-252 Meeting Date: 5/20/2025
TITLE:

PUBLIC HEARING FOR 2025-2029 CONSOLIDATED PLAN, INCLUDING FISCAL YEAR 2025- 2026 FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME), AMENDED CITIZEN PARTICIPATION PLAN, AND 2025-2029 ORANGE COUNTY REGIONAL ASSESSMENT OF FAIR

HOUSING
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/HOUSING AND COMMUNITY DEVELOPMENT DIVISION
PRESENTED BY: MIKELLE DAILY, GRANT ADMINISTRATOR
CONTACT INFORMATION: MIKELLE DAILY, GRANT ADMINISTRATOR, (714) 754-5678 RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the 2025-2029 Consolidated Plan, including the 2025-2026 Annual Action Plan and the amended Citizen Participation Plan, and the 2025-2029 Orange County Regional Assessment of Fair Housing.

2. Approve the recommended allocation of $907,261 for the Fiscal Year (FY) 2025-2026 Community Development Block Grant.

3. Approve the recommended allocation of $378,720 for the Fiscal Year (FY) 2025-2026 HOME Investment Partnerships Grant.

4. Adopt Resolution No. 2025-XX (Attachment 1) to:
· Approve the 2025-2029 Consolidated Plan including the 2025-2026 Annual Action Plan and amended Citizen Participation Plan.
· Approve the 2025-2029 Orange County Regional Assessment of Fair Housing. · Authorize the Acting City Manager, or the Acting City Manager’sdesignee, to submit the 2025-2029 Consolidated Plan, including the 2025-2026 Annual Action Plan, to the U.S.

Department of Housing and Urban Development.
· Designate the Acting City Manager, or the Acting City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all agreements and subrecipient agreements for the use of funds approved in the 2025-2026 Annual Action Plan.

239

City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA 92626
Item #: 25-252 Meeting Date: 5/20/2025 TITLE: PUBLIC HEARING FOR 2025 -2029 CONSOLIDATED PLAN, INCLUDING FISCAL YEAR 2025-2026 FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND AMENDED CITIZEN PARTICIPATION PLAN, AND 2025-2029 ORANGE COUNTY REGIONAL ASSESSMENT OF FAIR

HOUSING

DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND

COMMUNITY DEVELOPMENT DIVISION

PRESENTED BY: MIKELLE DAILY, GRANT ADMINISTRATOR

CONTACT INFORMATION: MIKELLE DAILY, GRANT ADMINISTRATOR, (714) 754-5678

RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the 2025-2029 Consolidated Plan, including the 2025-2026 Annual Action Plan and the amended Citizen Participation Plan, and the 2025 -2029 Orange County Regional Assessment of Fair Housing.

2. Approve the recommended allocation of $907,261 for the Fiscal Year (FY) 2025-2026 Community Development Block Grant.

3. Approve the recommended allocation of $378,720 for the Fiscal Year (FY) 2025 -2026 HOME Investment Partnerships Grant.

4. Adopt Resolution No. 2025-XX (Attachment 1) to:
 Approve the 2025-2029 Consolidated Plan including the 2025-2026 Annual Action Plan and amended Citizen Participation Plan.
 Approve the 2025-2029 Orange County Regional Assessment of Fair Housing.  Authorize the Acting City Manager, or the Acting City Manager’s designee, to submit the 2025-2029 Consolidated Plan, including the 2025 -2026 Annual Action Plan, to the U.S.

Department of Housing and Urban Development.
 Designate the Acting City Manager, or the Acting City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all agreements and subrecipient agreements for the use of funds approved in the 2025-2026 Annual Action Plan.

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Item #: 25-252 Meeting Date: 5/20/2025

BACKGROUND:

Costa Mesa is a recipient of two U.S. Department of Housing and Urban Development (HUD) grant program funds: (1) the Community Development Block Grant (CDBG) Program and (2) the HOME Investment Partnerships Program (HOME). These two HUD programs annually provide approximately $1.3 million to the City and can be used for various activities that assist low -income Costa Mesa residents (residents with household incomes at or below 80% of the median income for Orange County).

Table 1 – 2025 Orange County Income Limits Summary
%
median
income
Persons in Household
1 2 3 4 5 6 7 8
Extremely
Low (30%)
$35,550 $40,600 $45,700 $50,750 $54,850 $58,900 $62,950 $67,000 Very Low
(50%)
$59,250 $67,700 $76,150 $84,600 $91,400 $98,150 $104,950 $111,700 (60%)

$71,100 $81,240 $91,380 $101,520 $109,680 $117,780 $125,940 $134,040 Low (80%)

$94,750 $108,300 $121,850 $135,350 $146,200 $157,050 $167,850 $178,700

The Housing and Community Development Division (HCD) of the Economic and Development Services Department is responsible for administering the City’s CDBG and HOME grants. CDBG and HOME-funded activities must address the needs outlined in the City’s Consolidated Plan.

FIVE-YEAR CONSOLIDATED PLAN
The Consolidated Plan is a five-year strategic planning document required by HUD for communities to qualify for federal community development grant funding. It is built on a participatory process among City residents, organizations, businesses, and other stakeholders. It includes a five-year strategic plan that identifies priority housing and community needs and programs/resources to address these needs.

It functions as the City’s application for CDBG and HOME federal funds and is a management tool for assessing performance and tracking results.

The current Consolidated Plan was approved by City Council on May 19, 2020, and is applicable from FY 2020-21 through FY 2024-25. Pursuant to HUD regulations, the City has now prepared the draft 2025-2029 Consolidated Plan that applies to FY 2025-2026 through FY 2029 -2030 and includes the FY 2025-2026 Annual Action Plan and amended Citizen Participation Plan. The City must submit the five-year Consolidated Plan and the one-year Annual Action Plan to HUD to continue to receive these federal funds. Based on the analysis of housing and community needs, market-analysis, and input from the community, the following five-year goals and priorities identified in the 2020 -2024 Consolidated Plan will continue to be implemented in the 2025-2029 Consolidated Plan:

Goal 1: Housing Preservation - To provide decent and affordable housing through a variety of activities, including owner -occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation.

Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the living environment through improvements to public infrastructures and facilities. 241

Item #: 25-252 Meeting Date: 5/20/2025

Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for the homeless and near homeless.

Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and those with special needs.

Goal 5: Program Administration - To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying with all HUD program requirements, including the provision of fair housing services.

CITIZEN PARTICIPATION PLAN
Pursuant to federal program requirements, c itizen participation is a required component of the Consolidated Planning process to: (1) afford residents the opportunity to provide input on housing and community development needs, issues and problems affecting very -low and low-income persons; (2) to educate interested residents about the HOME and CDBG programs and the expected annual amount of assistance to be received from each; (3) to allow residents an opportunity to provide their input regarding project selections and funding distributions; and, (4) to afford residents an opportunity to participate in the process of developing and implementing funded activities.

As required, the City held two community meetings and one stakeholder meeting in an effort to obtain citizen participation . All three meetings were open to the public. The Stakeholder meeting advertisement was focused on organizations that provide services to low -income residents of Costa Mesa. The public community meetings were held on October 10, 2024 , at the Community Senior Center and October 24, 2024 , at the Norma Hertzog Community Center. A stakeholder meeting was held October 29, 2024, in the Community Room at City Hall. In addition to these public meetings, City staff attended the Health and Wellness Expo at the Senior C enter to provide residents and attendees with information about the consolidated planning process and solicit feedback on the priority needs in the City for services, housing and infrastructure. A community survey was available online in both English and S panish from September 25, 202 4, through February 28, 2025 , for residents unable to attend in-person meetings. Additional information about the participation and consultation process is available in Appendix A of Attachment 3.

The Citizen Participation Plan was last revised in 2020 to include regulatory waivers in response to the COVID-19 Pandemic. HUD provides a Community Planning and Development (CPD) Monitoring Handbook with exhibits to be used by HUD reviewers to assess grantee compliance with program regulations, applicable federal statutes, grant requirements and terms and conditions of the grant awards for CPD Programs. These exhibits are available for grantees to conduct a periodic self- monitoring assessment. The Citizen Participation Plan has been reviewed in accordance with Exhibit 19-1 and re -formatted for easier readability and is available for review on the City’s Housing and Community Development webpage under “Public Notices”: Citizen Participation Plan

242

Item #: 25-252 Meeting Date: 5/20/2025

ANNUAL ACTION PLAN
The Annual Action Plan is the one -year expenditure plan for the use of HUD funds. HUD notified the City of Costa Mesa of its FY 2025-2026 allocation amount for HOME and CDBG on May 14, 2025. A year-long Continuing Resolution (CR) is in place that maintains level funding from FY 2024 to FY 2025, however, HUD applies a formula to the funding amount to determine allocations for individual cities , which is why the allocation amounts for FY 2025 -2026 are slightly different than those of FY 2024 - 2025. The City of Costa Mesa will receive $907,261 in CDBG for FY 2025-2026, a seven percent (7%) reduction from the amount received in FY 2024-2025. The City will receive $378,720 in HOME funds for FY 2025-2026, which is a four percent (4%) reduction from the amount received in FY 2024-2025.

The City is required to submit the Consolidated Plan or Action Plan to HUD by May 15 th each year unless HUD provides additional guidance. Additional guidance was provided for FY 2025 -2026 that allows jurisdictions to use estimated allocation amounts in a draft Consolidated Plan for the required 30-day public comment period and public hearing but requires that Plans be submitted with actual amounts within 60-days after actual grant amounts are announced by HUD. The City will submit the Consolidated Plan and Annual Action Plan with actual CDBG and HOME allocation amounts no later than July 14, 2025 to meet the 60-day HUD submission requirement.

ANALYSIS:

The Consolidated Plan is designed to help cities that receive funding from HUD’s Office of Community Planning and Development (CPD) to assess their affordable housing and community development needs and market conditions, and to make data -driven, place -based investment decision s. The consolidated planning process serves as the framework for a community -wide dialogue to identify housing and community development priorities that align and focus funding from the CPD formula block grant programs1.

The five-year Consolidated Plan is implemented through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specifi c goals identified by the Consolidated Plan.

1 https://www.hudexchange.info/programs/consolidated-plan/ 243

Item #: 25-252 Meeting Date: 5/20/2025

Accomplishments and progress toward Consolidated Plan goals are reported in the Consolidated Annual Performance and Evaluation Report (CAPER).2

As previously indicated, a significant component of the Consolida ted Plan process is obtaining resident and stakeholder involvement. Residents and stakeholders provided feedback about City priorities at public meetings and the health expo based on eight different categories eligible for CDBG and HOME funding (see Exhibit 1 and Exhibit 2 below). The surveys provided more detailed data for each category.

Exhibit 1

Exhibit 2

2 Ibid
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Item #: 25-252 Meeting Date: 5/20/2025

2025-2026 ANNUAL ACTION PLAN
Both CDBG and HOME programs have specific requirements. For example, CDBG funds must be utilized to achieve one of three national objectives: 1) elimination of slums and blight; 2) meet an urgent need (e.g. , declared disaster); or 3) benefit to low - and moderate- income persons. HOM E funds must be used to preserve or increase housing opportunities for low -income residents living in Costa Mesa. Outlined below are the programmatic recommendations for the use of FY 2025 -2026 CDBG and HOME funds.

CDBG FUNDING AND ALLOCATION:

The City of Costa Mesa will receive $907,261 in CDBG funds for FY 2025-2026. Additionally, $172,000 in prior year funds will be available for CDBG -funded activities. Staff is recommending funding in six primary program areas: 1) public facilities & infrastructure/capital improvement; 2) public services grants; 3) housing rehabilitation administration; 4) housing rehabilitation grants program 5) code enforcement; and 6) program administration.

1. PUBLIC FACILITIES & INFRASTRUCTURE/CAPITAL IMPROVEMENT CDBG funds may be used to improve public facilities and infrastructure provided the primary beneficiaries are low- and moderate- income Costa Mesa residents. Areas in the city that are CDBG eligible (51% or more of the population at 80% AMI or below) are identified in the map of CDBG areas (Attachment 3, Appendix B-1). For FY 2025-2026, staff is recommending the allocation of $251,720 in CDBG funds for The Westside Street Improvement project.

2. PUBLIC SERVICE GRANTS
The City is allowed to earmark up to 15 percent (15%) of its annual CDBG allocation for public service grants. Based on the City’s FY 2025-2026 CDBG grant allocation, a maximum of $136,089 is available for public service grant funding. $30,000 is allocated for a portion of the Senior Center caseworker’s salary, which leaves $106,089 available for nonprofit public service funding.

On February 14, 2025, the City received six eligible nonprofit organization applications requesting a total of $180,000 in public service grants. On March 5, 2025, the City’s Housing and Public Service Grant Committee (H&PSG Committee) heard presentations from grant applicants, finalized the rating and ranking of applications, and developed public service grant funding recommendations for the City Council’s consideration based on funding limitations and rating criteria . The Housing and Public Services Committee (H&PSG) recommended $100,000 for five nonprofit organizations that submitted applications for CDBG funding based on the es timated maximum available. The H&PSG included in their recommendation that the amount for each awarded nonprofit grant would be increased by an equal percentage if the actual maximum available is more than estimated amount of $100,000. The actual amount available for public services is $6,089 more than the estimated amount, so that amount has been distributed equally among the H&PSG nonprofit organizations recommended for funding.

A summary of the H&PSG Committee’s ratings, rankings and grant recommendations is provided in Attachment 4. The application summaries include the Fair Housing Foundation, which will be funded out of CDBG Administration, and the senior services provided at the City’s senior community center that are partially funded by CDBG public services. The Committee’s grant recommendations are also listed in the proposed CDBG budget below . Complete grant applications are posted on the City’s website: Public Service Grants Program | City of Costa Mesa 245

Item #: 25-252 Meeting Date: 5/20/2025

3. HOUSING REHABILITATION ADMINISTRATION (CDBG)
Staff is proposing to allocate $50,000 in CDBG funding for staff and other direct costs associated with the City’s HUD-funded housing rehabilitation program. Examples of eligible costs include staff costs associated with preparat ion of work specifications, property inspections and loan/grant application processing/implementation.

4. HOUSING REHABILITATION
The City has a HOME-funded Housing Rehabilitation Grants and Loans Program. Improvements may include, but are not limited to, hea lth and safety code items such as plumbing, electrical, heating, roofing, etc. Adding a Housing Rehabilitation Grants program with $75,000 in CDBG funding will provide more flexibility and increase the number of residents and properties eligible for rehabilitation grants. CDBG funds do not limit eligibility to homes according to the value of the home. HOME funds require that the home value not exceed 95% of the median purchase price for the area after rehabilitation. The addition of CDBG funding to the Housing Rehabilitation Grants program is a direct response to the needs assessment and community feedback provided through the consolidated planning process. Once the Action Plan is approved by the City Council, staff will begin to design the specific details of the CDBG rehabilitation grants (grant amounts, scope of program).

5. CODE ENFORCEMENT
CDBG funds may be used for code enforcement activities provided the program primarily benefits low- and moderate - income persons, and that such code enforcement “togeth er with public or private improvements, rehabilitation, or services to be provided, may be expected to arrest the decline of the area.” The crux of this regulation is that any CDBG -funded code enforcement activity must have a direct nexus to the rehabilitation or improvement of housing in an eligible area. Over 55% of the City is made up of CDBG eligible census blocks and the CDBG funding recommendation makes up 14% of the total budget for code enforcement activities in the City . For FY 2025 -2026, staff is recommending a total allocation of $385,000 in CDBG funds to support the work effort of two full-time and one part -time code enforcement officer s. Enforcement activity will be limited to eligible Census Tract Block Groups identified by HUD.

6. ADMINISTRATION
HUD allows the City to allocate up to 20 percent (20%) of its annual grant for planning and program administration. Based on the City’s FY 2025-2026 CDBG grant, a maximum of $181,452 is available for program administration. Eligible program administratio n expenditures include program staff salaries and benefits, contract services, legal services, direct program operating costs and fair housing services, if not funded through public services. For FY 2025-2026, fair housing services are provided through the Fair Housing Foundation with $20,000 from the City’s administration funds.

246

Item #: 25-252 Meeting Date: 5/20/2025

Table 1: Proposed FY 2025-2026 CDBG Budget

AVAILABLE FUNDS
2025-2026 CDBG Allocation $907,261
Prior Year Funds $172,000
TOTAL: $1,079,261

PROPOSED PROGRAMS/PROJECTS
Code Enforcement
Salary & Benefits 2 FT & 1 PT $385,000
SUBTOTAL: $385,000
Infrastructure/Public Facilities/Capital Improvement
Wilson Street Improvement Westside Neighborhood $251,720 SUBTOTAL: $251,720
Public Service grants (15% Maximum)
City of CM Senior Center Caseworker $30,000
Assistance League – Newport Mesa $15,913
Families Forward $26,522
Human Options $26,522
Project Hope Alliance $21,219
Trellis – Labors of Love $15,913
SUBTOTAL: $136,089
Housing Rehabilitation
Housing Rehabilitation Administration $50,000
Housing Rehabilitation Grants Program* $75,000
SUBTOTAL: $125,000
Administration (20% Maximum)
CDBG Program Administration $161,452
Fair Housing Foundation** $20,000
SUBTOTAL: $181,452
TOTAL: $1,079,261
*New program for 2025-2026
**Required by HUD

HOME FUNDING AND ALLOCATION:

The City of Costa Mesa will receive $378,720 in HOME funds for FY 2025-2026. Additionally, $50,000 in HOME Program Income (PI) , and $1,685,283 in prior year uncommitted HOME funds will be available for HOME-funded activities.

The City is required to reserve a minimum of 15 percent (15%) of annual HOME funds for a project to be undertaken by a qualified nonprofit housing developer known as a Community Housing Development Organization (CHDO). A CHDO is a nonprofit housing developer. The City is also allowed to use a maximum of 10 percent (10%) of HOME funds for program administration. Staff is recommending funding for five activities: 1) single-family housing rehabilitation loans and grants ; 2) Tenant Based Rental Assistance (TBRA); 3) Affordable Housing Project(s) 4) CHDO reservation; and 5) program administration.
247

Item #: 25-252 Meeting Date: 5/20/2025

1. HOUSING REHABILITATION
HOME funds may be used to improve and preserve the City’s supply of owner-occupied housing for households with an income up to 80 percent (80%) of the County median income. Grants are available for both Single Family and Mobile Home property owners for property improvements including health and safety code items such as plumbing, electrical, heating and roofing. Staff is recommending allocating a total of $319,323 to the City’s Single -Family Housing Rehabilitation Loan and Grant Program to assist up to 16 households.

2. TENANT BASED RENTAL ASSISTANCE (TBRA)
The City has contracted with Families Forward to implement the Costa Mesa TBRA program since FY 2020-2021. The program provides rental assistance for families with minor children for up to 24 months, however many of the families are able to reach self-sufficiency with six months of assistance.

The TBRA rental subsidy covers rental costs, security deposits and utilities and temporarily reduces the housing costs for participating households to 30% of the household’s monthly adjusted income.

Each eligible family receives assistance based on need. The TBRA program is expected to provide assistance to 15 families with $200,000 in HOME funds for FY 2025-2026.

3. AFFORDABLE RENTAL HOUSING DEVELOPMENT
In an effort to preserve and increase affordable rental housing opportunities for lower income households, the City will be soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors by issuing a Request for Proposal (RFP) or a Request for Qualifications (RFQ) for the development of permanent affordable rental housing in the City using prior year(s) uncommitted HOME Program funds in the amount of $1,500,000. If the selected vendor is an approved Community Housing Development Organization (CHDO), a nonprofit developer, CHDO set-aside funds may also be included in the project.

4. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO FUNDS) HOME program regulations require that a minimum of 15 percent (15%) of the City’s annual grant allocation be reserved for a CHDO. Based on the City’s FY 2025-2026 HOME grant, $56,808 is the minimum CHDO set -aside requirement. The current set -aside balance avai lable including $ 56,808 from FY 2025-2026 is $232,532.

5. ADMINISTRATION
The City is allowed to use up to 10 percent (10%) of its annual grant for HOME program administration.

Based on the City’s FY 2025 -2026 grant, $37,872 is available for HOME program admi nistration.

Eligible administration expenditures include program staff salaries and benefits, contract services, and legal services.

248

Item #: 25-252 Meeting Date: 5/20/2025

Table 2: Proposed FY 2025-2026 HOME Budget

AVAILABLE FUNDS
2025-2026 HOME Allocation $378,720
Prior Year Program Income (PI) $50,000
Prior Year(s) Uncommitted HOME Funds $1,685,283
TOTAL: $2,114,003

PROPOSED PROGRAMS/PROJECTS
Housing Rehabilitation
Housing Rehab Loans and Grants (1 loan & 15 grants) $319,323 SUBTOTAL: $319,323
Tenant Based Rental Assistance
Families Forward TBRA $200,000
SUBTOTAL: $200,000
Affordable Rental Housing
Project – To be Determined $1,500,000
SUBTOTAL: $1,500,000
CHDO Reserve (15% Minimum)
CHDO Reserve – Project to be determined $56,808
SUBTOTAL: $56,808
HOME Administration (10% Maximum)
FY 2025-2026 HOME Program Administration $37,872
SUBTOTAL: $37,872
TOTAL: $2,114,003

The 2025-2026 Fiscal Year will be the first year of the 2025-2029 Consolidated Plan cycle. The Action Plan serves as the link between the objectives and goals listed in the Consolidated Plan with activities to be carried out during a 12 -month period that address priority needs. The time period covered by the 2025-2026 Action Plan begins July 1, 2025, and ends June 30, 2026. The draft 2025-2026 Action Plan is incorporated into the 2025-2029 Consolidated Plan. The Consolidated Plan is attached to this Agenda report as Attachment 2.

2025-2029 Orange County Regional Assessment of Fair Housing As a recipient of CDBG funds, the City of Costa Mesa is required to comply with the Fair Housing Act of 1968, as amended (Title VIII of the Civil Rights act of 1968) (42 U.S.C. section 3601, et seq.), which prohibits discrimination in housing -related transactio ns, including the sale, rental or financing of dwellings. Protected classes under Federal law include race, color, national origin, religion, sex, disability and familial status. California has additional protected classes, including source of income.

Effective April 2, 2025, the Fair Housing Act Interim Rule revises HUD’s regulation governing the Fair Housing Act’s mandate to affirmatively further fair housing. Under the Interim Final Rule, grantees must certify that they will take active steps to promote fair housing.

249

Item #: 25-252 Meeting Date: 5/20/2025

The City participated with all 34 cities in Orange County in the preparation of the 2025 -2029 Orange County Regional Assessment of Fair Housing. The executive summary of the draft Orange County Assessment of Fair Housing is provided as Appendix F to the Consolidated Plan. The entire draft document is available for review on the City’s Housing and Community Development webpage: FY 2025-2029 Orange County Regional Assessment of Fair Housing.

PUBLIC NOTICE, REVIEW AND COMMENT PERIOD
As required by HUD, a notice was published in English and Spanish in local newspapers on April 17, 2025, inviting the public to review and comment on the draft 2025-2029 Consolidated Plan, including the 2025 -2026 Annual Action Plan and amended Citizen Participation Plan , and the 2025 -2029 Orange County Assessment of Fair Housing. The comment period began on April 18, 2025 , and concluded on May 20, 2025.This notice also announced the May 20, 2025, City Council public hearing.

At the time this report was written, no comments have been received.

ALTERNATIVES:

The City Council can choose to not fund the proposed activities as recommended by staff and allocate CDBG or HOME funds to other e ligible activities. The City Council can also direct staff to not submit the Consolidated Plan, Action Plan, or approve the 2025-2026 Orange County Regional Assessment of Fair Housing; however, if the City does not submit the Action Plan, HOME funds will most likely be returned to the U.S. Treasury and the City’s CDBG funds will be distributed proportionally among all other Orange County jurisdictions that receive CDBG funds. Additionally, the City may be out of compliance with program regulations without an approved fair housing analysis.

FISCAL REVIEW:

The City receive s an annual grant allocation from HUD for the City’s CDBG Program and HOME Program. These grants provide funding for various activities that assist low -income Costa Mesa residents. The City will receive a grant allocation of $907,261 for the CDBG Program and $378,720 for the HOME Program for FY 2025-26. The grant allocations received have an eight (8) year period to expend the funds. Additional funds from prior year(s) in both the CDBG and HOME program are available in the amount of $172,000 (CDBG) and $1, 685,283 (HOME), inclusive of program income.

The City is reimbursed by HUD for the total amount of eligible CDBG and HOME program expenditures.

LEGAL REVIEW:

The City Attorney’s Office has reviewed and approved this agenda report and the attached resolution as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This project would achieve the following City Council goals and objectives:
 Strengthen the public’s safety and improve the quality of life;  Diversify, stabilize and increase housing to reflect community needs;  Achieve long-term fiscal sustainability; and
 Advance environmental sustainability and climate resiliency.

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Item #: 25-252 Meeting Date: 5/20/2025

CONCLUSION:

Pursuant to Federal regulations, the City Council must adopt a resolution for the approval of the Consolidated Plan and the Annual Action Plan in order for the City to implement the respective federal grant programs. The draft 2025 -2029 Consolidated Plan a nd the 2025 -2026 Annual Action Plan are prepared according to HUD regulations, and outline how the City will utilize FY 2025-2026 CDBG and HOME funds to meet the objectives and goals of the federal CDBG and HOME programs. In addition, the City participated with all 34 jurisdictions in Orange County to prepare the 2025-2029 Orange County Regional Assessment of Fair Housing for Council approval and updated its Citizen Participation Plan to reflect current HUD regulations . Staff recommends that the City review the aforementioned Plans and designate the Acting City Manager, or the Acting City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all agreements and subrecipient agreements for the use of funds approved in the 2025-2026 Annual Action Plan.

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ATTACHMENT 1

RESOLUTION NO. 2025-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING AND AUTHORIZING SUBMISSION OF THE 2025-2029

CONSOLIDATED PLAN INCLUDING THE AMENDED CITIZEN PARTICIPIATION PLAN AND THE 2025-2026 ANNUAL ACTION PLAN F OR THE APPLICATION AND

EXPENDITURE OF COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME

INVESTMENT PARTNERSHI PS ACT FUNDS TO THE UNITED STATES

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT , AND APPROVAL OF THE 2025-2029 ORANGE COUNTY REGIONAL ASSESSMENT OF FAIR HOUSING

THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND DECLARES AS FOLLOWS:

WHEREAS, the City of Costa Mesa participates in the United States Department of Housing and Urban Development’s (“HUD”) Community Development Block Grant (CDBG) Program and also participates in HUD’s Home Investment Partnerships Program (HOME); and
WHEREAS, in order to receive annual allocations from these HUD programs, the City is required to prepare a five-year strategic plan outlining the use of the grants and strategic vision for affordable housing and community development in the City known as the Consolidated Plan; and
WHEREAS, the City’s current Consolidated Plan, was adopted on May 19, 2020, and will expire on June 30, 2025; and
WHEREAS, the federal regulations (Title 24 Code of Federal Regulations Part 91) delineate the required content of the Consolidated Plan, including an annual application and expenditure plan for CDBG and HOME funds, known as the Annual Action Plan; and
WHEREAS, the City is eligible to receive $907,261 in 2025-2026 CDBG funds, which can be used for social service grants, housing rehabilitation, public facilities and administration, and is also eligible to receive $378,720 in 2025-2026 HOME funds, which can be used for housing and administration as set forth in the 2025-2026 Annual Action Plan (Exhibit A); and
WHEREAS, the City made the 2025-2029 Consolidated Plan available for the required 30-day public review period between April 18, 2025 and May 20, 2025; and 252
Resolution No. 2025-xx Page 2 of 4

WHEREAS, the City has published a notice of a public hearing for the 2025-2029 Consolidated Plan, including the 2025-2026 Annual Action Plan and amended Citizen Participation Plan, and the 2025-2029 Orange County Regional Analysis of Impediments to Fair Housing in English and Spanish; and WHEREAS, in the 2025-2029 Consolidated Plan, including the 2025-2026 Annual Action Plan and amended Citizen Participation Plan, and the 2025-2029 Orange County Regional Assessment of Fair Housing, the City has considered all public comments which have been received either in writing or at the public hearing.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES as follows:

SECTION 1. The City Council hereby approves the 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan attached hereto as Exhibit “A” and incorporated herein by reference. The City Council further approves the 2025-2029 Orange County Regional Assessment of Fair Housing.

SECTION 2. The City Council hereby authorizes the Acting City Manager, or the Acting City Manager’s designee, to submit the 2025-2029 Consolidated Plan including the 2025-2026 Annual Action Plan to HUD, and execute all certifications and assurances contained therein to approve minor changes and provide additional information as may be required.

SECTION 3. The City Council hereby designates the Acting City Manager, or the Acting City Manager’s designee, as the City’s official representative to administer the programs and execute and submit all required agreements, certifications, and documents required by HUD. The City Council further authorizes the Acting City Manager, or Acting City Manager’s designee, to execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds approved in the 2025-2026 Annual Action Plan.

BE IT FURTHER RE SOLVED that the Costa Mesa City Council does hereby find and determine that adoption of this Resolution is expressly predicated upon the activity as described in the staff report for the 2025 -2029 Consolidated Plan and 2025-2026 Annual Action Plan and compliance with all applicable federal, State, and local laws.
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Resolution No. 2025-xx Page 3 of 4

BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions.

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Resolution No. 2025-xx Page 4 of 4

PASSED AND ADOPTED this 20th day of May 2025.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2025-xx and was duly passed and adopted by the City Council of the City of Co sta Mesa at a regular meeting held on the 20th day of May 2025, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my h and and affixed the seal of the City of Costa Mesa this 20th day of May 2025.

___________________________
Brenda Green, City Clerk
255
City of Costa Mesa
Five-year Consolidated Plan
FY 2025-2029
July 1, 2025 – June 30, 2030
and

Annual Action Plan
FY 2025-2026
July 1, 2025 – June 30, 2026
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Attachment 2
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Consolidated Plan COSTA MESA 1
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Table of Contents
................................................................................................................................................................................................ 0 Executive Summary ................................................................................................................................................................. 6 ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................................................................................... 6 The Process ........................................................................................................................................................................... 10 PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) ..................................................................................................... 10 PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and 91.315(I) ...................................................... 11 PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c) ........................................................................... 19 Needs Assessment ................................................................................................................................................................ 22 NA-05 Overview ................................................................................................................................................................ 22 NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c) .............................................................................................. 24 NA-35 Public Housing – 91.205(b) .................................................................................................................................... 35 NA-40 Homeless Needs Assessment – 91.205(c) .............................................................................................................. 40 NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) ...................................................................................... 45 NA-50 Non-Housing Community Development Needs – 91.215 (f) ................................................................................. 48 Housing Market Analysis ....................................................................................................................................................... 51 MA-05 Overview ............................................................................................................................................................... 51 MA-10 Number of Housing Units – 91.210(a)&(b)(2) ....................................................................................................... 51 MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) ......................................................................................... 54 MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) ................................................................................ 58 MA-25 Public and Assisted Housing – 91.210(b) .............................................................................................................. 61 MA-30 Homeless Facilities and Services – 91.210(c) ........................................................................................................ 63 MA-35 Special Needs Facilities and Services – 91.210(d) ................................................................................................. 65 MA-40 Barriers to Affordable Housing – 91.210(e) .......................................................................................................... 68 MA-45 Non-Housing Community Development Assets – 91.215 (f) ................................................................................ 71 MA-50
Needs and Market Analysis Discussion ................................................................................................................. 77 DRAFT
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MA-60 Broadband Needs of Housing occupied by Low- and Moderate-Income Households - 91.210(a)(4), 91.310(a)(2) .......................................................................................................................................................................................... 78 MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3) ..................................................................................................... 79 Strategic Plan ........................................................................................................................................................................ 81 SP-05 Overview ................................................................................................................................................................. 81 SP-10 Geographic Priorities – 91.215 (a)(1) ...................................................................................................................... 82 SP-25 Priority Needs - 91.215(a)(2) ................................................................................................................................... 84 SP-30 Influence of Market Conditions – 91.215 (b) .......................................................................................................... 88 SP-50 Public Housing Accessibility and Involvement – 91.215(c) ................................................................................... 100 SP-55 Barriers to affordable housing – 91.215(h) ........................................................................................................... 101 SP-60 Homelessness Strategy – 91.215(d) ...................................................................................................................... 103 SP-65 Lead based paint Hazards – 91.215(i) ................................................................................................................... 105 SP-70 Anti-Poverty Strategy – 91.215(j) ......................................................................................................................... 106 SP-80 Monitoring – 91.230 ............................................................................................................................................. 107 Expected Resources ............................................................................................................................................................ 109 AP-15 Expected Resources – 91.220(c)(1,2) ................................................................................................................... 109 Annual Goals and Objectives .............................................................................................................................................. 112 Projects ........................................................................................................................................................................... 114 AP-35 Projects – 91.220(d) ............................................................................................................................................. 114 AP-38 Project Summary .................................................................................................................................................. 115 AP-50 Geographic Distribution – 91.220(f) ..................................................................................................................... 124 Affordable Housing ............................................................................................................................................................. 125 AP-55 Affordable Housing – 91.220(g) ........................................................................................................................... 125 AP-60 Public Housing – 91.220(h) ................................................................................................................................... 126 A
P-65 Homeless and Other Special Needs Activities – 91.220(i) .................................................................................... 127 AP-75 Barriers to affordable housing – 91.220(j) ........................................................................................................... 130 AP-85 Other Actions – 91.220(k) .................................................................................................................................... 132 DRAFT
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Program Specific Requirements .......................................................................................................................................... 135 Appendix ............................................................................................................................................................................. 139 List of Tables
Table 1 – Responsible Agencies ............................................................................................................................................ 10 Table 2 – Agencies, groups, organizations who participated ............................................................................................... 17 Table 3 – Other local / regional / federal planning efforts ................................................................................................... 18 Table 4 – Citizen Participation Outreach .............................................................................................................................. 21 Table 5 - Housing Needs Assessment Demographics ........................................................................................................... 24 Table 6 - Total Households Table .......................................................................................................................................... 25 Table 7 – Housing Problems Table ........................................................................................................................................ 26 Table 8 – Housing Problems 2 ............................................................................................................................................... 27 Table 9 – Cost Burden > 30% ................................................................................................................................................ 27 Table 10 – Cost Burden > 50% .............................................................................................................................................. 28 Table 11 – Crowding Information – 1/2 ................................................................................................................................ 28 Table 12 – Crowding Information – 2/2 ................................................................................................................................ 28 Figure 1 – Housing Cost Burden ............................................................................................................................................ 30 DRAFT
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Executive Summary
ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The Fiscal Year (FY) 2025-2029 Consolidated Plan for the City of Costa Mesa satisfies federal requirements for the City to receive Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) funds from the U.S.

Department of Housing and Urban Development (HUD). The Consolidated Plan is a planning document that identifies the City’s housing and community needs and outlines a strategy to address these needs utilizing HUD funds. The Plan includes the following components:
• An assessment of the jurisdiction's housing and community needs and market conditions • A strategy that establishes priorities for addressing identified needs • A one-year investment plan that outlines the intended use of HUD resources (the Action Plan) The City’s Consolidated Plan has been devised in a way that supports HUD’s community planning and development goals, which are to provide decent housing, provide a suitable living environment, and expand economic opportunities.

HUD regulations require that the Consolidated Plan cover a three to five-year planning period. The City has prepared this Consolidated Plan to cover a five-year planning period that begins July 1, 2025, through June 30, 2030.

2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview Based on an analysis of housing/community needs, market analysis, and input from the community, the following five- year goals and priorities identified in the 2020-2024 Consolidated Plan will continue to be implemented in the 2025- 2029 Consolidated Plan:

Goal 1: Housing Preservation To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation
Goal 2: Infrastructure and Facility
Improvements
To enhance the suitability of the living environment through improvements to public infrastructures and facilities
Goal 3: Homeless Continuum of Care To provide supportive services and housing assistance for the homeless and near homeless
Goal 4: Public Social Service To provide services for low- and moderate-income persons, and those with special needs
Goal 5: Program Administration To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying all HUD program requirements including the provision of fair housing services

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3. Evaluation of past performance
At the time of the preparation of the 2025-2029 Consolidated Plan, the City of Costa Mesa has partially completed the final year of the 2020-2024 Consolidated Plan cycle. During the previous Consolidated Plan period (FY 2020 – FY 2024), the City utilized its CDBG and HOME funds for a variety of different housing and community development activities, including, but not limited to:

Housing: The City continues to run a Housing Rehabilitation Program that offers loans and grants to address deferred property improvements and building code deficiencies. During the previous consolidated plan period, the City was able to help 42 households. The Housing Code Enforcement Program addressed substandard conditions in residential neighborhoods within eligible Census Tracts and Block Group. The program assisted 789 homeowners.

Community Services: The City utilized CDBG funds to provide financial assistance to agencies that provided much needed services to low- and moderate-income persons, including meal and food distribution for the elderly, senior services, employment services, youth services, fair housing services, and homeless services and assistance to over 4,000 residents.

Public Improvements: The City used CDBG funds for public infrastructure and public facility improvements, which provided roadway rehabilitation as well as improvements to public buildings and other facilities including ADA compliance. By the end of FY 2023-2024, public facility and infrastructure projects assisted 6,155 persons.

4. Summary of citizen participation process and consultation process A key element of the Consolidated Plan preparation process is the input of residents, businesses and other community stakeholders. This input was facilitated by the implementation of the City’s Citizen Participation Plan. Opportunities for public participation included the following:
“Community Needs Survey” – Survey was available online and by hard copy from September 25, 2024 through February 28, 2025. The survey was available in English and Spanish. A copy of the survey with a summary of results is provided in Appendix A. Advertising of the Community Needs Survey included:
• Internet survey links and QR codes were displayed on workshop flyers/notices in English and Spanish:
• Notices posted on City's website (English and Spanish), social media, website event calendar, City Hall concierge screen, CMTV and City Hall lobby
• Notices posted in City Libraries and Community Centers • Notices emailed to community groups and nonprofit organizations • Announcements included in City Snapshot 9/27, 10/4 and 10/18 Community Meetings (3): The City of Costa Mesa held two community meetings and one stakeholder meeting to gain input on the needs of the community. In addition to these public meetings, City staff attended the Health and Wellness Expo at the senior Center to provide residents and attendees with information about the consolidated planning process and solicit feedback on the priority needs in the City for services, housing, and infrastructure. The public community meetings were held on October 10, 2024 at the Community Senior Center and October 24, 2024 at the Norma Hertzog DRAFT
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Community Center. A stakeholder meeting was held October 29, 2024 in the Community Room at City Hall. Notices for the community and stakeholder meetings are found in Appendix A and included:
• Notices posted on City's website (English and Spanish), social media, website event calendar, City Hall concierge screen, CMTV and City Hall lobby
• Notices posted in City Libraries and Community Centers • Notices emailed to community groups and nonprofit organizations and the Orange County Housing Authority • Announcements included in City Snapshot 9/27, 10/4 and 10/18 Application for Funding: A notice announcing CDBG funding opportunity posted to the City’s Website and the City’s social media pages. It was also advertised to nonprofit organizations through the City’s Network for Homeless Solutions (NHS). The application for funding was due February 14, 2025.

Housing and Public Service Grants Committee: On March 5, 2025, applicants for public service funds presented to the Committee and the Committee decided on recommendations to the City Council on allocations.

Public Review of Draft Documents: The public review period was April 18, 2025 through May 20, 2025. The draft Consolidated Plan and Action Plan were made available on the City’s website and at the Planning Counter in City Hall.

City Council Public Hearing: The Council conducted a public hearing on May 20, 2025 to review and adopt the FY 2025- 2029 Consolidated Plan, FY 2025 Action Plan and amended Citizen Participation Plan.

•HealthFair
Expo
9/26/24
•Community
Meeting
10/10/24 •Community
Meeting
10/24/25
•Stakeholder
Meeting
10/29/24
•H&PSG
Committee
Public Meeting
3/5/25 •City Council
Public Hearing
5/20/25
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The public was given the following options to participate in the meeting:

1. Live on Costa Mesa TV (Spectrum Channel 3 and AT&T U-Verse Channel 99) or http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true a nd online at youtube.com/costamesatv. As a courtesy, the public may participate via the Zoom option. Closed Captioning is available via the Zoom option in English and Spanish.

2. S ubmitting comment via email to the City Clerk at [email protected] . Comments received by 12:00pm on the day of the meeting were provided to the City Council, made available to the public, and are a part of the meeting record.

5. Summary of public comments
A summary of the public comments received is provided in Appendix A.

6. Summary of comments or views not accepted and the reasons for not accepting them All comments received were accepted. A summary of the public comments received is provided in Appendix A.

7. Summary
The FY 2025 – FY 2029 Consolidated Plan has been prepared by the City of Costa Mesa in order to continue receiving CDBG and HOME funds over the next five years. To determine how the City will allocate these funds, a public input process was utilized. This process included solicitation of information regarding priority housing and non-housing community needs from County agencies and local service providers. City residents were invited to participate in the process via a needs survey, and by attending community meetings. Comments received at community meetings are summarized in Appendix A. Written comments received during the public review period and Staff responses are incorporated into this document. HUD has announced that Costa Mesa will receive $907,261 in CDBG and $378,720 in HOME funds for FY 2025-2026. The City has also identified prior year funds and program income (PI) that will be available to undertake eligible activities in FY 2025-2026. The FY 2025-2026 Annual Action Plan outlines the uses of these funds, which include housing rehabilitation for lower income homeowners; enforcement of housing and building codes; social services for lower income and special needs residents; tenant based rental assistance (TBRA); affordable housing project(s); and program administration. Activities to be funded will address a priority need identified in the Consolidated Plan.

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The Process
PR-05 Lead & Responsible Agencies 24 CFR 91.200(b)

1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator COSTA MESA Housing & Community Dev/Development Services HOME Administrator COSTA MESA Housing & Community Dev/Development Services Table 1 – Responsible Agencies

Narrative
The City’s Housing and Community Development (HCD) Division of the Economic and Development Services Department is primarily responsible for the preparation of the Consolidated Plan and for administration of CDBG and HOME funds.

Consolidated Plan Public Contact Information
Mikelle Daily, Grant Administrator, 77 Fair Drive, Costa Mesa, CA 92628 (714) 754-5678, [email protected]
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PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and

91.315(I)

1. Introduction
The City of Costa Mesa contacted community-based social service providers, adjacent local governments, and various County/State agencies. The City solicited feedback through the following methods: web-based and paper Community Needs Surveys, Community Meetings, Public Hearings, and the receipt of written comments.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).

The City of Costa Mesa does not own or manage public housing. Similarly, the City does not administer the Housing Choice Voucher or Section 8 Certificate rental assistance programs, however, Costa Mesa has an executed MOU with the Orange County Housing Authority (OCHA) to participate in their Housing Choice Voucher (HCV) Set-Aside Program, which makes available HCV’s only for participating jurisdictions. Rental assistance voucher/certificate programs are administered in the City of Costa Mesa by OCHA. The City is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with direct input regarding program policies.

During the development of this Consolidated Plan, the City invited organizations that provide housing, health services and other community-focused programs to the Community meetings and Stakeholder meeting. The list of attendees for the Stakeholder meeting is included in Appendix A. The agencies on the list were emailed a notice of the City’s Consolidated Plan process and the date and times of the Community Meetings, Stakeholder meeting and links to the Community Needs Survey. The City also asked the Fair Housing Foundation to attend the Community Meetings to connect the public to the City’s fair housing services.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness Orange County’s Continuum of Care (CoC) promotes countywide commitment to the goal of ending homelessness through ongoing planning, coordination and collaboration of regional homeless services and programs to address the needs of individuals and families experiencing homelessness and preventing homelessness. The City of Costa Mesa has consistently sought and directed various federal, state, local and private funding sources to services and activities that continue to assist Costa Mesa homeless and those at risk of becoming homeless. The City has identified various private and nonprofit organizations with whom it has linked homeless individuals and has supported various nonprofit groups DRAFT
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in the federal and County Continuum of Care. During the past consolidated plan period (FY 2020 – FY 2024), the City provided CDBG funds to many member organizations of the Continuum of Care including Families Forward and Mercy House. For the development of this Consolidated Plan, the City invited the participation of local and regional organizations that provide assisted housing, health services and other community-focused programs to homeless individuals and families. Many of the organizations invited to the Community Meetings are also members of Orange County’s CoC including CityNet, Stand Up for Kids, Human Options, United Way and Families Forward.

The City of Costa Mesa was one of the 34 jurisdictions that participated in the Continuum of Care’s Point In Time Count in January 2024. The County of Orange and Orange County Continuum of Care conducted the sheltered count on Monday, January 22, 2024 and the unsheltered count from Tuesday, January 23, 2024 through Thursday, January 25, 2024.

Since 2014, the Network for Homeless Solutions (NHS) has directly addressed homeless issues in Costa Mesa. The NHS participates in the comprehensive, coordinated and regional Continuum of Care strategy with the County of Orange, local governmental agencies, nonprofit agencies, faith-based service providers, the homeless and formerly homeless, business leaders and schools to find solutions for those experiencing and at-risk of homelessness. The NHS is focused on establishing direct links to services for the homeless, especially those with strong ties to Costa Mesa, facilitating access to services and housing options. The NHS also serves as a liaison to the business community and resident groups.

In addition, the City’s outreach team, the Costa Mesa Bridge Shelter and the nonprofit shelter operator, Mercy House, are an Access Point for the County of Orange. As an Access Point, the City collects and shares information about individuals who access services with the Continuum of Care. The City and its Network for Homeless Solutions team regularly consult with other Orange County cities that participate in the Continuum of Care and provide shelter or housing vouchers to homeless individuals. Trellis International (Trellis) receives funding from the City to administer a workforce development and life skills training program called the Community Impact Team (CIT). The CIT provides employment services and transitional employment opportunities for homeless and extremely low-income Costa Mesa residents seeking to reenter the workforce.

In June 2023, City Council approved a capacity increase of 16 beds for the Costa Mesa Bridge Shelter, bringing the Shelter’s total capacity to 85 beds. In March 2023, the City formalized a grant of $4.2M in Behavioral Health Bridge Housing (BHBH) funds from the Orange County Health Care Agency to add 15 behavioral health beds and associated services at the Shelter. The primary focus of the BHBH funds is to assist individuals experiencing homelessness who have serious behavioral health conditions that prevent them from accessing resources and securing permanent housing. This increase will bring the Shelter’s total capacity to 100 beds. In August 2024, CalOptima Health launched the Street Medicine Program in Costa Mesa, one of only three (3) Orange County (OC) cities to be selected to receive the service. Street Medicine brings primary and behavioral health care to unhoused, unsheltered individuals. Participants also receive intensive case management and connection to all available resources.

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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS The City is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not assist the OC CoC with determining ESG allocations, evaluating the outcomes, or developing policies and procedures for administering the regional Homeless Management Information System (HMIS). However, as stated above, the City is an Access Point and active participant in the comprehensive, coordinated and regional Continuum of Care strategy in Orange County.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities

1 Agency/Group/Organization 211OC and United Way of Orange County Agency/Group/Organization Type Services-homeless
Regional organization
Planning organization
What section of the Plan was addressed
by Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Regional Continuum of Care coordinator and HMIS
administrator; provided significant information
regarding regional and City homeless population
and shelter resources.
2 Agency/Group/Organization State of California Housing and Community Development and Department of Public Health
Agency/Group/Organization Type Other government – State What section of the Plan was addressed
by Consultation?
Lead Based Paint
Market Analysis
Demographics
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How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Various State departments and agencies were
consulted to obtain information regarding
employment, demographics, and lead poisoning
3 Agency/Group/Organization City of Costa Mesa
Agency/Group/Organization Type Housing
Services-Elderly Persons
Services-homeless
Other government - Local
What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Lead-based Paint Strategy
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Economic Development
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Various City departments, commissions and City
Council provided a variety of data and information.

Also played a key role in identifying priorities and
with the allocation of HUD funds.
4 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed
by Consultation?
Impediments to fair housing
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify the needs of lower income
families and individuals requiring fair housing
services. Also provided consultation on the City's
strategy to address impediments to fair housing.
5 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
Other government - County
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What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Families with children
Homelessness Needs - Veterans
Non-Homeless Special Needs
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
OCHA provided significant information regarding
the number of Costa Mesa residents receiving
rental assistance and also those who have applied
for rental assistance. Vouchers/Certificates
provided by OCHA are a key component of the
City's housing needs strategy for lower income
renter households.
6 Agency/Group/Organization Dayle McIntosh Center
Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed
by Consultation?
Housing Need Assessment
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Consulted with organization
Agency provided input regarding the City's special
needs populations.
7 Agency/Group/Organization Human Options
Agency/Group/Organization Type Services-homeless & domestic violence prevention What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Homelessness Strategy
Homeless Needs - Families with children

How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency assisted with development of the City's
homeless strategy and implementation of
service/housing programs to assist those at risk of
becoming homeless due to domestic violence.
8 Agency/Group/Organization Families Forward
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Homeless Needs - Families with children
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How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify needs and assisted with
implementation of the City's homeless
service/housing strategy with a focus on homeless
families with children
9 Agency/Group/Organization Project Hope Alliance
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify needs of the City's homeless
service/housing strategy with a focus on McKinney
Vento homeless children and families.
10 Agency/Group/Organization Stand Up for Kids Orange County Agency/Group/Organization Type Services-Youth, Homeless What section of the Plan was addressed
by Consultation?
Economic Development
Anti-poverty Strategy
Homeless Services
Youth Services
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify needs and provided input
regarding the City's at-risk youth, including
economic needs/opportunities for youth age 16 to

24. 11 Agency/Group/Organization Community SeniorServ, Inc.

Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed
by Consultation?
Non-Homeless Special Needs
Anti-poverty Strategy
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify needs and provided input
regarding the City's special needs populations,
specifically seniors and frail elderly.

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12 Agency/Group/Organization Council on Aging Orange County Agency/Group/Organization Type Housing
Services-Elderly Persons
Services-Persons with Disabilities
What section of the Plan was addressed
by Consultation?
Housing Need Assessment
Non-Homeless Special Needs
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for improved
coordination?
Agency helped identify needs and provided input
regarding the City's special needs populations,
specifically seniors, frail elderly/disabled adults
Table 2 – Agencies, groups, organizations who participated

Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to have as open a consultation process as possible. No one agency type was knowingly not consulted.

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Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care County of Orange Provides regional and local point-in-time homeless survey data development of the
regional Plan to End Homelessness.

Orange County
Regional Assessment of
Fair Housing
OC HUD Grantee Cities
and the County of
Orange
Identified fair housing impediments that were
applicable to the City and the County which were
incorporated into Consolidated Plan goals
5-Yr & 1-Yr Public
Housing Authority
(PHA) Plan
Orange County
Housing Authority
(OCHA)
OCHA provided information regarding the
housing needs of lower income renter households
which were incorporated into the Consolidated
Plan
City of Costa Mesa
Capital Improvement
Plan
City of Costa Mesa Projects identified in the Capital Improvement Plan that are within CDBG-eligible areas were
utilized to help establish Consolidated Plan goals
City of Costa Mesa
Housing Element
City of Costa Mesa The City made an effort to ensure the Housing Element and Consolidated Plan were consistent
2024 Point-In-Time
Summary
County of Orange Costa Mesa homeless census data was utilized to prioritize use of limited funding and to identify
the most vulnerable among the City's homeless
Table 3 – Other local / regional / federal planning efforts

Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l))
State agencies were consulted to obtain updated housing and population information. The County of Orange was contacted to obtain an array of data including information regarding the number of households receiving rental assistance, homeless count, and regional homeless plans.

The City also worked with other Orange County HUD grantees on the preparation of the 2025-2029 Orange County Regional Assessment of Fair Housing. The updated Assessment will be adopted with the FY 2025-2029 Consolidated Plan.

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PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

Pursuant to HUD regulations, the City undertook several steps to obtain the input of community residents and stakeholders as it developed the Consolidated Plan. Consultation efforts included a health fair held at the senior center, community meetings, a community needs survey, and public meetings (Housing and Public Service Grant Committee and City Council). The City also consulted with State and regional agencies.

The City utilized press notices, public announcements (at City Council meetings), the City’s internet webpage, social media, emailed notices and newspaper notices, to inform residents and stakeholders of the opportunity to provide input and to review/comment on the draft Consolidated Plan. All City Council meetings were noticed in local newspapers of general circulation. Additionally, the draft Consolidated Plan was posted on the City’s website for public review and comment.

Citizen Participation Outreach
Sort Order Mode of
Outreach
Target of Out
reach
Summary of
response/
attendance
Summary of
comments
received
Summary of
comments
not
accepted
and reasons
1 Community
Health Fair
Seniors/
broad
community
Date: September 26, 2024
Attendance: residents (69)
A summary
of the
comments
received is
provided on
Appendix A.

NA
2 Public
Meeting
Non-
targeted/
broad
community
Date: October 10, 2024
Attendance: residents and
community service
providers (28)
A summary
of the
comments
received is
provided on
Appendix A.

NA
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Sort Order Mode of
Outreach
Target of Out
reach
Summary of
response/
attendance
Summary of
comments
received
Summary of
comments
not
accepted
and reasons
3 Public
Meeting
Non-
targeted/
broad
community
Date: October 24, 2024
Attendance: Residents
and community service
providers (31)
A summary
of the
comments
received is
provided on
Appendix A.

NA
4 Public
Meeting
Stakeholders
/broad
community
Date: October 29, 2024
Attendance: Residents
and community service
providers (16)
A summary
of the
comments
received is
provided on
Appendix A.

NA
5 Public
Meeting
Non-
targeted/
broad
community
Date: March 5, 2025
Housing and Public
Service Grants Committee
Meeting Attendance:

Residents and community
service providers: (17)
A summary
of the
comments
received is
provided on
Appendix A.

NA
6 Newspaper
Ad
Non-English
Speaking:

Spanish

Non-
targeted/bro
ad
community
30-day public comment
period (4/18/25-5/20/25)
No
comments
were
received.

NA
7 Public
Hearing
Non-
targeted/bro
ad
community
Date: 5/20/25 Regular City
Council meeting.

A summary
of the
comments
received is
provided on
Appendix A.

NA
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Sort Order Mode of
Outreach
Target of Out
reach
Summary of
response/
attendance
Summary of
comments
received
Summary of
comments
not
accepted
and reasons
8 Survey Non-
targedt/broa
d community
Non-English
Speaking :

Spanish

Survey available online
and by QR and hard-copy
9/25/24-2/28/25
A summary
of the
comments
received is
provided on
Appendix A.

Table 4 – Citizen Participation Outreach
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Needs Assessment
NA-05 Overview
Needs Assessment Overview
HUD has provided the City with extensive data in order to assess the housing needs of Costa Mesa residents. This data is based on five-year American Community Survey (ACS) data (2016-2020) and HUD’s special tabulation of housing data – the Comprehensive Housing Assessment Strategy or CHAS (2016-2020). Updated information is provided when available.

The housing needs to be assessed in this section of the Consolidated Plan include the following:
• Household demographics including population, number of households, and the number of households experiencing “housing problems,” such as housing cost burden and overcrowding. • Public housing needs – Note: The City of Costa Mesa does not own or manage public housing. • An assessment of homeless needs, including an estimated number of sheltered and unsheltered individuals.

This section will also assess the City’s “Non-housing Community Development Needs,” that is, public facility, infrastructure, and social service needs.

The extent to which housing problems are experienced disproportionally by one or more racial or ethnic groups has been included in sections NA-15 through NA-30 in past Consolidated Plans. These sections are no longer required per HUD, effective April 2, 2025 under the New Interim Rule: A ffirmatively
Furthering Fair Housing Revisions
Definitions
Housing Problems: HUD’s housing needs estimates are based on an assessment of Census data of households that are experiencing one or more “housing problems.” Per HUD, a household is experiencing a housing problem if their residential unit is subject to one or more of the following:
• Lack of a complete kitchen or plumbing facilities.
• Cost Burden - More than 30% of a household’s total gross income is spent on housing costs. For renters, housing costs include rent paid by the tenant plus utilities. For owners, housing costs include mortgage payment, taxes, insurance, and utilities. • Severe Cost Burden
- More than 50% of a household’s total gross income is spent on housing costs. For renters, housing costs include rent paid by the tenant plus utilities. For owners, housing costs include mortgage payment, taxes, insurance, and utilities.

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• Overcrowded - Defined as a housing unit with 1.01 to 1.5 persons per room excluding bathrooms, porches, foyers, halls, or half-rooms.
• Severely Overcrowded - Is defined as housing with more than 1.51 persons per room excluding bathrooms, porches, foyers, halls, or half-rooms.

Household Types: H UD data also characterizes households by type – HUD’s household definitions are as follows:
• Small Related: Household with two to four related members • Large Related: Household with five or more related members • Elderly: Household whose head, spouse, or sole member is a person who is at least 62 years of age
• Other: All other households
Housing Income: HUD also categorizes households by income groups:
• Extremely low-income – Household with an income equal to 0-30 percent of the Area Median Income (AMI)
• Low-i ncome – Households with an income equal to 30-50 percent of the AMI • Moderate-income – Household with an income equal to 50-80 percent of the AMI • Middle-Income – Household with income equal to 80-100 percent of AMI • Upper-Income – Household with income above 100 percent AMI DRAFT
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NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c)
Summary of Housing Needs
Overall, the City has extensive needs for affordable housing. Housing problems in Costa Mesa impacted renter-households more significantly, with 55 percent of renter-households experiencing at least one housing problem (inadequate housing, overcrowding, cost burden), compared to 31 percent of owner- households. The percentage of households experiencing at least one housing problem has increased six percent for renter-households and has decreased five percent for owner-households since documented in the 2020-2024 Consolidated Plan.

The following tables provide additional details:
• Table 7 presents the number of households with at least one housing problems (inadequate housing, overcrowding, cost burden of 50 percent, or cost burden of 30 percent) by income and tenure.
• Table 8 summarizes the number of households with one or more severe housing problems by income and tenure. Severe housing problems are inadequate housing, severe overcrowding (1.51 persons or more per room), and housing cost burden of 50 percent. • Table 9 isolates those households with housing cost burden of over 30 percent (inclusive of those with cost burden of over 50 percent) by income and tenure. • Table 10 further isolates those households with cost burden of over 50 percent. • Table 11 presents overcrowding by household type.
• Table 12 is intended to show overcrowding for households with children. However, given the City’s population size, the American Community Survey provides no data for the City.

Demographics Base Year: 2015 Most Recent Year: 2020 % Change Population 112,375 112,958 0%
Households 40,910 42,391 4%
Median Income $66,459 $91,547 38%
Table 5 - Housing Needs Assessment Demographics
Data Source: 2011-2015 ACS (Base Year), 2016-2020 ACS (Most Recent Year)

Updated Information
A search of current data found that the U.S. Census Bureau 1 estimates Costa Mesa’s 2023 population at
108,354 and median income at $110,073 based on the 2019-2023 ACS 5-Year Estimates. This document contains data from the 2016-2020 ACS and 2016-2020 CHAS for consistency because that is the data that pre-populates the Consolidated Plan template in HUD’s eCon Planning Suite.

1 U.S. Census Bureau QuickFacts:
https://www.census.gov/quickfacts/fact/table/costamesacitycalifornia,US/PST045223 DRAFT
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Number of Households Table
0-30%
HAMFI
>30-50%
HAMFI
>50-80%
HAMFI
>80-100%
HAMFI
>100%
HAMFI
Total Households 6,195 5,385 7,685 5,265 16,125
Small Family Households 1,980 2,185 3,075 2,070 7,735
Large Family Households 580 625 925 460 945
Household contains at least one person 62-74
years of age 1,405 1,025 1,385 870 2,680
Household contains at least one person age 75
or older 975 885 670 285 940
Households with one or more children 6 years
old or younger 1,110 780 965 744 960
Table 6 - Total Households Table
Data
Source:
2016-2020 CHAS

Housing Needs Summary Tables

1. Housing Problems (Households with one of the listed needs) Renter Owner
0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total 0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total

NUMBER OF HOUSEHOLDS
Substandard
Housing -
Lacking
complete
plumbing or
kitchen
facilities
60 70 55 75 260 85 0 15 0 100
Severely
Overcrowded -
With >1.51
people per
room (and
complete
kitchen and
plumbing)
285 255 270 95 905 4 0 45 0 49
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Renter Owner
0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total 0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total
Overcrowded -
With 1.01-1.5
people per
room (and
none of the
above
problems)
670 470 450 255 1,845 10 35 65 60 170
Housing cost
burden greater
than 50% of
income (and
none of the
above
problems)
2,680 1,540 345 10 4,575 845 420 570 75 1,910
Housing cost
burden greater
than 30% of
income (and
none of the
above
problems)
175 1,275 2,380 1,240 5,070 230 290 720 510 1,750
Zero/negative
Income (and
none of the
above
problems) 390 0 0 0 390 40 0 0 0 40
Table 7 – Housing Problems Table
Data
Source:
2016-2020 CHAS

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2. Housing Problems 2 (Households with one or more Severe Housing Problems: Lacks kitchen or complete plumbing, severe overcrowding, severe cost burden) Renter Owner
0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total 0-
30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total

NUMBER OF HOUSEHOLDS
Having 1 or more
of four housing
problems 3,690 2,335 1,120 430 7,575 945 455 695 135 2,230 Having none of
four housing
problems
1,035 1,665 4,055 3,305 10,060 520 925 1,815 1,400 4,660 Household has
negative income,
but none of the
other housing
problems
0 0 0 0 0 0 0 0 0 0
Table 8 – Housing Problems 2
Data
Source:
2016-2020 CHAS

3. Cost Burden > 30%
Renter Owner
0-30%
AMI
>30-50%
AMI
>50-80%
AMI
Total 0-30%
AMI
>30-
50%
AMI
>50-80%
AMI
Total

NUMBER OF HOUSEHOLDS
Small Related 1,615 1,670 1,135 4,420 155 205 645 1,005 Large Related 525 370 115 1,010 20 85 135 240
Elderly 760 505 415 1,680 770 365 365 1,500
Other 945 915 1,235 3,095 140 70 160 370
Total need by
income
3,845 3,460 2,900 10,205 1,085 725 1,305 3,115
Table 9 – Cost Burden > 30%
Data
Source:
2016-2020 CHAS
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4. Cost Burden > 50%
Renter Owner
0-30%
AMI
>30-50%
AMI
>50-80%
AMI
Total 0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
Total

NUMBER OF HOUSEHOLDS
Small Related 0 0 645 645 110 125 0 235
Large Related 0 0 70 70 20 35 40 95
Elderly 645 365 85 1,095 585 195 145 925
Other 0 930 600 1,530 140 0 0 140
Total need by
income
645 1,295 1,400 3,340 855 355 185 1,395
Table 10 – Cost Burden > 50%
Data
Source:
2016-2020 CHAS

5. Crowding (More than one person per room)
Renter Owner
0-
30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total 0-
30%
AMI
>30-
50%
AMI
>50-
80%
AMI
>80-
100%
AMI
Total

NUMBER OF HOUSEHOLDS
Single family
households 805 555 470 280 2,110 4 25 110 35 174
Multiple,
unrelated family
households 110 165 130 55 460 10 10 0 20 40
Other, non-family
households 40 20 120 60 240 0 0 0 0 0
Total need by
income
955 740 720 395 2,810 14 35 110 55 214
Table 11 – Crowding Information – 1/2
Data Source: 2016-2020 CHAS

Renter Owner
0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
Total 0-30%
AMI
>30-
50%
AMI
>50-
80%
AMI
Total
Households with
Children Present

N/A N/A N/A N/A N/A N/A N/A N/A
Table 12 – Crowding Information – 2/2

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Describe the number and type of single person households in need of housing assistance.

HUD’s data does not provide a breakdown of single person households in need of housing assistance. It does provide information for “Other” households, which is defined by HUD as “an individual or household that is not a family, living alone or with non-relatives.” According to Table 9 and Table 10, about 4,625 “other” households experienced a cost burden and of those, 1,530 households experienced severe cost burdens, paying more than 50 percent of their income in housing. “Other” households accounted for over one-third of households experiencing a cost burden.

Renter “other” households were also more likely to experience a cost burden than owner households.

Over 4,500 renter “other” households experienced a cost burden compared to only 510 owner households (Table 9 and 10).

The 2016-2020 American Community Survey provides more data regarding one-person households.

According to this source, there are 10,205 single-person households in Costa Mesa. Of the single-person households, 36 percent are persons age 65 and older. In fact, 26 percent of persons age 65 and over are living alone based on the ACS data. Housing needs for this group may focus on affordable housing. As discussed above, renter “other” households are more likely to experience a cost burden compared to other household types.

Estimate the number and type of families in need of housing assistance who are disabled or victims of domestic violence, dating violence, sexual assault and stalking.

Persons with Disabilities: According to the 2016-2020 American Community Survey (ACS)2, approximately 9 percent (8,786 persons) of Costa Mesa’s population had a disability. The ACS also tallies the number of disabilities by type for the residents that have them. Among the disabilities that were counted, ambulatory and independent living difficulties were the most prevalent with cognitive difficulties following right behind. The State’s Department of Developmental Services reported that approximately 27,676 Orange County residents with developmental disabilities sought services at the Regional Center of Orange County in Santa Ana as of August 2023. The data is not broken down by City. In general, persons with disabilities require accessible housing, with easy access to supportive services and transportation services.

Victims of domestic violence: Human Options, an Orange County nonprofit organization serving survivors of domestic violence and a recipient of Costa Mesa CDBG funds, responded to over 6,700 calls to their hotline in 2024. 450 adults and children were provided with emergency and transitional housing. Supportive services were provided to over 1,200 survivors. 25 Costa Mesa individuals have been provided with transitional housing by Human Options with the help of CDBG funds in the first two quarters of the 2024-2025 fiscal year. Orange County’s 2024 Point-In-Time count of the region’s

2 https://data.census.gov/table/ACSST5Y2020.S1811?q=disability&g=160XX00US0616532&y=2020 DRAFT
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homeless reported that 10.2 percent of persons experiencing homelessness were victims of domestic violence. With a homeless count of 297, it is estimated that at any point in time, 30 Costa Mesa victims of domestic violence would be in need of housing assistance.

What are the most common housing problems?
Based on HUD’s data (Table 7), an estimated 17,064 of the City’s households, with incomes equal to the county median income or less, are experiencing one of four “housing problems.” The majority of the 17,064 households experienced a cost burden (78 percent), with 38 percent of them experiencing a severe cost burden. Approximately 18 percent of households experience crowding per the HUD definition. However, when reviewing the data independently, 21 percent of renter-households are experiencing crowding, while only 5 percent of owner-households are experiencing the same. The least common housing problem according to HUD data (Table 7) is substandard housing conditions (lacking complete kitchen or plumbing facilities). Only two percent of the City’s households were experiencing such housing problems.

Figure 13 – Housing Cost Burden
Are any populations/household types more affected than others by these problems? As outlined above, based on HUD data, the most prevalent problem among Costa Mesa households is cost burden. Crowding is the second most prevalent housing problem. Renter-households are more affected by all housing problems. Of the 17,064 households experiencing housing problems, 76 percent of them are renter-households and 24 percent are owner-households (Table 7). Small households and “other” renter-households (single person or persons not living with relatives) in Costa Mesa were more likely than other household types to experience housing cost burden. “Other” and elderly renter- DRAFT
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households were more likely to experience severe cost burden. However, low-income elderly homeowners represent the largest segment of owner households with a cost burden (Table 9).

Housing Cost Burden (30 percent of income for housing) - The following findings are based on HUD data Table 9.

Small Related Costa Mesa households are the largest segment of households impacted by housing cost burden:
• Among renter households (approximately 43 percent).
• Among lower income households (approximately 40 percent at less than 50% AMI) • Among lower income renter-households (approximately 45 percent).

Elderly Costa Mesa households are the largest segment of cost burdened households:
• Among homeowner households (approximately 48 percent). • Among lower income owner households (approximately 48 percent).

Severe Cost Burden (50 percent of income for housing) - The following findings are based on HUD data Table 10.

Elderly Costa Mesa households a re the largest segment of households impacted by severe housing cost burden:
• At 43 percent of all households at 80% or less AMI
• Among homeowner households (approximately 66 percent) • Among lower income households (approximately 38 percent at less than 50% AMI) • Among lower income renter households (approximately 82 percent) • Among lower income owner households (approximately 56 percent)

Figure 2 – Severe Housing Cost Burden
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Crowding - The following findings are based on HUD data Table 11. Approximately 3,024 Costa Mesa households have a crowding issue.

Single-fam ily households are the largest segment of households impacted by overcrowding :
• Among renter households (approximately 70 percent)
• Among owner households (6 percent)
• Among lower income renter and homeowner households (less than 50 percent AMI)

Figure 3 – Overcrowding

Describe the characteristics and needs of Low-income individuals and families with children (especially extremely low-income) who are currently housed but are at imminent risk of either residing in shelters or becoming unsheltered 91.205(c)/91.305(c)). Also discuss the needs of formerly homeless families and individuals who are receiving rapid re-housing assistance and are nearing the termination of that assistance The 2024-2025 Orange County Indicators Report points out that “the county’s rising housing costs have a clear, disproportionate impact on Orange County’s lower-income residents”3, especial renter-occupied households. Families Forward, a provider of housing and homeless services to Orange County families with minor children, identifies that low-income families with children, especially those who are extremely low-income, often face significant challenges and have specific needs. Families currently housed but at imminent risk of residing in shelters or becoming unsheltered require target support to

3 https://ocbc.org/2024-2025-community-indicators-report/ DRAFT
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prevent homelessness such as affordable housing, employment opportunities, support services, and childcare and education. Formerly homeless families and individuals receiving rapid re-housing assistance and nearing termination have specific needs as well. These needs are continued housing support, employment and income stability, access to services and community integration. Support in integrating into the community and building social networks can help them feel more secure and connected, reducing the risk of returning to homelessness.

Table 10 indicates that a significant number of Costa Mesa low-income households are severely cost burdened. An estimated 645 extremely low-income renter households are paying more than 50 percent of income for housing – all of these households are elderly households. Table 10 also shows that an estimated 855 extremely low-income owner households are severely housing cost burdened. An estimated 130 are “related” households and 585 are elderly households. It is important to note that the largest segment of at-risk renters and homeowners are seniors (43 percent). Senior households are most often on fixed incomes and living with significant medical issues making their housing situation precarious.

The City of Costa Mesa does not receive Emergency Solutions Grant (ESG) but has used CDBG funds for rapid rehousing. The City does not collect information regarding formerly homeless families and individuals receiving rapid re-housing assistance who may be nearing the termination of assistance as would be required when using ESG funds.

If a jurisdiction provides estimates of the at-risk population(s), it should also include a description of the operational definition of the at-risk group and the methodology used to generate the estimates:

Households at risk of becoming homeless include extremely low -income households with a severe cost burden (spending 50 percent or more of their income on housing). According to CHAS data, 3,525 extremely low-income renter and owner households in Costa Mesa had a severe cost burden (Table 7).

Specify particular housing characteristics that have been linked with instability and an increased risk of homelessness
The 2024-2025 Orange County Community Indicators Report identifies homelessness as a consequence of “the county’s high and still rising housing costs”.4 Additionally, the number of sheltered homeless adults increased in 2024 from 2023, an illustration of the consequence of the county’s limited housing supply. The report indicates that ninety-four percent of Orange County renter households make less than $35,000 per year and spend at least 30 percent of their income on housing. The lack of affordability

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has started to affect all income levels and the cost burdens put low-income earners at higher risk of homelessness.

Discussion
There is a significant number of households in the City that are potentially at risk of homelessness.

These are households with extremely low-income (0-30 percent AMI) that are paying more than 50 percent of their income for housing (severely housing cost burdened). According to HUD data, 1,500 households meet these characteristics.
• Among extremely low-income households, elderly households represent the largest segment of households that are severely cost burdened (82 percent). • Among extremely low-income renter households, the only segment of households impacted by severe cost burden are elderly households. Elderly households also represent the largest segment of households impacted by severe housing cost burden among homeowner households (66 percent) (Table 10).

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NA-35 Public Housing – 91.205(b)
Introduction
The City of Costa Mesa does not operate a HUD-funded public housing authority. The City works in partnership with the Orange County Housing Authority (OCHA). OCHA reports that as of March 2025, 540 Costa Mesa households received a housing rental subsidy.

Totals in Use
Program Type
Certificate Mod-
Rehab
Public
Housing
Vouchers
Total Project
-based
Tenant
-based
Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
Disabled
*
# of
units
vouchers
in use
0 0 0 10,825 0 10,418 187 207 10
Table 13- Public Housing by Program Type
*includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Data Source: PIC (PIH Information Center)

Characteristics of Residents
Program Type
Certificate Mod-
Rehab
Public
Housing
Vouchers
Total Project
-based
Tenant
-based
Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
Average
Annual
Income 0 0 0 16,476 0 16,470 17,239 15,594
Average
length of stay 0 0 0 8 0 8 0 4
Average
Household
size
0 0 0 2 0 2 1 3
# Homeless at
admission 0 0 0 87 0 5 72 10
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Program Type
Certificate Mod-
Rehab
Public
Housing
Vouchers
Total Project
-based
Tenant
-based
Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
# of Elderly
Program
Participants
(>62) 0 0 0 4,926 0 4,884 38 3
# of Disabled
Families 0 0 0 2,163 0 2,075 64 14
# of Families
requesting
accessibility
features
0 0 0 10,825 0 10,418 187 207
# of HIV/AIDS
program
participants 0 0 0 0 0 0 0 0
# of DV
victims 0 0 0 0 0 0 0 0
Table 14 – Characteristics of Public Housing Residents by Program Type Data Source: PIC (PIH Information Center)
Race of Residents
Program Type
Race Certificate Mod-
Rehab
Public
Housing
Vouchers
Total Project
-based
Tenant
-based
Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
Disabled
*
White 0 0 0 5,857 0 5,528 139 182 6
Black/African
American 0 0 0 745 0 693 39 10 2
Asian 0 0 0 4,128 0 4,107 4 15 2
American
Indian/Alaska
Native
0 0 0 64 0 60 4 0 0
Pacific
Islander 0 0 0 31 0 30 1 0 0
Other 0 0 0 0 0 0 0 0 0
*includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 15 – Race of Public Housing Residents by Program Type DRAFT
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Data Source: PIC (PIH Information Center)

Ethnicity of Residents
Program Type
Ethnicity Certificate Mod-
Rehab
Public
Housing
Vouchers
Total Project
-based
Tenant
-based
Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
Disabled
*
Hispanic 0 0 0 1,941 0 1,814 34 87 4
Not
Hispanic 0 0 0 8,884 0 8,604 153 120 6
*includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 16 – Ethnicity of Public Housing Residents by Program Type Data Source: PIC (PIH Information Center)

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Section 504 Needs Assessment: Describe the needs of public housing tenants and applicants on the waiting list for accessible units:

Section 504 of the Rehabilitation Act of 1973 is a federal law that prohibits discrimination on the basis of disability in federally-assisted programs or activities. Specifically, Section 504 states: “No otherwise qualified individual with a disability in the United States…shall, solely by reason of her or his disability, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program, service or activity receiving federal financial assistance or under any program or activity conducted by any Executive agency or by the United States Postal Service”. This means that Section 504 prohibits discrimination on the basis of disability in any program or activity that receives financial assistance from any federal agency, including HUD as well as in programs conducted by federal agencies including HUD. As previously indicated, the City of Costa Mesa does not own or manage public housing.

City residents are served by OCHA. As of March 2025, 95 vouchers have been issued to Costa Mesa families with disabilities. OCHA remains committed to persons with disabilities. In its FY 2025-2029 Public Housing Agency Plan, OCHA identified “enhancing equal access to housing programs by reducing barriers”, an expansion of its more specific goal listed in the FY 2020-2024 Public Housing Agency Plan, “enhancing accessibility for disabled and limited English proficient persons”.

Most immediate needs of residents of Public Housing and Housing Choice voucher holders The most pressing need is the high demand for affordable housing assistance. As of March 2025, 540 households in Costa Mesa were receiving Housing Choice Vouchers. Among these households, 95 included members with disabilities, 394 with at least one elderly person, 35 Veteran households, and 63 family households. Among these households, 29 were homeless at admission. OCHA re-opened its waiting list on September 18, 2023. As of March 2025, there are 293 Costa Mesa names on the 2023 waiting list including 161 disabled persons, 109 elderly, 42 families, 19 currently homeless and 27 Veterans. The waiting list from 2012 has a total of 15 households on it including 3 disabled persons, 5 elderly persons, 7 families and 1 currently homeless.

How do these needs compare to the housing needs of the population at large Housing needs in the City generally reflect the housing needs countywide.

Discussion
As previously indicated, the City of Costa Mesa does not own or manage public housing. City residents are served by OCHA. The City will continue to work in partnership with OCHA as necessary. These efforts include consultation as part of the preparation of the City’s Consolidated Plan and annual Action Plans, and assisting OCHA with the preparation and certification of their Public Housing Authority (PHA) Plan.

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In the upcoming five years, OCHA’s goals as detailed in the draft 2025-2029 PHA Plan include:
• Maximize existing resources and expand supply of affordable housing • Promote Family Self-Sufficiency
• Focus on enhancing internal capacity to guarantee the delivery of high-quality service • Improve the quality of assisted housing
• Enhance equal access to housing programs by reducing barriers • Maintain High Performer status on the Section Eight Management Assessment Program DRAFT
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NA-40 Homeless Needs Assessment – 91.205(c)
Introduction:

Homeless researchers typically use one of two methods to measure homelessness. One method attempts to count all the people who are literally homeless on a given day or week (point-in-time counts). The second method examines the number of people who are homeless over a given period, or period prevalence counts. Every two years, Orange County undertakes an effort to enumerate all of the sheltered and unsheltered homeless people within the County on a single point in time during the last ten days of January. This homeless count is required by HUD regulations for all Continuum of Care jurisdictions that are recipients of certain homeless grant funds. The latest count was conducted in January 2024. Orange County’s sheltered Point-In-Time (PIT) Count took place the night of Monday, January 22, 2024. Emergency Shelters and Transitional Housing Programs collected client-level demographic information from individuals and families staying the night in each program. The 2024 Unsheltered Count process took place from Tuesday, January 23 through Thursday, January 25, 2024 to ensure the 800 square mile County jurisdiction was canvassed effectively. According to the Orange County 2024 PIT Final report, there were 297 homeless persons in Costa Mesa at the time of the count (218 unsheltered and 79 sheltered). Although the total number of homeless persons increased when compared to the 2019 OC PIT Count included in Costa Mesa’s 2020-2024 Consolidated Plan, the percentage of unsheltered to total homeless persons reduced from 96% in 2019 to 73% in 2024. The addition of the Costa Mesa Bridge Shelter in 2021 supported the City’s (and County’s) goal of getting people off the streets and into shelter, increasing their support system and progress toward permanent housing.

It is important to mention, as acknowledged by the County in the 2024 OC PIT Count Summary, that there were a number of variables that could influence the fluctuation of the numbers of persons experiencing sheltered or unsheltered homelessness between 2019 and 2024. The Emergency Rental Assistance Program (ERA) provided approximately $300M in rental assistance for Orange County residents to prevent evictions due to Covid-19. The Eviction Moratorium that went into effect during the Covid-19 pandemic ended on May 31, 2022 and shelter beds were added growing the total number of beds to 3,920.
5 5 https://ceo.ocgov.com/sites/ceo/files/2024-05/2024%20PIT%20Summary%20-%20FINAL%205.16.24.pdf

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If data is not available for the categories "number of persons becoming and exiting homelessness each year," and "number of days that persons experience homelessness," describe these categories for each homeless population type (including chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth):

The City of Costa Mesa is one of the few municipalities in the region to employ a team of Outreach Workers who serve people experiencing and at risk of homelessness. This team – alongside a vast network of City staff, community volunteers, and nonprofit service providers - make up the Network for Homeless Solutions (NHS), whose primary goal is to connect people in need to resources and facilitate their journey to self-sufficiency. The City utilizes various federal funding streams (i.e., CDBG, CDBG-CV, HOME, and HOME-ARP) to subsidize projects and programs aimed at assisting our residents, including the development of affordable and supportive housing, workforce development, homelessness prevention, and emergency shelter. In 2021, the City utilized CDBG funds to open the 100-bed Costa Mesa Bridge Shelter (CMBS), which provides adult males and females experiencing homelessness with shelter, meals, case management, workforce development, life skills training, benefit management, and on-site medical care. In 2024, the City was awarded a $4.2 million grant from the Orange County Health Care Agency (OCHCA) to implement 15 behavioral health care beds at the CMBS through FY 26/27.

Through these efforts, the NHS has facilitated the placement of over 430 individuals into permanent housing since 2019.

As mentioned previously, according to the 2024 PIT Count, on January 23, 2024, there were 297 individuals experiencing homelessness (218 unsheltered, 79 sheltered) in Costa Mesa. That’s an increase of 89 individuals (+30%) from the 2022 PIT data, which identified 208 total individuals (150 unsheltered, 58 sheltered). During that same timeframe – from 2022 through 2024 – the City successfully housed 121 individuals. Regarding length of homeless, the City only keep statistics from the Shelter, which shows the average stay is roughly 180 days. The 2024 PIT Count indicated that approximately 38% of unsheltered homeless persons (1,566 persons) and 28% of sheltered persons (877 persons) in Orange County were chronically homeless, meaning they have been homeless for at least one year (continuously or for a combined length of 12 months over the past 3 years) 6 The PIT Count did not
provide data specific to subpopulations in the City of Costa Mesa.

6 https://www.hudexchange.info/resource/4847/hearth-defining-chronically-homeless-final-rule/ DRAFT
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Nature and Extent of Homelessness: (Optional)
Race: Sheltered: Unsheltered (optional)
White 4372 1977
Black or African American 572 230
Asian 282 171
American Indian or Alaska
Native 230 103
Pacific Islander 115 50
Ethnicity: Sheltered: Unsheltered (optional)
Hispanic 3233 1777
Not Hispanic 4089 2396
Table 17 – Ethnicity of Sheltered and Unsheltered Homeless Population Data Source
Comments:

This is County-wide information from the AHAR report
2024 AHAR: Part 1 - PIT Estimates of Homelessness in the U.S. | HUD USER

The table above represents sheltered and Unsheltered homeless in Orange County for the PIT Count in 2024. The information is not broken down by City. Middle Eastern or North African are not included above and 43 identified as such. 162 identified as Multi-racial and are not included above under race, but they are included under ethnicity. There were 91 unsheltered that identified as multi racial and 42 middle eastern or north African.

Estimate the number and type of families in need of housing assistance for families with children and the families of veterans.

The Orange County Housing Authority (OCHA) re-opened its waiting list in September 2023 and provided the City with information regarding Costa Mesa households that submitted applications for housing vouchers in September, as well as those still on the waiting list from 2012. Based on this waitlist information, 293 Costa Mesa households are on OCHA’s 2023 waitlist and 15 are on OCHA’s 2012 waitlist for housing assistance. Of the total (308) on both waitlists:
• 114 applicants (37 percent) were senior households (age 62 and older); • 164 applicants (53 percent) had a disability;
• 49 applicants (16 percent) were households with children; and, • 20 applicants (6 percent) were homeless
• 27 applicants (9 percent) were veterans

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Describe the Nature and Extent of Homelessness by Racial and Ethnic Group.

As documented by the 2024 PIT Count, the majority of Orange County’s sheltered homeless in the County are White. The demographic information is not broken down by City. A disproportionate number (11 percent) of sheltered homeless residents are Black/African American, a group that represents only

1.5 percent of the county’s overall population.7 Of the unsheltered population, the Hispanic population comprised the second largest group of homeless residents at 36 percent. The percentage of unsheltered homeless African Americans is lower than the sheltered, however, still a disproportionate number at 5 percent. The majority of persons unsheltered in the County self-identified as not Hispanic or Latino (66 percent).

Describe the Nature and Extent of Unsheltered and Sheltered Homelessness.

The majority of the City of Costa Mesa’s homeless population is unsheltered (73 percent, 218 individuals) in households without children. The number of sheltered homeless in the City of Costa Mesa has increased since the last PIT Count and the addition of the Bridge Shelter.

Discussion:

The City of Costa Mesa has been a county leader in finding creative solutions to help individuals experiencing homelessness, while at the same time appropriately conducting enforcement efforts to ensure the safety and well-being of residents, business owners and visitors.

The City of Costa Mesa opened the Costa Mesa Bridge Shelter (CMBS) in April 2021. The CMBS is operated by a local nonprofit, Mercy House, in partnership with City staff who provide residents with intensive case management. The facility is a reservation-based model with 24-hour security and a neighborhood management plan covering a half-mile radius. The City utilized CDBG funding to improve and equip the property, including installing security fencing around the facility, increasing lighting in the area, cleaning/sanitizing streets and sidewalks, as well as adding storage space for guests’ personal belongings, and adequate space for up to 100 emergency shelter beds and onsite services.

The City provides support and resources to aid Costa Mesa’s homeless population through the City’s Network for Homeless Solutions (NHS). The NHS continues to meet bi-weekly to discuss challenging cases and outcomes for the individuals being served. Community outreach staff contact dozens of people each week and have an active caseload of over 60 individuals. Outreach staff work closely with the Costa Mesa Police Department, including Park Rangers, patrol officers, and the Community Policing Unit to enforce the law and deter illicit behavior. The NHS has a 24-hour hotline that receives roughly 200 calls per month from people seeking direct assistance, and others seeking help for family and friends.

7 2024-2025 Community Indicators Report - Orange County Business Council (OCBC) DRAFT
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Over the past 11 years (2013 to 2024), nearly 900 people have transitional from being homeless to being housed through NHS efforts. Even with the result of all of these combined efforts, there are still individuals in Costa Mesa that continue to experience homelessness. The results of the 2024 Point-In- Time Count Survey conducted by the nonprofit service organization CityNet and the County, indicated that Costa Mesa’s homeless population was 218 unhoused individuals.

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NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) Introduction:

HUD requires that the Consolidated Plan to include a review of relevant data regarding the housing needs of persons that require special supportive housing, but who are not homeless. Special needs populations include those who live on fixed incomes and/or require supportive services such as the elderly, the frail elderly, severely mentally ill, developmentally disabled, physically disabled, persons with alcohol or other drug addictions, persons with HIV/AIDS and victims of domestic violence.

The following paragraphs generally summarize the nature and extent of housing and supportive service needs of special needs groups.

Describe the characteristics of special needs populations in your community:

Elderly/Frail Elderly: According to the 2016-2020 American Community Survey, an estimated 12 percent of the City’s population (13,317 persons) are elderly (65 years of age or older). Of this elderly population, 44 percent have either an ambulatory or self-care disability (difficulty). The housing needs of the elderly are challenging since many elderly individuals are on fixed incomes. Adding to the challenge are the special housing needs of the elderly that allow for greater accessibility and mobility. In April 2024, OCHA reported it provided housing assistance to 372 households with at least one elderly person (62 years of age or older) in Costa Mesa. 211 Orange County, a referral system linking Orange County residents to community health and human services and support (including housing), reports that there has been an increase in the percentage of callers who are over 65 years old, from 3% in 2022 to 8% in 2023.

Persons with Disabilities: According to the 2016-2020 ACS, about 15 percent of the City’s population was affected by one or more disabilities. Among persons living with disabilities in the City, ambulatory difficulties were most prevalent, followed by independent living difficulties, and cognitive difficulties. Persons with disabilities often have limited income, but extensive needs for a variety of services.

OCHA reports as of March 2025, it is providing housing assistance to 95 households with at least one disabled person in Costa Mesa. Households with members with a disability have unique housing challenges as units need to allow for greater accessibility and mobility.

Persons and families with HIV/AIDS: The Orange County Health Care Agency does not report data specific to Costa Mesa, but their 2023 report (the most recent year for which data is available), indicates that 7,043 Orange County residents age 13 and over live with HIV. AIDSVu 8, an interactive online
mapping tool that visualizes the impact of the HIV epidemic on communities across the United States,

8 https://map.aidsvu.org/prev/county/rate/none/none/usa?geoContext=national DRAFT
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provides data according to zip code. A search including zip codes 92626, 92627 and 92628 in Costa Mesa indicates that 306 individuals are living with diagnosed HIV in Costa Mesa.

Substance Abuse and Mental Illness: The COVID-19 pandemic had a profound impact on the healthcare system, Since the pandemic, rates of substance use disorder and mental illness have increased among Californians ages 18-25 and 26 and over according to the Substance Abuse and Mental Health Services Administration (SAMHSA). The 2024-2025 Orange County Community Indicators Report indicated that mental health and substance use hospitalizations per 10,000 residents increased from 47.6 in 2021 to

48.4 in 2022. While the rates fell by 5.7 percent for county residents aged 65 and older, they increased for those age 18 to 64 by 2.9 percent and for children under age 18 by 2.8 percent.

What are the housing and supportive service needs of these populations and how are these needs determined?
A variety of service providers working within the community help address the needs of special need populations. Often the services provided by these agencies allow households to save limited financial resources on items such as food, counseling and medical care, and use saved funds to help maintain or seek appropriate housing. With respect to housing, overcoming impediments to fair housing is critical for these populations (i.e. reasonable accommodations). For renter households with housing cost burdens, housing vouchers and certificates may provide needed assistance. This assistance may also help ensure households are housed in units that are safe, decent and appropriate in size (to minimize overcrowding). With respect to homeowners, rehabilitation assistance may assist special need populations improve and maintain their primary residence without incurring added debt. Both service and housing needs of these special need populations have been determined by input from a variety of sources including input at community meetings, service providers, and respective City program staff.

Discussions with service providers and well as residents during the Consolidated Plan process indicated that the City is in need of housing and supportive services that cater to the senior population, youth, as well as the homeless. Some of the services rated as top needs in the Community Needs Survey and at Community Meetings include affordable rental housing, homeless services, housing for seniors, mental health services and transportation to services and community facilities.

Discuss the size and characteristics of the population with HIV/AIDS and their families within the Eligible Metropolitan Statistical Area:

The Orange County Health Care Agency does not report data specific to Costa Mesa, but their 2023 report (the most recent year for which data is available), indicates that 7,043 Orange County residents age 13 and over live with HIV. AIDSVu9, an interactive online mapping tool that visualizes the impact of

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the HIV epidemic on communities across the United States, provides data according to zip code. A search including zip codes 92626, 92627 and 92628 in Costa Mesa provided the following data:
• 306 people are living with diagnosed HIV in Costa Mesa • 90 percent are male (275 persons);
• the majority of these individuals are racially White (46 percent) and ethnically Hispanics (42 percent)- 140 persons and 129 persons, respectively;
• the greatest percentage of people living with HIV are between the ages of 45 and 59 (34 percent, or 103 persons)
HUD has provided housing grant funds for persons living with HIV/AIDS. As the most populous city in Orange County, Anaheim receives and administers the federal Housing Opportunities for Persons with AIDS (HOPWA) grant for the entire county. As the recipient of HOPWA funds Anaheim is responsible for assessing regional housing and service needs for individuals and families living with HIV/AIDS. The County’s Health Care Agency (OC-HCA) is also responsible for administering federal grants provided by the Department of Health and Human Services and for collecting data on HIV/AIDS patients. Based on information provided by the City of Anaheim, they provide housing services to an average of 381 HIV positive households a year.

If the PJ will establish a preference for a HOME TBRA activity for persons with a specific category of disabilities (e.g., persons with HIV/AIDS or chronic mental illness), describe their unmet need for housing and services needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2) (ii)) N/A. There is no preference established.

Discussion:

HUD has provided significant amounts of housing needs data for the City to assess. The City has also evaluated other data sources in an effort to identify housing/service needs for special needs populations. As one of the most expensive housing markets in the nation, it is not unexpected that many special needs households are experiencing some form of housing issues. Based on HUD data, cost burden is a most prevalent housing problem among lower income special need populations (Table 9 and Table 10).

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NA-50 Non-Housing Community Development Needs – 91.215 (f) Describe the jurisdiction’s need for Public Facilities:

Costa Mesa was founded in 1953, and its facilities are older and in need of upgrading. The City has invested substantial resources into improving its public facilities and parks; however, limited resources require prioritization of future improvements. Like most communities, the City of Costa Mesa has developed a Capital Improvement Program (CIP) aimed at upgrading public facilities throughout the City. The improvement plan calls for various capital projects to be planned for FY 2025-2026 through FY 2029-2030.

Planned facility improvements (with all resources) include some, but not all, of the following:

Park Facility Improvements
• Park improvements - various parks; equipment replacement, playground upgrades, fencing, signage, and trail restoration, including Fairview Park • Park expansion/development - various parks; master plan updates, management, and restoration plans
Public Facilities
• Community Center I mprovements - Balearic Community Center, Downtown Recreation Center, Norma Hertzog Community Center, Senior Center, and Bridge Shelter • Fire Station Improvements - Stations #2 through #6
• City Hall Improvements and Upgrades
• Police Department Repairs, Improvements, and Upgrades • Library Improvements - Mesa Verde Library
• Communications Center Improvements
• Westside Substation Upgrades
Public outreach comments generally support the needs identified in the Five-Year Capital Improvement Program for FY 2025-26 through FY 2029-30. Community Needs survey respondents ranked Senior Centers highest and Youth Centers as the second highest need in the Community Facilities category.

How were these needs determined?
Public facility improvement needs were identified by the City’s Public Works staff and presented to the City Council in a budget workshop. Budget workshops are public meetings, and residents and other community stakeholders are provided the opportunity to provide input. Community workshops and surveys provided residents direct input to prioritizing needs. As discussed above, the needs identified by the Public Works Department in the Capital Improvement Program (CIP) match the needs determined through a combination of public input (primarily through the Community Needs Survey), comments received at the community meetings, and staff assessments.

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Describe the jurisdiction’s need for Public Improvements:

As indicated above, Costa Mesa was founded in 1953, and a sizable portion of the City’s infrastructure is older and in need of upgrading. The City has invested substantial resources to improve its public infrastructure; however, limited resources require the prioritization of future improvements. The City has developed a Capital Improvement Program (CIP) aimed at replacing and upgrading the public infrastructure and public facilities throughout the City. The improvement plan calls for various capital projects for FY 2025-26 through FY 2029-30. Planned improvements (with all resources) include some, but not all, of the following:

Neighborhood, Street, and Parkway Improvements
• Curb, Gutter, Access Ramp, and Sidewalk Improvements throughout the City • Parkway and Median Improvements - Parkway Improvement Program • Citywide Alley Improvements
• Street Improvements - Citywide Street Improvements, New Sidewalk/Missing Link Program, Priority Sidewalk Repairs

Stormwater Improvements
• Water Quality Improvements
• Storm drain improvements - Westside Storm Drain Improvement Project

Transportation Improvements
• Various Active Transportation Improvements throughout the City • Traffic Signal Modifications and Installations
• Traffic Signal Synchronization Program (TSSP) Upgrades and Streamlining • Bicycle Facility Assessment and Design
• Intersection and Pedestrian Assessment, Analysis, and Implementation As with Public Facility Needs, residents that participated in the Community Needs Survey and Community Meetings were asked to rank the level of need for Residential Infrastructure Improvements.

Water/Sewer, Drainage, and Street Lighting were the top three ranked in the Survey while Sidewalk and Street improvements followed closely behind. Health and safety were priority concerns when residents shared about needed improvements for streets and sidewalks including cleanliness and traffic control (speeding).

How were these needs determined?
Similar to public facility needs, public improvement needs in the Capital Improvements Program (CIP) were identified by the City’s Public Works staff and presented to the City Council in a budget workshop.

Residents ranked the need for residential infrastructure improvements in the Community Needs Survey and the voting exercise at the community meetings.

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Describe the jurisdiction’s need for Public Services:

Given the City’s diverse population and concentration of lower and moderate-income population, the City has different needs for services. Service needs in the City include, but are not limited to, the following:
• Senior Services
• Youth Activities
• Transportation Services
• Child Care Services
• Health Services
• Mental Health Services
• Services for the Disabled
• Homeless Shelters/Services
• Domestic Violence Services
• Substance Abuse Services
How were these needs determined?
These needs were determined through a combination of public input (primarily through the Community Needs Survey), comments received at the Community Meetings, and staff assessments. The needs listed above are the services that ranked as the highest level of need under the Community Services and Services for Special Needs Populations categories in the survey and meetings.

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Housing Market Analysis
MA-05 Overview
Housing Market Analysis Overview:

The housing market analysis will evaluate a variety of Costa Mesa’s housing stock characteristics including tenure, cost, affordability, age, condition, and vacancy rates. As required, this analysis will also analyze the City’s public/assisted housing, housing resources for homeless (and those at risk of becoming homeless), and special needs populations (e.g., disable and persons with HIV/AIDS). This housing analysis will also examine barriers to affordable housing, including impediments to fair housing choice.

MA-10 Number of Housing Units – 91.210(a)&(b)(2)
Introduction
HUD has provided a variety of data regarding the City’s housing stock based on the 2016-2020 American Community Survey. This data is provided by HUD in various tables below.

All residential properties by number of units
Property Type Number %
1-unit detached structure 16,420 39%
1-unit, attached structure 3,970 9%
2-4 units 5,265 12%
5-19 units 7,645 18%
20 or more units 7,940 19%
Mobile Home, boat, RV, van, etc 1,145 3%
Total 42,385 100%
Table 18 – Residential Properties by Unit Number
Data Source: 2016-2020 ACS
Unit Size by Tenure
Owners Renters
Number % Number %
No bedroom 30 0% 1,665 7%
1 bedroom 200 1% 6,830 28%
2 bedrooms 3,010 18% 11,345 47%
3 or more bedrooms 13,235 80% 4,340 18%
Total 16,475 99% 24,180 100%
Table 19 – Unit Size by Tenure
Data Source: 2016-2020 ACS

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Describe the number and targeting (income level/type of family served) of units assisted with federal, state, and local programs.

As referenced in the City’s Housing Element, table 3-37, there are 1,219 affordable housing units with covenants that are tracked by the City. The funding for these units includes HUD Section 8, LIHTC, HOME, and Costa Mesa Redevelopment, as well as density bonus units. The majority of units are at the very low or low target income level, with 156 also eligible for moderate income. A total of 267 are restricted to the very low income level. The City uses its HOME funds for owner-occupied housing rehabilitation, Tenant Based Rental Assistance (TBRA), and expanding affordable housing through acquisition/rehabilitation. Approximately 10 to 15 families receive HOME funded TBRA each year.

Provide an assessment of units expected to be lost from the affordable housing inventory for any reason, such as expiration of Section 8 contracts.

There are no units expected to be lost from the affordable housing inventory for any reason for the 5- year period of the Consolidated Plan (2025-2029).

Does the availability of housing units meet the needs of the population? The City has significant need for affordable housing. Based on HUD data from Table 18, 48 percent of the City’s housing units are 1-unit attached and detached single-family structures; 52 percent of housing units are multi-unit structures and mobile homes. The Housing Element indicates that 40.4 percent of households in the City are owners, and 59.6 percent are renters as of 2018 ACS 5-year estimates. This is a reduction in the percentage of owners and an increase in the number of renters from what was reported in the 2020-2024 Consolidated Plan. Table 11 indicates that there are “crowded” units in the City – 75.5 percent are single-family households and 16.5 percent are “multiple, unrelated family households.” The Southern California Association of Governments (SCAG) undertakes a Regional Housing Needs Assessment (RHNA) to quantify the future need for housing within a six-county region.

For the upcoming Housing Element update for the 2021-2029 planning period, the allocations for the City of Costa Mesa are approximately ten percent of the current population. The level of growth anticipated presents a significant challenge to the City, requiring potential changes to the City’s land use policy and increased demands for services, infrastructure, and public facilities.

Describe the need for specific types of housing:

Housing data provided by HUD indicates that a larger percentage of the City’s housing units are occupied by renters and less of a percentage are occupied by owners. HUD data in the Housing Needs Assessment also indicates that a significant number of Costa Mesa households are housing cost burdened, and that a substantial number of housing units are also crowded. Homeowners, especially elderly homeowners, are impacted by housing cost burden as well as renter households.

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Based on HUD’s data, Small Related households, regardless of tenure, are the largest segment of lower income households that are experiencing a housing cost burden. HUD data also indicates that approximately 82 percent of Costa Mesa rental units have up to two bedrooms compared to 18 percent of owner units. Conversely, 82 percent of the City’s owner units are three-bedrooms or more while just 18 percent of rental units have three rooms. This data appears to indicate that there may be an imbalance in the City’s current housing stock (in terms of tenure and size) when compared to the types of households currently occupying units.

Discussion
HUD’s data indicates that there is a significant number of households that are paying over 30 percent of their income for housing. The fact that there are more rental units in the City than ownership units, and that most rental units have less than two bedrooms (82 percent of rental units) while most ownership units are three-bedroom units creates a disparity. This imbalance in tenure and unit size can result in households paying too much for housing that is not adequate in size for their family.

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MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) Introduction
One of the most important factors in evaluating a community’s housing market is the cost of housing.

Housing problems directly relate to the cost of housing in a community. If housing costs are relatively high in comparison to household income, a correspondingly high prevalence of housing cost burden and overcrowding occurs.

Today, as detailed in The State of the Nation’s Housing 2024, a “lack of affordability defines both the for- sale and the for-rent housing markets. Home prices rebounded to a new all-time high in early 2024 despite persistently elevated interest rates… rents remain up 26 percent nationwide since early 2020 after rapid pandemic-era growth…While rents have been rising faster than incomes for decades, the pandemic-era rent surge produced an unprecedented affordability crisis. (page 1-2)” 10 The median home value reported by HUD (Table 20) was $807,000, 33 percent higher than the median value for the base year of 2009. It is important to note that median home value information in the ACS can be misleading as it asks homeowners to self-estimate the value of their homes. Also, the ACS information used as a data source is not current, so a recent report was obtained from Orange Coast Title. According to the report from Orange Coast Title, the current median sales price of a single-family home in Costa Mesa over the period of a year (March 2024-February 2025) was $1,525,000. The 2024- 2025 Orange County Community Indicators Report indicates that the county’s median home price in June of 2024 was $1,450,000. At the County level, the home value increase from 2023 to 2024 was 15.1 percent. Home prices have increased by 108.1 percent over the last 10 years.

Contract rents paid as reported in the HUD (Table 21) indicate that 40 percent of the renter-households in Costa Mesa paid between $1,500 and $1,999 monthly and 37 percent paid more than $2,000 in rent between 2016 and 2020. Current rental rates in the City vary by bedroom size with market rents ranging from $1,970 for a one-bedroom apartment to $5,500 (at the low end) for a four-bedroom single-family home, according to rental listings on www.homes.com. As of March 2025, the average rent for an
apartment in Costa Mesa was $3,195 according to the website www.zumper.com.

Cost of Housing
Base Year: 2009 Most Recent Year: 2020 % Change
Median Home Value 606,900 807,000 33%
Median Contract Rent 1,479 1,848 25%
Table 20 – Cost of Housing

Data Source: 2000 Census (Base Year), 2016-2020 ACS (Most Recent Year)

10 The State of the Nation’s Housing 2024 – Joint Center for Housing Studies of Harvard University DRAFT
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Rent Paid Number %
Less than $500 945 3.9%
$500-999 1,015 4.2%
$1,000-1,499 3,700 15.3%
$1,500-1,999 9,580 39.6%
$2,000 or more 8,935 37.0%
Total 24,175 100.0%
Table 21 - Rent Paid
Data Source: 2016-2020 ACS

Housing Affordability
Number of Units affordable to
Households earning
Renter Owner
30% HAMFI 865 No Data
50% HAMFI 2,405 480
80% HAMFI 11,350 769
100% HAMFI No Data 1,004
Total 14,620 2,253
Table 22 – Housing Affordability
Data Source: 2016-2020 CHAS

Monthly Rent
Monthly Rent ($) Efficiency (no
bedroom)
1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
Fair Market Rent 2,200 2,344 2,783 3,769 4,467
High HOME Rent 1,826 1,958 2,352 2,708 3,001
Low HOME Rent 1,381 1,479 1,776 2,051 2,288
Table 23 – Monthly Rent
Data Source: HUD FMR and HOME Rents 2024

Is there sufficient housing for households at all income levels? According to CHAS data by HUD, mismatches in terms of supply and affordability exist in the City. Approximately 6,195 households earning less than 30 percent of AMI reside in the City (Table 6), however, there are only 865 housing units affordable to those at this income level (Table 22). Similarly, the City has 5,385 households earning between 31 and 50 percent of AMI and only 2,885 housing units affordable to those at this income level. There are approximately 12,119 housing units in the City that are affordable to households earning between 51 and 80 percent AMI. This number is sufficient for the 7,685 households in Costa Mesa at this income level. However, a housing unit affordable to a particular income group does not mean the unit is actually occupied by a household in that income group.

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Figure 4 – Affordable Units

How is affordability of housing likely to change considering changes to home values and/or rents?
As stated previously, according to the 2024-2025 Orange County Community Indicators Report, home prices in Orange County have increased 108.1 percent over the past 10 years. A first-time home buyer would need a minimum qualifying income of approximately $349,200 to afford a median priced home (estimated at $1,365,000) in 2024. Only 11 percent of county residents could afford a median priced home in quarter 1 of 2024. Rental affordability has also decreased. Orange County is the most expensive rental market in Southern California, where the hourly wage needed to afford a one-bedroom unit is $45.08 - equivalent to an annual income of $93,766.

The Orange County Indicators Report from 2023-2024 identified significant affordability issues before 2020 in Orange County, and the COVID-19 pandemic further accelerated this trend. With housing costs rising, affordable rents and home prices may not be possible for many income groups. Without significant changes in economic conditions, the price of housing will most likely continue to increase during the period of the 2025-2029 Consolidated Plan.

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How do HOME rents / Fair Market Rent compare to Area Median Rent? How might this impact your strategy to produce or preserve affordable housing? Based on a snap-shot of rental listings on Zillow.com, market rents in the City vary by size. Market rents for the City are higher than Fair Market Rents. According to Zillow.com, average rents advertised in March 2025 were:
• $2,503 for a one-bedroom unit (mostly apartments)
• $3,103 for two-bedroom units (mostly apartments)
• $5,630 for three-bedroom units (single-family homes)
• $6,610 for four-bedroom units (single-family homes)
Based on data from Table 23, the Fair Market Rents for two to four-bedroom units are $2,783, $3,769, and $4,467, respectively, ranging from about $300 to $2,100 lower than market rents in the Zillow listings. HOME rents in Table 23 range from approximately $1,000 to $4,300 lower than the current average listed rents. Market Rents for units with more than two bedrooms are substantially more than Fair Market Rents.

Discussion
Evaluation of the City's housing market supports the findings in the Housing Needs Assessment, that is, that many lower income households in Costa Mesa are cost burdened, especially extremely low- income and very low-income households. Limited housing options exist at rent or purchase price points that are affordable to lower income households. The substantial increase in monthly rent prices for homes with more than two bedrooms may be a reason for overcrowding among low-income single family households.

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MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) Introduction
Assessing housing conditions in Costa Mesa can provide the basis for developing policies and programs to maintain and preserve the quality of the housing stock. This analysis will evaluate the condition of the City’s housing stock by mainly evaluating the age of the housing stock and if there is a prevalence of “housing problems.”
Describe the jurisdiction's definition of "standard condition" and "substandard condition but suitable for rehabilitation":

Definitions
A property in “substandard condition” means any dwelling unit that contains a circumstance that endangers the life, limb, health, property, safety, or welfare of the public or the occupants. The conditions that make a property a “substandard dwelling” are defined in detail in the California Health and Safety Code. For purposes of the CDBG program, “substandard condition but suitable for rehabilitation” means that the cost of remedying all substandard conditions plus the current value of the property does not exceed the after-rehabilitation value of the property.

The four housing conditions that HUD attributes as substandard or problematic are (1) lack of complete kitchen facilities, (2) lack of complete plumbing facilities, (3) more than one person per room, and (4) cost burden greater than 30%. The American Community Survey (ACS) defines these attributes as a “selected condition”. Based on this definition, more than one-half of all renter-occupied households (55 percent) in the City have at least one selected condition. A lower proportion of owner-occupied households in the City (37 percent) have at least one selected condition.

Condition of Units
Condition of Units Owner-Occupied Renter-Occupied
Number % Number %
With one selected Condition 5,000 30% 11,370 47%
With two selected Conditions 100 1% 1,850 8%
With three selected Conditions 0 0% 45 0%
With four selected Conditions 0 0% 0 0%
No selected Conditions 11,380 69% 10,915 45%
Total 16,480 100% 24,180 100%
Table 24 - Condition of Units
Data Source: 2016-2020 ACS

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Year Unit Built
Year Unit Built Owner-Occupied Renter-Occupied
Number % Number %
2000 or later 1,180 7% 2,430 10%
1980-1999 2,645 16% 5,240 22%
1950-1979 11,800 72% 15,600 65%
Before 1950 850 5% 910 4%
Total 16,475 100% 24,180 101%
Table 25 – Year Unit Built
Data Source: 2016-2020 CHAS

Risk of Lead-Based Paint Hazard
Risk of Lead-Based Paint Hazard Owner-Occupied Renter-Occupied Number % Number %
Total Number of Units Built Before 1980 12,650 77% 16,510 68% Housing Units build before 1980 with children present 1,434 9% 379 2% Table 26 – Risk of Lead-Based Paint
Data Source: 2016-2020 ACS (Total Units) 2016-2020 CHAS (Units with Children present)

Vacant Units
Suitable for
Rehabilitation
Not Suitable for
Rehabilitation
Total
Vacant Units 1,619 0 1,619
Abandoned Vacant Units 150 150 300
REO Properties 0 0 0
Abandoned REO Properties 0 0 0
Table 27 - Vacant Units
Data Source Comments: No information is available for REO/abandoned properties. According to the ACS, 1619 vacant units were reported in Costa Mesa. 300 units were identified as “abandoned vacant" units, typically include boarded up and abandoned units. The exact conditions of these units are unknown and therefore half of these units are generally assumed to be suitable for rehabilitation.

Updated Information
No reliable data sources were found regarding REO properties.

Need for Owner and Rental Rehabilitation
Nearly 30,000 housing units were constructed before 1980 in Costa Mesa and the age and condition of housing stock in a City is an important indicator of potential rehabilitation needs. The City currently had a HOME funded homeowner rehabilitation grants and loan program and has identified CDBG funds for the 2025-2026 program year for additional homeowner rehabilitation needs.

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Estimated Number of Housing Units Occupied by Low or Moderate Income Families with LBP Hazards
Housing age is a key variable used to estimate the number of housing units with lead-based paint (LBP). Lead based-paint was banned in the United States in 1978. National studies estimate that 75 percent of all residential structures built prior to 1970 contain LBP. Table 26 indicates there are an estimated 29,160 housing units in Costa Mesa that were constructed before 1980. Approximately 77 percent of owner-occupied housing and 68 percent of renter-occupied housing in the City was built prior to 1980. Using the national average of potential LBP hazard, an estimated 21,870 housing units may contain LBP (Table 26). Approximately 47 percent of households in Costa Mesa earn low- and moderate-incomes (19,265 households, according to Table 6). Given there were an estimated 21,870 housing units that could contain LBP, it can be assumed that the ratio of low- and moderate-income families residing in the LBP units reflects a similar ratio, that is, an estimated 10,279 housing units with potential LBP may be occupied by low- and moderate-income households. While data indicates lead based-paint hazards are not a significant issue in Costa Mesa, all City-funded housing rehabilitation projects are tested for lead if a unit was constructed before 1978.

Discussion
According to HUD data, the vast majority of housing units in the City were constructed more than 40 years ago. Unless properly maintained, homes begin to show age after 30 years and can require significant maintenance and even extensive rehabilitation. Additionally, residences constructed before 1978 may have lead-based paint hazards. The City has an established housing rehabilitation program to assist lower income homeowners improve and maintain their home, and when necessary, remove lead- based paint hazards.

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MA-25 Public and Assisted Housing – 91.210(b)
Introduction
There is no public housing in the City of Costa Mesa - OCHA operates the rental assistance program within the City. According to OCHA, there are 540 households receiving vouchers.

Totals Number of Units
Program Type
Certificate Mod-Rehab Public
Housing
Vouchers
Total Project -based Tenant -based

Special Purpose Voucher
Veterans
Affairs
Supportive
Housing
Family
Unification
Program
Disabled
*
# of units vouchers
available 9,925 879 1,669 0
# of accessible units
*includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition Table 28 – Total Number of Units by Program Type
Data Source: PIC (PIH Information Center)
Describe the supply of public housing developments:

Describe the number and physical condition of public housing units in the jurisdiction, including those that are participating in an approved Public Housing Agency Plan:

Not Applicable.

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Public Housing Condition
Public Housing Development Average Inspection Score
NA NA
Table 29 - Public Housing Condition
Describe the restoration and revitalization needs of public housing units in the jurisdiction:

No public housing developments are located in the City of Costa Mesa.

Describe the public housing agency's strategy for improving the living environment of low- and moderate-income families residing in public housing:

There is no public housing in the City of Costa Mesa.

Discussion:

As indicated above, the City of Costa Mesa does not operate a public housing authority.

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MA-30 Homeless Facilities and Services – 91.210(c)
Introduction
As previously discussed, homeless facilities in the City include:
• 100-bed Bridge Shelter

Facilities and Housing Targeted to Homeless Households
Emergency Shelter Beds Transitional
Housing Beds
Permanent Supportive Housing
Beds
Year Round Beds
(Current & New)
Voucher /
Seasonal /
Overflow Beds
Current & New Current & New Under
Development
Households with Adult(s) and
Child(ren) 0 0 0 0 0
Households with Only Adults 100 0 0 0 0
Chronically Homeless Households 0 0 0 0 0
Veterans 0 0 0 0 0
Unaccompanied Youth 0 0 0 0 0
Table 30 - Facilities and Housing Targeted to Homeless Households Data Source Comments:

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Describe mainstream services, such as health, mental health, and employment services to the extent those services are used to complement services targeted to homeless persons Mainstream services refers to federal and state-funded programs generally designed to help low-income individuals either achieve or retain their economic independence and self-sufficiency. Programs provide for housing, food, health care, transportation, and job training. Examples of mainstream services available include veterans housing vouchers, veteran medical services, MediCal/Medicare, SSI, and General Relief. The City utilizes various federal funding streams (i.e., CDBG, CDBG-CV, HOME, and HOME-ARP) to subsidize projects and programs aimed at assisting our residents, including the development of affordable and supportive housing, workforce development, homelessness prevention, and emergency shelter.

List and describe services and facilities that meet the needs of homeless persons, particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth. If the services and facilities are listed on screen SP-40 Institutional Delivery Structure or screen MA- 35 Special Needs Facilities and Services, describe how these facilities and services specifically address the needs of these populations.

The City of Costa Mesa is one of the few municipalities in the region to employ a team of Outreach Workers who serve people experiencing and at risk of homelessness. This team – alongside a vast network of City staff, community volunteers, and nonprofit service providers - make up the Network for Homeless Solutions (NHS), whose primary goal is to connect people in need to resources and facilitate their journey to self-sufficiency. In 2021, the City utilized CDBG funds to open the 100-bed Costa Mesa Bridge Shelter (CMBS), which provides adult males and females experiencing homelessness with shelter, meals, case management, workforce development, life skills training, benefit management, and on-site medical care. In 2024, the City was awarded a $4.2 million grant from the Orange County Health Care Agency (OCHCA) to implement 15 behavioral health care beds at the CMBS through FY 26/27. Through these efforts, the NHS has facilitated the placement of over 430 individuals into permanent housing since 2019.

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MA-35 Special Needs Facilities and Services – 91.210(d) Introduction
HUD requires that the City provide an overview of supportive housing currently available in the community for populations with special needs.

Including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, public housing residents and any other categories the jurisdiction may specify, and describe their supportive housing needs Elderly/seniors: Low-income is usually a main factor affecting many seniors regarding their ability to access services.

With limited incomes, seniors face the challenges of high costs for housing and health care. Many seniors also have mobility issues and therefore require supportive services such as transportation and delivered meals. Seniors also may be residing in older housing units that require rehabilitation and improvements, including ADA improvements.

There are several skilled nursing and residential care facilities located in Costa Mesa. According to the California Department of Social Services, there are four licensed adult residential facilities and one pending, 45 licensed assisted living locations and two pending locations in Costa Mesa as of March 2025. The bulk of these facilities are six-bed facilities operating mainly in residential neighborhoods.

There are four publicly assisted senior housing projects in the City with a total of 255 “affordable” senior units and one project recently approved to move forward to create an additional 70 units of affordable senior housing.

Person with Disabilities: Persons with disabilities often have limited incomes, but extensive needs for a variety of services. Persons with disabilities need supportive services, transportation services, and health care services to help them gain independent living and self-sufficiency.

According to the 2016-2020 ACS, about nine percent of the City’s population was affected by one or more disabilities. Among persons living with disabilities in the City, ambulatory difficulties and independent living difficulties were most prevalent, followed by cognitive difficulties. Persons with disabilities often have limited income, but extensive needs for a variety of services.

OCHA reports that in March 2025, it provided housing assistance to 95 householders with a disability in Costa Mesa.

OCHA also reports that 161 applicants on their 2023 housing assistance waitlist and 3 applicants on their 2012 waitlist had a disability. Households with members with a disability have unique housing challenges, as units need to allow for greater accessibility and mobility.

Persons with Alcohol/Drug Addiction: Sober living homes provide a safe, supportive place to live while recovering from alcohol and drug addiction. A stable home and drug-free living environment is important for recovery. The California Department of Health Care Services reports that as of February 2020, there are 77 licensed sober living residential facilities and/or certified alcohol and drug programs in the City – 19 percent of all facilities in the County. Of those 77, 54 are residential facilities with a total of 403 beds, or 17 percent of all sober living beds in the County.

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Persons with HIV/AIDS: Stable, affordable housing offers the best opportunity for a person living with HIV/AIDS to access drug therapies and treatments as well as other supportive services that will enhance the quality of life for themselves and their families. It has been estimated that as many as half of all people living with HIV/AIDS will need housing assistance at some point in their illness. As stated previously, at the present time there are no shelters or permanent housing units specifically for persons with HIV/AIDS in Costa Mesa.

Based on information provided by the City of Anaheim, which manages HUD’s Housing Opportunities for Persons with AIDS (HOPWA) funds, they provide housing services to an average of 381 HIV positive households a year. Information for Costa Mesa was not provided.

Public Housing Residents: There is no public housing in Costa Mesa; however, OCHA reports that in March 2025, 540 households in Costa Mesa are receiving a rental housing voucher or certificate.

Describe programs for ensuring that persons returning from mental and physical health institutions receive appropriate supportive housing
The City of Costa Mesa (City) has developed a comprehensive system of care for individuals experiencing homelessness, including those facing physical and behavioral health challenges. The City employs a team of Outreach Workers who engage unhoused individuals and connect them to physical and behavioral health services. Outreach Workers act as liaisons between clients and medical staff to advocate for clients’ needs. Outreach Workers collaborate with medical staff to develop a “discharge plan”, ensuring clients have access to housing or shelter. The City is home to two (2) Homekey projects totaling 116 units of permanent supportive housing for chronically homeless individuals with a verified disability, as well as the 100-bed Costa Mesa Bridge Shelter.

Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. 91.315(e) As resources permit, the City will support programs that will help link special need populations to appropriate support services and housing. CDBG funding is typically allocated for senior programs that provide counseling, referrals and food.

Such services aim to help seniors remain housed in place. During FY 2025-2026 the City is adding CDBG funding to the Single-Family Housing Rehabilitation program to provide grants to low-income homeowners in the City that are not eligible for the rehabilitation program due to HOME requirements. The following senior programs will be provided:
• City of Costa Mesa- Senior Social Services
• Trellis International – Labors of Love
• CDBG Single Family Housing Rehabilitation Grants
Also, CDBG funding will be allocated nonprofit organizations that partner with local schools to provide youth services including Assistance League Newport-Mesa and Project Hope Alliance.

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For entitlement/consortia grantees: Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. (91.220(2)) With limited HOME funds, the City has focused these limited resources for owner-occupied housing rehabilitation through the Single Family Rehabilitation Grants and Loans program and rental assistance for families with minor children through tenant based rental assistance program (TBRA). The City’s Single Family Housing Rehabilitation Grant and Loan program provides grants and loans to very low-income, single-family homeowners for interior and exterior property improvements needed due to code and building violations, lead-based paint hazards, and other hazardous conditions.

The Program is particularly popular among senior households and mobile home owners. The program is limited to households earning less than 80 percent of AMI; however, most program participants are extremely low-income. By providing housing rehabilitation grants, the City is able to help residents with housing cost burden to improve their homes without increasing their housing costs. HOME CHDO funds are also available; however, due to the limited amount of these funds, it has been difficult to attract CHDO interest to use this funding. The City does plan to issue an RFP or RFQ for affordable housing projects during FY 2025-2026 with HOME funds from prior years that are currently uncommitted to other projects.

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MA-40 Barriers to Affordable Housing – 91.210(e)
Negative Effects of Public Policies on Affordable Housing and Residential Investment Barriers to Affordable Housing
According to the City’s Housing Element, actions or policies of governmental agencies can impact the ability of the private sector to provide adequate housing to meet consumer demands. Local governments exercise regulatory and approval powers that directly impact residential development within their respective jurisdiction. These powers establish the location, intensity, and type of units that may or may not be developed. The City's General Plan, zoning regulations, project review and approval procedures, development and processing fees all play important roles in determining the cost and availability of housing opportunities in Costa Mesa.

General Plan and Zoning
The Costa Mesa General Plan and Zoning Ordinance establish the location and amount of land that will be allocated to residential development, and the intensity of development (in terms of unit densities and total number of units) that will be permitted. Densities and other development standards can drive the cost of developing housing and thus the ultimate cost.

The City Council, at their February 18, 2025 meeting, approved a contract with consultant Dudek to conduct a Citywide Rezoning effort to update General Plan and Zoning densities and permitted uses to accommodate the Regional Housing Needs Assessment (RHNA) and Housing Element goals established in the City’s Housing Element. This process will enable housing opportunities across the City that will help meet the City’s RHNA obligation and other Housing goals, including Housing Element certification from the California Department of Housing and Community Development (HCD).

Local Entitlement Processing and Fees
Two aspects of local government that have been criticized as placing undue burdens on the ability to build affordable housing are the fees or other exactions required of developers to obtain project approval, and the time delays caused by the review and approval process. Critics contend that lengthy review periods increase financial and carrying costs, and that fees and exactions increase expenses. These costs are in part passed onto the prospective homebuyer in the form of higher purchase prices or higher rents in the case of tenants.

Processing Procedures: The time required to process a project varies tremendously from one project to another and is directly related to the size and complexity of the proposal and the number of actions or approvals needed to complete the process.

Planning and Development Fees: The developer is required to pay certain fees for only the net increase of residential units on site. Fees, land dedications, or improvements are also required in most instances to provide an adequate supply of public park land and to provide necessary public improvements (streets, sewers, and storm drains) to support the new development. Fees are based on the significance of the necessary public works improvements thus vary from project to project. While such costs are charged to the developer, most, if not all, additional costs are passed to the DRAFT
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ultimate product consumer in the form of higher prices or rents. Various governmental agencies also charge fees depending on the service and the location of the project.

The City’s Housing Element includes specific programs that are designed to address some of the undue burdens housing projects face in the entitlement process as well as Planning and Development fees. As part of the City’s Rezoning program, the City will also look at a range of staff initiated zoning code updates that can streamline and help improve the permitting system for housing projects. These include the following programs:
• Incentives or requirements for Large-Family households (2E) • Amend zoning code to permit farmworker housing by-right in single-family zones and in agriculture zones (2H)
• State Density Bonus Ordinance (2I)
• Parking Standards for Residential Developments (2M)
• Review parking for emergency shelters per AB 139 (4G) • Establish definitions for co-living and efficiency housing options within code (3F) • Explore potential future housing opportunities on Church sites (3K) • Code updates to promote lot consolidation (3Q)
• Development of Large Sites (3R)
• Review and revise Findings for CUPs, Design Review, Master Plans to encourage housing (3S) • Permit low barrier navigation center development by right in appropriate zoning districts (4E) • Planning Application Fees (2K)
The intent of these programs, overall, is to provide additional opportunities for housing as by-right uses, and to review existing processes for review to remove undue burdens.

On-/ Off -Site Improvement Standards
Costs associated with site improvements are an important component of new residential development costs. Site improvement costs are applied to provide sanitary sewer and water service to a project, to make necessary transportation improvements, and to provide other infrastructure to the project. The City may require the payment for various offsite improvements as part of project mitigation measures (e.g., payment towards an offsite traffic signal). The City’s on- and off-site improvement requirements are typical for urban development in a highly developed community.

While these improvements add to the cost of housing, they do not constrain housing development as these improvements are similarly required in all surrounding communities.

Strategy to Remove or Ameliorate the Barriers to Affordable Housing According to the City’s Housing Element, the following actions will be implemented to remove or ameliorate barriers to affordable housing:
• The City will encourage the joint processing of related applications for a single project. Such procedures save time, money and effort for both the public and private sector.

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• The City provides fee credits for existing development against new development. Fee credits are available for park fees, sanitation district fees, and traffic impact fees. Park fees and traffic impact fees can also be deferred until the issuance of Certificates of Occupancy.
• The City will provide incentives (such as density bonus and deferred impact fees) to developers that agree to reserve a portion of project units for lower-income households (including extremely low-income), moderate-income households (common interest developments only), or for seniors and the disabled. • The City will maintain an inventory of vacant and underutilized sites and provide this inventory to interested developers.
• The City will continue to promote mixed-use development specific plan areas. The City will respond to market conditions and offer appropriate incentives through the Mixed-Use Overlay zone. Incentives include reduced parking standards, reduced open space, increased densities, increased height limit, increased lot coverage, and reduced setbacks.

Additionally, if available, the City will consider providing subsidies for affordable housing projects (i.e., HOME funds).

In November 2016, City voters approved Measure Y, which requires a vote of the electorate for any “Major Change in Allowable Land Use” as defined by the initiative. There is a provision to exempt affordable housing projects from the requirements of the measure; however, the affordable housing project must be required by state or federal law.

In November 2022, City voters approved Measure K, which enables housing development along commercial corridors within the City. Measure K sites are included in the focus areas of the Rezone Program and will enable the City to plan for its RHNA obligations.

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MA-45 Non-Housing Community Development Assets – 91.215 (f) Introduction
Developing economic opportunities, especially for low- and moderate-income persons is a HUD priority. The City does not fund economic development activities with CDBG funds, but it does use public service grant funds to support programs that help individuals improve their job skills. The City also invests General Fund resources toward economic development activities.

The following tables and narrative describe the local economic condition of Costa Mesa and compare the ability of the local work force to satisfy the needs of local businesses.

Economic Development Market Analysis
Business Activity
Business by Sector Number of
Workers
Number of
Jobs
Share of
Workers
%
Share of Jobs
%
Jobs less
workers
%
Agriculture, Mining, Oil & Gas Extraction 356 10 1 0 -1 Arts, Entertainment, Accommodations 7,082 11,396 15 13 -2 Construction 2,814 4,912 6 6 0
Education and Health Care Services 6,996 9,618 15 11 -4 Finance, Insurance, and Real Estate 4,090 5,723 9 7 -2
Information 1,310 1,270 3 1 -1
Manufacturing 3,695 5,310 8 6 -2
Other Services 1,769 2,757 4 3 -1
Professional, Scientific, Management Services 6,121 14,486 13 17 4 Public Administration 0 0 0 0 0
Retail Trade 5,073 14,900 11 17 7
Transportation and Warehousing 1,159 685 2 1 -2
Wholesale Trade 2,604 5,510 6 6 1
Total 43,069 76,577 -- -- --
Table 31 - Business Activity
Data
Source:
2016-2020 ACS (Workers), 2020 Longitudinal Employer-Household Dynamics (Jobs)

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Labor Force
Total Population in the Civilian Labor Force 67,405
Civilian Employed Population 16 years and
over 64,190
Unemployment Rate 4.76
Unemployment Rate for Ages 16-24 14.04
Unemployment Rate for Ages 25-65 3.31
Table 32 - Labor Force
Data Source: 2016-2020 ACS
Occupations by Sector Number of People
Management, business and financial 20,650
Farming, fisheries and forestry occupations 2,115
Service 6,910
Sales and office 14,405
Construction, extraction, maintenance and
repair 4,115
Production, transportation and material
moving 2,360
Table 33 – Occupations by Sector
Data Source: 2016-2020 ACS

Travel Time
Travel Time Number Percentage
< 30 Minutes 39,766 71%
30-59 Minutes 12,928 23%
60 or More Minutes 3,057 5%
Total 55,751 100%
Table 34 - Travel Time
Data Source: 2016-2020 ACS
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Education:

Educational Attainment by Employment Status (Population 16 and Older) Educational Attainment In Labor Force
Civilian Employed Unemployed Not in Labor
Force
Less than high school graduate 6,890 110 2,605
High school graduate (includes
equivalency) 8,765 410 2,135
Some college or Associate's degree 13,880 1,010 2,995
Bachelor's degree or higher 24,325 685 3,140
Table 35 - Educational Attainment by Employment Status
Data Source: 2016-2020 ACS
Educational Attainment by Age
Age
18–24 yrs 25–34 yrs 35–44 yrs 45–65 yrs 65+ yrs
Less than 9th grade 170 660 1,565 2,930 1,120
9th to 12th grade, no diploma 600 1,480 1,245 1,730 675 High school graduate, GED, or
alternative 3,000 3,070 3,415 4,840 2,385
Some college, no degree 4,895 4,770 2,545 6,350 3,125
Associate's degree 430 1,140 970 2,115 1,305
Bachelor's degree 935 8,930 4,810 6,500 2,930
Graduate or professional degree 90 2,465 2,385 3,100 1,925 Table 36 - Educational Attainment by Age
Data Source: 2016-2020 ACS

Educational Attainment – Median Earnings in the Past 12 Months Educational Attainment Median Earnings in the Past 12 Months Less than high school graduate 25,615
High school graduate (includes equivalency) 34,918
Some college or Associate's degree 45,074
Bachelor's degree 66,500
Graduate or professional degree 89,881
Table 37 – Median Earnings in the Past 12 Months
Data Source: 2016-2020 ACS

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Based on the Business Activity table above, what are the major employment sectors within your jurisdiction?
Within the City of Costa Mesa, the major employment sectors are:
• Professional, Scientific, Management Services – 19 percent • Retail Trade – 17 percent
• Arts, Entertainment, Accommodations – 15 percent
• Education and Health Care Services – 13 percent
These four sectors represent 64 percent of the employment opportunities available in the City.

Describe the workforce and infrastructure needs of the business community:

Needs of the business community include skilled and trained workers, as well as job opportunities. The gap between the skills of the local labor force and the expertise needed by the business environment is indicative of the number of workers (43,069) and the number of jobs (76,577) in the labor force, which represents a 44 percent gap, not accounting for mismatches. When accounting for mismatches, there are more Retail Trade and Professional, Scientific, Management Services jobs in Costa Mesa than residents employed in those fields, indicating a need for both skilled and unskilled workers to fill these jobs in Costa Mesa’s workforce. Additionally, there is a mismatch for the number of workers and number of jobs in Construction, which will be a growing need as the City adds housing units to comply with the State’s Regional Housing Need Allocation(RHNA) requirements. The 2024 Community Economic Profile lists the following Major Development Projects and Areas: Anduril Headquarters (23.4 acres), LUX Apartments (4 acres), Harbor Gateway (78 acres), Segerstrom Home Ranch (43 acres), South Coast Plaza Town Center (54 acres), The Met / Experian Solutions (45 acres,) Sakioka Farms Lot 2 (33 acres), Halcyon House Apartments (393 units), Avenue of the Arts Hotel (3 acres), West Gateway (177 ownership units), and the Orange County Museum of Art. The City’s Capital Improvement Plan identifies various active transportation improvements throughout the City over the next five years that are needed to support business and overall commerce. These streets provide major north/south and east/west access into and through the City. Additional public infrastructure improvements identified that will assist local businesses include storm/flood water system improvements. Depending on the location and primary beneficiaries of storm/flood water improvements, CDBG funding may be available.

Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create.

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challenges for the County as a whole. The 65+ age group is the only age group expected to increase and the age groups from 0-24 are expected to decline over the next several years. This could have a serious impact on the health of the County’s labor market and overall economy if efforts are not prioritized to attract young professionals and families. Alongside changing demographics of an aging population, new technologies such as AI and machine learning will replace jobs and fuel the creation of new jobs.

Additionally, Costa Mesa is expected to add 11,760 housing units (a 25% increase) over the next 25 years. The City currently has a high number of commuters (Table 34) and travel increases traffic congestion which could increase travel time, thereby affecting quality of life. Thus, continuing to prepare the population for the jobs in the City is essential.

The City is developing its Economic Development Strategic Plan which plans to implement proactive and creative approaches to support local businesses in the City and identify and create additional revenue sources to increase funding for the wide variety of community services provided by the City.

How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction?
The Orange County Indicators report asserts that one of Orange County’s primary competitive advantages is a pool of highly educated, qualified residents. Approximately 41.2 percent of the County’s labor force has a bachelor’s degree or higher. A comparison of HUD data found in Table 36 and 37 indicates that Costa Mesa’s workforce is relatively comparable to County statistics, with 38 percent of the workforce having a bachelor’s degree or higher and 11 percent with a master’s degree or higher.

As the majority of the employment opportunities are in the Professional, Scientific, Management Services sector, the education levels of those in the labor force appear to meet the qualifications for those jobs available. However, while a third of the population is highly skilled and suitable for the “major employment sector” jobs, there is a large gap in the number of workers and the number of jobs available in the City. According to Table 31, there are 14,486 jobs in the Professional, Scientific, and Management Services but only 6,121 Costa Mesa workers.

Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan.

The City will continue to forge its relationship with the Chamber of Commerce, utilizing this agency as an additional source of information and support for existing and new businesses. The City will also identify additional partners such as the local school district, community colleges and universities, to discuss topics such as workforce preparedness. Finally, there is a lack of workforce housing throughout Orange County. Skilled young adults will permanently move out of the area if lower priced housing is not available. The City’s General Plan and Housing Element have identified plan areas where development incentives are available to developers willing to build workforce housing.

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Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)?
No
If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth.

As indicated above, the City is in the process of refining its Economic Development Strategic Plan.

Discussion
The City has prioritized the completion of its Economic Development Strategic Plan which will strive to attract and retain key businesses. The City will also take steps to strengthen existing relationships with business and educational institutions in order to identify skill gaps and devise a plan to close the gap.

Other initiatives such as workforce housing are already in place.

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MA-50 Needs and Market Analysis Discussion
Are there areas where households with multiple housing problems are concentrated? (include a definition of "concentration")
Housing problems impact low- and moderate-income households disproportionately, compared to non- low and moderate-income households. Therefore, areas with concentrations of low- and moderate- income households are likely to have high rates of housing problems. A concentration is defined as a block group where at least 51 percent of the population is low- and moderate-income. Appendix B presents the geographic concentration of low- and moderate-income population by block group throughout the City. Low- and moderate-income areas are mostly concentrated on the northeast and western portion of the City. Approximately 56 percent of the land area in Costa Mesa is a low- or moderate-income.

Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of "concentration") A minority concentration area is defined as a block group or census track whose proportion of a non- White population is 10 percent greater than the overall Orange County average of 58.7 percent. Minority concentration areas within the City identified in the 2020-2024 Consolidated Plan were located primarily in the southcentral and northeastern portions of the City and the majority of these areas were census tracts in low- and moderate-income areas. HUD no longer requires the sections of the Consolidated Plan that indicate where housing problems are experienced disproportionally by one or more racial or ethnic groups, effective April 2, 2025 under the New Interim Rule: A ffirmatively Furthering Fair Housing Revisions.

What are the characteristics of the market in these areas/neighborhoods? The block groups with housing problem concentration include a mix of residential (both single and multi- family housing units), commercial and industrial areas. The Westside neighborhoods are typically more densely populated, and have a higher concentration of low- and moderate-income residents. The housing stock in this part of the City is generally older.

Are there any community assets in these areas/neighborhoods? As indicated above, this area is a mix of land uses. There are several assets in this area including parks, community centers, and schools.

Are there other strategic opportunities in any of these areas? This area is within the City’s CDBG-eligible areas thus may benefit from planned infrastructure, facilities, and housing improvements for the FY 2025-2026 Consolidated Plan cycle.

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MA-60 Broadband Needs of Housing occupied by Low- and Moderate-Income Households - 91.210(a)(4), 91.310(a)(2)

Describe the need for broadband wiring and connections for households, including low- and moderate-income households and neighborhoods.

According to 2016-2020 ACS estimates, approximately 92 percent (37,501) of Costa Mesa households have broadband internet subscriptions while 7.5 percent (3,059) of households have no internet subscriptions. Income appears to be a factor in the absence of internet subscriptions. Of the households without internet subscriptions, 76 percent earned less than $75,000. While income may affect the ability of households to subscribe to an internet service, HUD requires that the City consider the need for broadband infrastructure (wiring and connections) in the Consolidated Planning process.

The California Public Utilities Commission (CPUC) has an interactive mapping tool (the California Broadband Mapping Tool) that depicts the served and underserved areas of broadband deployment (Appendix E). The term “served” depends on the internet speed standards and has varying thresholds at the state and federal level. The City of Costa Mesa generally meets or exceeds the State’s broadband service requirements.

Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction.

There is no need to increase competition in Costa Mesa. According Broadbandnow.com, nine internet providers offer broadband internet service in Costa Mesa: AT&T fiber (IPBB, Fiber, 5G), Hughesnet (Satellite), Spectrum (Cable), Earthlink (5G), Starlink (Satellite), T-Mobile (5G), Verizon (5G) Viasat (Satellite), XNet WiFi (Fixed Wireless). AT&T and Spectrum provide speeds up to 5 Gbps and 1 Gbps respectively, and both provide coverage for 93% of the City.

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MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3)

Describe the jurisdiction’s increased natural hazard risks associated with climate change.

Hazard mitigation is work done to minimize the impact of natural hazards before they occur in an effort to reduce losses from future disasters. The City’s 2023 Local Hazard Mitigation Plan (LHMP) includes a detailed analysis of the City’s historical, physical, social, and economic characteristics. It is a tool that will assist the City in reducing human and economic losses caused by natural hazard events. A hazard assessment of types of hazards that might reasonably occur in Costa Mesa is included in Chapter 3 of the City’s LMHP.

Climate change is a concern identified by the Hazard Mitigation Planning Committee (HMPC), a committee that was assembled by the City that includes representatives from City departments and is supported by key stakeholders and technical consultants. Increased natural hazard risks associated with climate change include an overall warming of the Southern California climate, which may cause insects, pests, and other vectors that carry disease to remain active for an extended part of the year. This possibility increases the threat of exposure to any infectious diseases that pests carry. Tree mortality is expected to increase under climate change conditions because of more severe and frequent episodes of draught. In addition to the increased frequency of draught events, intensified weather patterns may bring more rain to California and Costa Mesa. The average temperature is expected to increase and cause more frequent and prolonged heat waves in the region, which may affect water supplies in the City. Hotter temperatures may also lead to increased surface water evaporation, which could lead to great water consumption. If a draught occurs coupled with heatwave events, additional strain could be placed on City infrastructure, including water supply.

Projections of changing climatic conditions through the end of the century suggest future power/energy shortage concerns. Electricity production occurs outside of the city, reducing opportunities for Costa Mesa to be energy independent. The frequency and intensity of precipitation events throughout California, including Costa Mesa is expected to occur which may cause more flooding, leading to erosion, tree mortality, and increased response and recovery activities. Expansive soils may be affected by climate change due to more intense storms and frequent draught conditions, increasing the intensity of the expansive soils, physical expansion, and contraction, potentially increasing damage throughout the vulnerable parts of the City. Climate-related natural hazard events, such as increased precipitation and subsequent flooding, could cause an increase in hazardous materials release. Additionally, climate change could increase the risk of dam failure in the future including the dams that control floodwaters from inundating Costa Mesa and the rest of Orange County.

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Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods.

The City’s LHMP identifies age, physical and/or mental condition, socioeconomic status, and access to key services as factors that affect the ability of people to prepare for and protect themselves and their property from a hazard event. Higher income households, for instance, are likely more able to afford the cost of retrofitting their homes to resist flooding or move to a location that is less prone to flooding that a lower-income household. As a result, the higher-income household is less likely to experience significant damage during a flood event than the lower-income household, even if the same amount of rain falls on both.

As detailed in the section of the City’s LHMP on “Vulnerable Populations”, lower-income households are less likely to have the financial resources to implement mitigation activities on their residences. They may also struggle with having the necessary time to find and access educational resources discussing hazard mitigation strategies. Furthermore, lower-income households are less likely to be able to afford to move to areas that are safer or less of a risk of being impacted by a hazard.

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Strategic Plan
SP-05 Overview
Strategic Plan Overview
This Strategic Plan outlines the City of Costa Mesa’s course of actions to meet priority housing and community development needs, goals and objectives, consistent with the following HUD goals:
• Ensuring Decent Housing;
• Creating a Suitable Living Environment; and
• Expanding Economic Opportunities.

HUD requires that the Strategic Plan:
• Describe the basis for assigning priority ranking for needs categories. • Identify accomplishments the City plans to achieve in quantitative and qualitative measures over a five-year period
The goals are:

Goal 1: Housing Preservation To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing
acquisition/rehabilitation
Goal 2: Infrastructure and Facility
Improvements
To enhance the suitability of the living environment
through improvements to public infrastructures and
facilities
Goal 3: Homeless Continuum of Care To provide supportive services and housing assistance for the homeless and near homeless
Goal 4: Public Social Service To provide services for low- and moderate-income persons, and those with special needs
Goal 5: Program Administration To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of
programs and services and complying with all HUD
program requirements including the provision of fair
housing services
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SP-10 Geographic Priorities – 91.215 (a)(1)
Geographic Area
Table 38 - Geographic Priority Areas
1 Area Name: CDBG Eligible Areas
Area Type: Other
Other Target Area Description: CDBG Eligible Areas
Identify the neighborhood boundaries for this target
area.

Block groups to have at least 51 percent
low- and moderate-income population.

Include specific housing and commercial
characteristics of this target area.

Primarily low- and moderate-income.

How did your consultation and citizen participation
process help you to identify this neighborhood as a
target area?
Consultation and the Citizen Participation
Process helped gain input in developing
the Action Plan and priority needs.

Identify the needs in this target area. Housing, Public Facilities and Infrastructure, Homeless Services, and
Non-Homeless Special Needs Services
What are the opportunities for improvement in this
target area?

Improved housing, infrastructure,
facilities and services.

Are there barriers to improvement in this target
area?
Limited or decreased funding presents a
barrier for addressing needs citywide.
2 Area Name: Citywide
Area Type: Other
Other Target Area Description: Citywide
Identify the neighborhood boundaries for this target
area.

N/A. Priorities will be citywide based on
CDBG-eligible area or low to moderate-
income clientele
Include specific housing and commercial
characteristics of this target area.

There are no specific characteristic to
highlight.

How did your consultation and citizen participation
process help you to identify this neighborhood as a
target area?
Consultation and the Citizen Participation
Process helped gain input in developing
the Action Plan and priority needs.

Identify the needs in this target area. Housing, Public Facilities and Infrastructure, Homeless Services, and
Non-Homeless Special Needs Services
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What are the opportunities for improvement in this
target area?
Improved housing, infrastructure,
facilities and services.

Are there barriers to improvement in this target
area?

Limited or decreased funding presents a
barrier for addressing needs citywide.

General Allocation Priorities
Describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA)

To determine which activities will receive CDBG funding during the Consolidated Plan cycle of 2025- 2029, the City utilized a simple priority ranking system to determine which activities will receive CDBG funding to address a priority need. High Priority Activities that address a high priority need will be funded by the City during the five-year period provided adequate resources are available. The City may or may not fund low priority need activities (any activities not identified as high priority) during the five- year period. The City does not have special designated areas for investment of CDBG and HOME funds.

HOME funds will be allocated on a citywide basis to assist eligible households directly or as part of a HOME- qualified housing activity. CDBG funds will also be allocated on a citywide basis for activities that are limited-clientele in nature. Other activities such as public facilities, infrastructure, and code enforcement, will be limited to eligible area (see Appendix B for map). The City does not receive HOPWA funds.

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SP-25 Priority Needs - 91.215(a)(2)
Priority Needs
Table 39 – Priority Needs Summary
1 Priority Need
Name
Housing Preservation
Priority Level High
Population Extremely Low
Low
Moderate
Geographic
Areas
Affected
Citywide
Associated
Goals
Housing Preservation
Description Loans, grants, and other forms of subsidies to improve or expand the City's supply of housing affordable to lower-income households. Activities may include single-family owner-occupied rehabilitation, code enforcement, and housing acquisition and rehabilitation or other forms of housing activities to expand the number of affordable housing units for lower income households.

Basis for
Relative
Priority
Housing needs assessment and housing market analysis indicate a need for housing rehabilitation assistance as a means to help lower income households maintain/improve their home without or minimal additional cost burden.

Housing and Community Needs Survey results identify owner-occupied housing rehabilitation among the highest-ranking housing needs. 2 Priority Need
Name
Public Facilities and Infrastructure
Priority Level High
Population Moderate
Geographic
Areas
Affected
Citywide
CDBG Eligible Areas
Associated
Goals
Infrastructure and Facility Improvements
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Description Improvements to public facilities that address a community priority.

Improvements may include but are not limited to repairs, replacement and/or upgrades (including ADA compliance) to neighborhood parks, centers and other facilities.

Improvements to public infrastructure that address a community priority.

Improvements may include but are not limited to repairs, replacement and/or upgrades (including ADA compliance) to streets, alleys, sidewalks, flood/storm water drains, and other improvements.

Basis for
Relative
Priority
City's CIP, Needs Assessment, results of Housing and Community Needs survey, and comments received at Community Workshops.
3 Priority Need
Name
Homeless Services and Housing
Priority Level High
Population Families with Children
Chronic Homelessness
Individuals
Geographic
Areas
Affected
Citywide
Associated
Goals
Homeless Continuum of Care
Description Support services and housing assistance for the near-homeless and homeless individuals and households. Services include homelessness prevention assistance, outreach, case management, life skills, etc. Housing includes emergency shelter, transitional housing, rapid re-housing and tenant based rental assistance (TBRA).

Basis for
Relative
Priority
Needs assessment, results of Housing and Community Needs Survey, and comments received at the Community Workshops.
4 Priority Need
Name
Public Services
Priority Level High
Population Extremely Low
Low
Moderate
Other
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Geographic
Areas
Affected
Citywide
Associated
Goals
Public Social Services
Description Services will help persons with special needs (elderly, disabled, youth, non- English speakers and families in need) to promote independent living situation, expand access to opportunities, or ensure they are provided services that improve quality of life. Fair housing services are also provided if not funded through administration.

Basis for
Relative
Priority
Needs assessment, results of Housing and Community Needs Survey, and comments received at Community Workshops.
5 Priority Need
Name
Program Administration
Priority Level High
Population Extremely Low
Low
Moderate
Geographic
Areas
Affected
Citywide
Associated
Goals
Program Administration
Description Ensure efficient/effective use of CDBG and HOME funds to address Consolidated Plan priorities, provide oversight and coordination to make certain funds are spent properly and in a timely manner. Fair housing services if not funded through public services.

Basis for
Relative
Priority
HUD required.

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Narrative (Optional)
Impediments to Fair Housing: HUD-funded grant recipients are required under various laws not to discriminate in housing or services directly or indirectly on the basis of race, color, religion, sex, national origin, age, familial status, or disability, or other personal or familial characteristics. Under the Consolidated Plan, HUD funded recipients are required to: (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choice for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate metropolitan wide area fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document utilized for this purpose.

The City participated in a regional effort to prepare an Orange County Assessment of Fair Housing for FY 2025-2029. The executive summary of the 2025-2029 Orange County Regional Assessment of Fair Housing is provided as Appendix F. The City will continue to review and renew its contract with the fair housing service provider to assist in addressing the impediments identified.

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SP-30 Influence of Market Conditions – 91.215 (b)
Influence of Market Conditions
Affordable
Housing Type
Market Characteristics that will influence
the use of funds available for housing type
Tenant Based
Rental Assistance
(TBRA)
Housing Needs Assessment indicates Costa Mesa renter-households are cost burdened. Tenant Based Rental Assistance programs help bridge the gap between market rents and what lower income households can afford. It also provides security deposits for persons exiting homelessness. HOME funds have been used since FY 2020-2021 for a TBRA program.

TBRA for Non-
Homeless Special
Needs
Housing Needs Assessment indicates Costa Mesa non-homeless households may benefit from some form of housing assistance. Special needs populations generally face unique housing needs, such as physical limitations, low household incomes, homelessness, and rising costs of healthcare and/or childcare. Housing affordability may be a key issue for those living on fixed incomes. Tenant Based Rental Assistance programs help bridge the gap between market rents and what lower income households can afford.

Extremely low- and very low-income households may be at risk of becoming homeless due to loss of income or employment. HOME funds have been used since FY 2020-2021 for a TBRA program.

New Unit
Production
Housing Needs Assessment indicates additional housing resources are warranted; however, CDBG may not be used for this type of activity. HOME funds may be used for new housing development.

Rehabilitation Housing Market analysis data indicates many lower income homeowners are paying a significant amount of their income for housing (housing cost burden and severe housing cost burden). Housing rehabilitation assistance allows these homeowners to address deferred maintenance improvements on their primary residence without increasing the amount of income dedicated to housing.

Acquisition,
including
preservation
Housing Needs Assessment indicates additional housing resources are warranted; however, CDBG funds are utilized for other priority needs and may not be available for this type of activity. HOME funds may be used for acquisition of housing.

Table 40 – Influence of Market Conditions

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OMB Control No: 2506-0117
SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2) Introduction
HUD has announced that the City of Costa Mesa will receive $907,261 in CDBG and $378,720 in HOME funds; a seven percent reduction in funding from last year’s CDBG allocation and a four percent reduction from last year’s HOME allocation. In addition, $172,000 in prior year uncommitted CDBG funds, $1,685,283 in prior year uncommitted HOME funds, and $50,000 in prior year HOME program income are available for programming. The City’s application for funds is in the form of the SF 424.

Ongoing reductions and fluctuations in CDBG and HOME funding make it difficult to estimate the amount that will be available over the five-year time period of the Consolidated Plan. The only additional funds anticipated that may be available to implement the Consolidated Plan are HOME-ARP and general fund for homeless services, and housing voucher/certificate resources via OCHA.

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Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 907,261 0 172,000 1,079,261 3,600,000
Remainder estimate is based on
an annual allocation of $900,000.

Estimate for the planning period is
$4,679,261.

HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner rehab
Multifamily rental
new construction
Multifamily rental
rehab
New construction
for ownership
TBRA
378,720 50,000 $1,685,283 2,114,003 1,600,000
Remainder estimate is based on
an annual allocation of $400,000.

Estimate for the five-year
planning period is $3,714,003.

Table 41 - Anticipated Resources
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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied For the foreseeable future, the City will continue to allocate General Fund and the local Housing Authority (as the City's Successor Agency) resources for homeless services. Additionally, the City has a partnership with Newport Beach to support the ongoing operations of the Bridge Shelter that was previously a vacant warehouse in 2019. Primarily CDBG funding was used for the rehabilitation of the warehouse in 2019. The CDBG program does not have a match requirement. Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG and HOME funds to leverage appropriate state, local and private resources. An example of such a project is the Motel 6 Housing Project, a conversion from a 94 guest room motel into 87 units of permanent affordable housing for veterans, senior citizens and other individuals previously experiencing homelessness. The project included State funding from the California Department of Housing and Community Development (HCD) Homekey Program, VASH Vouchers and LMIHAF funds from OCHA, MHSA funds from Orange County, and American Rescue Plan Act (ARPA) funds from the City in addition to City HOME funding. The City closed on financing for this 87-unit Permanent Supportive Housing Project during FY 2022-2023 and leased-up the ten HOME units in FY 2023-2024. All 40 units included in the first phase of the project were leased-up by the end of FY 2023-2024. This project and similar projects provide additional sources of match for the City’s HOME program. Additionally, the City has a CalHome owner-occupied housing rehabilitation loan program. Loan expenditures from this program provide a match source for the City’s HOME program.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Costa Mesa is considered a built-out community with little vacant land available for new development.

The City has begun to recycle land to accommodate growth. The City's Housing Element identifies City- owned and State-owned properties, and considers various options for the sites. Development opportunities are identified in the Housing Element. The most recent Housing Element covers years 2021 through 2029 and includes updates to the development opportunities to address the needs identified in the Consolidated Plan. For example, the Housing Element identifies the City’s Senior Center property as a site for redevelopment to accommodate affordable housing units for seniors. The City Council approved the property for a 70-unit senior affordable housing complex that could be opened by 2027. In addition, the Housing Element identifies the State’s Fairview Developmental Center site as a potential housing opportunity site. In December 2022, an agreement between the City and the State was signed which provided $3.5 Million in State funds to the City for land use planning and zoning at the Fairview Developmental Center (FDC) site focused on accommodating housing for households at all income levels, with a priority for projects that provide housing for individuals with developmental disabilities. Meetings have been conducted for residents to provide input regarding community needs and values for the FDC site. City Council members expressed a desire to explore increasing the number DRAFT
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of housing units on the FDC site beyond the 2,300 units identified in the Housing Element.

The City purchased a warehouse for the Bridge Shelter in 2019 to provide 50 emergency shelter beds for adult men and women experiencing homelessness. The shelter has since been expanded to accommodate 100 shelter beds, including 15 behavioral health beds, further addressing the priority needs identified in the City's Consolidated Plan.

Discussion
In recent years, HOME housing rehabilitation loan repayments have provided the City with additional funding; however, this source of funds is susceptible to the fluctuations of the economy and thus unpredictable. The State has identified the housing shortage in California as a crisis and has created new affordable housing funding sources through legislature. The City will actively pursue such funding to leverage local resources for affordable housing, homeless services and housing, and community development activities.

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Consolidated Plan COSTA MESA 93
OMB Control No: 2506-0117
SP-40 Institutional Delivery Structure – 91.215(k)
Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions.

Responsible Entity Responsible Entity
Type
Role Geographic Area
Served
Orange County Housing
Authority
PHA Public Housing Region
211 Orange
County/United Way
Continuum of care Homelessness Region
City of Costa Mesa Government Economic
Development
Homelessness
Non-homeless special
needs
Ownership
Planning
Rental
neighborhood
improvements
public facilities
public services
Jurisdiction
Fair Housing Foundation Non-profit
organizations
Planning Jurisdiction
Project Hope Alliance Non-profit
organizations
public services Jurisdiction
Human Options Non-profit
organizations
Homelessness Jurisdiction
Trellis, Inc. Non-profit
organizations
public services Jurisdiction
Community SeniorServ Non-profit
organizations
public services Jurisdiction
Assistance League –
Newport Mesa
Non-profit
organizations
public services Jurisdiction
Costa Mesa Chamber of
Commerce
Private Industry Economic
Development
Jurisdiction
Families Forward Non-profit
organizations
public services Jurisdiction
Table 42 - Institutional Delivery Structure

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Consolidated Plan COSTA MESA 94
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Assess of Strengths and Gaps in the Institutional Delivery System Costa Mesa has a strong group of service providers that deliver a wide variety of services for City residents as evidenced by the collaborative, coordinated efforts of local nonprofits, local churches and faith-based groups through the Network of Homeless Solutions (NHS) Taskforce. This effort works directly to overcome institutional barriers faced by the homeless and other at-risk populations. The City has established strong working relationships with the local school districts and colleges/universities to create linkages between employers, residents and schools. The City continues to work well with OCHA by supporting their efforts to assist the City’s lower income renters with housing assistance vouchers and certificates. The City also has established strong working relationships with other Orange County grantees as evidenced by the coordination of regional efforts to address issues such as homelessness and fair housing.

Availability of services targeted to homeless persons and persons with HIV and mainstream services
Homelessness Prevention Services Available in the
Community
Targeted to
Homeless
Targeted to
People with
HIV
Homelessness Prevention Services
Counseling/Advocacy X X
Legal Assistance X X
Mortgage Assistance
Rental Assistance X X
Utilities Assistance X X
Street Outreach Services
Law Enforcement X X
Mobile Clinics X
Other Street Outreach Services X X
Supportive Services
Alcohol & Drug Abuse X
Child Care
Education
Employment and Employment Training X
Healthcare X X

HIV/AIDS X
Life Skills X X
Mental Health Counseling X X
Transportation X X
Other

NA NA NA NA
Table 43 - Homeless Prevention Services Summary
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Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) Several homeless service providers, including the City, are available to assist the homeless and those that are at risk of becoming homeless. Since 2012, the City of Costa Mesa has directly funded homeless outreach and engagement services. Program staff works closely with nonprofit, public and faith-based organizations to coordinate outreach and referral services for chronic and non-chronic homeless individuals with strong ties to the community. Program staff works closely with individuals and families to identify and qualify individuals/households for appropriate mainstream services and resources.

Examples of mainstream services available include veterans housing vouchers, veteran medical services, MediCal/Medicare, SSI, and general relief. These efforts are primarily coordinated by the City’s Network for Homeless Solutions (NHS) Taskforce. The City’s Housing and Community Development (HCD) staff and NHS also work closely with CDBG sub-recipients to ensure individuals and households at risk of becoming homeless, or that are not chronic homeless are also assisted.

Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness, including, but not limited to, the services listed above
The strength of the City’s service delivery system is that it is well coordinated, especially for homeless services. The NHS Taskforce meets biweekly to discuss the status of initiatives and to also address and resolve issues. It is important to highlight the fact that while the City is a partner in the NHS, many of the initiatives are generated by its members (typically community volunteers and local church leaders).

Housing (emergency and permanent) remains the primary gap in the City’s service delivery system. City staff works closely with service providers to access the limited permanent housing or rapid re-housing resources that are available. There is a lack of year-round emergency shelter beds for single adults for the entire County. To address this gap, the City utilized significant non-HUD funds to acquire a property to be repurposed as an emergency shelter for adult men and women. CDBG funds were used to provide for interior and exterior improvements and total beds available have been increased to 100 from 50 when the shelter was first established in 2019.

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Consolidated Plan COSTA MESA 96
OMB Control No: 2506-0117
Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs Through the Consolidated Plan priority setting process, the City aligned programs and services that are complementary and work together on a uniform vision for the benefit of Costa Mesa residents. Programs and activities funded with CDBG funds reflect goals and objectives that are set forth in some of the City’s major guiding documents such as the Housing Element and Capital Improvement Plan. These plans have been created with input from the public, other City departments, other private agencies and local nonprofit providers.

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Consolidated Plan COSTA MESA 97
OMB Control No: 2506-0117
SP-45 Goals Summary – 91.215(a)(4)
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Housing
Preservation
2025 2029 Affordable
Housing
Citywide Housing
Preservation
CDBG:
$1,925,000
HOME:
$2,300,000
Rental units rehabilitated:
50 Household Housing Unit

Homeowner Housing
Rehabilitated:
50 Household Housing Unit

Housing Code
Enforcement/Foreclosed Property
Care:
1000 Household Housing Unit
2 Infrastructure and
Facility
Improvements
2025 2029 Non-Housing
Community
Development
Citywide
CDBG
Eligible
Areas
Public Facilities
and
Infrastructure
CDBG:
$1,000,000
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit:
10,000 Persons Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
3 Homeless
Continuum of
Care
2025 2029 Homeless Citywide Homeless
Services and
Housing
CDBG:
$450,000
HOME:
$1,000,000
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit:
50 Persons Assisted

Tenant-based rental assistance /
Rapid Rehousing:
75 Households Assisted

Homeless Person Overnight
Shelter:
250 Persons Assisted

Homelessness Prevention:
150 Persons Assisted
4 Public Social
Services
2025 2029 Non-Homeless
Special Needs
Citywide Public Services CDBG:
$225,000
Public service activities other than
Low/Moderate Income Housing
Benefit:
4,000 Persons Assisted
5 Program
Administration
2025 2029 Program
Administration
Citywide Program
Administration
CDBG:
$900,000
HOME:
$200,000
Other:
5 Other
Table 44 – Goals Summary

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Goal Descriptions

1 Goal Name Housing Preservation
Goal
Description
To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation.
2 Goal Name Infrastructure and Facility Improvements
Goal
Description
To enhance the suitability of the living environment through improvements to public infrastructures and facilities
3 Goal Name Homeless Continuum of Care
Goal
Description
To provide supportive services and housing assistance for the homeless and near homeless
4 Goal Name Public Social Services
Goal
Description
To provide services for low- and moderate-income persons, and those with special needs
5 Goal Name Program Administration
Goal
Description
To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying all HUD program requirements including the provision of fair housing services.

Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) Approximately 70 extremely low-income (0% to 30% AMI), very low-income (30% to 50% AMI), and low- income (50% to 80% AMI) will benefit from the City’s affordable housing activities. The City will use HOME funds for homeowner rehabilitation, TBRA and affordable rental housing project(s), over the five- year Consolidated Plan period. Pursuant to HUD Regulations at 24 CFR 91.225(d), the City of Costa Mesa certifies as part of its Action Plan(s) from FY 2025-2029 that the use of HOME funds for tenant-based rental assistance is an essential element of the FY 2025-2029 Consolidated Plan’s goal to enhance the suitability of the living environment through supportive services for the homeless, low- and moderate- income persons, and those with special needs.

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SP-50 Public Housing Accessibility and Involvement – 91.215(c) Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement)
Not applicable. No public housing units are located in Costa Mesa.

Activities to Increase Resident Involvements
Not applicable. No public housing units are located in Costa Mesa.

Is the public housing agency designated as troubled under 24 CFR part 902? Not applicable.

Plan to remove the ‘troubled’ designation
Not applicable.

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SP-55 Barriers to affordable housing – 91.215(h)
Barriers to Affordable Housing:

According to the City's Housing Element, governmental agencies' actions or policies can impact the private sector's ability to provide adequate housing to meet consumer demands. Local governments exercise regulatory and approval powers that directly impact residential development within their respective jurisdiction. These powers establish the location, intensity, and type of units that may or may not be developed. The City's General Plan, zoning regulations, project review and approval procedures, development, and processing fees all play important roles in determining the cost and availability of housing opportunities in Costa Mesa.

Strategy to Remove or Ameliorate the Barriers to Affordable Housing:

Implementation actions identified in the City’s current Housing Element and progress reports to address the negative effects that serve as barriers to affordable housing include:

The City plans to regularly monitor deed-restricted units that have the potential of converting to market- rate during the planning period, work with the property owner on potential extensions past the current agreement to extend the affordability period, and comply with noticing requirements and coordinate with qualified entities to preserve at-risk units.

The City initiated the affordable housing ordinance effort in 2021, retaining Keyser Marston Associates (KMA). Since then, KMA have completed the required Financial Evaluation and the City has conducted 17 stakeholder meetings, two joint Council/Planning Commission Study Sessions and completed the draft Ordinance. The Ordinance was presented to the Planning Commission on November 13, 2023 with a second discussion occurring on December 11, 2023. The Affordable Housing Ordinance (Ordinance No. 2024-02) was approved for first reading by City Council on April 2, 2024.

The Affordable Housing Ordinance will require residential developments with 50 units or more to include an affordable housing component. The residential development must set aside a portion of the residential units as affordable, or provide a land dedication, or construct off-site affordable units, or pay in-lieu fees. To implement the Affordable Housing Program, the City would rezone non-residentially zoned properties located along major corridors to allow for higher density housing with reduced parking requirements and the allowance of affordable rents for low-income units to be calculated based on 80% of the area median income (AMI) where 60% is required under state density bonus law. Adding residential development as an allowed use at higher densities creates land value and incentivizes housing production overall.

The City will pursue State and regional funding for affordable housing development. The City will also pursue local partnerships and annually meet with affordable housing organizations to encourage the development of housing affordable to all segments of the population. Additionally, The City will establish development incentives (i.e. deferment of fees, priority processing, modified development standards, etc.) for affordable housing projects that meet objective evaluation criteria similar to the process for density bonus concessions. The City will also develop clear instructional materials for achieving incentives and make them publicly available on the City’s website.

The City will review planning application fees, with a special focus on the density bonus fee, and update the fee(s) to avoid creating a constraint to the development of affordable housing.

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Additionally, the City will, subject to funding availability, continue to allocate HOME funding for Tenant-Based Rental Assistance Projects in Action Plans during the FY 2025-2029 planning period. The City estimates it will allocate $1,000,000 in HOME funds over the five-year planning period, starting with $200,000 in FY 2025-2029.

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Consolidated Plan COSTA MESA 103
OMB Control No: 2506-0117
SP-60 Homelessness Strategy – 91.215(d)
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Costa Mesa is one of the few municipalities in the region to employ a team of Outreach Workers who serve people experiencing and at risk of homelessness. This team – alongside a vast network of City staff, community volunteers, and nonprofit service providers - make up the Network for Homeless Solutions (NHS), whose primary goal is to connect people in need to resources and facilitate their journey to self-sufficiency. The City utilizes various federal funding streams (i.e., CDBG, CDBG-CV, HOME, and HOME-ARP) to subsidize projects and programs aimed at assisting our residents, including the development of affordable and supportive housing, workforce development, homelessness prevention, and emergency shelter.

Addressing the emergency and transitional housing needs of homeless persons In 2021, the City utilized CDBG funds to open the 100-bed Costa Mesa Bridge Shelter (CMBS), which provides adult males and females experiencing homelessness with shelter, meals, case management, workforce development, life skills training, benefit management, and on-site medical care. In 2024, the City was awarded a $4.2 million grant from the Orange County Health Care Agency (OCHCA) to implement 15 behavioral health care beds at the CMBS through FY 26/27. Through these efforts, the NHS has facilitated the placement of over 430 individuals into permanent housing since 2019.

Additionally, the City uses its CDBG public service funds for a second-step transitional housing program for domestic violence survivors.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.

The Network for Homeless Solutions (NHS) seeks to engage with those experiencing homelessness to ensure full access to all available resources and a smooth transition into permanent housing. This constant engagement shortens the length of homelessness and ensures those that have secured permanent housing are able to thrive in their new environments. Additionally, the City utilizes HOME funds to provide tenant based rental assistance to low and very-low income households both experiencing and at-risk of homelessness. The City is committed to increasing access to affordable housing units through advocacy for and development of affordable and supportive housing units and accomplished its first Permanent Supportive Housing project in the City in FY 2022-2023 through a partnership with the County for a motel conversion. Two additional motel conversion projects are currently in the planning stages.

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Families Forward, a nonprofit organization that provides housing and homeless prevention services, has two affordable housing projects in the City that provide housing for 16 formerly homeless households with minor children. They also provide additional support for families with CDBG funded supportive services, such as a food pantry, case management and career/life skills coaching.

The City’s COC partners include Mercy House, Families Forward, Illumination Foundation, Jamboree Housing, Trellis, CityNet, SPIN, Orange County Office of Care Coordination, Orange County Housing and Community Development, HUD, State HCD, and Orange County Housing Finance Trust. Additionally, the City has allocated the majority of its HOME-ARP grant funds for supportive services including legal services, case management services and outreach services for individuals experiencing or at risk of homelessness in an effort to prevent homelessness and/or shorten the period of time that individuals or families experience homelessness.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are likely to become homeless after being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health, social services, employment, education or youth needs
The City's homeless strategy is based on the proposition that it is less expensive and disruptive for a household to remain housed in their existing home than to be rehoused. To this end, the City will focus its resources on agencies that provide various safety-net services to prevent households from becoming homeless. The City will support programs that provide low-cost meals, counseling, and employment/job skills development services for lower-income individuals. Safety-net services allow households to save a portion of income previously spent on food, clothes, etc. and preserve their housing. Additionally, The City has also used and continues to use (until funds are expended) CDBG-CV and ARPA funds to provide emergency rental assistance to low-income residents facing financial hardships as a result of the Coronavirus pandemic and its subsequent impact to the economy. Since 2020, the City has allocated nearly $2.7M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs.

Additionally, on November 7, 2023, the City Council adopted an urgency Ordinance for Just Cause Residential Tenant Protections. $250,000 in ARPA funds were allocated to provide eviction and rental- related legal services including, but not limited to court filings, to enforce the eviction protection provisions of the Costa Mesa Municipal Code regarding unlawful acts in connection with no-fault just cause evictions. Three full time equivalent (FTE) positions were added to implement, monitor and enforce the subject Ordinance including two community outreach workers. The City has implemented a Community Outreach and Education Plan to inform both owners and tenants of their rights regarding evictions as well as the resources available to them. The City funds Project Hope Alliance (PHA) with CDBG and HOME-ARP funds to provide on- and off-campus case management of homeless and at-risk Newport Mesa Unified School District (NMUSD) students and their families. The services provided by PHA are vital to preventing both current and future homelessness for Costa Mesa residents.

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Consolidated Plan COSTA MESA 105
OMB Control No: 2506-0117
SP-65 Lead based paint Hazards – 91.215(i)
Actions to address LBP hazards and increase access to housing without LBP hazards The City’s Owner-Occupied Housing Rehabilitation programs (loans and grants) have been designed to test each participating unit built prior to 1978 (the year lead-based paint was banned) for lead-based paint. A grant is available for homeowners to test, and if necessary, address/remediate the lead hazards that may be found. All rental housing units that may be subject to public assistance will also be tested for lead-based paint hazards.

How are the actions listed above related to the extent of lead poisoning and hazards? The City can only address potential lead poisoning and hazards within the programs it funds. The City will mandate lead testing for all properties constructed prior to 1978 that are part of the City’s Housing Rehabilitation Programs.

How are the actions listed above integrated into housing policies and procedures? Current Housing Rehabilitation Program policies and procedures require all properties constructed prior to 1978 to be tested for lead. If lead is found, it must be removed or encapsulated as part of the overall rehabilitation of the unit.

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Consolidated Plan COSTA MESA 106
OMB Control No: 2506-0117
SP-70 Anti-Poverty Strategy – 91.215(j)
Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families According to the 2016-2020 ACS, 13.8 percent of the City’s population is living at or below the poverty level. Among those living in poverty, 14.6 percent had a disability. Furthermore, 10.9 percent of the seniors (65+) were living below poverty.

The City has identified several activities and services that can be implemented to combat poverty - this strategy includes support of programs that improve coordination and collaboration among City departments and nonprofit agencies that provide social services, employment counseling, and other support services for lower income persons. Specific examples include the following activities:
• Implement housing programs (including housing rehabilitation assistance) for lower income, senior and disabled homeowners.
• Implement a Tenant-Based Rental Assistance (TBRA) program for lower income residents • Support rental assistance programs provided by the Orange County Housing Authority for very low- income renters.
• Support homeless prevention services for individuals presently housed but at risk of losing their residence.
• Assist those already homeless in need of emergency shelter, transitional housing, or rapid rehousing, continue to coordinate the delivery of services with nonprofit partners. • Support safety net public services programs to improve the quality of life seniors, youth, the disabled, and other populations that may be severely impacted by the cost of living in the region.

How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan
The City’s anti-poverty strategy calls for assisting lower income households (i.e., seniors and disabled homeowners) to improve their homes without incurring new housing cost. The support for OCHA’s rental assistance programs for very low-income renters is also consistent with the City’s affordable housing strategy. Additionally, safety net programs (e.g., food programs) assist high poverty households by helping them to free up income for housing. The City is placing a high priority on rental assistance and will, subject to funding availability, allocate HOME program income funding for Tenant-Based Rental Assistance Projects in Action Plans during the FY 2025-2029 planning period.

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Consolidated Plan COSTA MESA 107
OMB Control No: 2506-0117
SP-80 Monitoring – 91.230
Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
Costa Mesa has instituted a monitoring plan for sub-recipients receiving CDBG public service grant funds. Monitoring is conducted by the City’s HCD staff. Monitoring involves an in-house review of progress reports and expenditures, and when needed, an on-site visit of sub-recipients to ensure further compliance with federal regulations. The City’s monitoring system encourages uniform reporting to achieve consistent information on beneficiaries. Technical assistance is provided as necessary. At a minimum, public service grant recipients receiving consecutive years of CDBG funding will undergo on- site monitoring every other year. If resources permit, they will be monitored annually. Any new grant recipient or a recipient that has displayed administrative/program issues will be monitored annually until adequate administrative/programmatic capacity can be ensured. A monitoring checklist has been developed by the City to assist with program evaluation and on-site monitoring.

Rental housing units that are subject to long-term affordability are also monitored. The HOME program has established time intervals to conduct on-site property inspections. These intervals are based on the number of rental units in the HOME-assisted project. HOME-required inspections can vary from once per year to once every three years. Costa Mesa has established a master list of HOME assisted units listing inspection intervals and dates for the next on-site inspection. To ensure qualified low-income households occupy rental units, an annual recertification of tenant eligibility is required by the City.

The City has actively sought to comply with the minority/women owned business outreach requirements of the HOME program. The City provides information regarding contracting opportunities to minority/women owned enterprises and minority/women business owner organizations. Additionally, the City requires CHDOs to undertake efforts to reach out to minority and women owned businesses with business opportunities.

Elements of the City’s Outreach Plan include the following:
• The City will make an effort to place qualified small and minority businesses and women’s business enterprises on solicitation lists.
• The City will assure that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources.
• The City may divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women’s business enterprises.

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Consolidated Plan COSTA MESA 108
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• The City will endeavor to use the services of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce, as well as local minority chambers of commerce.

If subcontracts are used, the prime contractor will be required to take the action steps listed above to comply with minority and women owned business outreach efforts.

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Consolidated Plan COSTA MESA 109
OMB Control No: 2506-0117
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
HUD has announced that the City of Costa Mesa is receiving an allocation of $907,261 in CDBG and $378,720 in HOME funds. In addition, $172,000 in prior year uncommitted CDBG funds, $1,685,283 in prior year uncommitted HOME funds, and $50,000 in prior year HOME program income (PI) are available for programming. The City’s application for funds is in the form of the SF 424.

Ongoing reductions and fluctuations in CDBG and HOME funding make it difficult to estimate the amount that will be available over the five-year time period of the Consolidated Plan. With the loss of redevelopment funding, the only anticipated funds that may be available to implement the Consolidated Plan are general fund for homeless services and housing voucher/certificate resources via OCHA.

Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
907,261 0 172,000 1,079,261 3,600,000
Remainder estimate is
based on an annual
allocation of $900,000.

Estimate for the planning
period is $4,679,261.

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Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New construction
for ownership
TBRA $378,720 $50,000 $1,685,283 $2,114,003 1,600,000
Remainder estimate is
based on an annual
allocation of $400,000.

Estimate for the five-year
planning period is
$3,714,003.

Table 45 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City continues to allocate General Fund and resources from the local Housing Authority (as the City’s Successor Agency) for homeless services. In addition, the City will pursue funding available from the County and State to provide for homeless services and facilities.

The City has implemented a CalHome owner-occupied housing rehabilitation loan program. Therefore, loan expenditures from this program will provide a match source for the City’s HOME program. Overall, the City has an accumulated HOME match surplus available to meet HOME match program requirements.

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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City's Housing Element identifies City-owned and State-owned properties, and considers various options for the sites. Development opportunities are identified in the Housing Element. The most recent Housing Element covers years 2021 through 2029 and includes updates to the development opportunities to address the needs identified in the Consolidated Plan. For example, the Housing Element identifies the City’s Senior Center property as a site for redevelopment to accommodate affordable housing units for seniors. The City Council approved the property for a 70-unit senior affordable housing complex that could be opened by 2027. In addition, the Housing Element identifies the State’s Fairview Developmental Center site as a potential housing opportunity site. In December 2022, an agreement between the City and the State was signed which provided $3.5 Million in State funds to the City for land use planning and zoning at the Fairview Developmental Center (FDC) site focused on accommodating housing for households at all income levels, with a priority for projects that provide housing for individuals with developmental disabilities. Meetings have been conducted for residents to provide input regarding community needs and values for the FDC site. City Council members expressed a desire to explore increasing the number of housing units on the FDC site beyond the 2,300 units identified in the Housing Element.

In 2019, the City used non-federal funds to acquire a property for the purpose of creating an emergency shelter. CDBG funds were used to provide interior and exterior improvements to the existing building to create, what is now, a 100-bed emergency shelter for homeless adult men and women.

Discussion
In recent years, HOME housing rehabilitation loan repayments have provided the City with additional funding; however, this source of funds is susceptible to the fluctuations of the economy and thus unpredictable. The City will actively pursue State and Federal funding to leverage local resources for affordable housing, homeless services and housing, and community development activities.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Housing
Preservation
2025 2029 Affordable
Housing
Citywide Housing
Preservation
CDBG: $510,000
(Code $385,000,
Rehab $125,000)
HOME:
$1,881,808
(Rehab $325,000,
Affordable
Housing
$1,500,000,
CHDO $56,808)
Rental units rehabilitated: 1
Household Housing Unit
Homeowner Housing
Rehabilitated: 20 Household
Housing Unit
Housing Code
Enforcement/Foreclosed Property
Care: 250 Household Housing Unit
2 Infrastructure
and Facility
Improvements
2025 2029 Non-Housing
Community
Development
Citywide
CDBG
Eligible
Areas
Public Facilities
and
Infrastructure
CDBG: $251,720 Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 2,500 Persons Assisted
3 Homeless
Continuum of
Care
2025 2029 Homeless Citywide Homeless
Services and
Housing
CDBG: $53,044
(Families
Forward, Human
Options)
HOME: $200,000
(TBRA)
Tenant-based rental assistance /
Rapid Rehousing: 15 Households
Assisted
Homeless Person Overnight
Shelter: 100 Persons Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
4 Public Social
Services
2025 2029 Non-Homeless
Special Needs
Citywide Public Services CDBG: $83,045 Public service activities other than Low/Moderate Income Housing
Benefit: 622 Persons Assisted
5 Program
Administration
2025 2029 Program
Administration
Citywide Program
Administration
CDBG: $181,452
HOME: $37,872
Other: 1 Other
Table 46 – Goals Summary

Goal Descriptions
1 Goal Name Housing Preservation
Goal Description To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/ rehabilitation. 2 Goal Name Infrastructure and Facility Improvements
Goal Description To enhance the suitability of the living environment through improvements to public infrastructures and facilities. 3 Goal Name Homeless Continuum of Care
Goal Description To provide supportive services and housing assistance for the for the homeless and near homeless. 4 Goal Name Public Social Services
Goal Description To provide services for low- and moderate-income persons, and those with special needs. 5 Goal Name Program Administration
Goal Description To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying all HUD program requirements, including the provision of fair housing services.

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Projects
AP-35 Projects – 91.220(d)
Introduction
This Action Plan outlines the steps that the City of Costa will use to address housing and community development needs in the City. The plan includes a listing of activities that the City will fund during FY 2025-2026 (July 1, 2025 through June 30, 2026) using CDBG and HOME funds.

Projects
# Project Name
1 CDBG Administration
2 CDBG Fair Housing
3 CDBG Housing Rehabilitation Administration
4 CDBG Housing Rehabilitation
5 Assistance League - Newport Mesa
6 Families Forward
7 Human Options
8 Project Hope Alliance
9 Trellis International – Labors of Love
10 City of Costa Mesa Senior Social Services
11 CDBG Code Enforcement
12 CDBG Capital Improvements Project
13 HOME Administration
14 HOME Affordable Housing (CHDO)
15 HOME Affordable Rental Housing
16 HOME Housing Rehabilitation
17 HOME Tenant Based Rental Assistance (TBRA)
Table 47 – Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City recognizes that special needs populations (i.e., seniors, disabled, and households with extremely low-income) are more likely at risk to become homeless because they have limited incomes and have other issues that require housing and supportive services; therefore, the City considers services for those already homeless a high need to merit funding. The primary obstacles to meeting the underserved needs of low- and moderate- income residents include a lack of funding from federal, state and local sources, and the high cost of housing combined with the low vacancy rate in Costa Mesa and throughout Orange County.

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AP-38 Project Summary
Project Summary Information
1 Project Name CDBG Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration
Funding CDBG: $161,452
Description CDBG program oversight
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities Program oversight and coordination
2 Project Name CDBG Fair Housing
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration/Fair Housing
Funding CDBG: $20,000
Description Fair housing outreach, education and enforcement services Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
186 individuals
Location Description Citywide
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Planned Activities Community outreach, education, and enforcement of fair housing laws
3 Project Name CDBG Housing Rehabilitation Administration Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $50,000
Description CDBG funds staff costs associated with the direct delivery of owner-occupied housing rehabilitation loans and grants
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
N/A - The number of households to be assisted is accounted for under the HOME program - this activity is to pay for a portion of the administrative expenses associated with the HOME-funded Housing Rehabilitation Program
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities Staff costs associated with the delivery of housing rehabilitation loans and grants
4 Project Name CDBG Housing Rehabilitation Grants Program Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $75,000
Description CDBG funds for housing rehabilitation grants Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
15 households
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Location Description Citywide
Planned Activities Homeowner housing rehabilitation grants to address deferred property improvements and building code deficiencies
5 Project Name Assistance League of Newport Mesa
Target Area Newport Mesa School District
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $15,913
Description Shoes for low-income students
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
300 individuals
Location Description Citywide
Planned Activities Shoes will be provided for low-income Costa Mesa students in the Operation SchoolBell – Feet First program
6 Project Name Families Forward
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding CDBG: $26,522
Description Housing Supportive Services
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
33 individuals
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Location Description Citywide
Planned Activities The program will provide housing support services for homeless Costa Mesa families with children
7 Project Name Human Options
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding CDBG: $26,522
Description Transitional Housing and Support Services
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
58 individuals
Location Description Citywide
Planned Activities Transitional housing and support services for survivors of domestic violence
8 Project Name Project Hope Alliance
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $21,219
Description Case management and wrap-around services for NMUSD students experiencing homelessness including one-on-one case management, mentoring, tutoring, college and FAFSA application assistance, job search assistance, basic needs support like food Target Date 06/30/2026
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Estimate the
number/type of families
that will benefit from the
proposed activities
83 individuals
Location Description Citywide
Planned Activities CDBG funds will support the salaries of program staff to provide one-on-one case management, mentoring, tutoring, college and FAFSA application assistance, and job search assistance 9 Project Name Trellis International – Labors of Love
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $15,913
Description Manual labor projects to help low-income seniors Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
15 individuals
Location Description Citywide
Planned Activities CDBG will fund staff salaries and supplies to oversee volunteers and carry-out the program
10 Project Name City of Costa Mesa Senior Social Services Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $30,000
Description Counseling and case management for seniors
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Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
260 seniors
Location Description Program available citywide but based out of the Costa Mesa Senior Center located at 695 W. 19th Street, Costa Mesa, CA.

Planned Activities Funding for counseling and case management for seniors 11 Project Name CDBG Special Housing Code Enforcement
Target Area CDBG Eligible Areas
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $385,000
Description Enforcement of housing and building codes and connecting residents with housing-related resources
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
200 Housing Units
Location Description 77 Fair Drive, Costa Mesa, CA – City Hall Planned Activities Inspection and enforcement of housing and building codes in CDBG eligible declining/deteriorating areas combined with connecting residents to housing-related resources to halt the decline of the area.
12 Project Name Westside Street Improvements
Target Area CDBG Eligible Areas
Goals Supported Infrastructure and Facility Improvements Needs Addressed Public Facilities and Infrastructure
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Funding CDBG: $251,720
Description Street Pavement Rehabilitation
Target Date 06/30/2027
Estimate the
number/type of families
that will benefit from the
proposed activities
TBD – approximately 2,500
Location Description CDBG Eligible Areas: Census Tract 063803-3 – 063803-4 Planned Activities Rehabilitation of street pavement as an infrastructure project may include repairing existing sidewalks, wheelchair ramps, driveways, and curb gutter to meet City and ADA standards, reconstruction of failed pavement; grind and overlay pavement with rubberized asphalt; and upgraded striping that includes bike lanes.
13 Project Name HOME Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Program Administration
Funding CDBG: $37,872
Description HOME funds for program oversight and coordination Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities HOME Program Oversight and Coordination 14 Project Name HOME Affordable Housing (CHDO)
Target Area Citywide
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Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $56,808
Description HOME-CHDO funds reserved for eligible housing project (to be determined)
Target Date 06/30/2027
Estimate the
number/type of families
that will benefit from the
proposed activities
1 housing unit. Goal entered for data input purposes only Location Description TBD
Planned Activities TBD
15 Project Name HOME Affordable Rental Housing
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $1,500,000
Description Affordable Rental Housing Project TBD
Target Date 06/30/2027
Estimate the
number/type of families
that will benefit from the
proposed activities
TBD
Location Description TBD
Planned Activities TBD
16 Project Name HOME Housing Rehabilitation Grants and Loans Program Target Area Citywide
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Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $325,000
Description HOME funds for owner-occupied housing rehabilitation loans and grants
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
16 low- and moderate- income homeowners (1 loan and 15
grants)
Location Description Citywide
Planned Activities Housing rehabilitation loans and grants to address deferred property improvements and building code deficiencies
17 Project Name HOME Tenant Based Rental Assistance (TBRA) Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding HOME: $200,000
Description The City will use HOME funds for tenant based rental assistance to assist low-income residents with rental assistance to increase housing affordability
Target Date 06/30/2026
Estimate the
number/type of families
that will benefit from the
proposed activities
15 low-income households with minor children
Location Description Citywide
Planned Activities HOME funds will be used to provide tenant-based rental subsidies
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Activities slated for CDBG-funding during Fiscal Year 2025-2026 will mainly be available on a citywide basis to income eligible individuals (i.e., limited clientele). See Appendix B for the City’s CDBG eligible areas.

Geographic Distribution
Target Area Percentage of Funds
Citywide 90
CDBG Eligible Areas 10
Table 48 - Geographic Distribution

Rationale for the priorities for allocating investments geographically The priority needs identified in the City’s FY 2025-2029 Consolidated Plan form the basis for allocation investments geographically within the jurisdiction during FY 2025-2026. The established priorities are:

High Priority
• Housing Preservation
• Public Facilities and Infrastructure
• Homeless Services and Housing
• Public Needs Services
• Program Administration
HUD funding will primarily be allocated on a citywide basis as the City’s primary intent is to serve eligible Costa Mesa households in need of housing and services regardless of where they live in the City. As the City’s CDBG-eligible areas tend to be older sections of the City, area-wide activities will help to improve and sustain these neighborhoods and perhaps encourage homeowners to also invest in their homes.

Discussion
As indicated above, CDBG and HOME funds will focus on programs that serve eligible residents regardless of where they live. It is also expected that the City’s investment in neighborhoods will create a synergy whereby residents will also invest in their home and community.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
During Fiscal Year 2025-2026, proposed activities to be funded with CDBG and HOME funds will meet the housing needs of the following households.

One Year Goals for the Number of Households to be Supported Homeless 5
Non-Homeless 10
Special-Needs 5
Total 20
Table 49 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 15
Rehab of Existing Units: 15
Total 30
Table 50 - One Year Goals for Affordable Housing by Support Type

Discussion
The City will focus FY 2025-2026 HOME funds on the rehabilitation of existing owner-occupied housing units and tenant-based rental assistance (TBRA). The City will make CDBG funds available for the homeowner rehabilitation grants program to assist additional residents that may not be eligible for HOME funding. While not the primary focus of the program, some special-needs households (senior and disabled) may be assisted during the year via the City’s Housing Rehabilitation Program. Additionally, the City will release an RFP or RFQ for affordable rental housing projects in the City to be funded with prior year(s) uncommitted HOME funds that have been identified for FY 2025-2026.

Since 2020, the City has allocated more than $2.7M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs. It is anticipated that OCHA will continue to provide rental assistance to approximately 540 Costa Mesa renter households during FY 2025-2026.

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AP-60 Public Housing – 91.220(h)
Introduction
Costa Mesa does not own or manage public housing.

Actions planned during the next year to address the needs to public housing Not applicable.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
Not applicable.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
As outlined in the Strategic Plan, the City’s homeless strategy is to support programs that helps to prevent homelessness by supporting safety net services. These programs will help households, especially extremely low-income households, maximize the amount of income they have available for housing. Additionally, both HUD and City resources will be allocated to provide access to a continuum of services, including the Costa Mesa Bridge Shelter and housing to assist those already homeless and with strong ties to the community.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
In recent years, the City has directly funded homeless outreach services with City General Funds and other non-HUD funds. The City of Costa Mesa Network for Homeless Solutions (NHS) is a ten-person team who meet people where they are to forge genuine relationships, make connections to services, and, ultimately, facilitate their transition into permanent housing. Partnering agencies are CityNet, PATH (Orange County North and Central Service Planning Area (SPA) contracted outreach provider), Save Our Selves (SOS), Lighthouse Church, Mercy House, Trellis, Chrysalis, Project Hope Alliance, Meals on Wheels OC, Families Forward, Serving People In Need (SPIN), and Someone Cares Soup Kitchen.

Addressing the emergency shelter and transitional housing needs of homeless persons The City owns and operates a 100-bed emergency shelter including 15 beds for individuals experiencing homelessness with behavioral health needs. The facility is funded in partnership with the City of Newport Beach. Mercy House, a nonprofit organization, is the Shelter Operator and Bracken’s Kitchen, a nonprofit organization, operates the full-service commercial kitchen. Shelter partners are Mercy House, Bracken’s Kitchen, Trellis, Orange County Housing Authority (OCHA), Santa Ana Housing Authority (SAHA), Anaheim Housing Authority (AHA) and Garden Grove Housing Authority (GGHA). The City utilized CDBG funds to repurpose a warehouse into the shelter facility in 2019. Since that time, the Bridge Shelter has assisted over 1,000 individuals with emergency shelter and associated services including housing 190 shelter participants and housing 240 individuals through street outreach for a total of 430 housed between April 14, 2019 and February 28, 2025.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The Network for Homeless Solutions (NHS) includes a ten-person team of Outreach Workers, a 100 - bed emergency shelter, and the provision of affordable/supportive housing. Each one of these components DRAFT
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seeks to engage with those experiencing homelessness to ensure full access to all available resources and a smooth transition into permanent housing. This constant engagement shortens the length of homelessness and ensures those that have secured permanent housing are able to thrive in their new environments. Since April 2019, the City of Costa Mesa has assisted 430 formerly homeless people to secure permanent housing. Additionally, the City utilizes HOME funds to provide tenant based rental assistance to low and very-low income households both experiencing and at-risk of homelessness. The City is committed to increasing access to affordable housing units through advocacy for and development of affordable and supportive housing units. The City’s first Permanent Supportive Housing project completed its first stage of housing units in FY 2023-2024 and currently houses formerly homeless residents. Families Forward has two affordable housing projects in Costa Mesa that continue to house 16 (previously homeless) households with minor children. The City’s COC partners include Mercy House, Families Forward, Jamboree Housing, Trellis, CityNet, SPIN, Orange County Office of Care Coordination, Orange County Housing and Community Development, HUD, State HCD, and Orange County Housing Finance Trust. Additionally, the City has allocated the majority of its HOME-ARP grant funds for supportive services including legal services, case management services and outreach services for individuals experiencing or at-risk of homelessness in an effort to prevent homelessness and/or shorten the period of time that individuals or families experience homelessness.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
The City's homeless strategy is based on the proposition that it is less expensive and disruptive for a household to remain housed in their existing home than to be rehoused. To this end, the City will focus its resources on agencies that provide various safety-net services to prevent households from becoming homeless. The City will support programs that provide low-cost meals, counseling, and employment/job skills development services for lower-income individuals. Safety-net services allow households to save a portion of income previously spent on food, clothes, etc. and preserve their housing. Additionally, The City has also used and continues to use (until funds are expended) CDBG-CV and ARPA funds to provide emergency rental assistance to low-income residents facing financial hardships as a result of the Coronavirus pandemic and its subsequent impact to the economy. Since 2020, the City has allocated more than $2.7M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs.

Discussion
In addition to the above, on November 7, 2023, the City Council adopted an urgency Ordinance for Just Cause Residential Tenant Protections. $250,000 in ARPA funds were allocated to provide eviction and DRAFT
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rental-related legal services including, but not limited to court filings, to enforce the eviction protection provisions of the Costa Mesa Municipal Code regarding unlawful acts in connection with no-fault just cause evictions. Three full time equivalent (FTE) positions were added to implement, monitor and enforce the subject Ordinance including two community outreach workers. The City has implemented a Community Outreach and Education Plan to inform both owners and tenants of their rights regarding evictions as well as the resources available to them. The City funds Project Hope Alliance (PHA) with CDBG and HOME-ARP funds to provide on- and off-campus case management of homeless and at-risk Newport Mesa Unified School District (NMUSD) students and their families. The services provided by PHA are vital to preventing both current and future homelessness for Costa Mesa residents.

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

A strategy to address barriers to affordable housing and actions to overcome these barriers is provided in the City’s Housing Element. The current Housing Element covers the eight-year planning cycle of 2021-2029 and provides updated strategies to address barriers to affordable housing since the completion of the FY 2020-2024 consolidated planning process. The City will continue efforts to address these barriers, incorporating the updated strategies throughout the FY 2025-2029 Consolidated Plan.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
According to the City’s Housing Element, governmental agencies’ actions or policies can impact the private sector’s ability to provide adequate housing to meet consumer demands. Local governments exercise regulatory and approval powers that directly impact residential development within their respective jurisdiction. These powers establish the location, intensity, and type of units that may or may not be developed. The City’s General Plan, zoning regulations, project review and approval procedures, development, and processing fees all play important roles in determining the cost and availability of housing opportunities in Costa Mesa. Implementation actions identified in the City’s current Housing Element and progress reports to address the negative effects that serve as barriers to affordable housing include:

The City Plans to regularly monitor deed-restricted units that have the potential of converting to market- rate during the planning period, work with the property owner on potential extensions past the current agreement to extend the affordability period, and comply with noticing requirements and coordinate with qualified entities to preserve at-risk units.

The City initiated the affordable housing ordinance effort in 2021, retaining Keyser Marston Associates (KMA). Since then, KMA completed the required Financial Evaluation and the City conducted 17 stakeholder meetings, two joint Council/Planning Commission Study Sessions and completed the draft Ordinance. The final Affordable Housing Ordinance (Ordinance No. 2024-02) was approved at the regularly scheduled City Council meeting on August 6, 2024.

The Affordable Housing Ordinance will require residential developments with 50 units or more to include an affordable housing component. The residential development must set aside a portion of the residential units as affordable, or provide land dedication, or construct off-site affordable units, or pay in-lieu fees. To implement the Affordable Housing Program, the City would rezone non-residentially zoned properties located along major corridors to allow for higher density housing with reduced parking requirements and the allowance of affordable rents for low-income units to be calculated based on 80% of the area median income (AMI) where 60% is required under state density bonus law. Adding DRAFT
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residential development as an allowed use at higher densities creates land value and incentivizes housing production overall.

The City will pursue State and regional funding for affordable housing development. The City will also pursue local partnerships and meet annually with affordable housing organizations to encourage the development of housing affordable to all segments of the population. Additionally, the City will establish development incentives (i.e. deferment of fees, priority processing, modified development standards, etc.) for affordable housing projects that meet objective evaluation criteria similar to the process for density bonus concessions. The City will also develop clear instructional materials for achieving incentives and make them publicly available on the City’s website.

The City will review planning application fees, with a special focus on the density bonus fee, and update the fee(s) to avoid creating a constraint to the development of affordable housing.

Discussion:

The City's Housing Element outlines the City's plan to address barriers to affordable housing. The City of Costa Mesa followed certain “guiding principles” in developing its approach and strategy for accommodating future housing growth. These guiding principles assist with implementation of the housing goals, policies and programs and will aid overall decision making. The guiding principles are rooted in community engagement and local knowledge and input into the planning process. The guiding principles are as follows:

The City will plan for future housing primarily along major commercial, industrial, and mixed use corridors within Costa Mesa that are compatible with growth, while preserving established residential neighborhoods.

Each neighborhood, community, and district within Costa Mesa has its own unique characteristics and needs. Future housing growth will build upon Costa Mesa’s history and complement the diversity and unique characteristics that already exist within each area.

The City will plan for a diverse range of housing forms, types, and densities to address the housing needs of an inclusive and diverse community and provide housing opportunities that meet the needs of all residents, including low-income households, seniors, multi-generational families, larger households, and special needs groups.

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Introduction:

The priority needs identified in the City’s FY 2025-2029 Consolidated Plan form the basis for allocation investments geographically within the jurisdiction during FY 2025-2026. The established priorities are:

High Priority
• Affordable Housing Preservation
• Public Facilities and Infrastructure
• Homeless Services and Housing
• Public Needs Services
• Program Administration
Outlined below are the actions the City will implement to address the sub-strategies of the Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs The City will allocate a portion of its CDBG and HOME funds for activities that address the housing and service needs of the elderly and lower-income households. The City's housing rehabilitation program assists elderly and lower-income homeowners in improving their residences to address specific household needs and the City’s tenant based rental assistance program assists low-income families with minor children to keep them in permanent housing. Additionally, the City will encourage and support OCHA's efforts to obtain additional rental assistance funding, especially for senior and low-income households. OCHA reports that as of March 2025, 540 households in Costa Mesa were receiving Housing Choice Vouchers. Among these households, 95 included members with disabilities, 394 with at least one elderly person, 35 Veteran households, and 63 family households. Among these households, 29 were homeless at admission. OCHA re-opened its waiting list on September 18, 2023. As of March 2025, there are 293 Costa Mesa names on the 2023 waiting list including 161 disabled persons, 109 elderly, 42 families, 19 currently homeless and 27 Veterans. The waiting list from 2012 has a total of 15 households on it including 3 disabled persons, 5 elderly persons, 7 families and 1 currently homeless.

Actions planned to foster and maintain affordable housing The City of Costa Mesa has identified the actions it will undertake during Fiscal Year 2025-2026 to foster and maintain affordable housing. The Consolidated Plan identified programs such as Owner-Occupied Housing Rehabilitation assistance as the means to maintain and improve housing currently available to by low- and moderate-income residents. By providing deferred payment loans and grants, lower income households are able to rehabilitate their residence to meet basic housing quality standards and incur zero or minimal additional housing costs. An estimated 16 housing units will be assisted with HOME DRAFT
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funds during Fiscal Year 2025-2026. The City will also allocate CDBG funding for housing rehabilitation grants in FY 2025-2026, to assist homeowners with rehabilitation projects that would not qualify for funding under the HOME program. Additionally, the City has allocated HOME CHDO funds to accommodate a potential housing project and identified uncommitted HOME entitlement funds from prior years to issue a Request for Proposals (RFP)or a Request for Qualifications (RFQ) to solicit applications for funding and/or selecting developers, service providers, subrecipients and/or contractors for the development of permanent affordable rental housing in the City.

Actions planned to reduce lead-based paint hazards
Based on past housing rehabilitation program statistics, only a small percentage of housing units that were rehabilitated with City resources contain lead-paint hazards. To ensure compliance with program regulations, all housing units that were constructed before 1978, that are rehabilitated with City resources, will be tested for lead-paint hazards. If needed, additional grant funds can be allocated to a project to ensure all lead-based hazards are mitigated.

Actions planned to reduce the number of poverty-level families The City will assist programs and services that combat poverty. During Fiscal Year 2025-2026 the City will fund the following activities to support implementation of this strategy:
• Housing rehabilitation grants and loans for lower-income senior and disabled homeowners • Support rental assistance programs provided by the OCHA for very-low income renters and provide tenant based rental assistance to residents who are severely rent burdened • Support services for individuals presently housed but at risk of losing their residence. Also, assist those already homeless in need of emergency shelter, and other populations that may be severely impacted by the cost of living in the region
Actions planned to develop institutional structure
The City has made an effort to establish an institutional structure to help identify and access resources to improve the community. For example, the City will continue to work with nonprofit entities to deliver public services. As a member of the Orange County Continuum of Care Community Forum, the City will provide critical information to the County of Orange to prepare the County's Continuum of Care Homeless Assistance grant application to HUD. Costa Mesa will also continue to fund activities that help address gaps and needs in the regional system of care. Finally, the City will continue to assist the Orange County Housing Authority in implementing its Five-year PHA plan.

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Actions planned to enhance coordination between public and private housing and social service agencies
The City of Costa Mesa does not operate public housing. The Orange County Housing Authority provides rental assistance in the community. Federal legislation requires that the Housing Authority prepare five- year and one-year plans that highlight its mission, goals and objectives as it relates to public and assisted housing programs. The City will review the Authority’s plans and provide OCHA the opportunity to review and consult with the City regarding its Consolidated Plan. The goal of this cross-consultation is to provide consistent and coordinated housing services for City residents. Ongoing consultation with local nonprofits also assists the City to coordinate the efficient and effective use of limited resources federal resources.

Discussion:

HUD-funded grant recipients are required under various laws not to discriminate in housing or services directly or indirectly based on race, color, religion, sex, national origin, age, familial status or disability.

Grant recipients such as Costa Mesa are required to: (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choices for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, national origin, and other personal or familial attributes; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate region-wide fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document utilized for this purpose. In addition to identifying impediments, a strategy to overcome barriers must be developed and implemented. The City participated with all 34 cities in Orange County to develop an updated Orange County Regional Assessment of Fair Housing for FY2025-26 through FY2029-30. An executive summary of the Regional Assessment of Fair Housing approved by City Council on May 20, 2025 is found in Appendix F.

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Program Specific Requirements

AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Each HUD program that is covered by the Consolidated Plan regulations must address certain program specific requirements. Below are the program requirements for the CDBG and HOME programs.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00%

The City will meet the CDBG Program’s overall 70% benefit for low- and moderate-income requirement over three program years; 2023-2024, 2024-2025, and 2025-2026.

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HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City is not proposing to utilize HOME funds in a form that is not delineated in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City has not, and does not plan to utilized HOME funds for homebuyer assistance; however, if funds were to be redirected to such a program, steps will be taken to ensure program guidelines comply with applicable resale and recapture regulations.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

As indicated above, the City has not, and does not plan to use HOME funds for homebuyer assistance; however, if funds were to be redirected to such a program, the applicable loan agreement would be prepared to comply with the resale/recapture requirements delineated in 24 CFR 92.254.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City has not proposed use of HOME funds to refinance existing debt secured by multifamily housing; however, if funds were to be redirected to such a program, program staff will ensure that all applicable program policies are followed including establish refinancing guidelines and amending the Consolidated Plan to include guidelines.

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).

N/A

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6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).

N/A

7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR

92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

N/A

Appendix - Alternate/Local Data Sources

1 Data Source Name
Detail Homeless Information
List the name of the organization or individual who originated the data set. 211OC, Orange County United Way
Provide a brief summary of the data set.

The Point-in-Time (PIT) count is a count of sheltered and unsheltered homeless persons on a single night during the last 10 days of January. The data is from the 2024 Final Point in Time Report.

What was the purpose for developing this data set?
Enumeration of homeless in Orange County.

How comprehensive is the coverage of this administrative data? Is data collection concentrated in one geographic area or among a certain population?
Survey based on HUD's best practices point-in-time methodology.

What time period (provide the year, and optionally month, or month and day) is covered by this data set? Information is provided in narratives.

What is the status of the data set (complete, in progress, or planned)? Complete
2 Data Source Name
Orange County Housing Authority Data
List the name of the organization or individual who originated the data set.

Orange County Housing Authority (OCHA)
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Provide a brief summary of the data set.

OCHA provided the number of Costa Mesa residents receiving assistance through certificates and vouchers.

What was the purpose for developing this data set?
The purpose of this data set was to provide data specific to Costa Mesa Public Housing rather than the Orange County-wide provided by HUD through the Housing Authority.

Provide the year (and optionally month, or month and day) for when the data was collected.

March 2024
Briefly describe the methodology for the data collection.

The data was collected by OCHA and was sent to Costa Mesa upon request.

Describe the total population from which the sample was taken.

The population is Costa Mesa residents receiving assistance through OCHA.

Describe the demographics of the respondents or characteristics of the unit of measure, and the number of respondents or units surveyed.

Persons assisted through OCHA.
3 Data Source Name
2016-2020 ACS Vacant Units
List the name of the organization or individual who originated the data set.

American Community Survey
Provide a brief summary of the data set.
2016-2020 estimates of vacant units in Costa Mesa.

What was the purpose for developing this data set?
The purpose of this dataset is to estimate then number of vacant units suitable for rehabilitation.

Provide the year (and optionally month, or month and day) for when the data was collected. 2016-2020 estimates
Briefly describe the methodology for the data collection.

Data was collected by the Census Bureau.

Describe the total population from which the sample was taken.

A sample of Costa Mesa's housing stock was surveyed to provide estimates.

Describe the demographics of the respondents or characteristics of the unit of measure, and the number of respondents or units surveyed.

Housing Units

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Appendix

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Appendices
Appendix A: Summary of Public Outreach
Consolidated Plan COSTA MESA Appendix A-1
Co
mmunity Outreach
ATTACHMENT 3
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Consolidated Plan COSTA MESA Appendix A-3

Stakeholder Meeting Attendance:

Name Organization District Email
Vanessa Bragg Human Options [email protected]
Jay Humphrey Resident 1 [email protected]
Garrett Whitfield GSW Development Inc. 6 [email protected] Dianne Russell Resident 5 [email protected]
Cynthia McDonald Costa Mesa First 2 [email protected] Rick Huffman Costa Mesa First 2 huff[email protected]
David Martinez Planning Commission 5 [email protected] Terry Moore Trellis 3 [email protected]
Timothy Huynh Mercy House [email protected]
Sarah Heath OC United Way/Resident 5 [email protected] James Johnson City Ventures LLC [email protected] Rose Bermudez Families Forward [email protected] Alejandro Santiago OC United Way 5 [email protected] Ian Stevenson Trellis/Love Costa Mesa 3 [email protected] Nishtha Mohendra Families Forward 5 [email protected] Darrell Hyne Nationwide Real Estate [email protected]

September 26, 2024 Health Expo Attendance October 10, 2024 Community Meeting Attendance

October 24, 2024 Community Meeting Attendance

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Community Meeting Flyers

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Community Meeting Flyers

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Stakeholder Meeting Flyer

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Survey
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Survey

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Written responses to survey question 13 “Please describe any other needs or concerns you have about the city that haven’t been addressed in this survey”.

Respondents Responses
1 Lack of affordable housing options for homeless
2 City permit/inspection process needs improvement with execution and efficiency. The whole process for construction projects takes far too long 3 Soccer fields. Easier permit process for home improvement 4 Crime
5 Street repairs due to increase number of trucks, especially the different trash trucks 6 What will empower the most residents to care for themselves and each other? 7 The cleanliness of the city. The sidewalks are dirty. Trash in the streets. 8 Graffiti removal services and hotline
9 Repeal sanctuary city proclamation
10 More housing and better streets for more transportation 11 Way too many “legal” drug facilities. Stop building all these houses – enough is enough.
12 Homeless off the streets – 100%
13 Homeless encampments. Very little enforcement
14 Public patrol in neighborhoods. Police response time. Enforcement of laws. 15 Roads! Major issue with more housing/good schools
16 Increased police presence and staffing
17 We need more bike lanes
18 Drug addiction
19 Another dog park
20 19th street and the Placentia bike lanes are terrible and need to be fixed. The back-up on 19th is the worst now that you have taken away a land and added a light. The bike lanes are too big and the road to drive is too small.
21 homelessness
22 Pot hole fixes, repaving needed on Mendoza street
23 Rents are higher than mortgages and not affordable
24 General cleanliness and pride in the neighborhoods. There is a lot of trash and debris everywhere. Illegal parking all through Eastside and a seeming lack of pride from the renters in large street duplexes/units.
25 Too many homeless drug users everywhere
26 Law enforcement presence
27 Clearly marked bicycle lanes
28 Must there be so many Marijuana dispensaries? I would like to see less of these. Also, there needs to be a plan for income-based housing for seniors. Affordable housing is still expensive for people on social security.
29 Missing middle housing. Street safety improvements (slow the cars). Active transportation infrastructure.
30 Traffic law enforcement. Stop signs, residential speeding/burnouts, late night takeovers on the freeway (55).

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31 Allow homeowners to replace parkway strip trees without the penalty of having to provide additional trees to the city for planning elsewhere 32 Need more housing supply at all income levels; also need more public transportation 33 Gentrification
34 Illegal drug use, crime, homeless and enforcement of driving laws 35 The homeless issue (them sleeping on the street) needs to be fixed 36 Graffiti keeps popping up around the neighborhoods
37 1.5 million is just not enough money. I am interested as to whether we could pursue some more grants or something we need a huge investment and some gracious donors to really build this city up and fortify us. We are on the brink of some very dangerous things happening and Costa Mesa is a beautiful place that can outlive some of the disasters on her verge if we really dig in.
38 Policing of homeless
39 El alto costo de la renta y lo sucio de la calles por no levantar la Popo de sus perros 40 Rental Registry
41 Para con la pandillas de los jóvenes en las calles y con los homles 42 We need more enforcement of the traffic laws. The streets are getting more dangerous with people running red lights and stop signs. There is a lot more traffic because of all of the large apartment complexes being built and not enough of a focus on the hazards creating the added traffic.
43 More community “3rd places” to use for residents needed. 44 Parking and density with ADUs
45 Seguridad
46 More safe/secure bicycle places for locking
47 Better walking accessibility, clean sidewalks, safer crosswalks 48 Control de parking por vivienda
49 Reduce pot shops and homelessness
50 Food insecurity
51 End the sober living business, hold slumlords accountable for poor living conditions and degrading properties, beautify Baker Street with islands and trees like Fairview, 17th, and Harbor Blvd.
52 Building More Housing

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Summary of Comments
Community Workshop October 10, 2024
Resident
Name/Initial
Comments/Priorities
Vickie Marie
Rapier
Canyon Park needs a restroom
Parking near Vanguard and Civic Center
M.O. Neff Park Improvements
Lupita,
homelessness
provider
Gang Intervention
Fair Housing
Foundation
Eviction, slumlord conditions, habitability, rent increase notices H.S. Additional monetary support for disabled
S.M. Maintenance Trees on Westside
More veterans services
B.O. Parking problem/working out of garage at Mendoza/Baker Better communication for community input
Service
Provider in
City
More motel vouchers for homeless
Parking at 18th and Pomona
More support/coordination of churches and community providers for homeless Restroom availability in parks
Mental health services and providers
Infrastructure and services for westside of Costa Mesa

Community Workshop October 24, 2025
Resident
Name/Initial
Comments/Priorities
Christian Funds for legal services – facing evictions – relocation assistance for residents facing evictions
Utility assistance for homeowners
. Street improvements – maintenance (Near Target Mesa street) Maintenance of parkway – who is responsible
Tenant assistance for renters protection, audits for living conditions, landlords complying with laws
Affordable Housing
Libraries
Alley on Center Street – Street maintenance for pot holes Homeless on Center St. Alley
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Community Workshop October 24, 2025 (continued)
Resident
Name/Initial
Comments/Priorities
Shalimar and Pomona – high speed cars, need speed bumps Gang intervention/drug program
Valencia Street needs lighting
Permit parking on Valencia street
Mission Street/ Mendoza – parking
Golf course needs nets for golf balls
Neighborhood security, public safety

Stakeholder Workshop October 29, 2024

Housing & Public Service Grant Committee Meeting
March 5, 2025
No public comments received

Public Hearing
May 20, 2025
No public comments received
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Appendix A: Summary of Public Outreach
Consolidated Plan COSTA MESA Appendix A-24

Proof of Publications
To be attached to final Con Plan
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Consolidated Plan COSTA MESA Appendix B-1

Appendix B: Low- and Moderate- Income Areas by Census Tract

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Appendix C: Certifications
Consolidated Plan COSTA MESA Appendix C-1

To be included in final Consolidate Plan
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Appendix D: SF 424 Forms
Consolidated Plan COSTA MESA Appendix D-1

To be included in final Consolidated Plan
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Appendix E: Broadband Access Maps
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Appendix E: Broadband Access Maps
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Appendix E: Broadband Access Maps
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Appendix F: Executive Summary of 2025-2029 Assessment of Fair Housing Consolidated Plan COSTA MESA Appendix F-1

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Appendix G: HOME Program Request to Increase Median Area Purchase Price Limit

Consolidated Plan COSTA MESA Appendix G-1

May 20, 2025

Mr. Rufus Washington, Director
HUD Los Angeles Field Office
U.S. Dept. of Housing & Urban Development
Office of Community Planning and Development
300 N. Los Angeles Street, Suite #4054
Los Angeles, CA 90012

SUBJECT: HOME Investment Partnership (HOME) Program Request to Increase Median Area Purchase Price Limit

Dear Mr. Washington:

The City of Costa Mesa is submitting a request to increase the Median Area Purchase Price Limit as part of its 2025-2026 Action Plan. In lieu of the limit provided by the U.S. Department of Housing & Urban Development (HUD) for FY 2025, the City is requesting permission to use an increased limit of $1,448,750.

The City conducted its local market survey using data supplied by Orange Coast Title Company, which is based on information from the database of the Orange County Recorder and Assessor’s offices. We have found this source to be accurate and reliable. The following are the steps used in the survey methodology:

1. Sales data on all single-family home sales, March 1, 2024 through February 28, 2025 in the City of Costa Mesa compiled in ascending order of sales price. Data includes the address of the listed properties, sales value, parcel number and date of sale.

2. Pursuant to 24 CFR 92.254(2)(iii), the length of the reporting period is dependent upon the volume of existing home sales in the City. If sales were 250 or less per month in the most recent 12 months (March 2024 to February 2025), then a minimum of a 3-month survey is used. Based on the attached report, the median home price was $1,525,000 and 95% of this property value is $1,448,750.

3. Methodology for Costa Mesa adjusted home limit increase request:

Median Sales Price for 102 sales: N+1 = $1,525,000
2 Single Family Unit: $1,525,000 (95%) = $1,448,750

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Consolidated Plan COSTA MESA Appendix G-2

If you have any questions, please contact Mikelle Daily of the Housing and Community Development Office at 714-754-5678 or [email protected].

Sincerely,

SCOTT DRAPKIN
Assistant Director of Economic and Development Services

Attachment: Survey

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Attachment IV
2025-2026 PUBLIC SERVICE GRANT APPLICATION SUMMARIES

HOMELESS SERVICES
Families Forward – Affordable Housing Support
Proposed Service: The program will provide housing support services for homeless Costa Mesa families with children
Amount Requested: $30,000 for staff salaries and support services to serve 50 residents CM Residents to be Assisted: 33
Committee Recommendation: $26,522 (Rating: 88.8/100)
Human Options – Second Step Transitional Housing Program Proposed Service: Transitional housing & support services for survivors of domestic violence Amount Requested: $30,000 for Case Manager and Supervisor salaries to serve 70 residents CM Residents to be Assisted: 58
Committee Recommendation: $26,522 (Rating: 84.83/100)

SENIOR SERVICES
City of Costa Mesa – Senior Social Services
Proposed Service: Counseling and referral services for seniors provided by social worker at the Costa Mesa Senior Center
Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 260
Committee Recommendation: $30,000 (Unrated – City Program) Trellis International – Labors of Love
Proposed Service: Manual labor projects to help low-income seniors Amount Requested: $30,000 for program salaries and supplies to help 30 households CM Residents to be Assisted: 15
Committee Recommendation: $15,913 (Rating: 74.8/100)
ATTACHMENT 4
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Attachment IV
2025-2026 PUBLIC SERVICE GRANT APPLICATION SUMMARIES (continued)

YOUTH SERVICES
Project Hope Alliance – In—Place Case Management for Homeless CM Students Proposed Service: Wrap-around services for NMUSD students experiencing homelessness. Funds will be used to provide one-on-one case management, mentoring, tutoring, college and FAFSA application assistance, job search assistance, basic needs support like food.

Amount Requested: $30,000 for program staff salaries to serve 125 Costa Mesa residents CM Residents to be Assisted: 83
Committee Recommendation: $21,219 (Rating: 80.2/100)
StandUP for Kids OC
Proposed Service: Road Map to Success Youth Mentoring Program to guide youth through the key steps to successfully complete their education and become independent post-high school graduation.

Amount Requested: $30,000 to assist 25 Costa Mesa students CM Residents to be Assisted: 0 (Not recommending funding – duplicative services) Committee Recommendation: $0 (Rating 84.2/100)
Assistance League Newport Mesa – Operation SchoolBell – Feet First Proposed Service: Shoes for low-income students
Amount Requested: $30,000 to purchase shoes for 600 students CM Residents to be Assisted: 300
Committee Recommendation: $15,913 (Rating: 79.4/100)

LOW- AND MODERATE-INCOME SERVICES
Fair Housing Foundation – Fair Housing Program (HUD-Required – Paid out of Admin) Proposed Service: Program will provide fair housing education, counseling and enforcement services in compliance with federal program regulations
Amount Requested: $20,000 for program staff salaries and related program and admin costs CM Residents to be Assisted: 186
Committee Recommendation: $20,000
2 440
Attachment IV
2025-2026 CDBG PUBLIC SERVICE GRANT
Housing & Public Service Grant Committee Recommendations Committee Recommendations if Public Service Allocation Amount Changes:
• If more than the anticipated $100,000 is available for public service, each awarded agency’s grant will be increased by an equal percentage
• If the public service allocation is less than $100,000 but more than $85,000, the Assistance League grant will be reduced by the awarded amount up to $15,000
• If the public service allocation is less than $85,000, the Assistance League grant will be eliminated and each awarded agency’s grant will be reduced by an equal percentage
3 441
Attachment IV
CDBG Public Services
3-Year Funding History
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-303 Meeting Date: 5/20/2025
TITLE:

LEGISLATIVE UPDATE AND APPROVAL OF A LEGISLATIVE PLATFORM AND LEGISLATIVE MATRIX
DEPARTMENT: CITY MANAGER’S OFFICE/GOVERNMENT AFFAIRS
PRESENTED BY: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER
CONTACT INFORMATION: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER RECOMMENDATION:

Receive and file update on Federal and State budgets from Townsend Public Affairs. Review and adopt the proposed Legislative Platform and recommended legislative positions.

BACKGROUND:

The City contracts with the firm Townsend Public Affairs (TPA) for legislative advocacy and grant assistance to identify legislation and funding opportunities. An update will be provided by TPA on the Federal and State budgets and specifically the Governor’sMay Revise. In addition, staff has been working over the past year to develop a Legislative Platform. This includes meeting with the Legislative Review Team and Department Directors to identify priorities consistent with the adopted City Council Goals.

City Council Policy 000-8 (Attachment 2) authorizes the Mayor to execute legislative position letters on behalf of the City Council when the City’s legislative partners have acted. Those partners are identified in the policy as the National League of Cities, League of California Cities, Association of California Cities - Orange County, or the Orange County Council of Governments.

Staff has identified state legislation that may have direct or indirect impacts to the City and has prepared a legislative matrix for City Council consideration.

ANALYSIS:

California Budget
The Governor’s proposed California budget was released on January 10, 2025, and despite a projected $2 billion deficit from the Legislative Analyst’sOffice, Governor Newsom’sproposal was a balanced $322.2 billion budget with no deficit and a modest surplus, backed by $16.9 billion in reserves. However, over recent months, global and national economic conditions have become increasingly volatile, with tariffs and actions on immigration impacting revenues.

California’srevenue sources are especially impacted by any volatility in trade or tourism, and in the areas of personal income tax for high income earners and capital gains. Uncertainty about federal policy on tariffs and immigration are contributing to ongoing concerns as reflected in the recent