Agenda packet — Newark City Council, May 14, 2026 (part 2 of 4)

Single-Family Residential Parcels – The single-family residential parcel has been selected as the basic unit for the calculation of assessments since it represents approximately 75% of the parcels within the City. Therefore, the single-family residential parcel is defined as one EDU per parcel. EDUs are assigned to other land uses within the District in proportion to the special benefit they receive relative to the single-family residential parcel as described below.

Multi-Family Residential Parcels – Multi-family residential parcels are parcels comprised of more than one residential unit on the same parcel, excluding Accessory Dwelling Units (ADUs). On average, residential units for multi-family residential parcels have approximately 50% of the building square footage as compared to a single-family home.

Furthermore, studies consistently show that multi-family residential units impact public infrastructure approximately 50% as much as a single-family home. Therefore, multifamily parcels are assigned 0.50 EDUs per residential unit.

Non-Residential Parcels – Commercial, industrial, institutional, and other assessable non-residential properties will be assigned six (6) EDUs per acre of land. The 6 EDUs per acre allocation is based on the average size of a single-family parcel in the City of Newark.

For every acre of non-residential land approximately 6 single-family homes could be constructed on that acre of land which would equate to 6 EDUs per acre.

Undeveloped Parcels – Undeveloped properties are assessed at 25% of the developed EDUs assigned for each parcel of land based on land use classification. Undeveloped properties benefit less from the improvements than developed property because undeveloped properties do not have structures which house residents or employees.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 20 PART D
15 determine the difference in special benefit conferred on developed versus undeveloped property, the assessed values for property within the City per the Alameda County Assessor were reviewed to determine what percentage of assessed value is typically associated with underlying land and what percentage is typically associated with structures. Based upon the review, it was determined that approximately 25% of the assessed value of developed property in the City is associated with the underlying land.

Therefore, EDUs assigned to undeveloped residential and non-residential property have been discounted by 75% to account for the differences in benefit from improvements conferred on developed and undeveloped property.

Exempt Parcels – Publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the improvements. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways (all of which are typically not assigned an APN by the County), and that portion of public property that is not developed and used for business purposes similar to private commercial, industrial, and institutional activities (such as office buildings like a City Hall, etc.). Also exempted from the assessment would be utility rights-of-ways, common areas, and any other property that is deemed to be unable to be developed. Also exempted from the assessments are private streets, utility easements, HOA common areas and any other parcels that do not receive a special and direct benefit from the improvements.

Furthermore, parcels within the District may be assessed as developed property once the final maps have been approved by the City of Newark and/or it is anticipated that improvements will need to be maintained or reserve funds will need to be collected for the ensuing fiscal year.

DISTRICT MAXIMUM ASSESSMENT RATES
The maximum Fiscal Year 2026-27 assessment rate is $59.53 per EDU. The maximum assessment rate per EDU will be increased annually by the annual change in the Consumer Price Index (CPI), San Francisco Bay Region (All Urban Consumers).

APPEAL OF DISTRICT ASSESSMENTS
Any property owner claiming the amount or application of their District assessment is not correct may file a written notice of appeal with the City Public Works Director not later than one calendar year after having paid the District assessment that is disputed. The City Public Works Director shall promptly review the appeal and, if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the District assessment, and decide the appeal. If the City Public Works Director’s decision requires the District assessment to be modified or changed in favor of the property owner, a refund shall be made or an adjustment may be made to the next annual District assessment levy. Any dispute over the decision of the City Public Works Director shall be referred to the City Council and the decision of the City Council shall be final.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 20 PART E
16 PART E

ASSESSMENT ROLL
A list of names and addresses of the owners of all parcels, and the description of each lot or parcel within the District is shown on the last equalized secured property tax roll of the Alameda County Assessor, which by reference is hereby made a part of this Report.

This list is keyed to the Assessor’s Parcel Numbers as shown on the Assessment Roll, which includes the proposed assessments for Fiscal Year 2026-27 apportioned to each lot or parcel. The Assessment Roll is on file in the Office of the City Clerk of the City of Newark and is shown in this Report as Appendix B. The total District assessments for Fiscal Year 2026-27 is $7,023.36.

CITY OF NEWARK
LANDSCAPE & LIGHTNING DISTRICT No. 20

ASSESSMENT ROLL
FISCAL YEAR 2026-27
Assessor's
Parcel
Number
Assessment
Amount
092A-2604-001-00 $59.52
092A-2604-002-00 $59.52
092A-2604-003-00 $59.52
092A-2604-004-00 $59.52
092A-2604-005-00 $59.52
092A-2604-006-00 $59.52
092A-2604-007-00 $59.52
092A-2604-008-00 $59.52
092A-2604-009-00 $59.52
092A-2604-010-00 $59.52
092A-2604-011-00 $59.52
092A-2604-012-00 $59.52
092A-2604-013-00 $59.52
092A-2604-014-00 $59.52
092A-2604-015-00 $59.52
092A-2604-016-00 $59.52
092A-2604-017-00 $59.52
092A-2604-018-00 $59.52
092A-2604-019-00 $59.52
092A-2604-020-00 $59.52
092A-2604-021-00 $59.52
092A-2604-022-00 $59.52
092A-2604-023-00 $59.52
092A-2604-024-00 $59.52
092A-2604-025-00 $59.52
092A-2604-026-00 $59.52
092A-2604-027-00 $59.52
092A-2604-028-00 $59.52
092A-2604-029-00 $59.52
092A-2604-030-00 $59.52
092A-2604-031-00 $59.52
092A-2604-032-00 $59.52
092A-2604-033-00 $59.52
092A-2604-034-00 $59.52
092A-2604-035-00 $59.52
092A-2604-036-00 $59.52
092A-2604-037-00 $59.52
092A-2604-038-00 $59.52
092A-2604-039-00 $59.52
092A-2604-040-00 $59.52
092A-2604-041-00 $59.52
092A-2604-042-00 $59.52
092A-2604-043-00 $59.52
092A-2604-044-00 $59.52
092A-2604-045-00 $59.52
092A-2604-046-00 $59.52
092A-2604-047-00 $59.52
092A-2604-048-00 $59.52
092A-2604-049-00 $59.52
092A-2604-050-00 $59.52
092A-2604-051-00 $59.52
092A-2604-052-00 $59.52
Assessor's
Parcel
Number
Assessment
Amount
092A-2604-053-00 $59.52
092A-2604-054-00 $59.52
092A-2604-055-00 $59.52
092A-2604-056-00 $59.52
092A-2604-057-00 $59.52
092A-2604-058-00 $59.52
092A-2604-059-00 $59.52
092A-2604-060-00 $59.52
092A-2604-061-00 $59.52
092A-2604-062-00 $59.52
092A-2604-063-00 $59.52
092A-2604-064-00 $59.52
092A-2604-065-00 $59.52
092A-2604-066-00 $59.52
092A-2604-067-00 $59.52
092A-2604-068-00 $59.52
092A-2604-069-00 $59.52
092A-2604-070-00 $59.52
092A-2604-071-00 $59.52
092A-2604-072-00 $59.52
092A-2604-073-00 $59.52
092A-2604-074-00 $59.52
092A-2604-075-00 $59.52
092A-2604-076-00 $59.52
092A-2604-077-00 $59.52
092A-2604-078-00 $59.52
092A-2604-079-00 $59.52
092A-2604-080-00 $59.52
092A-2604-081-00 $59.52
092A-2604-082-00 $59.52
092A-2604-083-00 $59.52
092A-2604-084-00 $59.52
092A-2604-085-00 $59.52
092A-2604-086-00 $59.52
092A-2604-087-00 $59.52
092A-2604-088-00 $59.52
092A-2604-089-00 $59.52
092A-2604-090-00 $59.52
092A-2604-091-00 $59.52
092A-2604-092-00 $59.52
092A-2604-093-00 $59.52
092A-2604-094-00 $59.52
092A-2604-095-00 $59.52
092A-2604-096-00 $59.52
092A-2604-097-00 $59.52
092A-2604-098-00 $59.52
092A-2604-099-00 $59.52
092A-2604-100-00 $59.52
092A-2604-101-00 $59.52
092A-2604-102-00 $59.52
092A-2604-103-00 $59.52
092A-2604-104-00 $59.52
Assessor's
Parcel
Number
Assessment
Amount
092A-2604-105-00 $59.52
092A-2604-106-00 $59.52
092A-2604-107-00 $59.52
092A-2604-108-00 $59.52
092A-2604-109-00 $59.52
092A-2604-110-00 $59.52
092A-2604-111-00 $59.52
092A-2604-112-00 $59.52
092A-2604-113-00 $59.52
092A-2604-114-00 $59.52
092A-2604-115-00 $59.52
092A-2604-116-00 $59.52
092A-2604-117-00 $59.52
092A-2604-118-00 $59.52
Total Parcels: 118
Total Assessment: $7,023.36
PART E - 1 04/24/26

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 20 APPENDIX A
A-1

APPENDIX A

IMPROVEMENT DIAGRAM
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CEDAR BL

SMITH AV

AMARYLLIS PL

ARALIA DR
LANDSCAPING AND LIGHTING DISTRICT NO. 20

IMPROVEMENT DIAGRAM
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0 480 240
Feet
(TRACT 8583)
Legend
!( Streetlights
B Trash Capture Device
LLD No. 20 (Tract 8583) BoundaryParcels3XEOLF Landscaping Item D. 5.

DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Miki Tsubota, City Engineer
SUBJECT Adopt a resolution approving the Engineer’s Report, declaring intention to order formation of Landscaping and Lighting District No. 21 (Tract 8665) and to levy and collect assessments, and setting the public hearing date for July 9, 2026
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving the Engineer’s Report for Landscaping and Lighting District No. 21 (Tract 8665), declaring the City’s intention to levy and collect assessments, and setting a public hearing for July 9, 2026.

This action advances formation of the district and establishes a funding mechanism to offset ongoing maintenance costs associated with the development.

Tract 8665 is located off Cedar Boulevard between Alameda County Flood Control and Water Conservation District (ACFCD) channel and EZ-8 motel and will be comprised of 76 townhomes at build-out (the “Project”). Taylor Morrison is the developer for the Project (the “Developer”) and is conditioned to provide a funding mechanism to offset the Project’s financial impact to the City of Newark’s landscaping and lighting maintenance services budget. The Developer is requesting the City of Newark (the “City”) to form Landscaping and Lighting District No. 21 (Tract 8665) (“LLD No. 21”) to meet this condition of approval for the Project.

The Landscaping and Lighting Act of 1972 (the “Act”) and Proposition 218 require that an Engineer’s Report be prepared to proceed with the formation of a new landscaping and lighting assessment district (“LLD”). The Engineer’s Report identifies public improvements to be maintained, the boundaries for the proposed LLAD, and the maximum annual assessment rates to be levied on properties within the LLD. The assessment rates levied may be adjusted each fiscal year, depending on the maintenance budget, but cannot exceed the maximum annual assessment rates set when the LLD was formed, plus the authorized annual cost of living adjustment. On April 23, 2026, the City Council adopted a resolution initiating the proceedings to form LLD No. 21. The staff report for the April 23, 2026 City Council meeting identified June 25, 2026 as the public hearing date. The public hearing date has been revised to July 9, 2026, and this staff report reflects the updated public hearing date. This agenda item is the second required step, and City Council is being asked to adopt a resolution approving the Engineer’s Report, declaring intention to order formation of LLD No. 21 approving the Engineer’s Report, declaring intention to order formation of LLD No. 21 and to levy and collect assessments, and setting the public hearing date for July 9, 2026.

The Act and Proposition 218 require approval from property owner(s) within the boundaries of the proposed LLD, and that a public hearing be held prior to final approval from City Council. The adoption of the attached resolution will authorize the mailing of the required notices and ballots to the property owner for the Project pursuant to Proposition 218. In order for the ballots to be counted they must be returned to the City Clerk prior to the close of the public input portion of the public hearing, which will be held on July 9, 2026. At the close of the public input portion of the public hearing, the ballots will be tabulated, and the City Clerk will determine if a majority of property owners do not oppose the formation of LLD No. 21. If a majority of property owners are not opposed, City Council may adopt a resolution confirming the formation of LLD No. 21 and the levy of assessments commencing Fiscal Year 2026-27.

BACKGROUND
The City currently has eleven (11) active LLDs known as Landscaping and Lighting District Nos. 1, 2, 4, 7, 11, 15, 16, 17, 18, 19 and 20 (the “Districts”), which fund the ongoing maintenance of public landscaping and lighting improvements at various locations in the City.

Each year the City Council approves Engineer’s Reports to levy and collect assessments on the ensuing fiscal year’s property tax roll through a three-step Council meeting process, which includes a public hearing. If the formation of LLD No. 21 is approved by the Developer and City Council, the assessments for LLD No. 21 will be levied for the first time on the Fiscal Year 2026-27 property tax roll and will be added to the City’s annual approval process for the Districts in subsequent years.

DISCUSSION/ANALYSIS
The City is required to separate general benefit to the public at large from the special benefits to property and only the special benefits may be assessed to the residential properties within LLD No. 21. A benefit analysis of the public landscaping and lighting improvements to be installed along Cedar Boulevard for the Project was performed and it was determined that 37.5% of the total budget is attributed to general benefit to the public at large and the remaining 62.5% is special benefit and can be assessed to the residential properties within LLD No. 21. This analysis served as the basis for the maximum annual assessments established in the attached Engineer’s Report. The maximum annual assessment rate for LLD No. 21 is $59.75 per townhome in Fiscal Year 2026-27 dollars, which will increase annually by the change in the Consumer Price Index for the San Francisco Bay Region (CPI) commencing Fiscal Year 2027-28.

FISCAL IMPACT
If approved, LLD No. 21 will generate approximately $3,406 annually beginning in Fiscal Year 2026–27 to partially offset maintenance costs. The remaining approximately $2,044, representing general benefit, will be funded by the City.

The district provides partial cost recovery but does not eliminate ongoing City subsidy.

If not formed, the City would bear 100% of maintenance costs.

Assessments may increase annually based on CPI beginning in Fiscal Year 2027–28; the City’s share will also increase over time.

STRATEGIC PRIORITY AREA
Boost Financial Resilience and Excellence in Service Delivery Modernize Public Facilities and Infrastructure
REVIEW AND APPROVAL
Prepared by - Vibha Deshmukh, Senior Civil Engineer
Reviewed by - Miki Tsubota, City Engineer
Reviewed by - Howard Young, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
LLD 21 - Engineers Report Tract 8665
Resolution
Landscaping and Lighting District No. 21
(Tract 8665)
Engineer’s Report
May 14, 2026
CITY OF NEWARK FISCAL YEAR 2026-27
LANDSCAPING AND LIGHTING DISTRICT NO. 21 TABLE OF CONTENTS i

TABLE OF CONTENTS
Page No.

City Directory....................................................................................................................ii Signatures ...................................................................................................................... iii Section I – Introduction.................................................................................................... 1 Section II – Impact of Proposition 218............................................................................. 3 Section II – Engineer’s Report......................................................................................... 4 Part A – Plans and Specifications................................................................................. 6 Part B – Estimate of Cost ............................................................................................. 9 Part C – Assessment District Diagram ....................................................................... 10 Part D – Method of Apportionment of Assessment..................................................... 12 Part E – Assessment Roll........................................................................................... 17 Appendix A (LLD No. 21 Improvement Diagram).........................................................A-1 Appendix B (Assessment Roll).....................................................................................B-1 CITY OF NEWARK FISCAL YEAR 2026-27
LANDSCAPING AND LIGHTING DISTRICT NO. 21 CITY DIRECTORY ii

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 21
FISCAL YEAR 2026-27

CITY COUNCIL MEMBERS AND CITY STAFF
Michael Hannon
Mayor
Matthew Jorgens
Vice Mayor
Terrence Grindall
Council Member
Eve Marie Little
Council Member
Julie Del Catancio
Council Member
David J. Benoun
City Manager
Kristopher Kokotaylo
City Attorney
Neetu Salwan
City Clerk
Krysten Lee
Finance Director
Vibha Deshmukh, P.E., QSD
Senior Civil Engineer
Francisco & Associates
Assessment Engineer
CITY OF NEWARK FISCAL YEAR 2026-27
LANDSCAPING AND LIGHTING DISTRICT NO. 21 SIGNATURES
iii
ENGINEER’S REPORT

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 21
FISCAL YEAR 2026-27
The undersigned, acting on behalf of Francisco & Associates, respectfully submits the enclosed Engineer’s Report as directed by the City of Newark City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution and provisions of the Landscaping and Lighting Act of 1971 commencing with Section 22500 et. Seq. of the California Streets and Highway Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California.

Dated: April 22, 2026 By:

Ed Espinoza, P.E.

RCE # 83709
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment District Diagram thereto attached was filed with me on the ______________ day of ___________________, 2026.

Neetu Salwan, City Clerk
City of Newark
Alameda County, California
By:

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram, thereto attached, was approved, and confirmed by the City Council of the City of Newark, Alameda County, California, on the _____________ day of __________________, 2026.

Neetu Salwan, City Clerk
City of Newark
Alameda County, California
By:

CITY OF NEWARK SECTION I
LANDSCAPING AND LIGHTING DISTRICT NO. 21 INTRODUCTION
1 SECTION I

INTRODUCTION
ENGINEER’S REPORT
FORMATION OF LANDSCAPING & LIGHTING DISTRICT NO. 21
FISCAL YEAR 2026-27
To ensure the proper flow of funds for the ongoing operation, maintenance, servicing and replacement of specific improvements within the City of Newark (the “City”), the City Council, through the Landscaping & Lighting Act of 1972 (the “1972 Act”), has previously approved the formation of twenty (20) Landscape & Lighting Districts (LLD) and is currently proposing the formation of one (1) additional LLD, which is the purpose of this Engineer’s Report (Report). Improvements, which may be operated, maintained, serviced and replaced by LLDs, include, but are not limited to, landscaping, park, streetlighting, and trail improvements.

Generally, as a part of the conditions of approval to develop property within the City, property owners/developers are required to mitigate their project’s financial impact to the City. Developers can provide their own financing mechanism to mitigate their impact, form a new LLD or when applicable, annex into an existing LLD. The formation of these LLDs ensure that the operation, maintenance, servicing, and replacement costs of these improvements are specifically paid for those property owners who directly benefit from the improvements.

LLD No. 21 (the “District”) will include Tract 8665 which is located off Cedar Boulevard between Moores Avenue and Cedar Court. Tract 8665 will consist of 76 townhomes at build-out. Formation of the District will require approval from the District property owner(s), prior to final approval from City Council. This process is discussed in Section II, “Impacts of Proposition 218” of this Report.

As required by the 1972 Act, this Report includes: (1) a description of the improvements to be operated, maintained, serviced and replaced by the District, (2) a cost estimate for the District, and (3) a listing of the proposed maximum assessments to be levied upon each assessable lot or parcel within the District.

The City of Newark will hold a public hearing on July 9, 2026, regarding the formation of the District. At the public hearing the City will provide an opportunity for any interested person to be heard. After the public input portion of the public hearing, the City Clerk will tabulate the assessment ballots. If the assessment ballot tabulation is favorable, the City Council may adopt a resolution forming the District and confirming the maximum assessment rates as originally proposed or as modified.

Payment of the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes. All funds collected through the

CITY OF NEWARK SECTION I
LANDSCAPING AND LIGHTING DISTRICT NO. 21 INTRODUCTION
2 assessment must be placed in a special fund and can only be used for the purposes stated within this Report.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PROPOSITION 218 3 SECTION II
IMPACT OF PROPOSITION 218
FORMATION OF LANDSCAPING & LIGHTING DISTRICT NO. 21
FISCAL YEAR 2026-27
On November 5,1996, California voters approved Proposition 218 entitled “Right to Vote on Taxes Act” which added Articles XIIIC and XIIID to the California Constitution. While its title refers only to taxes, Proposition 218 established new procedural requirements for the formation and administration of assessment districts.

Formation of the District will require voter approval from the District property owner(s), prior to final approval from City Council. In order to comply with the requirements of Proposition 218, the City of Newark has implemented the following procedures:
1) Every property owner within the District will be mailed a ballot, which allows the property owners to cast their votes either in favor or against the proposed formation of the assessment district. A notice describing the assessment, the individual property owner’s maximum annual assessment, the duration of the assessment, the reason for the assessment, and the basis upon which the assessment is calculated will accompany the ballot.
2) After the close of the public input portion of the public hearing, the ballots, which have been returned to the City Clerk will be tabulated to determine whether a majority protest against the formation of the District exists. 3) Returned ballots will be weighted based on their proposed assessment amount. 4) Publicly owned properties must be assessed unless there is clear and convincing evidence that they receive no special benefit from the improvements. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements, and rights-of-ways, public greenbelts and public parkways, utility easements, and that portion of public property that is not used for business purposes similar to private residential, commercial, industrial and institutional activities. Also exempted from the assessments are private streets, utility easements, HOA common areas and any other parcels that do not receive a special and direct benefit from the improvements.

All property owners will be noticed in accordance with Proposition 218 a minimum of 45 days prior to the public hearing, unless a shorter notice period is agreed to by all affected property owners. After the public hearing and after the ballots have been tabulated, if a majority of the weighted ballots do not oppose the assessment, then the City Council may adopt a resolution forming the District and confirming the maximum assessment rate.

CITY OF NEWARK SECTION III
LANDSCAPING AND LIGHTING DISTRICT NO. 21 ENGINEER’S REPORT 4 SECTION III
ENGINEER’S REPORT PREPARED PURSUANT TO THE PROVISIONS
OF THE LANDSCAPING AND LIGHTING ACT OF 1972
SECTION 22500 THROUGH 22679

OF THE CALIFORNIA STREETS AND HIGHWAY CODE
Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the Streets and Highways Code of the State of California), Proposition 218, and in accordance with the Resolution of Intention accepting the Preliminary Engineer’s Report, adopted by the City Council of the City of Newark, on May 14, 2026, and in connection with the proceedings for:

CITY OF NEWARK
FORMATION OF LANDSCAPING & LIGHTING DISTRICT NO. 21
FISCAL YEAR 2026-27
Herein after referred to as the “District”, I, Ed Espinoza, the duly appointed ENGINEER OF WORK, submit herewith the “Report” consisting of five (5) parts as follows:

PART A: PLANS AND SPECIFICATIONS
This part describes the improvements in the District. Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the Parks & Recreation Department and are incorporated herein by reference.

PART B: ESTIMATE OF COST
This part contains an estimate of the cost of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and is on file in the Office of the Parks & Recreation and Engineering Department.

PART C: ASSESSMENT DIAGRAM
This part incorporates by reference a diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District. The diagram has been prepared by the Engineer of Work and is on file in the Office of the Newark City Clerk. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Contra Costa County Assessor for the year when this Report was prepared. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

CITY OF NEWARK SECTION III
LANDSCAPING AND LIGHTING DISTRICT NO. 21 ENGINEER’S REPORT 5 PART D: METHOD OF APPORTIONMENT OF ASSESSMENT
This part contains the method of apportionment of assessments, based upon parcel classification of land within the District, in proportion to the estimated benefits to be received.

PART E: PROPERTY OWNER LIST & ASSESSMENT ROLL
This part contains a list of the Contra Costa County Assessor’s Parcel numbers, and the maximum amount to be assessed upon the benefited lands within the District. The Assessment Roll is filed in the Office of the Newark City Clerk and is incorporated in this Report by reference. The list is keyed to the records of the Contra Costa County Assessor, which are incorporated herein by reference.

CITY OF NEWARK SECTION III
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART A
6 PART A

PLANS AND SPECIFICATIONS
IMPROVEMENTS AND SERVICES PURSUANT TO THE 1972 ACT
The improvements and services authorized by the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), that may be applicable to this District and associated assessments may include one or more of the following definitions:
• “Improvement” means one or any combination of the following:
o The installation or planting of landscaping.
o The installation or construction of statuary, fountains, and other ornamental structures and facilities.
o The installation or construction of public lighting facilities, including, but not limited to, traffic signals.
o The installation or construction of any facilities which are appurtenant to any of the forgoing, or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. o The installation of park or recreational improvements, including, but not limited to all the following:
 Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.  Lights, playground equipment, play courts, and public restrooms. o The maintenance or servicing, or both, of any of the forgoing, and of any improvements authorized below.
o The acquisition of land for park, recreational, or open space purposes. o The acquisition of any existing improvement otherwise authorized herein. o The acquisition or construction of any community center, municipal auditorium or hall, or similar public facility for the indoor presentation of performances, shows, stage productions, fairs, conventions, exhibitions, pageants, meetings, parties, or other group events, activities, or functions, whether those events, activities, or functions are public or private. • Incidental expenses” include all the following:
o The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.
o The costs of printing, advertising, and giving of published, posted, and mailed notices.
o Compensation payable to the county for collection of assessments. o Compensation of any engineer or attorney employed to render services in proceedings pursuant to this part.

CITY OF NEWARK SECTION III
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART A
7 o Any other expenses incidental to the construction, installation, or maintenance and servicing of improvements.
o Any expenses incidental to the construction, installation, or maintenance and servicing of the improvements.
o Any expenses incidental to the issuance of bonds or notes. o Costs associated with any elections held for the approval of a new or increased assessment.
• “Landscaping” means trees, shrubs, grass, or other ornamental vegetation. • “Maintain” or “maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation, and services of any improvement, including:
o Repair, removal or replacement of all or any part of any improvement. o Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
o The removal of trimmings, rubbish, debris, and other solid waste. o The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
• “Public lighting facilities” means all works or improvements used or useful for the lighting of any public places, including ornamental standards, luminaries, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communication circuits, appliances, attachments, and appurtenances. • “Service” or “servicing” means the furnishing of:
o Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. o Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

DESCRIPTION OF DISTRICT IMPROVEMENTS
The improvements, which are to be constructed within the City, and those which may be subsequently constructed, operated, maintained, and serviced with District assessments are generally described as follows:
• The Landscape Improvements include, but are not limited to landscaping, planting, turf, trees, irrigation systems, and fixtures in medians, public streets, and sidewalk rights-of-way, including parkways and other easements dedicated to the City within, and adjacent to, the District.

CITY OF NEWARK SECTION III
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART A
8 • Streetlighting Improvements include, but are not limited to poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public street and sidewalk rights-of-way and other easements dedicated to the City.

Improvement diagrams have been prepared identifying all improvements and areas that are to be maintained by the District. A copy of these diagrams is on file with the City’s Public Works Department.

A more detailed description of the facilities that will be constructed is as follows:

Landscape Improvements
• Medians along Cedar Boulevard
Streetlighting Improvements
• 1 Streetlight located on Cedar Boulevard

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART B
9 PART B

ESTIMATE OF COST
The 1972 Act requires that a special fund be set up for the collection of revenues and expenditures of the District. The 1972 Act provides that the total cost of construction, operation, maintenance and servicing of the public improvements specified in Part A of this Report can be recovered by the District. Incidental expenses including administration of the District, engineering fees, legal fees and all other costs associated with the construction, operation, maintenance and servicing of the District can also be included.

Table 1 below shows the total operation, maintenance, servicing, and replacement budget upon completion of all improvements which could be assessed against the benefiting parcels within the District in Fiscal Year 2026-27 dollars.

Revenues collected from the assessment shall be used only for the purposes as stated herein. Any balance remaining on July 1 at the end of the fiscal year must be carried over to the next fiscal year.

Budget
Descriptions
FY 2026/27
Cost Estimate
Revenues
District Assessments $3,406
City Contribution for General Benefit $2,044
Total Annual Revenue: $5,450
Expenditures
Landscape Maintenance $3,000
Streetlighting Operations & Maintenance $200
Administration and Incidentals $1,500
County Collection Fees $100
Capital Replacement Collection $650
Total Annual Maintenance & Operation Costs: $5,450

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART C
10 PART C

ASSESSMENT DISTRICT DIAGRAM
The boundaries of the District are completely within the boundaries of the City of Newark.

The Assessment Diagram is on file in the Office of the City Clerk of the City of Newark and shown on the following page of this Report. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Contra Costa County Assessor for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram for the District is included on the following page.

Wintergreen Dr
Cedar Blvd
¯
200
US Feet
LANDSCAPING AND LIGHTING DISRTICT NO. 21
(TRACT 8665)

ASSESSMENT DIAGRAM
Legend
LLD No. 21 (Tract 8665) Boundary
Parcel_Boundaries
1 2
Reference
Number
Assessor
Parcel Number
Property
Owner
1 092A-2585-035-00 Taylor Morrison California LLC
2 092A-2585-036-00 Taylor Morrison California LLC

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART D
12 PART D

METHOD OF APPORTIONMENT OF ASSESSMENT
Part 2 of Divisions 15 of the Streets and Highway Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which includes, but is not limited to the operation, maintenance, servicing and replacement of street lighting, landscaping, trails, parks, and open space area facilities.

Section 22573 of the 1972 Act requires that assessments must be levied according to special benefit, rather than according to assessed value. This Section states:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements.”
In addition, Article XIIID, of the California Constitution limits the amount of any assessment to the proportional “special benefit” conferred on the property. Article XIIID provides that only special benefits conferred on a parcel. There is no widely accepted or statutory formula for determining general and special benefit. However, the constitution states that a special benefit is different from a general benefit in that it is “particular and distinct” and “over and above” general benefits received by other properties and people.

Article XIIID provided that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights-of-ways, public greenbelts and public parkways, utility easements, and that portion of public property that is not owned used for business purposes similar to private residential, commercial, industrial, and institutional activities.

The City is required to separate general benefit to the public at large from the special benefits to property and only the special benefits may be assessed. The amount to be assessed may be apportioned using any formula or method which fairly distributes the special benefits amongst all assessable lots or parcels. The separation of general and special benefits and the assessment methodology used to apportion the special benefits to properties within the District are described in Part D of this report.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART D
13 SPECIAL BENEFIT
Under Article XIIID of the California Constitution, a special benefit is a benefit that is “particular and distinct from those conferred on other parcels and that is over and above any general benefits conferred by the improvements.” Following an analysis of the District improvements, the special benefits conferred on properties within the District were identified and are described below.
• Improved aesthetic appeal for adjacent properties providing a positive representation for the neighborhood.
• Enhanced desirability of property through direct association with the improvements.
• Safer vehicle and pedestrian access to and from property. • Reduced criminal activity and property-related crimes (especially vandalism) against properties through well-maintained surroundings and amenities including abatement of graffiti.
• Local environmental enhancement through improved erosion control, dust and debris control, and fire prevention.

These special benefits to property are the basis for apportionment of assessments within the District utilizing the assessment methodology described in Part D of this Report.

GENERAL BENEFIT
Under Article XIIID of the California Constitution, general benefit is defined as a benefit that is not particular or distinct to any specific parcel but rather shared by the public at large. Following an analysis of the District improvements, the general benefits to the public at large were identified and are described below. • Improved pass-through traffic, benefiting the general traveling public. • Enhanced Citywide Beautification improving the visual character of the broader community that is enjoyed by residents, commuters, and visitors regardless of proximity to the improvements.
• Erosion and debris control supporting cleanliness and keeping trash and debris from spreading to other areas of the City and affecting quality of life.

The total cost attributed to these general benefits cannot be assessed to properties within the District and must be paid from alternative funding source. As noted above, there are a total of eight (8) benefits associated with the District improvements. Five (5) are special benefits to properties within the District and three (3) are general benefits to the public at large. Therefore, the portion of the District budget attributed to general benefits to the public at large is calculated as follows:
3 General Benefits
8 Total Benefits
General Benefit % = = 37.5%

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART D
14 Based on the calculation above, 37.5% of the total District budget is designated as general benefit to the public at large and will be funded through an alternative funding source. The remaining 62.5% is considered special benefit to properties within the District and will be spread using the assessment methodology described in this part of the Report.

ASSESSMENT METHODOLOGY
The operation, maintenance, servicing, and replacement costs attributed to special benefit for the District landscaping and streetlighting improvements are apportioned in accordance with a methodology that is consistent with standard assessment engineering practices. Since the assessments are levied on the owners of properties as shown on the secured property tax rolls, the final assessments must be assigned by Assessor’s Parcel Number (APN). If assessments were to be allocated by parcel, not considering land use, benefit would not be allocated equitably because a single-family parcel would be paying the same as a 50-unit apartment parcel or a large commercial property. To establish proportionality, the assessment methodology is based on Equivalent Dwelling Units (EDUs) assigned to each APN as described below.

Condominium, Duet, Townhome and Mobile Home Parcels - Condominiums, duets, townhomes, and mobile homes on average have approximately 75% of the building square footage compared to a single-family home. Furthermore, studies consistently show that these types of residential products impact public infrastructure approximately 75% as much as a single-family residential parcel. Therefore, all condominium, townhome and mobile home parcels are assessed 0.75 EDUs per parcel.

For every acre of non-residential land approximately 6 single-family homes could be constructed on that acre of land which would equate to 6 EDUs per acre.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART D
15 Undeveloped Parcels – Undeveloped properties are assessed at 25% of the developed EDUs assigned for each parcel of land based on land use classification. Undeveloped properties benefit less from the improvements than developed property because undeveloped properties do not have structures which house residents or employees.

However, the improvements funded by the District do benefit undeveloped property because improvements have been installed that allow for development to occur making the property more attractive to potential buyers. Based on this information, it is reasonable to assume that undeveloped property benefits less than developed property. To determine the difference in special benefit conferred on developed versus undeveloped property, the assessed values for property within the City per the Alameda County Assessor were reviewed to determine what percentage of assessed value is typically associated with underlying land and what percentage is typically associated with structures. Based upon the review, it was determined that approximately 25% of the assessed value of developed property in the City is associated with the underlying land.

DISTRICT MAXIMUM ASSESSMENT RATES
The District will be comprised of 76 townhome residential parcels at build-out resulting in 57 EDUs. Therefore, the maximum Fiscal Year 2026-27 assessment rate is $59.75 per EDU based on the estimate of cost shown in Part B of this Report of which 62.5% has been attributed to special benefit for the District.

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART D
16 ANNUAL ADJUSTMENTS TO DISTRICT MAXIMUM ASSESSMENT RATES The maximum assessment rate per EDU described above will be increased annually by the annual change in the Consumer Price Index (CPI), San Francisco Bay Region (All Urban Consumers).

CITY OF NEWARK SECTION II
LANDSCAPING AND LIGHTING DISTRICT NO. 21 PART E
17 PART E

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 21 APPENDIX A
A-1

APPENDIX A
Landscaping and Lighting District No. 21
Improvement Diagram
Wintergreen Dr
Cedar Blvd
¯
200
US Feet
LANDSCAPING AND LIGHTING DISRTICT NO. 21
(TRACT 8665)

IMPROVEMENT DIAGRAM
Legend
LLD No. 21 (Tract 8665) Boundary
Public Landscaping
Streetlight
Parcel_Boundaries

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 21 APPENDIX B
B-1

APPENDIX B
Assessment Roll

CITY OF NEWARK
LANDSCAPING AND LIGHTING DISTRICT NO. 21 APPENDIX B
B-2
Assessor
Parcel Number
Tract
Number
Fiscal Year 2026-27
Maximum Assessment
092A-2585-035-00 8665 $896.25
092A-2585-036-00 8665 $2,509.50
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK APPROVING THE ENGINEER’S REPORT,

DECLARING INTENTION TO ORDER THE FORMATION OF
LANDSCAPING AND LIGHTING DISTRICT NO. 21 (TRACT
8665) AND TO LEVY AND COLLECT ASSESSMENTS, AND
SETTING THE PUBLIC HEARING DATE FOR JULY 9, 2026
WHEREAS, the City of Newark City Council (the “City Council”) is proposing the formation of an assessment district pursuant to the provisions of the Landscaping and Lighting Act of 1972 (commencing at Section 22500 of the California Streets and Highway Code), hereinafter referred to as the “Act”; and
WHEREAS, on April 23, 2026, the City Council adopted a Resolution initiating proceedings related to the formation of the proposed assessment district, describing the district and its improvements, specifying the distinctive designation of the proposed assessment district as Landscaping and Lighting District No. 21 (the “District”), and ordering the District Engineer to prepare the Engineer’s Report for the District, which report has been prepared in accordance with Article 4 (beginning with Section 22565 of the California Streets and Highways Code) of Chapter 1 of the Act, filed with the City Clerk, and has been considered by the City Council in these proceedings; and
WHEREAS, as required by Section 22586 of the California Streets and Highways Code, and in accordance with provisions of the Act, the Engineer of Work has filed a Preliminary Engineer’s Report for the District for Fiscal Year 2026-27 with the City Clerk; and WHEREAS, as required by Section 22587 of the California Streets and Highways Code, the City Council is to adopt a resolution of intention which declares the City Council’s intention to order the formation of the District for Fiscal Year 2026-27, declares the intention to levy and collect assessments; and gives notice of the time and place for a hearing by the City Council regarding the formation of the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that:

1. Hereby declares its intent to form the District and levy and collect assessments for the District for Fiscal Year 2026-27.

2. The boundaries of the District are generally described as the parcels associated with Tract 8665 within the City of Newark, located off Cedar Boulevard between Moores Avenue and Cedar Court.

3. Finds that the improvements to be made for the District are generally described as the operation, maintenance and servicing of landscaping, irrigation, lighting, and associated facilities benefiting properties within the District as referenced in the Preliminary Engineer’s Report for Fiscal Year 2026-27 on file with the City Clerk. All interested persons are referred to the Preliminary Engineer’s Report for a full and detailed description of the improvements, the boundaries of the District, and the proposed assessments upon assessable lots and parcels of land within the District.

4. Declares that on July 9, 2026, at 7:00 p.m., or as soon thereafter as the matter may be heard, it will conduct a Public Hearing on the question of the formation of the District and the levy of proposed annual assessments upon the assessable lots and parcels of land within the District. The Public Hearing will be held at the meeting place of the City Council located in the City Administration Building, 37101 Newark Boulevard, Newark, California.

5. A notice of the Public Hearing and ballot will be mailed to all property owners within the District a minimum of 45 days prior to the Public Hearing in accordance with Proposition 218. Property owners may submit, revise, or withdraw their ballots up through the close of public testimony for the District agenda item on July 9, 2026.

6. Authorizes and asks that the City Clerk to give the notice of Public Hearing required by the Landscaping and Lighting Act of 1972 and Proposition 218.

7. The Engineer’s Report prepared and filed by the District Engineer contains all of the elements required for such reports by the Act and Article XIIID, Section 4 of the California Constitution, including: 1) an estimate of the annual cost of the improvements; 2) a diagram for the District; and 3) an assessment of the estimated annual costs of improvements, and is hereby deemed sufficient and preliminarily approved. The report shall stand as the Engineer’s Report for all subsequent proceedings under and pursuant to this resolution.

Item D. 6.

DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Jerrald Yang, Associate Civil Engineer
SUBJECT Adopt a resolution to authorize the City Manager to execute an Amendment No. 1 to the master contractual services agreement with Fehr & Peers and approve an amendment to the 2024-2026 Biennial Budget and Capital Improvement Plan.

SUMMARY AND RECOMMENDATION
The City Council previously approved an agreement with Fehr & Peers to provide consulting services from 2024 to 2029 to perform traffic engineering and transportation planning services for both current and future studies in a total not-to-exceed amount of $300,000. Fehr & Peers have been tasked to work on the following city studies: Active Transportation Plan, Revisions to City Truck Routes, and Vehicle Miles Traveled Policy. Based on current project needs and anticipated future transportation planning requirements, the remaining approved funding under the contract is not sufficient to provide the necessary support services through the remainder of the agreement term.

Staff recommends that the City Council, by resolution, authorize the City Manager to execute an amendment to the contractual services agreement to increase the total not-to-exceed amount from $300,000 to $600,000 to maintain continuity of services through the remaining contract term and approve a $70,000 budget amendment to the 2024-2026 Biennial Budget and Capital Improvement Plan.

BACKGROUND
Fehr & Peers has worked with the City in various past studies including the 2017 Pedestrian & Bicycle Master Plan and the 2022 Local Roadway Safety Plan. The agreement with Fehr & Peers has a not-to-exceed of $300,000 and is effective from 2024 through 2029. Based on current project needs and anticipated future transportation planning requirements, the remaining contract capacity is not sufficient to support services through the remainder of the agreement term. Staff anticipates additional work from Fehr & Peers in the coming years and recommend increasing the amount now to avoid any potential disruptions in the future.

DISCUSSION/ANALYSIS
To ensure timely delivery of projects, staff recommend increasing the total To ensure timely delivery of projects, staff recommend increasing the total not-to-exceed amount to $600,000 for the current agreement. This will support both on-going work and any future work that may be needed. On-going work includes the Active Transportation Plan, Revision to City Truck Routes, and Vehicle Miles Traveled Policy. Future work may include studies such as the Title 17 Parking Study and on-call services for transportation engineering services. There is potential for updating older plans as some funding guidelines require plans to be updated at regular intervals.

Staff has reviewed updated scopes and budgets to the ongoing studies and determined that these additional costs and services are required to ensure delivery of City projects and studies. Staff recommends that City Council authorize an amendment to the agreement with Fehr & Peers to increase the total not-to-exceed amount to $600,000 to provide additional funding for potential new studies and services and to amend the 2024-2026 Biennial Budget and Capital Improvement Plan by allocating $70,000 to the current studies that are underway.

FISCAL IMPACT
If the City Council approves this item, the not-to-exceed amount of the Fehr & Peers contract will increase from $300,000 to $600,000, providing additional contract authority but not authorizing expenditures beyond approved appropriations.

Council approval will also increase appropriations by $70,000 in G/L account 625.90.094.940.6221, funded from the unappropriated fund balance of the Development Maintenance Fee Fund (Fund 625). This represents a one-time use of fund balance for currently identified scope of work or studies. The $70,000 appropriation increase is requested to fund the following work:

Vehicle Miles Travel Policy Updates - CIP001355: $15,000 Truck Route Revisions - CIP001356: $15,000
Active Transportation Plan - CIP001359: $40,000
These efforts support General Plan implementation and development-related transportation planning, including compliance with California Senate Bill 743 for CEQA analysis.

Future work may include the Title 17 Parking Study, on-call transportation engineering services, and periodic updates to existing plans required to maintain regulatory compliance and grant eligibility.

Future work under this agreement will require separate Council-approved appropriations through the annual budget or CIP process and is not authorized by this action.

STRATEGIC PRIORITY AREA
Foster a Safe and Healthy Community
Modernize Public Facilities and Infrastructure
REVIEW AND APPROVAL
REVIEW AND APPROVAL
Prepared by - Jerrald Yang, Associate Civil Engineer
Reviewed by - Miki Tsubota, City Engineer
Reviewed by - Howard Young, Director of Public Works
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Fehr & Peers Amendment Resolution
Fehr & Peers Original Contract
Fehr & Peers Amendment No. 1
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK APPROVING AMENDMENT NO. 1 TO THE

CONTRACTUAL SERVICES AGREEMENT WITH FEHR & PEERS

FOR TRAFFIC ENGINEERING AND TRANSPORTATION
PLANNING SERVICES AND AMENDMENT OF THE 2024-2026

BIENNIAL BUDGET AND CAPITAL IMPROVEMENT PLAN
WHEREAS, in August 2024 the City of Newark awarded a Contractual Services Agreement to Fehr & Peers for on-call traffic engineering and transportation planning services with a not-to-exceed amount of Three Hundred Thousand and NO/100 Dollars ($300,000); and WHEREAS, based on current project demands and anticipated future transportation planning needs, additional contract capacity is required to support services through the remaining term of the agreement; and
WHEREAS, staff has identified a need to amend the Contractual Services Agreement to increase the not-to-exceed amount; and
WHEREAS, staff has identified currently defined transportation planning work requiring an appropriation increase of $70,000, to be funded from the Development Maintenance Fee Fund (Fund 625) as part of the 2024–2026 Biennial Budget and Capital Improvement Plan.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves Amendment No. 1 to the Contractual Services Agreement with Fehr & Peers to increase the not-to-exceed amount of the Contractual Services Agreement to Six Hundred Thousand and NO/100 Dollars ($600,000).

BE IT FURTHER RESOLVED that the City Manager is authorized to execute the above Contractual Services Agreement amendment, in a form approved by the City Attorney.

BE IT FURTHER RESOLVED that the City Council hereby approves an amendment of the 2024-2026 Biennial Budget and Capital Improvement Plan to allocate $70,000 to project accounts 1355, 1356, and 1359 from Community Development Maintenance funds (Fund 625) as follows:

Account Description Amount
TO: 625.90.094.940.6221.CIP1355 Vehicle Miles Travel (VMT) Policy Updates
$15,000
TO: 629.90.094.940.6221.CIP1356 Truck Route Revisions $15,000 TO: 625.90.094.940.6221.CIP1359 Active Transportation Plan $40,000 FR: 625.3000 Unappropriated Fund Balance $70,000.0
0 1 | Contractual Services Agreement – Fehr & Peers

CONTRACTUAL SERVICES AGREEMENT

CONSULTANTS
This Service Agreement (hereinafter “Agreement”) is made and entered into this ____ day of _________, 2024 by and between the CITY OF NEWARK, a municipal corporation (“City”), and FEHR & PEERS, a California corporation (“Consultant”), collectively the “Parties”.

W I T N E S S E T H:

WHEREAS, City requested proposals to perform on-call traffic engineering and transportation planning services.

WHEREAS, in response to City’s request, Consultant submitted a Statement of Qualifications (hereinafter “SOQ”), now on file with the City Engineer and incorporated herein by reference; and, after negotiations, Consultant agreed to perform the “Services” more particularly described in Exhibit “A” (“Services”), in return for the compensation described in this Agreement and Exhibit “B”.

WHEREAS, in reliance upon Consultant’s documentation of its qualifications, as set forth in the SOQ, City finds that Consultant has demonstrated the requisite qualifications, experience, training, and expertise to perform the requested Services.

NOW, THEREFORE, the Parties hereto agree as follows:

1. CONSULTANT’S SERVICES. Consultant shall perform Services described, and in the time, place, and manner specified in Exhibit “A” in accordance with the terms and conditions of this Agreement. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit “A”, the Agreement shall control.

2. TIME FOR PERFORMANCE. Time is of the essence in the performance of Services under this Agreement and Consultant shall generally adhere to the schedule set forth in Exhibit “A”; provided, that City shall grant reasonable extensions of time for the performance of such Services occasioned by governmental reviews of Consultant’s work product or other unavoidable delays occasioned by circumstances, provided, further, that such unavoidable delays shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, Consultant’s officers or employees. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by Consultant in a reasonably prompt and timely manner based upon the circumstances and direction communicated to Consultant.

Consultant acknowledges the importance to City of City’s performance schedule and agrees to put forth its best professional efforts to perform its Services under this Agreement in a manner consistent with that schedule. City understands, however, that Consultant’s performance must be governed by sound professional practices.

Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB August 19
2 | Contractual Services Agreement – Fehr & Peers

3. COMPENSATION.

A. “Not to Exceed” Compensation. City shall compensate Consultant for all Services performed by Consultant hereunder in an amount based upon Consultant’s hourly or other rates set forth in Exhibit “B”. The payments specified in Exhibit “B” shall be the only payments to be made to Consultant for Services rendered pursuant to this Agreement.

Notwithstanding the foregoing, the combined total of compensation and costs payable hereunder shall not exceed the sum of Three Hundred Thousand and NO/100 Dollars ($300,000.00) unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services and/or incurring such costs and expenses by City, evidenced in writing as Additional Services by Task Order (see Section 4. Additional Services of this Agreement).

B. Method of Billing. To request payment, Consultant shall submit monthly invoices to City identifying Services performed and the charges therefore (including an identification of personnel who performed Services, hours worked, hourly rates, and reimbursable expenses), based upon Consultant’s billing rates (set forth on Exhibit “B” hereto).

Consultant shall submit all billings for said Services to City in the manner specified in Exhibit “B”; or, if no manner is specified in Exhibit “B”, then according to the usual and customary procedures and practices which Consultant uses for billing clients similar to City.

Invoices shall be sent to:

City of Newark
Public Works Department
37101 Newark Blvd.

Newark, CA 94560
Upon completion of Services, City shall sign off and acknowledge that all terms and conditions have been satisfactorily met; upon which, unless waived by City in writing, Consultant shall prepare an itemized statement, briefly describing by task and/or labor category the items billed.

C. Payment. Upon receipt of invoice, City shall make payments to Consultant on a monthly basis, or at such other times as may be specified in Exhibit “B”, for Services, which are performed in accordance with this Agreement to the satisfaction of City.

D. Consultant’s Failure to Perform. In the event that Consultant performs Services that do not comply with the requirements of this Agreement, Consultant shall, upon receipt of written notice from City, re-perform the services (without additional compensation to Consultant). If Consultant’s failure to perform in accordance with this Agreement causes damages to City, Consultant shall reimburse City for the damages incurred (which may be charged as an offset to Consultant’s payment).

4. ADDITIONAL SERVICES. In the event City desires the performance of additional services not otherwise included within Services, such services shall be authorized by Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 3 | Contractual Services Agreement – Fehr & Peers
written Task Order approved in advance of the performance thereof. Such Task Order shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefore, the time of performance thereof, and such other matters as the Parties deem appropriate for the accomplishment of such services.

Except to the extent modified by a Task Order, all other terms and conditions of this Agreement shall be deemed incorporated in each such task order.

5. INDEPENDENT CONSULTANT. At all times during the term of this Agreement, Consultant shall be, and is an independent consultant and shall not be an employee or agent of City. Consultant shall not be entitled to any benefit, right, or compensation other than that provided in this Agreement. City shall have the right to control Consultant only insofar as the results of Consultant’s Services; however, City shall not have the right to control the means by which Consultant accomplishes Services rendered pursuant to this Agreement.

Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

6. PERSONNEL. Consultant understands that, in entering into this Agreement, City has relied upon Consultant’s ability to perform in accordance with its representations regarding the qualifications of Consultant, including the qualifications of its Authorized Representative, its designated personnel, and its subconsultants, if any, identified in the Proposal.

Therefore, Consultant shall not replace its Authorized Representative, or any of the designated personnel or subconsultants identified in the Proposal, without the prior written consent of City.

All Services shall be performed by, or under, the direct supervision of Consultant’s Authorized Representative.

In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any of Consultant’s designated personnel or subconsultants, Consultant shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons.

7. FACILITIES AND EQUIPMENT. Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing Services.

8. INFORMATION AND DOCUMENTATION.

A. Information from City. City has made an effort to provide Consultant with all information necessary for Consultant’s performance of Services. If Consultant believes additional information is required, Consultant shall promptly notify City and City will provide to Consultant all relevant non-privileged information in City’s possession.

B. Consultant’s Accounting Records. Consultant shall maintain all accounting records related to this Agreement in accordance with generally accepted accounting principles and state law requirements, and in no event for less than four (4) years. Consultant’s accounting records shall include, at a minimum, all documents which support Consultant’s costs and expenses related to this Agreement, including personnel, subconsultants’ invoices and Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 4 | Contractual Services Agreement – Fehr & Peers
payments, and reimbursable expenses. Consultant’s accounting records shall be made available to City within a reasonable time after City’s request, during normal business hours.

C. Ownership of Work Product. All original documents prepared by Consultant (including its employees and subconsultants) for this Agreement (“Work Product”), whether complete or in progress, are the property of City and shall be given to City at the completion of Consultant’s Services, or upon demand of City. Consultant shall have a right to make and keep copies of the Work Product except for any confidential information. Consultant shall not reveal the Work Product or the confidential information contained in the Work Product, or make it available, to any third party without the prior written consent of City. However, notwithstanding the foregoing, or any provision to the contrary herein, intellectual property owned or created by any third party other than Consultant, its subconsultants, or City (“ThirdParty Content”), and inventions, improvements, discoveries, methodologies, models, formats, software, algorithms, processes, procedures, designs, specifications, findings, and other intellectual properties developed, gathered, compiled or produced by Consultant or its subconsultants prior to or independently of their performance of this Agreement (“Background IP”), including such Third-Party Content or Background IP that Consultant or its subconsultants may employ in its performance of this Agreement, or may incorporate into any part of the Work Product, shall not be the property of City. Consultant, or its subconsultants as applicable, shall retain all rights, titles, and interest, including but not limited to all ownership and intellectual property rights, in all such Background IP. Consultant, and its subconsultants as applicable, grant City an irrevocable, non-exclusive, non-transferable, royalty-free license in perpetuity to use, reproduce, prepare derivative works based upon, distribute, disclose, derive from, perform, and display, such Background IP, but only as an inseparable part of, and only for the purpose intended by creating of, the Work Product. In the event the Work Product contains, or incorporates any Third-Party Content, or derivative work based on such Third-Party Content, or derivative work based on such Third-Party Content, or any compilation that includes such ThirdParty Content, Consultant shall secure all licenses to any such Third-Party Content, but only as inseparable part of the Work Product, where such licenses are necessary for City to utilize and enjoy Consultant’s Services and the Work Product for their intended purposes. Any use of Consultant’s Work Product for any other project or purpose not authorized in writing by Consultant, any changes to the Work Product made by anyone other than Consultant, and any use of incomplete Work Product shall be at City’s or any other user’s sole risk, and Consultant shall bear no liability for any such unauthorized use of, reuse of, or modifications to the Work Product.

9. CONFLICTS OF INTEREST PROHIBITED. Consultant (including its employees, agents, and subconsultants) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. Consultant shall comply with all requirements of the Political Reform Act (California Government Code Section 81000, et seq.) and other laws relating to conflicts of interest, including: (a) Consultant shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Consultant’s economic interest, and (b) if required by law, Consultant shall file financial disclosure forms with the City Clerk. If Consultant maintains or acquires a conflicting interest, any contract with City (including this Agreement) involving Consultant’s conflicting interest may be terminated by City.

Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 5 | Contractual Services Agreement – Fehr & Peers

10. NONDISCRIMINATION. Consultant shall comply with all applicable federal, state, and local laws regarding nondiscriminatory employment practices, whether or not said laws are expressly stated in this Agreement. Consultant shall not discriminate against any employee or applicant because of race, color, religious creed, national origin, physical disability, mental disability, medical condition, marital status, sexual orientation, sex, age, or any other basis, as defined in California Civil Code Section 51.

11. COMPLIANCE WITH LAW AND STANDARD OF CARE. Consultant shall use reasonable care to comply with all applicable legal requirements including all federal, state, and local laws (including ordinances and resolutions), whether or not said laws are expressly stated in this Agreement. Consultant shall perform Services in accordance with the care, skill, and diligence ordinarily exercised by professionals performing similar services in the same or similar locale and under similar circumstances to that of Consultant under this Agreement.

12. INSURANCE. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, subconsultants, or employees.

A. Verification of Coverage.

Consultant shall furnish City with original certificates of insurance and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements are to be received and approved by City before work commences. City reserves the right to require and obtain complete, certified copies of all required insurance policies and endorsements at any time. Failure to exercise this right at any time shall not constitute a waiver of right to exercise later. Consultant shall immediately furnish City with certificates of renewal for each policy that is renewed during the term of this Agreement.

B. Minimum Scope of Insurance.

Coverage shall be at least as broad as:

1. Insurance Services Office Form Number CG 00 01 covering Commercial General Liability on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal and advertising inquiry; and

2. Insurance Services Office Form Number CA 00 01 covering Code 1 (any auto), or Code 8 (hired) and Code 9 (non-owned) if consultant has no owned autos; and

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance; and
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 6 | Contractual Services Agreement – Fehr & Peers

4. Errors and Omissions Liability insurance appropriate to the Consultant’s profession. Architects’ and Engineers’ coverage is to be endorsed to include contractual liability.

C. Minimum Limits of Insurance.

It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements and/or limits shall be available to the Additional Insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of and Insurance policy or proceeds available to the named Insured; whichever is greater.

Consultant shall maintain limits no less than:

1. General Liability:
(including products-completed
operations, property damage,
bodily injury, and personal and
advertising injury)
$2,000,000 per occurrence for bodily
injury, personal injury, and property
damage. If a general aggregate limit
applies, either the general aggregate
limit shall apply separately to this
project/location or the general
aggregate limit shall be twice the
required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

4. Errors and Omissions Liability: $1,000,000 per occurrence or claim; $2,000,000 aggregate.

D. Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to City, its officers, officials, directors, employees, contractors, agents, and volunteers, or (2) Consultant shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses in an amount specified by the City.

E. Claims Made Policies.

Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 7 | Contractual Services Agreement – Fehr & Peers
For all “claims made” coverage, in the event that Consultant changes insurance carriers Consultant shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than five (5) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time that the Consultant changes to a new carrier.

F. Wasting Policies.

No policy required by this paragraph 12 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense).

G. Remedies.

In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:

1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;

2. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or

3. Terminate this Agreement.

H. Acceptability of Insurers.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. All insurance companies providing coverage to Consultant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.

I. Other Insurance Provisions.

The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. Additional Insureds. City, its officers, officials, directors, employees and volunteers (“Additional Insureds”) are to be covered as insureds with respect to liability arising out of work or operations performed by or on behalf of Consultant; including materials, parts or equipment furnished in connection with such work or operations.

2. Primary Coverage. For any claims related to Services, Consultant’s insurance coverage shall be primary insurance as respects City, its officers, officials, directors, Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 8 | Contractual Services Agreement – Fehr & Peers
employees, and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, directors, employees, or volunteers shall be excess of Consultant’s insurance and shall not be contribute with it. Consultant’s policy will not seek contribution from the City’s insurance or self-insurance.

3. Notice of Cancellation. Each insurance policy required above shall provide that coverage and shall not be canceled during the term of this Agreement without notice to the City.

4. Civil Code § 2782. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the California Civil Code.

5. Deductibles and Self-Insured Retentions (SIR). All deductibles and self-insured retentions must be disclosed to the City for approval and shall not reduce the limits of liability. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.

6. Subconsultants. Consultant shall include all subconsultants as insureds under its policies or shall require and verify separate certificates and endorsements have been obtained for each subconsultant. All coverages for subconsultants shall be subject to all of the requirements stated herein.

7. Waiver of Subrogation. With respect to Workers’ Compensation and Employer’s Liability Coverage, the insurer shall agree to waive all rights of subrogation against City, its officers, officials, directors, employees, and volunteers for losses arising from work performed by Consultant for City.

8. Coverage is Material Element. Maintenance of proper insurance coverage in conformity with the provision of this paragraph 12 is a material element of this Agreement and failure to maintain or renew coverage or to provide evidence of coverage or renewal may be treated by City as a material breach of this Agreement.

9. Variation. The City Risk Manager may approve a variation in these insurance requirements upon a determination that the coverage, scope, limits, and form of such insurance are either not commercially available or that City’s interests are otherwise fully protected. Any variation granted shall be done in writing and shall be made a part of this Agreement as Appendix “A”.

13. REPORTING DAMAGES. If any damage (including but not limited to death, personal injury or property damage) occurs in connection with the performance of this Agreement, Consultant shall immediately notify the City Risk Manager’s office by telephone at 510-578-4428, and Consultant shall promptly submit to the City’s Risk Manager and the City’s Administrator (see paragraph 18, hereinbelow) a written report (in a form acceptable to City) with the following information: (a) name(s) and address(es) of the injured or deceased person(s), (b) name(s) and address(es) of witnesses, (c) name(s) and address(es) of Consultant’s insurance Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 9 | Contractual Services Agreement – Fehr & Peers
company(ies), and (d) a detailed description of the damage(s) and whether any City property was involved.

14. INDEMNIFICATION/SAVE HARMLESS. To the fullest extent permitted by law, the Consultant shall: (1) defend, and (2) indemnify City, its, officers, officials, directors, and employees from and against all liabilities regardless of nature or type (“Liabilities”) to the extent arising out of or resulting from the negligence, recklessness, or willful misconduct of Consultant or Consultant’s officers, employees, agents, or subconsultants in performance of Services.

Liabilities subject to the duties to defend and indemnify include, without limitation all claims, losses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs; and costs of alternative dispute resolution. Consultant’s obligation to indemnify applies unless it is adjudicated, or agreed upon through a settlement by the parties, that its liability was caused by the sole negligence or sole willful misconduct of an indemnified party. If it is finally adjudicated, or agreed upon through a settlement by the parties, that liability is caused by the comparative negligence or willful misconduct of an indemnified party, Consultant’s indemnification obligation shall be reduced in proportion to the established comparative liability of the indemnified party.

In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERs as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

The duty to defend is a separate and distinct obligation from Consultant’s duty to indemnify. Consultant shall be obligated to defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by City, provided however, such approval shall not be unreasonably withheld, upon tender to Consultant of the claim in any form or at any stage of an action or proceeding, whether or not liability is established. An allegation or determination of comparative negligence or willful misconduct by an indemnified party does not relieve the Consultant from its separate and distinct obligation to defend City. The obligation to defend extends through final judgment, including exhaustion of any appeals. If it is finally adjudicated, or agreed upon through settlement by the parties, that liability was caused by the negligence or willful misconduct of an indemnified party, Consultant may submit a claim to City for reimbursement of reasonable attorneys’ fees and defense costs. In no event shall the cost to defend charged to Consultant exceed Consultant’s proportionate percentage of fault.

The review, acceptance or approval of Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce Consultant’s indemnification or defense obligations. This paragraph survives completion of Services or the termination of this contract.

The provisions of this paragraph are not limited by and do not affect the provisions of this contract relating to insurance.

Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 10 | Contractual Services Agreement – Fehr & Peers
Consultant/Subconsultant’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law. The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

15. LICENSES, PERMITS, ETC. Consultant represents and warrants to City that it has all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession. In addition to the foregoing, Consultant shall obtain and maintain during the term hereof a valid City of Newark Business License.

16. TERM/TERMINATION.

A. The term of this Agreement shall commence upon the date first hereinabove written and shall expire on June 30, 2029.

B. Notwithstanding the provisions of paragraph 16 section A above, City may terminate this Agreement at any time and without cause upon written notification to the Consultant. Consultant may cancel this Agreement upon thirty (30) day’s written notice to City and shall include in such notice the reasons for cancellation. In the event of such termination, City shall compensate Consultant for Services rendered and reimburse Consultant for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3. In ascertaining the Services actually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion.

Nothing herein contained shall be deemed a limitation upon the right of City to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to City hereunder.

17. CONTRACT ADMINISTRATION. This Agreement shall be administered by the Public Works Director of the City of Newark (“Administrator”). All correspondence shall be directed to or through the Administrator or his/her designee.

18. NOTICES. Written notices required or convenient hereunder shall be delivered personally or by depositing the same with the United States Postal Service, first class (or equivalent) postage prepaid and addressed, in the case of Consultant, to:

FEHR & PEERS CITY OF NEWARK

KARINA SCHNEIDER PUBLIC WORKS DIRECTOR
Project Manager Administrator
Address: Fehr & Peers
2201 Broadway,
Suite 602
City of Newark
Attn: Public Works Director
37101 Newark Boulevard
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 11 | Contractual Services Agreement – Fehr & Peers
Oakland, CA 94612 Newark, CA 94560

19. PARAGRAPH HEADINGS. Paragraph headings used herein are for convenience only and shall not be deemed to be a part of such paragraphs and shall not be construed to change the meaning thereof.

20. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.

21. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect; provided, however, this paragraph shall not be applied to the extent that it would result in a frustration of the Parties’ intent under this Agreement.

22. GOVERNING LAW, JURISDICTION, AND VENUE. The interpretation, validity, and enforcement of this Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Alameda.

23. ATTORNEY’S FEES. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

24. ASSIGNABILITY. Neither Consultant nor City shall subconsult, assign, sell, mortgage, hypothecate, or otherwise transfer their respective interests or obligations in this Agreement without the express prior written consent of the non-transferring party.

25. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.

26. WAIVERS. Waiver of breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

27. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the Parties concerning the Services. This Agreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by reference into this Agreement are complementary; what is called for in one is binding as if called for in all.

28. SIGNATURES. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Consultant and City. This Agreement Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 12 | Contractual Services Agreement – Fehr & Peers
shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.

29. COVENANT AGAINST CONTINGENT FEES. Consultant hereby warrants that Consultant has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and Consultant has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, City shall have the right to annul this Agreement without liability or, at City’s discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF NEWARK, FEHR & PEERS
a municipal corporation a California corporation
By By
David Benoun, City Manager
Date Date
Printed Name
Attest:

Sheila Harrington, City Clerk
Date
Approved as to form:

Kristopher Kokotaylo, City Attorney
Date
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 8/16/2024
Lysa Wollard
8/17/2024
8/19/2024
8/19/2024
13 | Contractual Services Agreement – Fehr & Peers

EXHIBIT A
Scope of Services
Traffic Engineering and Transportation Planning services may include, but will not necessarily be limited to the following areas of experience and expertise. The following areas of experience and expertise are not intended to be exclusive; other services may be sought as the need arises.  Traffic Engineering
• Traffic signal timing and coordination
• Traffic signal design
• Review of traffic signal plans submitted as part of private development projects • Complete Street Policy design elements and implementation plans • Design of bicycle facilities
• Traffic impact studies
• Intelligent Transportation System (ITS) applications
• ITS communication needs
• Travel demand modeling
• Corridor and intersection analysis, including operations, safety, and level of service • Warrant studies
• Review/prepare construction detour plans
• Parking studies
• Signing, marking, and striping plans
• Roadway, intersection, and roundabout design
• Develop technical information for grant applications (TFCA, OTS, PASS, HSIP etc.) • Review Countywide Transportation Model; coordinate with County’s consultant and provide traffic/transportation data as required
• Review Transportation section of Environmental Impact Reports • Speed Study and Data Collection
 Transportation Planning
• Street circulation planning and design
• Bicycle facility planning and design
• Pedestrian facility planning and design
• Transit planning, design and operations
• Transportation systems management/transportation demand management strategies • Traffic calming assessment and design
• Assist with environmental studies
• Data collection for all transportation modes; including but not limited to traffic counts, vehicle classification counts, parking surveys, origin-destination surveys, GPS data collection, and assessment of existing conditions
• Cost estimates (planning level)
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 14 | Contractual Services Agreement – Fehr & Peers
• Public outreach – Tasks may include developing materials for the public. This may include content for the City’s web site
• Preparation of grant applications
• Preparation of plan documents
• Feasibility studies – all modes
• GPS field data collection, inventory management, and GIS integration. • Traffic Sign Retroreflectivity standards implementation and traffic sign inventory data management
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 15 | Contractual Services Agreement – Fehr & Peers

EXHIBIT B
Rate Schedule
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB 16 | Contractual Services Agreement – Fehr & Peers
Docusign Envelope ID: 61D248A2-8B4A-432C-B2BF-73F81B5FF1BB Certificate Of Completion
Envelope Id: 61D248A28B4A432CB2BF73F81B5FF1BB Status: Completed Subject: Complete with Docusign: 2024 Agreement Traff Eng FEHR PEERS_FINAL.pdf Source Envelope:

Document Pages: 16 Signatures: 4 Envelope Originator:

Certificate Pages: 5 Initials: 0 Brett Oeverndiek
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
37101 Newark Boulevard
Newark, CA 94560
[email protected]
IP Address: 206.128.122.185
Record Tracking
Status: Original
8/13/2024 4:03:32 PM
Holder: Brett Oeverndiek
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Lysa Wollard
[email protected]
Chief Financial Officer
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 98.37.205.193
Sent: 8/13/2024 4:15:00 PM
Viewed: 8/13/2024 6:10:03 PM
Signed: 8/16/2024 11:14:45 AM
Electronic Record and Signature Disclosure:

Accepted: 8/13/2024 6:10:03 PM
ID: 72add28b-ec1d-45b3-81f4-7a25ff5a9bba
Kristopher Kokotaylo
[email protected]
City Attorney
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 166.107.163.11
Sent: 8/16/2024 11:14:46 AM
Viewed: 8/17/2024 1:35:55 PM
Signed: 8/17/2024 1:37:08 PM
Electronic Record and Signature Disclosure:

Accepted: 8/17/2024 1:35:55 PM
ID: 3ab22ff1-e334-4bc2-8486-a53b6200b2d9
David J. Benoun
[email protected]

NEWARK CITY MANAGER
David Benoun
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 206.128.122.185
Sent: 8/17/2024 1:37:10 PM
Viewed: 8/19/2024 8:22:13 AM
Signed: 8/19/2024 8:22:17 AM
Electronic Record and Signature Disclosure:

Accepted: 8/19/2024 8:22:13 AM
ID: a4094ecc-201f-42e6-bed9-1222f03831c9
Sheila Harrington
[email protected]
City Clerk
City of Newark
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 206.128.122.185
Sent: 8/19/2024 8:22:18 AM
Viewed: 8/19/2024 8:38:33 AM
Signed: 8/19/2024 8:39:42 AM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Rob Rees
[email protected]
Principal (C49620)
Security Level: Email, Account Authentication
(None)
Sent: 8/13/2024 4:14:59 PM
Viewed: 8/13/2024 4:59:59 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 8/13/2024 4:14:59 PM
Envelope Updated Security Checked 8/13/2024 4:19:06 PM
Certified Delivered Security Checked 8/19/2024 8:38:33 AM Signing Complete Security Checked 8/19/2024 8:39:42 AM
Completed Security Checked 8/19/2024 8:39:42 AM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure

ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Newark (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system.

Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

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Page 1 of 2 ends

FIRST AMENDMENT TO THE

CONTRACTUAL SERVICES AGREEMENT

BETWEEN THE CITY OF NEWARK AND

FEHR & PEERS
This First Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation, ("City") and FEHR & PEERS, a California company, (“Contractor”), (together referred to as the “Parties”) dated August 19, 2024 (the “Agreement”), is entered into as of May 14, 2026 for on-call traffic engineering and transportation planning services.

RECITALS
WHEREAS, the Parties executed the Agreement for the purpose of having Consultant perform on-call traffic engineering and transportation planning services; and WHEREAS, Section 25, Modifications, of the Agreement allows the Parties to amend the Agreement provided that the amendment is in writing signed by the Parties; and WHEREAS, the Agreement has a not-to-exceed amount of Three Hundred Thousand and NO/100 Dollars ($300,000) and terminates on June 30, 2029; and WHEREAS, City staff is authorized to execute this Amendment in a form approved by the City Attorney.

NOW, THEREFORE, the Parties hereby agree as follows:

1. Section 3.A. Not-to-exceed sum, of the Agreement, is amended to increase the not-toexceed sum to Six Hundred Thousand and NO/100 Dollars ($600,000.00).

2. With the exception of the foregoing, all other terms and conditions in the Agreement, as amended, remain in force and effect.

Page 2 of 2 ends

CITY OF NEWARK, FEHR & PEERS
a municipal corporation
By ______________________________ By
David J. Benoun
City Manager
Date _____________________________ Date
___________________________________
Printed Name
ATTEST:
__________________________________
Neetu Salwan
City Clerk
Date
APPROVED AS TO FORM:
__________________________________
Kristopher J. Kokotaylo
City Attorney
Item D. 7.

DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Jerrald Yang, Associate Civil Engineer
SUBJECT Adopt a resolution authorizing the City Manager to execute a cooperative agreement between the City and the Alameda County Water District (ACWD) for cost-sharing related to the waterline pavement restoration work associated with the Thornton Avenue Pavement Rehabilitation Phase 1 project (CIP001366)
SUMMARY AND RECOMMENDATION
ACWD recently completed water main replacement along Thornton Avenue within the project boundaries as the City’s upcoming Thornton Avenue Pavement Rehabilitation Phase 1 project scheduled for later in 2026. Under its encroachment permit, ACWD is required to restore affected pavement areas to original or better condition.

Due to the overlap in project boundaries and timing, both the City and ACWD would otherwise perform similar pavement restoration work independently related to the Thornton Avenue Pavement Rehabilitation Phase 1 project and ACWD's water main replacement project, resulting in redundant construction, increased costs, and additional disruption to the public.

To address this, the City and ACWD have developed a cooperative agreement under which ACWD will provide a monetary reimbursement to the City in lieu of performing its required pavement restoration. The City will incorporate the restoration work into its upcoming project, eliminating duplicate effort and improving overall project efficiency.

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the cooperative agreement with ACWD for cost-sharing the waterline pavement restoration work associated with the Thornton Avenue Pavement Rehabilitation Phase 1 project.

BACKGROUND
ACWD completed a water main replacement along Thornton Avenue within the project boundaries as the City’s upcoming Thornton Avenue Pavement Rehabilitation Phase 1 project. ACWD began construction in April 2024, with work extending from Cherry Street to Cedar Boulevard. Although originally scheduled for completion within one year, the project experienced delays and was substantially completed in March 2026, bringing it into close alignment with the City’s project schedule.

Due to this overlap, both agencies would otherwise perform similar pavement restoration work independently, resulting in redundant construction, increased costs, and additional disruption to the public.

To address this, City and ACWD staff coordinated beginning in October 2025 to develop a cost-sharing approach. The agencies agreed to a cooperative agreement under which ACWD will provide a monetary reimbursement to the City in lieu of performing its required pavement restoration. The City will incorporate this work into its upcoming project, eliminating duplicate effort and improving overall project efficiency.

DISCUSSION/ANALYSIS
The proposed cooperative agreement provides both operational and fiscal efficiencies by consolidating pavement restoration work under the City’s upcoming project.

For the City, the agreement reduces overall project costs by securing reimbursement from ACWD for pavement restoration work that would otherwise be performed separately. Incorporating this work into the City’s project eliminates duplicative construction and improves cost efficiency.

For ACWD, the agreement allows the District to avoid performing restoration work that would be removed or replaced by the City’s project, reducing their project scope, schedule, and costs.

Overall, the agreement minimizes construction overlap, reduces public disruption, and maximizes the efficiency of planned capital improvements. This approach is consistent with best practices for interagency coordination and cost-effective infrastructure delivery.

FISCAL IMPACT
The cooperative agreement provides reimbursement from ACWD to offset pavement restoration costs associated with the Thornton Avenue Pavement Rehabilitation Phase 1 Project.

The estimated reimbursement is approximately $307,600 based on the engineer’s estimate, with a not-to-exceed amount of $362,000 per the agreement. The final reimbursement will be based on actual construction quantities and unit prices and may vary from the estimate.

Reimbursement is expected within approximately 60 days following project contract award.

The project is currently funded by CPFCDS Federal Earmark (Cycle 2) and Regional Measure 3 (RM3).

STRATEGIC PRIORITY AREA
Boost Financial Resilience and Excellence in Service Delivery Modernize Public Facilities and Infrastructure
REVIEW AND APPROVAL
Prepared by - Jerrald Yang, Associate Civil Engineer
Reviewed by - Miki Tsubota, City Engineer
Reviewed by - Howard Young, Director of Public Works
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
ACWD Resolution
ACWD Agreement
ACWD Agreement Attachments
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE A COOPERATIVE AGREEMENT WITH THE
ALAMEDA COUNTY WATER DISTRICT FOR COSTSHARING FOR THE WATERLINE PAVEMENT

RESTORATION WORK IN CONJUNCTION WITH THE

THORNTON AVENUE PAVEMENT REHABILITATION
PHASE 1 PROJECT (CIP001366)
WHEREAS, on May 23, 2024, the City Council enacted a resolution authorizing the City Manager to execute a cooperative agreement with the Alameda County Water District (ACWD) for the water main design and construction associated with the Old Town Streetscape Improvements, Project 1258; and
WHEREAS, the Alameda County Water District (ACWD) completed water main replacement improvements along Thornton Avenue within the limits of the City’s Thornton Avenue Pavement Rehabilitation Phase 1 Project (CIP001366) (“City Project”); and WHEREAS, in October 2025, to ensure an efficient construction effort and to minimize disruption to affected users of these areas during construction, the City and ACWD began coordinating on means to incorporate certain remaining restoration work and associated costs from the Main Renewal Program called “Waterline Pavement Restoration Work” into the City Project; and
WHEREAS, a Cooperative Agreement has been prepared to facilitate this cooperative effort between the City and ACWD, with the City serving as the lead agency. This agreement describes the cost-sharing reimbursable items from the Waterline Pavement Restoration Work to be collected by the City from ACWD.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager to execute a Cooperative Agreement with the Alameda County Water District, in a form approved by the City Attorney, to provide for reimbursement of pavement restoration work incorporated into the City Project.

BE IT FURTHER RESOLVED that the City Manager is authorized to take all actions necessary to effectuate the intent of this Resolution.

Cooperative agreement – City of Newark and ACWD 1 of 10 5/14/2026

COOPERATIVE AGREEMENT

BETWEEN CITY OF NEWARK AND THE ALAMEDA COUNTY WATER

DISTRICT FOR COST SHARING FOR WATERLINE PAVEMENT RESTORATION WORK FOR THE THORNTON AVENUE PAVEMENT REHABILITATION PHASE 1 PROJECT (City Project P1366 )
This Cooperative Agreement for the Thornton Avenue Pavement Rehabilitation Phase 1 Project (City Project P1366, the “City Project”) ("Agreement") is made and entered into by and between the City of Newark, a municipal corporation ("City"), and the Alameda County Water District ("ACWD"), a county water district duly organized and existing under the County Water District Law (being Division 12 of the Water Code of the State of California). City and ACWD may be collectively referred to herein as the "Parties."

RECITALS
A. As part of its Main Renewal – Central Newark Thornton Avenue Project (ACWD Job 21235, also referred to herein as “ACWD Project”), ACWD is improving its water system within the City rightof-way, including installation of approximately 4,000 feet of water main within the alignment of and proximate to Thornton Avenue between Cedar Boulevard and Cherry Street and to connections at cross streets along this alignment. The ACWD Project includes replacement and relocation of existing water mains, fire hydrants, water service laterals, and related appurtenances, concrete curb and gutter restoration, concrete hardscape restoration, deep-lift paving at trenches and at deep pavement sawcuts, pavement mill and overlay, traffic signal loop and wiring replacement, and restoration of striping affected by the pipeline and appurtenance installation.

B. The City is planning and intends to construct the City Project which includes pavement repair, mill and overlay of existing pavement, and striping improvements on Thornton Avenue.

C. The ACWD Project and City Project both involve major improvements to paving and striping within the public right-of-way and within the same general geographic area as shown in Attachment A, attached hereto and incorporated herein by reference.

D. To provide for the most efficient and cost-effective implementation of the two projects, and to minimize disruption to Newark residents due to traffic delays, noise and dust associated with the projects, the Parties desire that certain ACWD paving restoration work that would have been completed as part of the ACWD Project be performed as part of the City Project. The portion of ACWD Project to be included in the City Project is designated the “Waterline Pavement Restoration Work” and outlined in Part 1 of this Agreement.

Cooperative agreement – City of Newark and ACWD 2 of 10 5/14/2026 E. It is the intent of the City to administer the City Project. It is the intent of ACWD to support City's implementation of the City Project via reimbursement of the City's reasonable costs of the Waterline Pavement Restoration Work.

F. The inclusion of the Waterline Pavement Restoration Work into the City Project will require coordination between the City and ACWD regarding the existing ACWD Project encroachment permit and the to-be-determined Waterline Pavement Restoration Work costs.

G. Beginning in October 2025, the City and ACWD have been coordinating on means to incorporate the Waterline Pavement Restoration Work into the City Project.

H. The Parties desire to work cooperatively and to document a reasonable and responsible basis for ACWD’s contribution to the City Project for including the Waterline Pavement Restoration Work into the City Project.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS

AND CONDITIONS IDENTIFIED HEREIN,
THE PARTIES HEREBY AGREE AS FOLLOWS:

1. SCOPE OF WATERLINE PAVEMENT RESTORATION WORK TO BE PERFORMED BY THE CITY PROJECT.

The Waterline Pavement Restoration Work consists of the following components:

1.1. Mill and Overlay: 30,000 square feet of 2-inch mill and overlay associated with the new main on Thornton Avenue within the footprint of the City Project will be incorporated, with modification, into the City Project. The 2-inch mill and overlay will be modified to a deeper, 3- inch or 4-inch mill and overlay that is proposed by the City Project. The mill and overlay will conform to current City standards.

1.2. Traffic Signal Detector Restoration: Traffic signal loops were destroyed by the ACWD Project.

The City Project will evaluate restoring traffic signal detection by the installation of traffic signal cameras in lieu of loops, although the City may opt for loop replacement at its discretion.

Traffic cameras and ancillary camera equipment, if used, or traffic signal loops, shall be installed in accordance with current City standards.

1.3. Lower and Raise Iron: To install the mill and overlay, it is necessary to temporarily lower, and following mill and overlay, permanently raise valve boxes, vaults, manholes, monuments, and associated lids (“iron”) in accordance with ACWD’s and the respective utilities’ and City’s standards.

Cooperative agreement – City of Newark and ACWD 3 of 10 5/14/2026

2. ESTIMATED AND ACTUAL COSTS OF WATERLINE PAVEMENT RESTORATION WORK

2.1. It is the intent of the Parties that ACWD reimburse the City for the Waterline Pavement Restoration Work performed by the City via the City Project in accordance with the following methodology:

2.2. Traffic Control: All restoration work is subjected to traffic control requirements and can include lane closures, flaggers, advanced signage, intersection control, changeable message boards, or more. The parties agree that ACWD will be responsible for 20% of the unit cost of traffic control for the City Project.

2.3. Mobilization: In addition to traffic control, all restoration work may be subjected to mobilization costs. The parties agree that ACWD will be responsible for 20% of the unit cost for mobilization for the City Project.

2.4. Pavement Mill (also referred to in District documents as “grind”): The Parties acknowledge that while ACWD’s contractor was to perform a 2-inch pavement mill as part of the ACWD Project, the City intends for the City Project to improve Thornton Avenue with a 3-inch or 4-inch mill and overlay. Therefore, it will not be possible to determine actual unit cost, and hence the total cost of the Waterline Pavement Restoration Work 2-inch mill, based on the City Project construction contract. For the purposes of reimbursement for the mill component of the Waterline Pavement Restoration Work, the Parties agree that the unit cost to be reimbursed by ACWD will be the smaller of a) 70% of the unit cost of 3-inch mill or 4-inch mill as determined from the City Project construction contract, or b) $1 per square foot. The smaller of (a) or (b) would be multiplied by 30,000 square feet to determine the amount owed by ACWD for this item.

2.5. Hot Mix Asphalt (HMA): The Parties acknowledge that the installation of HMA is required after mill in both the Waterline Pavement Restoration Project and the City Project. The Parties agree that the unit cost to be reimbursed by ACWD will be the same unit cost as determined from the City Project. This unit cost will be multiplied by 375 tons to determine the amount owed by ACWD for this item. 375 tons is the quantity of asphalt that would have been installed as part of the waterline work, which is a two-inch-thick layer of asphalt installed over 30,000 square feet and assumed to weigh 150 pounds per cubic foot.

2.6. Traffic Signal Detector Restoration: The Parties agree that ACWD will provide $75,350 to the City for this component of the Waterline Pavement Restoration Work, which is the estimated value of the installation of loops and wiring and testing, as was originally planned by the ACWD Project.

2.7. Striping Restoration: The Parties agree that the striping will be installed by ACWD, as originally planned by the ACWD Project plans and the encroachment permit conditions issued by the City to ACWD, to restore the affected sites back to original or better conditions. Affected areas Cooperative agreement – City of Newark and ACWD 4 of 10 5/14/2026 include the scope in the Waterline Pavement Restoration Work and its affected surrounding side streets. The City will not seek a reimbursable amount for this restoration work.

2.8. Lower and Raise Iron: The Parties agree that lowering and raising valve boxes, vaults, manholes, monuments, and associated lids in accordance with ACWD’s standards, other utilities’ standards, and City of Newark standards, as applicable, identified on Attachment A, will be reimbursed by ACWD in the following manner: the City shall determine the cost from the City Project construction contract, and ACWD will reimburse the cost up to a maximum of $75,000, for the area of limits defined by the Waterline Pavement Restoration Project. ACWD’s utility boxes and lids shall be restored in accordance with ACWD Standard Detail VB-1-08 (Attachment B). Lowering and raising the iron shall be incorporated into a separate line item in the City Project contract payment item schedule so the cost may be easily determined.

2.9. Administrative Fee: the Parties agree that ACWD will pay an additional 5% of the sum of the aforementioned actual reimbursable amounts to compensate the City for administrative costs associated with managing the construction contract and for construction inspection associated with the ACWD share of the work.

2.10. The overall value of the agreement shall not exceed $362,000.

3. WATERLINE WORK ENCROACHMENT PERMIT.

3.1. The Waterline Pavement Restoration Work will be removed from the encroachment permit, but all other requirements of the permit remain in effect. The Parties agree that the encroachment permit will be closed upon completion of the other items of work, which include: a) any deeplift paving required for trench restoration, or to restore areas where full-depth sawcutting of the existing pavement occurred, even where no trench was excavated, and associated striping for affected areas; b) mill and overlay paving, and striping affected by the waterline work; c) concrete curb and gutter and hardscape restoration at all locations affected by the ACWD Project; d) completion of repair of “punch-list” items so identified and agreed upon as listed in Attachment C “Punch-List”.

4. ADMINISTRATION OF CITY PROJECT.

4.1. City will serve as the sole administrator of the City Project. ACWD will only contribute funds to the City Project per Part 2 of this Agreement. ACWD will not participate in developing the scope of work, preparing contract documents, bidding, award of the contract, construction inspection, or construction management of the City Project. Any acceptance of work, including the acceptance of the Waterline Pavement Restoration Work, incorporated into the City Project, Cooperative agreement – City of Newark and ACWD 5 of 10 5/14/2026 and completed by the City will be solely at the City’s discretion. Any incidental damage caused by City’s contractor during execution of the City Project shall not be charged to ACWD but shall be addressed by the City and its contractor.

4.2. The City shall issue the plans and specifications for the City Project for public competitive bids and award the contract for the City Project in accordance with the requirements of the California Public Contract Code, the Newark Municipal Code, and any other applicable laws and regulations.

4.3. Following award of the Project by the City to the lowest responsive and responsible bidder, the City shall provide a copy of the successful bidder’s bid package. ACWD will provide payment for its share of the cost of the City Project within 60 days of award of the contract by the City.

4.4. City will serve as the lead agency for California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) for the City Project, including the Waterline Paving Restoration Work, in accordance with the Federal and State grant requirements. ACWD will have no role in the CEQA or NEPA process. The City will pay for the environmental review costs associated with the filing of the NEPA and CEQA for the City Project.

4.5. City will acquire all environmental, right-of-way and construction-related permits for the City Project in accordance with the Federal and State grant requirements. No City of Newark encroachment permit fee will be paid by ACWD.

5. OWNERSHIP OF CITY PROJECT.

5.1. The City shall be the sole owner of the work constructed by the City Project. ACWD shall have no responsibility for repairing or maintaining the Waterline Pavement Restoration Work, including any pavement, traffic systems, or striping completed by the City Project.

6. MODIFICATIONS TO CITY PROJECT WORK DURING CONSTRUCTION.

6.1. The City has the right to modify the City Project as needed to execute the project. Any changes to the City Project will be the City’s responsibility. Other than inspecting the restoration of ACWD’s temporarily lowered and raised valve boxes and lids if it chooses to do so, ACWD’s sole responsibility is to compensate the City under the terms of this Agreement.

7. RESOLUTION OF DISPUTES.

In the event the Parties should disagree regarding implementation of this Agreement, the Parties agree to use the following dispute resolution procedure.

Cooperative agreement – City of Newark and ACWD 6 of 10 5/14/2026

7.1. At least one individual in a senior management position from each party will meet, in person, and attempt to resolve the dispute informally.

7.2. If the initial meeting does not resolve the dispute, the City Manager for the City, and the General Manager for ACWD will meet in person, and attempt to resolve the dispute informally.

7.3. If the meeting with the City Manager and General Manager does not resolve the dispute, the matter shall be referred to a mediation with a JAMS representative with JAMS' fees to be split equally between the City and ACWD.

7.4. If neither the staff meetings nor the meditation results in resolution of the dispute, the Parties shall have the right to exercise any of its remedies available under law.

8. GENERAL PROVISIONS.

8.1. RELATIONSHIP BETWEEN THE PARTIES. This Agreement does not create any partnership or agency between the parties.

8.1.1. ACWD is, and at all times shall remain, solely responsible for all acts of its officials, employees, agents, and contractors, including any negligent acts or omissions. ACWD is not the City's agent and shall have no authority to act on behalf of the City, or to bind the City to any obligation whatsoever.

8.1.2. The City is, and at all times shall remain, solely responsible for all acts of its officials, employees, agents, and contractors, including any negligent acts or omissions. The City is not the ACWD's agent and shall have no authority to act on behalf of ACWD, or to bind ACWD to any obligation whatsoever.

8.2. AUTHORIZED REPRESENTATIVES.

8.2.1. All ACWD services under this Agreement shall be performed by, or under the direct supervision of, ACWD's Authorized Representative, Girum Awoke, Director of Engineering and Technology, unless otherwise designated in writing by ACWD's Authorized Representative or the General Manager.

8.2.2. All City services under this Agreement shall be performed by, or under the direct supervision of, the City's Authorized Representative, Howard Young, Director of Public Works, unless otherwise designated in writing by the City's Authorized Representative or the City Manager.

Cooperative agreement – City of Newark and ACWD 7 of 10 5/14/2026

8.3. INDEMNIFICATION.

8.3.1. Pursuant to Government Code section 895.4, City shall indemnify, hold harmless, and defend ACWD (including its elected officials, officers, agents, and employees) from and against any and all claims (including all litigation, demands, damages, liabilities, costs, and expenses, and including court costs and attorney's fees) resulting or arising from the City's negligent acts or omissions in the performance of contract administration under this Agreement.

8.3.2. Pursuant to Government Code section 895.4, ACWD shall indemnify, hold harmless, and defend City (including its elected officials, officers, agents, and employees) from and against any and all claims (including all litigation, demands, damages, liabilities, costs, and expenses, and including court costs and attorney's fees) resulting or arising from the ACWD's negligent acts or omissions in the performance of contract administration under this Agreement.

8.4. TERM OF THE AGREEMENT. The term of this Agreement shall commence on the date last signed by the parties, below, and shall continue until completion of all the obligations of the parties under this Agreement. The Parties agree that the City intends to construct the City Project in 2026. Delay of the City Project shall not change the cost of ACWD’s contribution to the City Project.

8.5. ACCOUNTING RECORDS. The parties shall maintain all accounting records related to this Agreement in accordance with generally accepted accounting principles and state law requirements, and in no event for less than four years. The parties' accounting records shall include, at a minimum, all documents which support the costs and expenses related to the City Project, including the cost estimate for signal and traffic loop work, and the City Project bid package. Each party's accounting records shall be made available to the other party within a reasonable time after request, during normal business hours.

8.6. NOTICES. All notices required or contemplated by this Agreement shall be in writing and shall be delivered to the respective party as set forth in this section. Communications shall be deemed to be effective upon the first to occur of: (a) actual receipt by a party's Authorized Representative, or (b) actual receipt at the address designated below, or (c) three working days following deposit in the United States Mail of registered or certified mail sent to the address designated below. The Authorized Representative of either party may modify their respective contact information identified in this section by providing notice to the other party.

Cooperative agreement – City of Newark and ACWD 8 of 10 5/14/2026 To: City
Attn: Public Works Director
City of Newark
37101 Newark Boulevard
Newark, CA 94560
To: ACWD
Attn: Director of Engineering and Technology
Alameda County Water District
P.O. Box 5110
Fremont, CA 94537-5110

8.7. HEADINGS. The heading titles for each paragraph of this Agreement are included only as a guide to the contents and are not to be considered as controlling, enlarging, or restricting the interpretation of the Agreement.

8.8. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect; provided, however, this paragraph shall not be applied to the extent that it would result in a frustration of the parties' intent under this Agreement.

8.9. GOVERNING LAW, JURISDICTION, AND VENUE. The interpretation, validity, and enforcement of this Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Alameda.

8.10. ASSIGNMENT AND DELEGATION. This Agreement, nor any portion thereof, shall not be assigned or transferred, nor shall any of a Party's duties be delegated, without the written consent of the other Party. Any attempt to assign or delegate this Agreement without the written consent of the other Party shall be void and of no force or effect. A consent by a party to one assignment shall not be deemed to be a consent to any subsequent assignment.

8.11. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both parties.

8.12. WAIVERS. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement.

8.13. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the parties concerning the matters described herein. This Agreement supersedes all prior negotiations, Agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by Cooperative agreement – City of Newark and ACWD 9 of 10 5/14/2026 reference into this Agreement are complementary; what is called for in one is binding as if called for in all.

8.14. EACH PARTY'S ROLE IN DRAFTING THE AGREEMENT. Each party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither party shall rely upon Civil Code section 1654 in order to interpret any uncertainty in the meaning of the Agreement.

8.15. COUNTERPART SIGNATURES. The parties hereto recognize and agree that separate counterpart signature pages may be used but that all such pages constitute one and the same Agreement.

8.16. SIGNATURES. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the ACWD and the City. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

Cooperative agreement – City of Newark and ACWD 10 of 10 5/14/2026 IN WITNESS WHEREOF, the City and ACWD do hereby agree to the full performance of the terms set forth herein.

City of Newark Alameda County Water District
By: ______________________________ By: ____________________________________ David Benoun Ed Stevenson
Title: City Manager Title: General Manager
Date: ____________________________ Date: __________________________________

ATTACHMENT A
JOB 21235

MAIN RENEWAL - CENTRAL NEWARK THORNTON AVENUE

ALAMEDA COUNTY WATER DISTRICT
2024
43885 SOUTH GRIMMER BOULEVARD, FREMONT CALIFORNIA

GENERAL MANAGER

BOARD OF DIRECTORS
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GIRUM
'ZR&CVG

S AWOKE
C 86228
CHERRY
STREET HORIZONTAL SCALE VERTICAL SCALE ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG S AWOKEC 86228
between sta 2+47.05 --- sta 2+41.154= 4" PVC pipes 4'5" T.O.P 5'3" B.O.P12"x12" square clay pipe 4"2" T.O.P is cover with concrete concrete under and on the sides of the line 5'6" B.O.C4'8" T.O.C3" steel pipe ??? 3"7" T.O.P 19' 12"
8' 4 3/8"
16' 3 15/16" 16' 3 3/4"
9' 10 1/8"
54' 2 5/32"
19' 12"
54' 9 7/16"

STOP

BIRCH STREET

BIRCH STREE

ALAMEDA COUNTY WATER DISTRICT
GIRUM 'ZR&CVG

S
AWOKEC 86228 HORIZONTAL SCALE VERTICAL SCALE

°°°°°°°° STOP THORNTON AVENUE
ST. EDWARDS
STREET ” ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG
S AWOKE HORIZONTAL SCALE VERTICAL SCALE C 86228 RFI 55
RFI 51
RFI 51.1
20'
19' 7 13/16"
13' 8 11/16"
2"
°
RUSCHIN DRIVE STOP THORNTON AVENUE ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG S AWOKEC 86228 HORIZONTAL SCALE VERTICAL SCALE 2"
CEDAR
BOULEVARD ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG S AWOKEC 86228 HORIZONTAL SCALE VERTICAL SCALE Thrust Block per Sheet 912,
Detail 4.

STOP ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG
S AWOKE HORIZONTAL SCALE VERTICAL SCALE C 86228 19' 12"
18' 8 11/16"
ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG
S AWOKE HORIZONTAL SCALE VERTICAL SCALE C 86228 RFI 17
STOP
STOP ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG
S AWOKE HORIZONTAL SCALE VERTICAL SCALE C 86228 ALAMEDA COUNTY WATER DISTRICT GIRUM 'ZR&CVG
S AWOKEC 86228 HORIZONTAL SCALE VERTICAL SCALE

ATTACHMENT B

ATTACHMENT C
Encroachment Permit # ENCP2024-0058
Contractor: A&B Construction
Site Location:

Thornton Avenue from Cedar Boulevard
to Cherry Street, Newark
Inspector: Jerald Yang and Nigel Cacdac
Engr. of Record: City of Newark
ItemDescription / Location / Stations Raised By (Initial) Raised Date Review By (Initial) Completion Date Verify Completion by CON Notes 6375 Thornton Driveway, 4ea large flags, and Driveway wings + C&G (6ea Flags) Trade for another 6ea flags? Since this area will get new curb, gutter, and sidewalk when new building goes up. JY 3/25/2026Thornton and Arden West Median Island Curb that was replaced, reinstall yellow paint color on the curb JY/NC 1/14/2026Striping per Jerald's Striping Map JY/NC 1/14/2026SE Cherry Turn Lane - Asphalt 0.5-1.0" Asphalt Lip needs to be ground down and flush between cross walk and gore JY 3/25/2026Everywhere cobbles were reinstalled needs to be pressure washed - Cherry to Cedar (Cherry South, 36840 Cherry, 6310 Thornton, 6266 Thornton, 6062 Thornton, 5970 Thornton, 5850 Thornton, 5807 Mayhews Landing, 5724 Thornton (7-11), and Chevron at Cedar JY 3/25/2026
6361 Thornton replace cracked concrete around meter box JY 3/25/20266310 Thornton at service lateral, east of the hydrant, Asphalt has sank down. Fix asphalt JY 3/25/20266275 Thornton - Add dirt in front of meter box JY 3/25/2026City of Newark to provide Monument Cover for monument at East median nose at Mayhews Landing and Thornton MK 3/25/2026 City of Newark PUNCHLIST ITEMS
Job Name: CENTRAL NEWARK THORNTON AVENUE - MAIN RENEWAL PROJECT

Page 1 of 1 ends

Item F. 1.

DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Angela Tsui, Deputy Economic Development Director
SUBJECT Study Session on Newark's Industrial Lands Study Report SUMMARY AND RECOMMENDATION
Staff recommends that the City Council receive the presentation introducing the Industrial Lands Study report.

BACKGROUND
The industrial sector is crucial to fostering a robust, resilient, and diverse economy for the Bay Area as a whole. The Bay Area’s industrial real estate market is vital in global trade, e-commerce, supply chains, and drives demand for manufacturing spaces for a wide range of consumer products, business-to-business needs, technology goods, as well as space for warehouses and logistics hubs to serve last-mile distribution needs.

Specifically for Newark, industrial lands and buildings are assets that generate essential tax revenue for the City. These assets are valuable for Newark's economy and have attracted a mix of business sectors, including technology, biotech and life sciences, electric vehicles, clean energy solutions, food production, printing, packaging, logistics, and many other manufacturing and advanced manufacturing uses.

Moreover, these industrial-related companies create jobs that provide a diverse range of positions available to local residents.

In November 2023, the East Bay Economic Development Alliance (EBEDA) completed its "Resilient East Bay" industrial lands study. The study addressed the industrial landscape of both Alameda and Contra Costa Counties, however, it did not include a detailed analysis of Newark. In 2024, the City contracted Strategic Economics to assess Newark’s industrial assets and market sector and identify recommendations to strengthen Newark’s industrial resiliency moving forward.

DISCUSSION/ANALYSIS
Dena Belzer, CEO of Strategic Economics, authored the "Resilient East Bay" analysis Dena Belzer, CEO of Strategic Economics, authored the "Resilient East Bay" analysis for the East Bay Economic Development Alliance. Based on the findings from the Resilient East Bay report and conducting additional research focused on Newark, Ms.

Belzer has developed a report to include a general industrial real estate market overview, an evaluation of Newark’s industrial land supply by subarea and zoning classification, analysis of non-industrial uses in the industrial zones, and key findings.

Staff recommends that the City Council receive the Industrial Lands Study presentation and provide general feedback and, if necessary, direction to staff. Following the study session, staff will use the report to inform future economic development, land use, and policy work related to Newark’s industrial areas. Potential next steps may include continued monitoring of industrial market conditions, further review of industrial zoning and non-industrial uses within industrial districts, outreach to existing industrial businesses and property owners, and development of future implementation options.

FISCAL IMPACT
There is no fiscal impact as a result of this presentation because no action is taking place.

STRATEGIC PRIORITY AREA
Further Economic Vitality and Housing for All.

Boost Financial Resilience and Excellence in Service Delivery.

REVIEW AND APPROVAL
Prepared by - Angela Tsui, Deputy Economic Development Director Reviewed by - Steven M. Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Newark Industrial Lands Update Final
Industrial Land Use /
Zoning Analysis Update
May 14, 2026

1. Newark’s Real Estate Market Position

2. Newark’s Current Industrial Building Inventory

3. Newark’s Industrial Zoning
2 Table of Contents
Newark’s Real Estate Market
Position
- Newark’s position at the eastern
terminus of the Dumbarton Bridge
helps attract life science
industries moving out of San
Mateo County
- The City also captures demand
from Silicon Valley, primarily from
northern Santa Clara County
4 Demand for Industrial Space in Newark is Driven by Two Major Industrial Concentrations in the Bay Area
Source: Strategic Economics, 2026.
• Market Area – the area including
Newark’s industrial real estate’s
competitive supply includes:
• Newark
• Fremont
• Union City
• Hayward
5 Newark is Generally Part of the South I-880
Industrial Market
Industrial Real Estate Market Area
Source: Strategic Economics, 2026.
• Industrial building supply is characterized by
three building types: warehouse/distribution,
manufacturing, and R&D (as defined by Costar)
• Newark has a lower proportional share of
warehouse and distribution buildings and a
higher proportional share of manufacturing
buildings and R&D buildings than the market
area
• These building types do not represent building
uses
6 Market Area Supply Inventory
Market Area Industrial Real Estate by Building Type and City 0 10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Warehouse and
Distribution
Manufacturing R&D
Fremont
Union City
Hayward
Newark
Source: CoStar, 2025; Strategic Economics, 2026.

Square Feet Percentage
Warehouse and Distribution 62,800,000 57%
Manufacturing 32,300,000 29%
R&D 15,800,000 14%
Total 110,900,000 100%
Total Industrial Square Feet by Building Type in the Market Area Source: CoStar, 2025; Strategic Economics, 2026.

Modern Industrial Buildings are Increasingly
Built for Flexibility, Not Specific Uses
• These modern, Class A buildings can serve both
advanced manufacturing and distribution/warehouse
functions
• Both types of users require increased energy capacity (at least 2,500 amps), a minimum door dock ratios,
and clear heights that are not available in older
buildings
• Buildings are designed for a 15–20-year life span, so must be flexible to serve changing market demand
and conditions
• Site layout differences explain some of the difference in a project’s attractiveness to specific user types:
• Manufacturers require more (employee) parking
• Distribution/warehouse users require trailer
parking
7 The Manufacturing Sector Requires a Supply
Chain Involving Component and Product
Storage
• Advanced Manufacturers require warehouse space to store product inputs and finished outputs, as well as assemble or fabricate the final products making warehouse space an important part of the Bay Area’s advanced manufacturing supply chain
• Some buildings can start out serving a “warehouse” function, but then transition into production as needed
• Cities attract industrial investment by recognizing the need for buildings to be flexible and moving quickly to approve development projects without stringent use requirements
8 0%
2%
4%
6%
8%
10%
12%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
9 Warehouse and Distribution Market Trends
Percent Change in Total Supply (Square Feet), 2016-2025 Vacancy Rates, 2016-2025
Market Area
City of Newark
• The inventory of Warehouse and Distribution space
increased by roughly the same rate in Newark and
the Market Area between 2016 and 2025
• Based on vacancy rates, Newark’s Warehouse and
Distribution buildings outperformed the Market Area
• Vacancy rate at 0% in pre-pandemic years
• Vacancy rate rose after the pandemic and dropped
to 0% again in 2023
• Vacancy rate increased in 2024 and again in 2025
to 4.5%, but this is below the Market Area vacancy
rate
Source: CoStar, 2025; Strategic Economics, 2026.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
10 Manufacturing Market Trends
Percent Change in Total Supply (Square Footage), 2016-2025 Vacancy Rates, 2016-2025
Source: CoStar, 2025; Strategic Economics, 2026.
• Newark’s manufacturing inventory increased in
2020 with the completion of several new buildings
along Morton Avenue in the City’s West Central
subarea
• Newark’s 19% growth outpaced the Market Area,
which only increased its stock of Manufacturing
space by less than 6% since 2016
• The City’s smaller manufacturing building supply
have a big impact on vacancies, explaining large
swings in the City’s vacancy rate,
• Overall, Newark’s vacancy rate tracks with the
Market Area’s rate
• Both Newark and the Market Area experienced
increased vacancies in 2024 and 2025
0%
2%
4%
6%
8%
10%
12%
14%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Market Area
City of Newark
0%
2%
4%
6%
8%
10%
12%
14%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
11 R&D Market Trends
Percent Change in Total Supply (Square Footage), 2016-2025 Vacancy Rates, 2016-2025
Source: CoStar, 2025; Strategic Economics, 2026.
• In 2020, 7300 Gateway Boulevard in the Pacific
Research Center opened. This single project
increased Newark’s R&D square footage by over
12%
• In the Market Area, R&D supply increased
significantly between 2022 and 2024
• R&D vacancy rates are higher than Warehouse or
Manufacturing based on long-term trends (closer
to 10%), but they hit a low in 2019 with Newark’s
vacancy rate at just 2%
• Increases in the vacancy rate occurred nearly
every year between 2019 and 2025 in both
geographies with Newark’s 2025 vacancy rate at
almost 19%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Market Area
City of Newark
12 Industrial Building Rent Comparisons
Average Direct Asking Rate (NNN) for Market Area Cities by Building Type, 2025 Source: Colliers 2025, Strategic Economics, 2026
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Fremont*
Hayward
Union City
Newark
Market Area
Asking Rate ($)
R&D
Warehouse
Industrial
• Colliers market reports provide
the most comprehensive
industrial building rent data for
all industrial building types in
the east and south bay market
area. However, unlike other real
estate brokerage companies,
Colliers considers Fremont as
part of the Silicon Valley market
area and reports rents by
building type for Silicon Valley
differently than for the I-880
Corridor Market area.
• Newark’s location makes it part of the “core” area for the Bay Area’s key industries • As industrial building supply fills up in other cities, most notably Fremont, Newark is likely to capture manufacturing activity
• Over time, Newark’s building stock will need to be modernized to include appropriate ceiling heights, adequate power supply, and updated exterior finishes • Warehouse/distribution activities that are part of the local industrial supply chain can have strong employment densities similar to advanced manufacturers and generate good middle wage jobs
13 Additional Market Findings
Newark’s Current Industrial
Building Inventory
14 • Newark’s core industrial subareas are
located west of Cherry Street and south of
Thornton Ave
• Three business and technology park-zoned
subareas are located off Route 84 with
access to the Dumbarton Bridge
• Primary arterial roads to regional
transportation routes (Dumbarton Bridge
and Interstate 880) include Thorton Ave,
Cherry St, and Mowry Ave
15 Newark has 11 industrial/flex subareas located
throughout the City Newark Industrial Subareas
• Newark has over
12 million square
feet of industrial
buildings
16 Industrial Building Inventory by Subarea and
Year Built
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Rentable Area (000s of Square Feet)
Year Built Unknown
2015 - 2026
1975 - 2015
Before 1975
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Rentable Area (000s of Square Feet)
Other Industrial
R&D
Warehouse and Distribution
Manufacturing
Warehouse/Distribution and Manufacturing are the
two most common building types in Newark
R&D buildings are concentrated in two subareas:
the Pacific Research Center and the Eureka
subarea
17 Industrial Building Inventory by Subarea and
Building Type
Manufacturing
36%
Other
Industrial
2%
R&D
20%
Warehouse
and
Distribution
42%
Rentable Building Area of Industrial Buildings in Newark by Subarea and Property Type, 2025 Source: CoStar, 2025; Strategic Economics, 2026.

Rentable Building Area of Industrial Buildings in
Newark by Property Type, 2025
• The variety of business types in industrial
buildings demonstrates the versatility of
Newark’s existing industrial building stock:
- Warehouse/distribution buildings have
about the same number of
manufacturing businesses as
manufacturing buildings
- Manufacturing buildings have more
transportation and warehousing tenants
than do warehouse buildings
18 In Newark, Industrial Buildings Accommodate
a Wide Range of Business Types
24 31
7 40 26
21 28
14 5
13 12
2 4
7 13
9 13
6 1
3 10
7 6
4 6
0 20
40 60
80 100
120
140
160
Warehouse and
Distribution
Manufacturing R&D
Wholesale Trade
Retail Trade
Business Support Services
Transportation &
Warehousing
Life Sciences
Construction
Household-Serving
Professional Services
Manufacturing
Business Count by Industry Code (NAICS) and Building Type, 2025 Source: City of Newark Business Licenses, 2025; Strategic Economics, 2026. • The smaller industrial or warehouse buildings (10,000 - 20,000 sq ft) tend to accommodate a wider range of business types
• In the Cedar subarea, non-industrial users are generally compatible with industrial uses (both are permitted in Light Industrial zones); these uses enable property owners to weather market cycles or avoid expensive tenant improvements
• Older buildings may be more challenging to lease due to zoning standards that require minor or conditional use permits for specific users (recreational users, automotive services (by type of activity), or small warehouse space) 19 Other Key Findings
Newark’s Industrial Zoning
Industrial zoning classifications:

Limited Industrial (LI)
• Serves as a buffer zone between General Industrial and residential neighborhoods,
• Non-industrial uses are allowed
General Industrial (GI)
• Allows broadest range of industrial uses
• Non-industrial uses are not allowed
Business and Technology Park (BTP)
• Focuses on advanced technology, R&D, in campus setting • Complimentary uses to support the employee population are allowed
21 Newark Has Three Industrial Zoning Classifications
• About 30% of uses in both the General Industrial
and Limited Industrial zones are “Commercial” as
defined by the Zoning Code (however, they may
still be permitted by the code)
• Commercial uses that vary from the industrial
districts’ core uses are <2% of businesses in the
General Industrial zone and ~10% in the Limited
Industrial zone
• Professional services and life sciences
businesses represent a significant share of uses
in the BTP zone, including a few Religious
Organizations (non-conforming uses) and
Warehousing businesses
22 Existing Non-Industrial Uses in Industrial Subareas
Industrial and Commercial Businesses as a
Percentage of Total Businesses by Zoning District
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Business and
Technology Park
General Industrial Limited Industrial
Recreation/Arts
Health Care and Social Assistance
Religious Organizations
Educational Services
Retail trade
Professional and Technical Services
Automotive Services
Other Industrial/Business Services
Life Sciences
Construction
Wholesale Trade
Manufacturing
Transportation and Warehousing
Commercial Uses Industrial Uses
Source: City of Newark Business License Data, 2025; Strategic Economics, 2026. • Use restrictions create uncertainty in investment decisions and development timelines, and contribute to a perception of Newark as unfriendly to businesses
• Warehouse/distribution and recreational facilities are uses that face hurdles to locating in industrial areas • No zoning district permits warehouses by right
• Recreational sports businesses want to open in Newark’s light industrial zones, but require discretionary approvals - These uses improve both residents’ and employees’ quality of life • The City should consider:
- Regulating more through development standards and less through use - Use regulations to target specific high-impact users (fulfillment centers, first-last mile delivery, enterprise data centers) - Consider rezoning the Cedar subarea to allow more recreational uses by right 23 Newark’s Zoning is Currently a Challenge for
Attracting New Investment in the Industrial Areas
Land Use Permit Type by Zone (“M” –Minor Use; “C” –Conditional Use; “P” –Permitted)
Use Classification Business and
Technology Park Light Industrial General Industrial
Indoor Sports and
Recreation Not Permitted M Not Permitted
Warehousing,
Wholesaling, and
Distribution
C C C
• Fremont and San Jose are recognized for their ability to simplify approvals and communicate frequently with their major business/development community to attract investment
• Newark should explore proactive solutions to providing power more quickly for industrial buildings
- This could include deploying microgrids or exploring strategies for on-site generation boost investment opportunities (in addition to strengthening a relationship with PG&E and supporting businesses through their power procurement process)
24 Proactively Removing Red Tape in Approvals
Boosts Business Activity
Item F. 2.

DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Michael Coulom, Housing Policy and Programs Manager SUBJECT Adopt a resolution to approve First-Time Homebuyer Program Guidelines and authorize the City Manager to enter into agreements to provide direct financial assistance to first-time homebuyers, and to amend the 2024-2026 Biennial Budget and Capital Improvement Plan to appropriate funds from the Housing Impact Fee Fund to fund the First-Time Homebuyer Program.

SUMMARY AND RECOMMENDATION
Staff recommends that the City Council, by resolution, approve the First-Time Homebuyer Program Guidelines and authorize the City Manager to execute agreements to provide direct financial assistance to first-time homebuyers in accordance with the Program Guidelines, and to amend the 2024-2026 Biennial Budget and Capital Improvement plan to appropriate $3 million for direct assistance to moderate and lower-income homebuyers in Newark and $133,000 for the contract balance with Hello Housing for program design and administration (Attachment 1: Draft Resolution).

BACKGROUND
The City's adopted 2021-2023 Affordable Housing Work Plan (Attachment 2) and 2023-2031 Housing Element (Attachment 3) call for the establishment of a first-time homebuyer program. In 2025, City Council approved a contract with Hello Housing for program design and administration (Attachment 4). Staff and Hello Housing have spent the last several months developing and analyzing program options and are now prepared to recommend a program and funding structure to provide direct financial assistance to qualifying first-time homebuyers.

The nation, state, and city have a housing supply shortage. In California and the Bay Area more particularly, the housing supply shortage is driven by an increase in demand for housing from a growing and increasingly wealthy population. In the last 15 years, thousands of new jobs and homes have been created in Newark. Notably, the City exceeded its 2015-2023 Regional Housing Needs Allocation (RHNA) target by nearly 1,400 homes, permitting more than double the number of homes planned for the 5th Housing Element cycle. Despite this incredible growth, the number of new jobs generated in Newark from 2010 to 2019 was still three times greater than the number of homes permitted, according to the City’s 2022 Displacement Study.

Supply-demand imbalance has resulted in adverse effects on the Newark community.

According to the state Legislative Analyst’s Office (LAO), the cost of homebuying in Alameda County has increased by 64 percent since 2020. A household earning the median income cannot afford the median-priced home, and the average new homebuyer can expect to pay 40 percent more per month than if they were renting. In addition to inhibiting or discouraging moderate-income households from becoming homeowners, the supply-demand imbalance negatively impacts low-income households, the number of which decreased by 2,000 in Newark from 2010 to 2019 according to the City’s 2022 Displacement Study.

The City’s 2021-2023 Affordable Housing Work Plan and 2023-2031 Housing Element both call for establishing a first-time homebuyer program to support moderate-income households to purchase homes. On July 24, 2025, the City Council approved Resolution 11,767 (Attachment 5), authorizing the City Manager to execute a contract services agreement with Hello Housing to develop and administer a first-time homebuyer program and below market-rate homeownership program, the latter of which concerns the sale of affordable homeownership units developed in accordance with the City’s inclusionary housing ordinance (Chapter 17.27 of Newark Municipal Code). Hello Housing is a qualified and experienced non-profit corporation headquartered in Alameda County offering first-time homebuyer program support to jurisdictions such as the City of Emeryville and the County of Alameda. Hello Housing has supported three first-time homebuyers in acquiring homes in Newark as part of Alameda County’s program, "AC Boost".

DISCUSSION/ANALYSIS
First-time homebuyer programs assume that homeownership confers household financial stability and helps to build or preserve household wealth over time. A common barrier to achieving homeownership and associated benefits is the high cost of down payments and closing costs. First-time homebuyer programs address this by providing down payment assistance loans (DPAL). First-time homebuyer programs predominantly serve moderate-income households, or those earning between 80 and 120 percent of the area median income. A four-person household earning between $125,000 and $192,000 in Alameda County would have been considered moderate-income in 2025. But for down payment and closing costs, moderate-income households can more generally afford the monthly costs of homeownership, which include mortgage payments, insurance, property tax, and maintenance. It can be more challenging to serve low-income households, however, because these households have less money leftover at the end of the month to afford increases in insurance costs, HOA special assessments, utilities, property tax, maintenance, or unexpected household expenses.

Staff and Hello Housing have spent the last several months evaluating Newark’s for-sale housing stock and what moderate- and lower-income households could afford.

Analysis of one year of Redfin sales data between September 2024 and September 2025 shows that the median sale prices of a three-bedroom single-family home, townhome, and condominium were each around $1,100,000. There was greater townhome, and condominium were each around $1,100,000. There was greater variation among two-bedroom homes, with the median single-family sales price at one million dollars, $700,000 for a townhome, and $647,000 for a condominium. There were only two sales of one-bedroom condominiums during this time period, with sales prices of $450,000 and $499,900. In total, 1,218 homes were sold in Newark during this time. Approximately 69 percent of sales (838) were single-family homes, 15 percent (183) were townhomes, and 15 percent (187) were condos.

Hello Housing next compared the median sales price for each home type against what would be considered an affordable price for moderate-income households. An affordable price is typically considered spending a third of household income on housing costs (mortgage, utilities, property tax, insurance). The analysis found that single-family homes are the most unaffordable housing types, while the median priced condo or townhome could be affordable to some larger, moderate-income households.

A 2-bedroom single-family home is $279,000 more expensive than what would be affordable to a four-person household making 120 percent of the area median income (AMI), and $624,000 more expensive than a household making 80 percent of the AMI could afford. On the other hand, a 3-bedroom townhome could be affordable to a five-person household making 120 percent AMI household even without financial assistance, and a 2-bedroom condo could be affordable to a 100 percent AMI household with approximately $100,000 in financial assistance.

Program Design
The proposed program would make available down payment assistance loans of up to $200,000 for households making less than the area median income, and up to $150,000 for households making up to 120 percent of the area median income. This scaled approach would address the greater need of households on the lower end of the spectrum and provide appropriate assistance to households on the upper end of the moderate-income spectrum.

Staff have also designed the program to be able to layer with other state or regional homebuyer assistance programs in order to increase the buying power of Newark homebuyers, such as Alameda County's AC Boost or the Silicon Valley Housing Trust's Home Access Program. In all cases the City's loan would be secured by a deed of trust. Loan position would be determined by the value of the City's loan as compared to other agency loans, with the City's loan in higher position than loans of lower value.

The City's down payment assistance loan would be structured as a thirty-year mortgage with a fixed three percent interest rate. Eligible uses of City loan funds would be restricted to down payment assistance only. In addition to repaying the loan principal, the homeowner would also pay the City the greater of any interest earned on the loan or a proportional percentage of the home's appreciation. Appendix 2 of the Draft Program Guidelines models these two returns (Attachment 6, page 31).

Program funds could be used to purchase single-family homes, townhomes, condominiums, and live/work units located in the city limits of Newark, including below market-rate units built in accordance with the City’s inclusionary housing ordinance.

Program funds could be used to purchase properties that include an accessory dwelling unit (ADU), provided the homebuyer’s household is of such a size as to need the extra bedroom(s) in the ADU. Were the City to authorize separate sales of ADUs in the future, program funds could be used to purchase an ADU separate from the primary dwelling unit.

The Draft Program Guidelines, Implementation Manual, and an example loan agreement are included for reference purposes only as Attachment 6.

Application Process
The program is proposed to use a low-barrier application process to encourage participation from households with limited familial experience in purchasing a home and those who may be less likely to apply. Program rollout would be heavily advertised across the City’s communication channels, including at City facilities, websites, social media, and other fora. Interested applicants would be invited to complete a pre-application hosted on Hello Housing’s website, or to complete a paper application.

The pre-application collects limited, easily accessible information to confirm the applicant’s eligibility for the program and essential contact information to move forward with a detailed application.

Applicants deemed eligible as a result of the pre-application would be invited to participate in a mandatory application workshop. All applicants that attend the workshop would be entered into a lottery and assigned a lottery position. Applicants would then be invited to submit a complete program application in lottery ranking order.

The lottery would apply the City’s local preference policy, which advantages households that already live or work in Newark.

In addition to submitting a complete application, the applicant would be required to submit the basic information and documents they would submit to a private lender, such as proof of income, identification, and tax returns. This information would be used to certify the applicant’s eligibility for the program and determine their maximum loan amount. Successful applicants would then have 120 days to home shop, with the option to request to extend that period for another 60 days should there be extenuating circumstances faced by the applicant. If the applicant fails to enter into a sales contract by the end of the shopping period, their loan reservation would be canceled and the funds would be made available to the next qualified applicant.

Hello Housing would coordinate with the homebuyer, other mortgage lender(s), and closing partners to prepare City loan closing documents. These documents include the loan agreement, promissory note, deed of trust, and an Occupancy, Shared Appreciation, and Refinancing Restriction Agreement that certifies program requirements and protects the City from misuse of loan funds.

Monitoring
Hello Housing would play a continuous monitoring role over the course of their three-year contract with the City, or longer if that contract is renewed. Hello Housing conducts annual monitoring to prevent against loan default and support homebuyers with compliance. Default triggers include failure to occupy the home as the principal residence (renting the home), non-payment of property taxes or HOA dues, other loans or liens taken against the property without the City’s consent, default in payment on the first mortgage, or selling the property without the City’s prior consent. Monitoring works to secure the City’s loan and ensure repayment.

Other Considerations
The 2021-2023 Affordable Housing Work Plan targeted allocating five percent of the City's Housing Impact Fee Fund, or approximately $2 million, to a first-time homebuyer program. Staff recommend allocating $3 million to the program, recognizing the Housing Impact Fee Fund's growth and the increase in home prices. This would support a minimum of 15 households in accessing homeownership, but would likely be greater.

One challenge to scaling the first-time homebuyer program may be the low home inventory in Newark, and particularly the shortage of smaller townhomes, condos, and other housing types that are more naturally affordable to moderate-income households.

Staff are studying how to incentivize and increase production of these housing types as part of Housing Element Program H2.8, Missing Middle Housing, and anticipate presenting recommendations for zoning code and other Newark Municipal Code amendments to the Planning Commission and City Council later in 2026.

Next Steps
Adoption of the draft resolution will enable staff and Hello Housing to begin program rollout for the summer homebuying season. With Council's approval of the program guidelines, staff and the City Attorney's Office will finalize form program loan documents. Staff and Hello Housing will commence program marketing, including developing multi-lingual outreach materials posted to the City's websites, publications like Newark News, and social media, and make print materials available at City Hall, the Newark Resource Center, the Silliman Center, and the Senior Center. Staff will also notify other community agencies and groups of the opportunity.

Staff will monitor and report on program outcomes to City Council. Staff may return to City Council to recommend substantive amendments to the program guidelines if it is found that doing so would improve the program's effectiveness. The proposed resolution authorizes the City Manager to make nonsubstantive changes to the guidelines such as changes to comply with changes in law, updated definitions or other changes to clarify the administration of the program. Substantive changes such as changes to program eligibility, maximum loan amount or interest rate require City Council approval.

FISCAL IMPACT
The City's Housing Impact Fee Fund has a current balance of approximately $49,000,000 of which approximately $29 million remains unencumbered and available to spend. The 2021-2023 Affordable Housing Work Plan targeted allocating five percent of the Fund, or approximately $2 million, to a first-time homebuyer program.

Staff recommend allocating $3 million to the program, recognizing the Housing Impact Fee Fund’s growth since 2021 and the increase in home prices. This would support a minimum of 15 households in accessing homeownership, but would likely be greater. minimum of 15 households in accessing homeownership, but would likely be greater.

TO: 623.90.092.920.6220 Program Administrator $133,000
TO: 623.50.052.920.6950 Economic/Public Assistance $3,000,000 FR: 623.3000 Unappropriated Fund Balance $3,133,000
STRATEGIC PRIORITY AREA
Further Economic Vitality and Housing for All
REVIEW AND APPROVAL
Prepared by - Michael Coulom, Housing Policy and Programs Manager Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Staff Presentation

1. Draft Resolution

2. 2021-2023 Affordable Housing Work Plan

3. Contract Services Agreement No. 25058 with Hello Housing

4. 2023-2031 Housing Element (Pages 235-236)

5. Resolution No. 11,767

6. Draft Program Guidelines, Implementation Manual, and Agreement City Council Meeting
May 14, 2026
Resolution to Allocate
Funds for a First-Time
Homebuyer Program
Agenda

1. Introductions

2. Background: Newark’s Housing Need, Affordable
Housing Work Plan, and Housing Element

3. Program H5.1: First-Time Homebuyer Program

4. Proposed Program

5. Related Policies and Programs

6. Staff Recommendation

7. Next Steps

8. Q&A
2 Introductions
City of Newark
Michael Coulom, Housing Policy and Programs Manager
Hello Housing
Jennifer Duffy, President and CEO
3 4
The foundations of California Housing Element
Law are in the Civil Rights Movement.
 1963: California Rumford Fair Housing Act
 1968: Federal Fair Housing Act
 1969: California Housing Element Law
Local governments must plan to accommodate their
fair share of “regional housing need” and
“adequately plan to meet the housing needs of
everyone in the community, at all income levels.”
Housing Opportunity is a Civil Rights Issue
1,051,177
420,814
384,910
643,352

2.5 million homes
California
5 824
318
318
464
1,874 homes
Newark By 2040:
 California needs 1 million new
homes for lower-income
households
By 2031:
 Newark needs 782 new
homes for lower-income
households
From 2015-2023:
 Newark permitted 2,507 new
homes
Above
Moderate
Moderate
Low
Very Low
California Needs 2.5 Million More Homes
Alameda County Cumulative Housing Permit Growth
Alameda County’s Job and Permit Growth
6 Newark Has A Housing Supply/Demand Mismatch
7 In Alameda County
 64%: Increase in
cost of homebuying
since January 2020
• $5,414: Monthly
cost for bottom-tier
homeownership
• $2,753: monthly
rent
Income needed for
mid-tier mortgage
Median household
income
Income needed for
bottom-tier mortgage
Homeownership Is Becoming Out of Reach
Source:
https://lao.ca.gov/LA
OEconTax/Article/Det
ail/793
2025 County Area Median Income (AMI)
8 1 2 3 4 5 6
Acutely Low-
(0-15% AMI) $16,750 $19,150 $21,550 $23,950 $25,850 $27,800 Extremely
Low- (15-30%) 33,600 $38,400 $43,200 $47,950 $51,800 $55,650 Very Low-
(30-50%) $55,950 $63,900 $71,950 $79,900 $86,300 $92,700 Low- (50-80%) $87,500 $100,050 $112,550 $125,050 $135,100 $145,100 Median (100%) $111,850 $127,850 $143,800 $159,800 $172,600 $185,350 Moderate
(80-120%) $134,250 $153,400 $172,600 $191,750 $207,100 $222,450 9 Source: Bay Area to Central Valley Migration and Its Impacts Many Southern Alameda County
residents are seeking
cheaper/better housing
elsewhere.

Southern Alameda County/
Northern Santa Clara County has
the highest outflows to the
Central Valley, namely Tracy,
Manteca, Modesto and Stockton.

Housing Costs Contribute to Displacement
• Adopted by Resolution 11,201 on May 13, 2021 to incentivize production of affordable housing
• Established priority programs and recommended funding allocations from the City’s Affordable Housing Impact Fee Fund
o Resources to update the General Plan Housing Element
o Inclusionary Housing and Nexus Study and Ordinance
o Notices of Funding Availability to finance affordable housing construction o Local preference policy
o First-Time Homebuyer Program
o Sites acquisition and other programs
10 2021 - 2023 Affordable Housing Work Plan
2023 – 2031 Housing Element
Newark’s Housing Element is an
affordability strategy
6th Cycle Housing Targets
• 1,874 new homes
o 464 Very Low-Income
o 268 Low-Income
o 318 Moderate-Income
o 824 Above Moderate
• 0.4 percent of regional RHNA
• 2,507 homes permitted in
Cycle 5
11 2023-2031 Housing Element Goals

1. Preserve and Improve Existing Housing

2. Facilitate the Development of More
Homes for More People

3. Reduce and Remove Constraints to
Affordable Housing Development

4. Help People Stay in Their Homes and
Communities

5. Increase Access to Affordable Housing

6. Enhance Quality of Life, Equity, and
Environmental Justice

7. Further Fair Housing Throughout the City
Goal H5: Increase Access to Affordable Housing
Program H5.1: Establish a First-Time
Homebuyer (FTHB) Assistance
Program
Policy H5.2: Bring homeownership
within reach for Newark residents.

Develop a below-market rate (BMR)
homeownership program, and down
payment assistance programs, with a
focus on first-time home buyers.
12 Goal H5: Increase Access to Affordable Housing
Quantified Objective: Target an average of four households for down payment assistance each year, with a focus on recruitment of moderate income black, indigenous, person of color (BIPOC) households.

Progress to Date:
• Three households became Newark homeowners via AC Boost. • Council approved resolution 11,767 approving a contract with Hello Housing in July 2025. • Staff and Hello Housing have evaluated Newark’s housing market and designed a responsive, accessible, and equitable first-time homebuyer program.

H5.1: First-Time Homebuyer Program
The City’s contract with Hello Housing includes two components:
• Design and Administration of a First-Time Homebuyer Program, and • Design and Administration of a Below Market-Rate (BMR) Homeownership Program Hello Housing by the numbers:
• Administers 8 down payment assistance programs for local jurisdictions • Facilitated the closing of 375+ loans valued at $60M
• Monitors 715 loans valued at $85M
• 150 Inclusionary Unit Sales
• Monitor 1,500 BMR Ownership Units
• Monitor 2,800 BMR Rental Units
Hello Housing
15 Hello Housing’s Process
“We pride ourselves on making complexity simple.”
Policy & Program Design: We partner with jurisdictions to align policy goals with market realities, developing clear frameworks that guide program design — and translating them into program guidelines and implementation manuals that are transparent and accessible to the public.

Education & Stakeholder Engagement: We create education materials and host workshops to keep stakeholders, developers, and community members informed and engaged throughout the process.

Technology & Reporting: We maintain an online Salesforce database that gives us and our partners instant access to portfolio details and real-time reporting — all at a touch of a button.

Dedicated Client Support: Every portfolio we service has a single, dedicated point of contact — ensuring accountability, consistency, and a seamless experience for our partners.
16 Summary of Services
Program Design & Setup
• Design First-Time Homebuyer (FTHB) and Below Market Rate (BMR) program guidelines • Draft loan documents and affordability restriction agreements • Develop FTHB application, including an online pre-application portal Outreach & Marketing
• Develop marketing plans and materials
• Conduct community engagement sessions to inform program design Applicant Support
• Conduct application workshops and review submitted applications Loan Administration
• Originate and close loans
Ongoing Compliance & Monitoring
• Program monitoring and reporting
• Manage new sales and resales of BMR homes
17 Program Intro/Homeownership Benefits
The Down Payment Challenge
• High down payment & closing
costs are a key barrier to
homeownership
• First-time homebuyer programs
address this through Down
Payment Assistance Loans (DPAL)
• Assistance helps qualified buyers
bridge the gap to ownership
Who These Programs Serve
• Programs predominantly serve
moderate-income households
• Moderate income = 80–120% of
Area Median Income (AMI)
• In Alameda County (2025): a 4-
person household earning
$125,000–$192,000
• These households can generally
afford monthly ownership costs
once down payment is covered
Challenges for Low-Income
Households
• Less monthly income left after
essential expenses – reducing the
ability to meet mortgage lending
standards
• More vulnerable to cost increases:
insurance, utilities, property tax,
maintenance
• Unexpected household expenses
create greater financial risk
18 Market Findings
Photo by Jose Rago on Unsplash
Single-Family Home (Detached)
Median Sale Price (2-bed): $1 million
Median Sale Price (3-bed): $1.1 million
Townhome
Median Sale Price (2-bed): $700,000
Median Sale Price (3-bed): $1.13 million
Condominium
Median Sale Price (1-bed): $450,000
Median Sale Price (2-bed): $647,000
Median Sale Price (3-bed): $1.1 million
19 Market Findings: The Affordability Gap
Unaffordable gap Within affordable limit Financial assistance 2-bed single-family
4-person HH @ 120% AMI
2-bed single-family
4-person HH @ 80% AMI
3-bed townhome
5-person HH @ 120% AMI
no assistance
2-bed condo
4-person HH @ 100% AMI
~$100K assistance
Afford. limit
$700K
$279K
gap
Home price
$979K
Afford. limit
$624K
gap
Home price
$979K
$355K
$700K $640K
Afford. limit Home price
$100K
+Assist. Home price Afford
Limit
$530K
$630K $630K
Affordability Gap Affordability Gap Achievable Achievable 20 Designing a Program That Works
Loan Type Silent Second, Deferred Payment Loan
Repayment Calculation Shared Appreciation or 3% Simple Interest, whichever is greater Max Loan $200,000 for ≤100% AMI Households and $150,000 up to 120% AMI Max Purchase Price N/A
Required Buyer Down Payment 0-3%
Loan Term 30-year term
1st Mortgage Loan Requirements 30-year fixed loan
Eligibility Income no greater than 120% of AMI
Live/Work Preference Applicants who live or work within the City will receive a priority in the selection lottery
First-time homebuyer Must be a first-time homebuyer, with limited exceptions. Demonstrated by tax returns and other documentation.

Geography City of Newark
Triggers for Repayment • Transfer of Title
• Home is no longer owner-occupied
• Upon a cash-out refinance
21 Program Design: Balancing Goals
22 Shared Appreciation Loans
Benefits
• Do a better job of preserving the
buying power of public funds better
than subsidy forgiveness or recapture
approaches.
• Sharing the benefits of home price
appreciation corresponds to an
intuitive sense of fairness between all
financial contributors.
• Interest is not growing on the unpaid
principal balance year after year
regardless of the market.

Drawbacks
• Homeowners receive less equity at sale
than if they were not sharing
appreciation with the lender.
• Shared risk: If the home loses value,
the lender shares in that loss
proportionally, reducing the borrower’s
downside risk
• Less certainty on the loan payoff
amount since it is tied to the future
value of the home.
23 Maximizing Program Impact
Layered financing &
program compatibility
Designed to complement and
stack with other homebuyer
assistance programs
Compatible with:
• Local programs (e.g. AC Boost)
• State-level programs
• Lender grants
Stacking assistance maximizes
purchasing power for eligible
buyers.

Unlocking the starter home
The program structure could
be adapted to support
independent sales of accessory
dwelling units (ADUs).

This would reintroduce an
affordable entry-level
ownership opportunity — a
"starter home" — that has
been largely absent from
California's housing market for
decades.

A dual repayment structure
Repayment is calculated two
ways:
• Simple interest on the loan
• A share of the home’s
appreciation
The City receives whichever
amount is greater — ensuring
the public investment grows
with the market while
remaining fair to the
homeowner.
24 Application Process
Program Marketing On-line Pre-Application Program and
Application Workshop
Lottery Full Application &
Program Underwriting
Conditional Loan
Approval &
Reservation of Funds
New Home Contract
Acceptance
1st Mortgage Loan
Final Review Final DPAL Approval
25 Loan Issuance
1 Borrower review & education
Hello Housing reviews all loan documents with the applicant prior to signing — including property tax obligations, special assessments, HOA requirements, and insurance requirements. 2 Senior loan verification
Hello Housing verifies that the senior (first mortgage) loan meets all program requirements before proceeding. 3Document routing & execution
Hello Housing routes all City loan documents for borrower signature and delivers the executed package to escrow. 4 Escrow management & wire approval
Hello Housing manages the escrow process end-to-end, confirming that the City's escrow instructions are fulfilled before authorizing the wire transfer of loan funds.

Record keeping & reporting
Hello Housing collects and digitizes all certified loan documents for the City's records and enters mortgage closing data into Salesforce for reporting and long-term tracking. 2 3
4 5
Program Compliance Monitoring is conducted each year post closing:
26 Monitoring
• Owner-occupancy verification
• Homeowner Insurance verification
• Review of Mortgage Loan statements for delinquency concerns • Review of HOA statements for delinquency concerns
• Provide resources to homeowners as needed
Goal H5: Increase Access to Affordable Housing
Quantified Objective: Amend zoning and remove constraints to better encourage small multi-family developments in RS, RL and RM districts. Target permitting of 200 moderate-income units by 2031.

Progress to Date:
• Engaged M-Group to evaluate constraints, support community and stakeholder engagement, and collaborate with staff on Newark Municipal Code text amendments • Conducted outreach at the State of the City, forthcoming events this summer • Online survey open now through May 29, 2026
• Forthcoming Planning Commission and public study session H2.8: Missing Middle Housing
H2.8: Missing Middle Housing
The Missing Middle Housing Survey
is open until May 29, 2026.

Missing Middle Housing Survey Open Now
Scan the QR code or visit
housing.newarkca.gov/
• The Housing Impact Fee Fund has a total balance of approximately $49 million, of which approximately $29 million are unencumbered. • The 2021-2023 Affordable Housing Work Plan anticipated allocating $50,000 to design the first-time homebuyer program, plus five percent (5%) of the Fund for program administration, or $2,354,299. • Given the Fund’s growth and the increased cost of homebuying since 2021, staff recommend increasing direct assistance to $3 million, plus Hello Housing’s approved contract for $200,000.

TO: 623.90.092.920.6220 Program Administrator $133,000
TO: 623.50.052.920.6950 Economic/Public Assistance $3,000,000 FR: 623.3000 Unappropriated Fund Balance $3,133,000
30 Fiscal Impact
• Adopt the resolution approving:
• Draft Program Guidelines,
• A budget amendment allocating $3 million in direct assistance for downpayment loans to qualifying first-time homebuyers and $133,000 for the already approved $200,000 contract with Hello Housing, and • Authorization for the City Manager to enter into agreements with eligible homebuyers for the administration of program funds.

Staff Recommendation
• Staff and Hello Housing will progress with developing application materials and begin marketing the program to target audiences. • Staff will process requests for assistance and make loans to eligible homebuyers.
• Hello Housing will conduct regular program monitoring and reporting.
• Staff and Hello Housing will return to Council at regular intervals to report on program outcomes and modifications, if needed.

Next Steps
Question and Answer
Staff and Hello Housing welcome Council’s questions.

RESOLUTION NO. _______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING FIRST-TIME HOMEBUYER

PROGRAM GUIDELINES, AND AUTHORIZING THE CITY

MANAGER TO ENTER INTO AGREEMENTS TO PROVIDE

DIRECT FINANCIAL ASSISTANCE TO FIRST-TIME
HOMEBUYERS, AND AMENDING THE 2024-2026 BIENNIAL

BUDGET AND CAPITAL IMPROVEMENT PLAN TO

APPROPRIATE FUNDS FROM THE HOUSING IMPACT FEE

FUND TO FUND THE FIRST-TIME HOMEBUYER PROGRAM
WHEREAS, on May 13, 2021, the City Council adopted Resolution No. 11,201 approving the 2021-2023 Affordable Housing Work Plan to significantly incentivize the production of affordable housing within the City; and
WHEREAS, the 2021-2023 Affordable Housing Work Plan includes establishing and allocating funds for of a First-Time Homebuyer Program to expand access to homeownership and housing stability within Newark; and
WHEREAS, on October 26, 2023, the City Council adopted Resolution No. 11,575, approving a General Plan amendment to repeal the Fifth Cycle Housing Element (2015–2023) and adopt the Sixth Cycle Housing Element (2023–2031), in compliance with State Housing Element Law; and
WHEREAS, the Sixth Cycle Housing Element includes Goal H2, “Increase Access to Affordable Housing,” which emphasizes strategies to improve housing attainment and reduce housing cost burden; and
WHEREAS, Housing Element Goal H2 includes policies and programs to support homeownership and housing stability, including Program H5.1, a First-Time Homebuyer Program, which aims to support four households annually to purchase homes; and WHEREAS, on July 24, 2025, the City Council adopted Resolution No. 11,767 authorizing the City Manager to execute a contract services agreement with Hello Housing for development and administrative services for first-time homebuyer and affordable homeownership programs; and
WHEREAS, Hello Housing has supported three households to achieve homeownership through administration of the County of Alameda’s “AC Boost” first-time homebuyer program; and
WHEREAS, the County of Alameda has exhausted funding for AC Boost; and WHEREAS, additional subsidy is needed to achieve the City’s goal of supporting four households annually with the cost of purchasing homes; and WHERAS, the 2021-2023 Affordable Housing Work Plan targeted allocating five percent of the Housing Impact Fee Fund for the First-Time Homebuyer Program; and WHEREAS, the balance of the Housing Impact Fee Fund has grown since 2021 and the median home cost has grown significantly; and
WHEREAS, program guidelines as set forth in “Exhibit A” will ensure efficient implementation and administration of the first-time homebuyer program.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves the First-Time Homebuyer Program Guidelines as shown in Exhibit A attached hereto.

BE IT FURTHER RESOLVED that the City Council of the City of Newark authorizes the City Manager to execute loans and related documents, in a form approved by the City Attorney related to implementation of the First-Time Homebuyer Program and in accordance with the FirstTime Homebuyer Program Guidelines and otherwise take all actions consistent with the First-Time Homebuyer Program Guidelines.

BE IT FURTHER RESOLVED that the City Manager is authorized to make nonsubstantive changes to the First-Time Homebuyer Program Guidelines such as changes to comply with changes in law, updated definitions or other changes to clarify the administration of the program while substantive changes such as changes to program eligibility, maximum loan amount or interest rate require City Council approval.

BE IT FURTHER RESOLVED that the budget amendment authorized herein shall be recorded as follows:

TO: 623.50.055.920.6220 Program Administrator $133,000
TO: 623.50.055.920.6950 Economic/Public Assistance $3,000,000 FR: 623.3000 Unappropriated Fund Balance $3,133,000
BE IT RESOLVED that the City Manager, or designee, is authorized to take all actions necessary to implement this resolution in a manner consistent with the adopted budget, City procurement requirements, and the program parameters described in the staff report, including execution of contracts within approved authority limits. 0 L
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0 Consulting Services Agreement between
City of Newark and Hello Housing Page 1 of 15

CONSULTING SERVICES AGREEMENT BETWEEN

THE CITY OF NEWARK
AND

HELLO HOUSING

FOR DESIGN AND ADMINISTRATION OF FIRST-TIME HOMEBUYER AND

BELOW-MARKET RATE HOUSING PROGRAMS
This Agreement for consulting services (“Agreement”) is made by and between the City of Newark, a municipal corporation, (“City”) and Hello Housing, a nonprofit, public benefit corporation, with offices located at 2335 Broadway, Floor 3, Oakland, California (“Consultant”), (together referred to as the “Parties”) as of August 1, 2025 (the “Effective Date”).

Section 1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A and incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on August 1, 2028 and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as referenced in Section 8. Funding for services beyond the current fiscal year will be included in future City budgets but is subject to City Council approval of annual appropriations.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Consultant is engaged and in the geographical area in which Consultant practices its profession.

Consultant shall prepare all work products required by this Agreement to the standards of quality normally observed by a person practicing in Consultant’s profession,

1.3 Assignment of Personnel. Consultant shall assign only competent personnel consistent with Section 1.2 to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time is of the Essence. Time is of the essence. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to timely finish the Scope of Work, to meet the standard of performance provided in Section 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed Two Hundred Thousand Dollars ($200,000.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant’s proposal, attached C25058
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
City of Newark and Hello Housing Page 2 of 15
as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information, unless waived by the Contract Administrator:
• Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; • Project name & number if applicable;
• Purchase Order number to expedite payment;
• The beginning and ending dates of the billing period; • A task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
• The Consultant’s signature;
• Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period under this Agreement and any other agreement between Consultant and City. Such notice shall include an estimate of the time necessary to complete the work described in Exhibit A and the estimate of time necessary to complete work under any other agreement between Consultant and City, if applicable.

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

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2.3 Reserved.

2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Hourly Rate/Fees. Unless the services provided are for a lump sum or flat fee, fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation cost proposal attached hereto as Exhibit B and incorporated herein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit B, the Agreement shall prevail.

2.6 Reimbursable Expenses. Reimbursable expenses, if any, are specified in Exhibit C, attached hereto and incorporated herein. Reimbursable expenses not listed in Exhibit C are not chargeable to City. Reimbursable expenses shall not include a mark-up and are billed as a direct costs.

In no event shall expenses be advanced by the City to the Consultant. Reimbursable expenses are included in the total amount of compensation provided under Section 2 of this Agreement that shall not be exceeded.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

2.10. Business License. The Consultant is not authorized to perform services or incur costs whatsoever under the terms of this Agreement until Consultant applies for and has been issued a business license from the City pursuant to Title 5 of the Newark Municipal Code.

Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein.

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City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, longdistance telephone or other communication charges, vehicles, and reproduction facilities.

Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence that such insurance is in effect to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution.

4.1 Required Coverage. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.

COVERAGE TYPE OF INSURANCE MINIMUM LIMITS
A Commercial General
Liability
Premises Liability; Products
and Completed Operations;
Contractual Liability; Personal
Injury and Advertising Liability
$1,000,000 per occurrence;
Bodily Injury and Property
Damage
$2,000,00 in the aggregate;
Commercial general coverage
shall be at least as broad as
Insurance Services Office
Commercial General Liability
occurrence form CG 0001
(most recent edition) covering
comprehensive General
Liability on an “occurrence”
basis
B Commercial or Business
Automobile Liability
Hired, non-owned Auto
Liability Policy.
$1,000,000 per occurrence;
Any Auto; Bodily Injury and
Property Damage. Automobile
coverage shall be at least as
broad as Insurance Services
Office Automobile Liability
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form CA 0001 (most recent
edition), Code 1 (any auto). No
endorsement shall be attached
limiting the coverage
C Workers’ Compensation
(WC) and Employers
Liability (EL)
Required for all contractors
with employees
WC: Statutory Limits
EL: $100,000 per accident for
bodily injury or disease.

Consultant may rely on a selfinsurance program to meet those requirements, but only if
the program of self-insurance
complies fully with the
provisions of the California
Labor Code. The insurer shall
waive all rights of subrogation
against the City and its officers,
officials, employees, and
volunteers for loss arising from
work performed under this
Agreement
D Professional Liability/Errors
& Omissions
Includes endorsements of
contractual liability
$2,000,000 per claim
$2,000,000 policy aggregate;
Any deductible or self-insured
retention shall not exceed
$150,000 per claim

4.2 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. All required insurance shall be maintained during the entire term of the Agreement with the following exception: Insurance policies and coverage(s) written on a claims-made basis shall be maintained during the entire term of the Agreement and until three (3) years following termination and acceptance of all work provided under the Agreement, with the retroactive date of said insurance (as may be applicable) concurrent with the commencement of activities pursuant to this Agreement b. All insurance required above with the exception of Professional Liability, Personal Automobile Liability, Workers’ Compensation and Employers Liability, shall be endorsed to name as additional insured: City of Newark, its City Council, and all City officers, agents, employees, volunteers and representatives.
c. For any claims related to this Agreement or the work hereunder, the Consultant’s insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

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d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days’ prior written notice has been provided to the City.
e. Certificates of Insurance: Before commencing operations under this Agreement, Consultant shall provide Certificate(s) of Insurance and applicable insurance endorsements, in form and satisfactory to City, evidencing that all required insurance coverage is in effect. The City reserves the rights to require the Consultant to provide complete, certified copies of all required insurance policies.
f. Subcontractors: Consultant shall include all subcontractors as an insured (covered party) under its policies or shall furnish separate certificates and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to all of the requirements stated herein. g. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
i. The retroactive date of the policy must be shown and must be before the date of the Agreement.
ii. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates.
iii. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must purchase an extended period coverage for a minimum of three (3) years after completion of work under this Agreement.
iv. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement.

4.3 All Policies Requirements.
a. Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. Insurance shall be maintained through an insurer with a minimum A.M. Best Rating of A- or better, with deductible amounts acceptable to the City. Acceptance of Consultant’s insurance by City shall not relieve or decrease the liability of Consultant hereunder. Any deductible or self-insured retention amount or other similar obligation under the policies shall be the sole responsibility of the Consultant. b. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
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to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
c. Wasting Policies. No policy required by this Section 4 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense). d. Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss.

Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the consultant, its employees, agents, and subcontractors.

4.4 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
• Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
• Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or • Terminate this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.

Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, reasonable attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City.

The Consultant’s obligation to defend and indemnify shall not be excused because of the Consultant’s inability to evaluate Liability or because the Consultant evaluates Liability and determines that the Consultant is not liable to the claimant. The Consultant must respond within 30 days, to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If the Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due the Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until the Consultant accepts or rejects the tender of defense, whichever occurs first.

With respect to third party claims against the Consultant, the Consultant waives any and all rights of any type to express or implied indemnity against the Indemnitees.

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Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782.8, as may be amended from time to time, then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultants obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percent of fault.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent.

Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder, including but not limited to the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Contractor’s failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.

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7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, genetic information, marital status, sex, sexual orientation, gender, or gender identity, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all work product, including, but not limited to documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

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8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant, including but not limited to the provisions of Section 5, shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

8.6.5 No remedy mentioned in this Agreement is intended to be exclusive of any other right, power, or remedy, permitted by law. Neither the failure nor the delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of any such right or remedy.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement and City may use, reuse or otherwise dispose of the documents without Consultant’s Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
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permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. All such records should be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement.

9.4 Proprietary Information. City and Consultant acknowledge and agree that City may receive confidential information from Consultant that is proprietary to Consultant and may contain trade secrets, work processes, or other business information (collectively, “Proprietary Information”).

Consultant shall clearly identify such Proprietary Information when provided to City and shall mark Proprietary Information when provided to City in writing. City shall not keep or store Consultant’s written Proprietary Information as part of its regular retention of records and shall dispose of Consultant’s Proprietary Information after review and upon reasonable request by Consultant, unless otherwise prohibited by state or federal law or rules of court.

Notwithstanding any other provision of this Agreement, neither party is required to disclose information which it reasonably deems to be proprietary or confidential in nature. The Parties agree that any information disclosed by a party and designated as proprietary and confidential shall only be disclosed to those officials, employees, representatives, and agents of the other party that have a need to know in order to administer and enforce this Agreement. For purposes of this subsection, the terms “proprietary or confidential” include but are not limited to, information relating to a party’s corporate structure and affiliates, marketing plans, financial information, trade secrets, work processes, or other information that is reasonably determined by a party to be competitively sensitive. A party may make proprietary or confidential information available for inspection but not copying or removal by the other party’s representatives. This subsection, shall not prohibit the disclosure of any documents otherwise required to be disclosed pursuant to the California Public Records Act, California Government Code Section 7920.000 et seq.

Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
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be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement.

Consultant understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City Manager, or his designee, identified as Steven Turner, Community Development Director ("Contract Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
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Administrator"). All correspondence, meeting documentation, invoices and project deliverables shall be directed to or through the Contract Administrator.

10.10 Notices. Any notice, demand, request, consent or approval that either party is required to give the other pursuant to this Agreement, shall be in writing and may be given by either (i) personal service, (ii) delivery by reputable overnight delivery service (e.g. Federal Express) which provides a receipt showing date and time of delivery, (iii) certified United States mail, postage prepaid, return receipt requested, or (iv) by email transmission . Notice shall be effective upon personal delivery or delivery to the addresses specified below, as reflected on the receipt of delivery or return receipt, as applicable.

Any written notice to Consultant shall be sent to:

Jennifer Duffy
President
Hello Housing
2335 Broadway, Floor 3,
Oakland, California 94612
All other written notices to City shall be sent to:

David Benoun Kristopher J. Kokotaylo,
City Manager City Attorney
City of Newark City of Newark
37101 Newark Blvd. with a copy to 37101 Newark Blvd.

Newark, CA 94560 Newark, CA 94560

10.12 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example. _________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.13 Integration. This Agreement, including the scope of work and cost proposal attached hereto and incorporated herein as Exhibits A and B, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A Scope of Services
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Exhibit B Cost Proposal

10.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.15 Conflicts or Inconsistency. In interpreting this Agreement and resolving conflicts, errors, or discrepancies, the order of precedence should be:

1. This Agreement

2. The ordinances, resolutions, and policies of the City

3. The Consultant’s proposal

SIGNATURES ON FOLLOWING PAGE
The Parties have executed this Agreement as of the Effective Date.

Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consulting Services Agreement between
City of Newark and Hello Housing Page 15 of 15
CITY OF NEWARK HELLO HOUSING, INC.
____________________________ ______________________________ DAVID BENOUN, CITY MANAGER Title: Jennifer Duffy, President ATTEST:
___________________________

KATHY SLAFTER, DEPUTY CITY CLERK
APPROVED AS TO FORM:
____________________________
KRISTOPHER J. KOKOTAYLO

CITY ATTORNEY
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1

EXHIBIT A

SCOPE OF SERVICES
PHASE I: PROGRAM DEVELOPMENT
TASK 1: Develop First-Time Homebuyer Down Payment Loan Program and Program Guidelines for Deed-Restricted BMR Homeownership Units

1.1 Develop First-Time Homebuyer Down Payment Loan Program Based on accepted best practices and taking into account the City’s budgetary and policy context and regional resources and/or programs that may be available, Consultant will develop detailed program guidelines and an application process for a down payment assistance loan program.

Respondents to this RFP are encouraged to provide a detailed approach for this task.

1.2 Design Program Guidelines for Deed Restricted BMR Homeownership Units In parallel with developing the First-Time Homebuyer Down Payment Loan Program, Consultant will work with City staff to develop detailed program guidelines for the City’s BMR homeownership program. This will include but not be limited to the following key components:
1) Detailed program guidelines for the BMR homeownership program, including any related regulatory requirements.
2) Homebuyer application process and related program materials. 3) Resale process and requirements.
4) Portfolio management system.

PHASE II: PROGRAM IMPLEMENTATION
TASK 2: GENERAL PROGRAM ADMINISTRATION

2.1 Public Information
Consultant will respond regularly to inquiries regarding the City’s homebuyer loan and BMR homeownership units, received by telephone, mail, website, referral, and email. In addition, Consultant will distribute program information to all interested parties. This information includes but is not limited to brochures, applications, program guidelines, and information regarding homebuyer education classes. City staff will maintain BMR program awareness within the Newark community and conduct informational campaigns. Consultant will maintain a single database of interested homeowners. Consultant will organize and facilitate community events and information sessions as requested by the City.

Consultant will also provide periodic training and technical assistance on BMR requirements to both developers and homebuyers.

2.2 Records Management
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consultant will maintain detailed program records including, but not limited to:
• Number of loans requested, approved, funded, and denied • Loan recipients and units purchased
• Marketing activities
• Participant information and correspondence
• Copies of publicly available ownership records and property information Consultant will prepare reports or memorandums summarizing the above information semiannually or upon request of City staff. Consultant will maintain complete and accurate files, including paper and digital files. This will include scanning, printing and organizing. Consultant will track relevant information on each file and update databases regularly.

TASK 3: FIRST-TIME HOMEBUYER DOWN PAYMENT LOAN PROGRAM

MANAGEMENT

4.1 Homebuyer Application Processing
Consultant will review all loan program applications and provide the City with a recommendation for approval or rejection based on current best practices standards. For approved applicants, Consultant will prepare the necessary information and documentation, and provide it to the City for execution and to the escrow officer in a timely manner to ensure a successful closing.

4.2 First-Time Homebuyer Down Payment Loan Closings
Consultant will work directly with potentially eligible loan program applicants, as well as with other parties to the potential transaction including real estate agents, lenders, mortgage brokers, and/or contractors, to facilitate the closing of City loans. Consultant will work proactively throughout the process to identify and resolve any potential problems.

TASK 4: BMR HOMEOWNERSHIP PROGRAM MANAGEMENT

5.1 Sale and Resale Management
Consultant will coordinate with developers for initial sales and BMR homeowners interested in selling their BMR unit to ensure that the listing, marketing, and sale comply with the program guidelines. Consultant will calculate the maximum resale price, which may include an allowance for capital improvements, review the listing agreement, authorize the MLS listing of the home, and conduct an inspection of the BMR unit to ensure that the home is in good repair and clean, ensure the marketing guidelines are followed, and coordinate with the homeowner, real estate agent, and title company on the sale of the house.

5.2 Purchaser Eligibility Review
Consultant will review applications for the purchase of BMR units to determine the household’s eligibility. Consultant will work directly with applicants, as well as with their real estate agent, lender, and/or mortgage broker, during the application period and throughout the transaction to facilitate the close of escrow. Consultant will work proactively with all parties to identify and resolve any issues and will maintain the necessary information and documentation and provide it to the escrow officer in a timely manner to ensure a timely closing.

5.3 Purchaser Selection Process and Implementation
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Consultant will work with City to establish and implement a purchaser selection process to market, screen, and select eligible buyers in line with City priorities.

TASK 5: ASSET MANAGEMENT – ALL AFFORDABLE HOMEOWNER PROGRAMS

6.1 Loan Portfolio Management
Consultant will process requests related to existing program assets, including BMR units and outstanding loans. Requests may include, but are not limited to:
• Capital improvement credits
• Loan retirements and repayments
• Reconveyances/quit claims
• Subordination
• Trusts
Note: Once the program has been initiated, the City anticipates processing on average five (5) transactions annually, however, this does not include requests that are initiated but not completed by the homeowner.

6.2 Owner Occupancy Monitoring
Consultant will monitor owner-occupancy requirements for the housing programs, as applicable, and provide foreclosure prevention referrals to homeowners and recommendations on asset retention to the City. Consultant will prepare demands for loan repayments and demands for the sale of non-owner occupied BMR units and will initiate foreclosure proceedings, if necessary, upon the direction of the City Staff.

Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1

EXHIBIT B

COMPENSATION SCHEDULE
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 City of Newark FTHB Programs- Budget Proposal 2024-08-02 Key Assumptions Year 1 Year 2 Year 3
Estimated Number of DPA Loans Originated 5 7 7
Number of BMR New Inclusionary Sales 0 0 5
Number of DPA Pre-Applications Reviewed 20 25 25
Number of full DPA Applications Reviewed 10 12 12
Number of BMR New Inclusionary Sales* 0 0 5
Number of BMR Pre-Applications Reviewed* 0 0 15
Number of full BMR Applications Reviewed* 0 0 10
Loan and BMR Compliance Monitoring 0 5 12
Activities Notes Rates* Year 1 Year 2 Year 3

PROGRAM DESIGN & SET-UP
DPA Program Design and Guideline Development $15000 one time fee $ 15,000 $ - $ - Draft DPA Loan Documents (Prom Note, Deed of Trust & Loan Agreement, Disclosures & reconveyance agreements) (a) $15000 one time fee $ 15,000 $ - $ -
Deed Restricted BMR Program Design and Guideline Development $15000 one time fee $ 15,000 $ - $ - Draft BMR Affordability Restriction Agreements (a) $4500 one time fee $ 4,800 $ - $ - Craft Program Underwriting module, Program approval & disqualification communication templates $1800 one time fee $ 1,800 $ 1,800 $ - DPA Webpage and Online Pre-Application & Full Application Development & CRM Integration (b) $6500 one time fee $ 6,500 $ - $ - BMR Webpage and Online Pre-Application & Full Application Development & CRM Integration $6500 one time fee $ - $ 6,500 $ - Prepare Marketing Plan DPA $1800 one time fee $ 1,800 $ - $ - Prepare Marketing Plan BMR $1800 one time fee $ 1,800 $ - DPA Marketing Material Creation $2500 one time fee $ 2,500 $ - $ - Program Design Document reviews and meetings Allowance $ 3,500 $ - $ 65,900 $ 10,100 $ -
Activities Notes Rates Year 1 Year 2 + COLA Year 3 + COLA

PROGRAM IMPLEMENTATION
Pre-Application Reviews DPA & BMR $140 per file $ 2,800 $ 3,658 $ 6,120 DPA & BMR Lottery & Workshop $3000 per campaign $ 3,000 $ 3,135 $ 6,552 Full Application Review DPA & BMR $885 per file $ 8,850 $ 11,098 $ 21,261 DPA Doc Prep & Closing Management $2500 per file $ 12,500 $ 13,063 $ 13,650 BMR Resales, Marketing, Transaction Team Management & Document Creation (c) 2.5% of transaction $ - $ - $ 50,000 DPA Marketing Campaign & Outreach (d) $2800 per capaign $ 2,800 $ 2,926 $ 3,058 $ 29,950 $ 33,879 $ 100,641

PROGRAM ADMINISTRATION
$3000 per month $ 24,000 $ 37,620 $ 39,313
8 mo 12 mo 12 mo
Year 1 Year 2 Year 3
$ 119,850 $ 81,599 $ 139,954
Other Fees Rates*
Reimbursable Costs: Language Translation Services, including ASL interpretation services actual cost plus 10% Hourly Consulting Fees (for services outside base scope described above) President $ 225
Sr. Program Manager $ 165
Program Manager $ 150
Program Specialist $ 150
Special Projects Manager $ 135
Notes
* Conservative assumption of inclusionary units coming on-line by 2023 Field and track inquiries from the public, triage response and share actions with the City Maintain and update web page with updated income eligibility tables, programmatic information and relevant FTHB ownership housing information
Total Costs
Manage BMR and DPA Homebuyer Interest List, conduct interest list updates including the removal of applicants no longer interested, or not able to contact. Enter relevant data into CRM for tracking and reporting.

Design & Administration Proposal
Included
Included
Included
Included
Included
Included
Included
Included
Onboard preferred lenders and HUD approved homebuying counseling agencies, conduct training on the program throughout the year around sale campaigns
Meet with City staff to review program design materials, provide technical assistance and to attend stakeholder meetings
Coordinate with Development Sales Teams to facilitate closing process workflow, communication protocols, marketing collateral and status updates
Meet with City staff bi-monthly to review program status, transaction status and inquiries. Produce reports as requested.
(d) Includes direct cost for blasting through MailChip Stay Connected, social media marketing costs and local outreach (f) Hello Housing does not pass through expenses for cost incurred for basic office functions such as phone lines, postage, certified mailing, photocopying and platform updates and maintenance etc. Hello Housing does include an annual price escalator, as a cost-of-living adjustment (COLA) of 4.5%. This cost increase is meant to offset the rising costs of doing business in the Bay Area, including programmatic insurance expenses, staff salaries and benefits.

Ongoing training and oversite of the Hello Housing team Review and update, as necessary DPA & BMR Program Policies, Guidelines and Procedures (a) Fee structure includes staff time and research into drafting loan agreements for City attorney review. Fee structure does not include outside legal review of draft documents (b) Fee includes staff time building application templates, webpage and creating online versions integrated with HomeKeeper CRM (c) the budget projection assumes an average BMR purchase price of $400,000 Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 RESOLUTION NO. 11, 767

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACTUAL SERVICES AGREEMENT

WITH HELLO HOUSING FOR DEVELOPMENT AND

ADMINISTRATIVE SERVICES FOR FIRST TIME

HOMEBUYER AND AFFORDABLE HOMEOWNERSHIP

PROGRAMS
WHEREAS, City staff issued a Request for Proposals ( RFP) for services to develop and administer First Time Homebuyer and Affordable Homeownership programs, in accordance with the City' sPurchasing and Regulations; and
WHEREAS, a total of two proposals were received; and
WHEREAS, all proposals received were evaluated by City staff based on the criteria listed in the RFP including proposed cost for services, qualification and experience of firm and assigned staff, the firm' s
understanding of the scope of work and the general approach to completing the work; and
WHEREAS, based on staff' evaluation, two firms were invited to participate in interviews with City staff; and
WHEREAS, following the interviews, Hello Housing was determined to be the most qualified firm to provide the requested services for the First Time Homebuyer and Affordable Homeownership programs.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark herby authorizes the City Manager to execute the Contractual Services Agreement in a form approved by the City Attorney, with Hello Housing. in an amount not to exceed $ 200, 00. for services to develop and administer the First Time Homebuyer and Affordable Homeownership programs.

Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 I HEREBY CERTIFY the foregoing resolution was introduced at a regular meeting of the
City Council of the City of Newark held on July 24, 2025, by Council Member Catancio who moved its adoption and passage, which motion was carried after being duly seconded, and passed by the following vote:

AYES: Council Members Catancio, Grindall, Jorgens, Vice Mayor Little, and Mayor Hannon
NOES: None
ABSENT: None
SECONDED: Council Member Grindall
APPROVED:

ATTEST:

KATHLEEN L. SLAFTER
L'
Deputy City Clerk
APPROVED AS TO FORM:

KRISTOPHER J. KOKOTAYLO
City Attorney
Resolution No. 11, 767 2
MICHAEL K. HANNON
Mayor
Docusign Envelope ID: 1B586442-1D09-4497-BF48-11A9A18693B1 Certificate Of Completion
Envelope Id: 1B586442-1D09-4497-BF48-11A9A18693B1 Status: Completed Subject: Complete with Docusign: C25058 CSA Hello Housing.pdf, _Resolution No. 11767 Hello Housing.pdf Source Envelope:

Document Pages: 22 Signatures: 4 Envelope Originator:

Certificate Pages: 5 Initials: 0 Sofia Castillo
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
37101 Newark Boulevard
Newark, CA 94560
[email protected]
IP Address: 50.145.38.134
Record Tracking
Status: Original
9/11/2025 10:40:29 AM
Holder: Sofia Castillo
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Jennifer Duffy
[email protected]
President
Hello Housing
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ID: f477404a-5d95-4a61-a793-fade436b3968
Kristopher Kokotaylo
[email protected]
City Attorney
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David Benoun
[email protected]
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Sent: 9/11/2025 12:51:28 PM
Resent: 9/15/2025 9:59:12 AM
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Kathy Slafter
[email protected]
Deputy City Clerk
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ID: 6c6de6a9-d789-4720-aab8-ca2c510ce9fb
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Sofia Castillo
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Electronic Record and Signature Disclosure

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 4/13/2022 12:12:19 PM Parties agreed to: Jennifer Duffy, Kristopher Kokotaylo, David Benoun, Kathy Slafter Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

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CITY OF NEWARK
2023-2031 HOUSING ELEMENT

HCD COMPLIANT DRAFT
December 1, 2023

NEWARK GENERAL PLAN HOUSING
NEWARK 2023-2031 HOUSING ELEMENT TABLE OF CONTENTS
Acknowledgements 8
SECTION 1 Introduction 9
A. Purpose and Organization of the Housing Element 9
B. Changes in State Housing Law 10
C. Relation to Other General Plan Elements 12
D. Community Engagement 14
SECTION 2 Housing Needs 21
A. Population Growth and Trends 23
B. Housing Tenure 28
C. Housing Needs for Special Needs Populations 41
SECTION 3 Affirmatively Furthering Fair Housing 53
A. Affirmatively Furthering Fair Housing 53
B. History of the Land and People 54
C. Summary of Fair Housing Need 56
D. Fair Housing Assessment 58
E. Racially and/or Ethnically Concentrated Areas of Poverty + Affluence 74 F. Disparities in Access to Opportunity 76
G. Disproportionate Housing Needs for Low-income Households and Protected Classes 91 H. AFFH Analysis of Sites 123
I. Contributing Factors and Meaningful Actions 141
SECTION 4 Housing Constraints 148
A. Governmental Constraints 148
B. Non-Governmental Constraints 187
C. Environmental Constraints 189
SECTION 5 Housing Resources 192
A. Available Sites For Housing 192
B. City Financial Resources 195
C. Other City and Partner Agency Resources 195
2 NEWARK GENERAL PLAN HOUSING
SECTION 6 Housing Plan 197
A. Evaluation of Accomplishments Under Adopted Housing Element 197 B. Housing Plan: Goals, Objectives, Policies, and Programs 205 Appendices
A. Housing Needs A-1
B. Public Engagement and Input Summary B-1
C. Housing Sites Inventory C-1
D. Public Comment Response D-1
3 NEWARK GENERAL PLAN HOUSING

LIST OF TABLES
Table 1-1: New State Housing Laws Relevant to
Housing Element Update
Table 1-2: Draft Public Comment
Table 2-1: Population Growth Trends
Table 2-2: Population by Race 2000 to 2019
Table 2-3: Number and Type of Housing Units in
Alameda County 2022
Table 2-4: Newark Cash Rent, 2021
Table 2-5: Newark Rents, 2023
Table 2-6 Overcrowding by Regional Population,
2013-2017
Table 2-7: Substandard Housing Units, 2015-2019
Table 2-8: Subsidized Affordable Housing Units at
Risk of Conversion to Market Rate 2020
Table 2-9: Disability by Type, 2015-2019
Table 3-1: Newark Fair Housing Complaints,
2016-2021
Table 3-2: Fair Housing Complaints Forwarded to Fair
Housing and Equal Opportunity Alameda County,
January 2017- June 2020
Table 3-3: Population by Racial Group, Newark and
the Region, 2000 to 2020
Table 3-4: Race and Ethnicity of Newark Residents,
2000 to 2020
Table 3-5: Dissimilarity Index Between Racial Groups,
2000 to 2020
Table 3-6: Isolation Index for Newark and the Bay
Area, 2000 to 2020
Table 3-7: Domains and List of Indicators for
Opportunity Maps, 2021
Table 3-8: Selected District Level Data -
0161234--Newark Unified for the year 2021-2022
Table 3-9: Residents With A Disability, Newark and
Region, 2015- 2019
Table 3-10: Housing Units at Risk of Conversion, 2022
Table 3-11: Students in Local Public Schools
Experiencing Homelessness, 2016 to 2020
Table 3-12: Migrant Farmworker Student Population,
2016 to 2020
Table 3-13: Distribution of Housing Capacity by
Census Tract with AFFH Indicators
Table 3-14: Site Distribution by Median Income,
2015- 2019
Table 3-15: Sites Along Transit Lines and High or
Moderate Opportunity Areas, 2022
Table 3-16: Summary of Contributing Factors and
Actions Regarding Housing Issues in Newark
Table 4-1: General Plan Land Use Designations
Table 4-2: Residential Development Standards,
Newark 2022
Table 4-3: Housing Types Permitted by Zone, Newark
2022
Table 4-4: Potential Sites for Emergency Shelters in
Newark, 2022
Table 4-5: Level of Review Authority, Selected
Decision Types
Table 4-6: Average Permit Processing Time, Newark,
2022
Table 4-7: Permit Fees, Newark, Fiscal Year
2022-2023
Table 4-8: Residential Development Impact Fees,
Newark, Fiscal Year 2022-2023
Table 4-9: Off-Street Parking Requirements, Newark
2021
Table 6-1: Review of Policies and Programs of 5th
Housing Element Cycle
Table 6-2: Assessors Parcels Numbers Subject to AB
1397, 2022
4 NEWARK GENERAL PLAN HOUSING
Table 6-3: List of Quantified Objectives for the 2023
to 2031 Planning Period
Table C-1: City of Newark Detailed Sites Inventory
Table C-2: City of Newark Sites Inventory APNs and
Acreage
Table C-3: Planned and Proposed Sites with Project
Status
Table C-4: Lower Income RHNA vis-a-vis Non Vacant
Sites, 2023
Table C-5: Grocery Outlet Center Realistic Capacity
Analysis
Table C-6: Thornton Ave. Sites Realistic Capacity
Analysis
Table C-7: Cedar Blvd. and Timber St. Industrial Sites
Realistic Capacity Analysis #1
Table C-8: Cedar Blvd. and Timber St. Industrial Sites
Realistic Capacity Analysis #2
Table C-9: Cedar Blvd. and Timber St. Industrial Sites
Realistic Capacity Analysis #3
Table C-10: E-Z 8 Realistic Capacity Analysis
Table C-11: Cherry Plaza Realistic Capacity Analysis
Table C-12: Sycamore St. Vacant Lot Realistic
Capacity Analysis
Table C-13: Cedar Blvd. Public Storage Realistic
Capacity Analysis
Table C-14: Filbert Ave. Sites Realistic Capacity
Analysis
Table D-1: Housing Element Draft Public Comments
Received and City Response
5 NEWARK GENERAL PLAN HOUSING

LIST OF FIGURES
Figure 2-1: Population by Age, 2000 to 2019
Figure 2-2: Wage or Works by Place of Residence and
Work, by Income, 2015- 2019
Figure 2-3: Housing Age, 2015- 2019
Figure 2-4: Newark Zillow Home Value Index, 2013
-2022
Figure 2-5: Home Values of Owner Occupied Units,
2015-2019
Figure 2-6: Rents for Renter Occupied Units in
Newark, Alameda County, and the Bay Area, 2015-
2019
Figure 2-7: Housing Tenure by Race, 2015- 2019
Figure 2-8: Vacant Units By Type, 2015- 2019
Figure 2-9: Cost Burdened Households, Renters and
Homeowners, 2015- 2019
Figure 2-10: Low Income Cost Burdened Households,
Renters and Homeowners, 2015- 2019
Figure 2-11: Overcrowding by Tenure and Severity,
2013- 2017
Figure 2-12: Senior Households by Income and
Tenure, 2013- 2017
Figure 2-13: Cost Burdened Rates by Income Level,
Seniors, 2013- 2017
Figure 2-14: Households by Household Size, 2015-
2019
Figure 2-15: Household Type, 2015- 2019
Figure 2-16: Household Type by Tenure, 2015- 2019
Figure 2-17: Households by Household Income Level,
2013- 2017
Figure 3-1: Predominate Racial Groups in Newark,
2010
Figure 3-2: Racial Demographics of Newark, 2018
Figure 3-3: Household Income levels for Newark,
Alameda County and the Bay Area, 2013- 2017
Figure 3-4: Income by Race and Ethnicity, 2013- 2017
Figure 3-5: Median Household Income, 2015- 2019
Figure 3-6: Low to Moderate Income Households and
Percent Non-White Population, 2015- 2019, 2018
Figure 3-7: Area of High Segregation and Poverty,
2021
Figure 3-8: Distribution of TCAC Opportunity Areas
in the San Francisco Bay Area, 2022
Figure 3-9: Composite of Opportunity Areas in
Newark, 2022
Figure 3-10: Percentage of Residents in Low,
Moderate and High Resourced Areas by Race, 2015-
2019
Figure 3-11: Jobs Proximity Index Composite,
2014-2017
Figure 3-12: Economic Opportunity Score, 2021
Figure 3-13: Environmental Opportunity Score, 2021
Figure 3-14: CalEnviroScreen and Non-White
Population, 2021 and 2018
Figure 3-15: Newark School Enrollment, 2017-2022
Figure 3-16: Race and Ethnicity of Newark Unified
School District, 2020-2021 School Year
Figure 3-17: Educational Opportunity Index, 2021
Figure 3-18: Alameda County Transit Bus Stops and
Proposed Transit Stations, 2022
Figure 3-19: Housing and Transportation Costs as a
Percentage of Income
Figure 3-20: Percentage of Households With Children
Under 18 Years of Age, 2015- 2019
Figure 3-21: Family Structures in Newark, 2015-
2019
Figure 3-22: Percent of Married Couples with
Children, 2015- 2019
Figure 3-23: Percent of Children in a Female Headed
Household, 2015- 2019
Figure 3-24: Poverty Levels of Female Headed
Households in Newark, 2015- 2019
6 NEWARK GENERAL PLAN HOUSING
Figure 3-25: Comparison of Household Size for
Owners and Renters in Alameda County and Newark,
2015- 2019
Figure 3-26: Increase of Senior Population. 2010 to
2019
Figure 3-27: Seniors Income Level, Owners and
Renters, 2015- 2019
Figure 3-28: Disability Status By Age, 2016- 2020
Figure 3-29: Newark Senior Population with
Disability, 65 years and Older, 2016- 2020
Figure 3-30: Disability Status by Race, 2016- 2020
Figure 3-31: Cost Burden Renter Households in
Newark Over Time, 2015- 2019
Figure 3-32: Cost Burdened by Income, 2013- 2017
Figure 3-33: Cost Burdened Households, Renters and
Homeowners, 2015-2019
Figure 3-34: Overpayment by Renters, 2015- 2019
Figure 3-35: Overpayment by Homeowners, 2015-
2019
Figure 3-36: Cost Burdened Residents by Race, 2013-
2017
Figure 3-37: Percent of Owner and Renter
Households Living in Crowded Conditions, 2013-
2017
Figure 3-38: Overcrowding by Race and Ethnicity,
2015- 2019
Figure 3-39: Overcrowding and Severe Overcrowding
in Newark and Non-White Population, 2015- 2019
and 2018
Figure 3-40: Subsidized Housing and Housing Choice
Vouchers, 2021
Figure 3-41: Housing Tenure in Newark, 2015- 2019
Figure 3-42: Rates of Homeownership by Race, 2015-
2019
Figure 3-43: Mortgage Applications and Acceptance
by Race, 2018-2019
Figure 3-44: Total Count of People Experiencing
Homelessness For The Point In Time Count On
February 22, 2022
Figure 3-45: Unsheltered Individuals in Newark and
Alameda County, 2022
Figure 3-46: Sheltered Individuals by Race, 2022
Figure 3-47: Permanent and Seasonal Farmworkers
at the County Level, 2022 to 2017
Figure 3-48: Map of Plan and Dumbarton Corridor,
2010
Figure 3-49: Areas in Newark Vulnerable to
Displacement and Percentage of Communities of
Color, 2018 and 2022
Figure 3-50: 100 Year and 500 Year Flooding
Projections for the City of Newark
Figure 3-51: Housing Sites for the RHNA 6th Cycle
Figure 3-52: Sites by Racial Predominance, 2010
Figure 3-53: Site Distribution by Median Income,
2015- 2019
Figure 3-54: Site Distribution By Percent of Low and
Moderate Income Residents, 2015- 2019
Figure 3-55: Site Distribution by CalEnviroScreen
Percentile Score, 2021
Figure 3-56: Percentage of Housing Units by
Resource Opportunity Area, 2022
Figure 3-57: Site Distribution by Resource Level and
Transportation Access, 2022
Figure 3-58: Distribution of Sites by Rates of Cost
burdened, 2015– 2019
Figure 3-59: Distribution of Sites by Displacement
Risk and Percent BIPOC population, 2017 and 2018
Figure 3-60: Housing Sites Vis-a-Vis Disability Status, 2015- 2019
Figure 4-1: Development Review Process
Figure 5-1: Housing Sites for the RHNA 6th Cycle
Figure C-1: Housing Sites for the RHNA 6th Cycle
7 NEWARK GENERAL PLAN HOUSING

ACKNOWLEDGEMENTS
City of Newark Staff
Steven Turner, Community Development Director
Art Interiano, Assistant Community Development Director Carmelisa Lopez, Senior Planner
Joseph Balatbat, Associate Planner
Consultant Team
Paul Peninger, BAE Urban Economics
Community Planning Collaborative
Clara Cheeves
Bowen Close
Josh Ellsworth
Corinne Tsai
Newark Community
The City would like to extend its thanks to the community members, advocates and organizations that contributed to this report. An incomplete list of those who contributed their time and knowledge toward this draft is below:
● All the community members that filled out a survey, and attend a community meeting ● Alameda County Department of Health Developmental Disabilities Council ● Clark W. Redeker Newark Senior Center
● El Tímpano
● Greenbelt Alliance
● Housing Consortium of the East Bay
● Promotores
● Second Chance Inc.
● Newark Public Library
● Newark Unified School District: Newark Parent leadership team ● Newark Planning Commission
8 NEWARK GENERAL PLAN HOUSING
SECTION 1 INTRODUCTION
The city of Newark is a growing, vibrant, multicultural city with a diverse commercial and business sector, and an inclusive community character. The City is committed to ensuring that all current and future residents continue to enjoy Newark’s distinctive attributes through the implementation of policies and programs that ensure that all residents have access to housing that meets the full range of household and community needs. To this end, the City is currently engaged in the implementation of an ambitious affordable housing work plan adopted by the Newark City Council in May, 2021. This Work Plan lays the foundation for the update of the City’s General Plan Housing Element, an opportunity for Newark to plan for housing to meet the needs of all segments of Newark’s diverse community.

A. Purpose and Organization of the Housing Element
Housing Element Purpose
California law recognizes the vital role that local governments play in the availability, adequacy, and affordability of housing. Every jurisdiction in California is required to adopt a long-range General Plan to guide its physical development, and the Housing Element is one of the seven required elements of the General Plan. Housing Element law mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. The law recognizes that in order for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory systems that provide opportunities for, and do not unduly constrain housing production. Housing Element statutes also require the State Department of Housing and Community Development (HCD) to review local housing elements for compliance with State law and to report their findings to the local government.

California's Housing Element law requires that each city and county develop local housing programs to meet its "fair share" of existing and future housing needs for all income groups. The Association of Bay Area Governments (ABAG) is responsible for developing and assigning these regional needs, or "RHNA", to Bay Area jurisdictions. Pursuant to the RHNA planning period, the Newark Housing Element is an eight-year plan extending from 2023 to 2031, also referred to as the 6
th Cycle Housing Element.
9 NEWARK GENERAL PLAN HOUSING
Newark’s Housing Element identifies strategies and programs that focus on:

1. Preserving and improving existing housing

2. Removing governmental and other constraints to housing development

3. Promoting and expanding fair and equitable housing opportunities

4. Assisting in the creation of new affordable housing in the City

5. Providing sites for new housing to be built

6. Addressing existing and emergent housing challenges related to climate change Element Organization
The 2023-2031 Newark Housing Element is comprised of the following major components:
● An introduction to review the requirements of the Housing Element, recent State laws and the community engagement process
● A community profile evaluating Newark's demographic, household and housing characteristics and related housing needs
● An analysis of governmental and non-governmental constraints on housing production and maintenance
● A detailed analysis of sites to accommodate the City’s RHNA for the planning period ● An evaluation of available resources to facilitate the production and maintenance of housing, including housing sites, financial and administrative resources available for housing, and opportunities for energy conservation
● A Housing Plan for addressing the City's identified housing needs, constraints and resources; including housing goals, policies and programs A series of appendices provide additional documentation. ● Appendix A is a presentation of the Housing Needs analysis. ● Appendix B provides a summary of public input received from the variety of community engagement opportunities undertaken throughout the Housing Element update process. ● Appendix C presents the parcel-specific Housing Element sites inventory.

B. Changes in State Housing Law
In response to California's worsening affordable housing crisis, in each of the last several years the State legislature has enacted a series of bills aimed at increasing production, promoting affordability and creating greater accountability for localities in addressing their housing needs.

The following items in Table 1-1 represent substantive changes to State housing law since Newark's last Housing Element was adopted and certified in 2014. 10 NEWARK GENERAL PLAN HOUSING
Table 1-1: New State Housing Laws Relevant to Housing Element Update Housing Bills Bill Overview
Housing Element Sites Analysis
and Reporting
AB 879 (2017); AB 1397 (2017); SB
6 (2019)
Requires cities to zone more appropriately for their share of regional housing needs and in certain circumstances require by-right development on identified sites. Site analysis must also include additional justification for being chosen, particularly for sites identified to address lower income needs.

No Net Loss Zoning
SB 166 (2017)
Requires cities to identify additional low-income housing sites in their Housing Element when market- rate housing is developed on a site currently identified for low-income housing.

Affirmatively Furthering Fair
Housing
AB 686 (2017)
Housing Elements must contain an Assessment of Fair Housing, consistent with the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule. The AFFH sections must include a summary of fair housing issues in the jurisdiction; a summary of fair housing data including contributing factors to fair housing issues; analysis of Housing Element sites in relation to AFFH; and an AFFH program that includes meaningful action.

Accessory Dwelling Units and
Junior Accessory Dwelling Units
AB 494 (2017), SB 229 (2017), AB
68 (2019), AB 881 (2019), AB 587
(2019), SB 13 (2019), AB 670
(2019), AB 671 (2019), AB 3182
(2020)
The State enacted legislation in both 2017 and 2019 to further assist and support the development of ADUs, including "by right" approval for one-bedroom units less than 850 square feet and two-bedroom units less than 1,000 square feet. and Junior ADUs less than 500 square feet.

Density Bonus
AB 1763 (2019), AB 2345 (2020)
Permits 100% affordable projects to be built denser and taller through three modifications to current Density Bonus Law. AB 2345 creates additional incentives and also requires the annual progress report to include if density bonuses have been granted.

Housing Crisis Act of 2019
SB 330 (2019)
Seeks to boost homebuilding by expediting approvals for housing development, including application processing times. SB 339 also prevents jurisdictions from decreasing a site's housing capacity through tools such as downzoning if that would preclude a jurisdiction from meeting its RHNA targets. Also, any project that includes demolition of housing units must replace or exceed that number of units. Any demolished units occupied by low-income households must be replaced with new units that are affordable to that same income level.
11 NEWARK GENERAL PLAN HOUSING
Housing Bills Bill Overview
Surplus Land for Affordable
Housing
SB 1486 (2019), AB 1255 (2019)
Expands definition of surplus land and puts additional restrictions on the disposal of surplus land.

Jurisdictions must include information about surplus lands in the Housing Element and Annual Progress Reports. A central
inventory of surplus lands also must be submitted to HCD.

Emergency and Transitional
Housing Act
AB 139 (2019)
Amends assessment method to show site capacity, including using the most up-to-date point-in-time count. Additionally, the bill modifies parking requirement for emergency shelters. The Housing Element must include all of this information as well as analysis of the jurisdiction's special needs populations.

Supportive Housing Streamlined
Approval
AB 2162 (2018)
Requires supportive housing to be a use by right and eliminates parking if close to transit.

Safety Element Changes
SB 1035 (2018), SB 99 (2019), SB
747 (2019)
Updates requirements for the General Plan Safety Element including expanded information on environmental hazards facing jurisdictions and analysis of emergency evacuation routes. These updates must occur at the same time as the Housing Element updates.

C. Relation to Other General Plan Elements
The City of Newark's General Plan is comprised of the following eleven Chapters: 1) Introduction; 2) Planning Framework; 3) Land Use; 4) Transportation; 5) Housing; 6) Economic Development; 7) Conservation and Sustainability; 8) Parks, Recreation, and Open Space; 9) Environmental Hazards (to be renamed Safety Element); 10) Health and Wellness; and 12) Community Services and Facilities. Except for the Housing Element which was updated to be consistent with other elements, the other Newark General Plan Elements were adopted by the Newark City Council on December 12, 2013. State law requires that the General Plan be internally consistent. The Housing Element is consistent with Goals and Policies of the other elements of the General Plan.

The City will ensure consistency between the Housing Element and the other General Plan elements so that policies introduced in one element are consistent with other elements.

Whenever any element of the General Plan is amended in the future, the Housing Element will be reviewed and modified, if necessary, to ensure continued consistency between elements. 12 NEWARK GENERAL PLAN HOUSING
General Plan and Housing Element Consistency
The City of Newark’s General Plan, adopted in 2013, is the city’s long term vision for the growth and development. There are a number of elements that are interconnected with the goals and policies of the Housing Element: The Land Use Element, Transportation Element, Economic Development Element, and the Health and Wellness Element.

The Land Use Element seeks to encourage redevelopment and promote infill in strategic areas to create new pedestrian oriented, high-density, mixed-use, and transit-oriented development, especially around the proposed Dumbarton Rail station and Old Town neighborhood. The Land Use Element seeks to ensure that the design of new development is responsive to existing residential neighborhoods and community character. The Land Use Element’s policies and actions encourage new housing opportunities for all residents, through increasing ADU production and inclusionary zoning, to co-locate services, parks and recreation to increase access to residential opportunities.

The Transportation Element reinforces elements of the Land Use Element through the emphasis on high density, mixed use housing development in proximity to public transportation. The element also looks at the addressing parking requirements for housing to ensure the number of parking spaces is reflective to the use, resident type and location.

The Economic Development Element is focused on the revitalization of the NewPark Mall area, reducing commuter times through jobs housing balance, and ensuring that new development has a positive economic impact for the city.

The Health and Wellness Element looks at connecting land use planning with the reduction of greenhouse gas emissions and general community health through increasing access to healthy foods. This year a new chapter will be added to the Health and Wellness Element, this chapter will work to:
● Reduce pollution exposure and improve air quality
● Promote access to public facilities
● Promote access to healthy foods
● Promote safe and sanitary homes
● Promote physical activity
● Promote civic engagement
Upon adoption, this Housing Element will be incorporated into the 2013 General Plan, updating the existing Housing Element. This Housing Element was prepared to maintain internal consistency with other elements of the General Plan. In addition, State law requires that other General Plan elements be reviewed and/or modified upon adoption of the Housing Element.

Senate Bill (SB) 1035 requires the safety element to be revised upon update of the Housing Element to include new information on fire hazards, flood hazards, and climate adaptation and 13 NEWARK GENERAL PLAN HOUSING
resilience strategies. The City will be updating the Environmental Hazards Element (to be renamed the Safety Element) in conjunction with the 2023-2031 Housing Element update. The City will maintain consistency between the Housing Element and the other General Plan elements so that policies introduced in one element are consistent with other elements.

D. Community Engagement
The City of Newark maintains an ongoing commitment to providing meaningful community engagement in partnership with community based organizations and in collaboration with other city departments in order to reach all segments of the population.Through a multi-pronged and multi-lingual approach, City staff worked to provide opportunities for community engagement over the course of the Housing Element update process.

Findings from the Community Engagement process were used to inform Newark’s Fair Housing Assessment and the goals, policies, and programs of the Housing Element update. See Section 3 (Affirmatively Furthering fair Housing) and 6 (Goals, Policies, & Programs) for more information.

Public Comment from HCD review process
During the HCD Review process, the City received comment letters from East Bay for Everyone, Save the Bay, Greenbelt Alliance and the Planning Commission and the public. Comments and responses received during the comment period focused on making adjustments to parking to better facilitate affordable housing development, programs to increase missing middle housing, aligning housing with active transportation investments and concern about housing development in the floodplain areas of the city. Comment letters and responses can be found in Appendix D.

Outreach Methods Utilized:

Social Media
The City and consultants utilized social media promotion for pop up events, promoting the website and a housing survey through Facebook. Content was posted on Facebook pages for the City of Newark, Newark Unified School District, Promotores, and Newark Recreation and Community Services.

Posters and Flyers
In addition to social media, the city used more traditional forms of communication, including the distribution of posters and flyers. Posters were distributed and posted in a variety of public places throughout the city, including parks, community centers, and other public buildings, local 14 NEWARK GENERAL PLAN HOUSING
businesses and with faith-based communities. Posters and flyers were translated into Spanish, Simplified Chinese, Vietnamese and Tagalog in order to reach a broad spectrum of the community.

Places the city posted:
● Newark Public Library
● Mel Nunes Skate Park
● NewBark Dog Park
● Restaurants in partnership with community groups
● Senior Center
● Silliman Community Activity Center
● Newark Community Center and childcare center
Flyers were shared at popular and frequented sites in the community and distributed at in-person community events. The flyers had a QR code that connected residents directly to the website and housing survey.

Website
The city also created a unique, dedicated stand-alone website that is translatable in three languages, and also touches on issues of environmental justice. The website is the hub for the community to access information on the housing element update and opportunities for engagement including in-person events, email updates, and our survey.

In Person Engagement: Meeting The Community Where They Are The city conducted in person community engagement in a variety of locations and events around the city. They engaged with residents at Family Day in the Park on April 9, 2022, spent time connecting with folks at the Newark Public Library on a busy Saturday, visited the senior center for Bingo, and Tri City food pantry mobile pop up. These provided an opportunity for city staff to answer questions, and encourage residents to take part in the housing survey.

One On One Interviews and Listening Sessions
The city conducted one-on-one interviews with staff from the Housing Consortium of the East Bay (HCEB), an organization that creates inclusive communities for individuals with developmental disabilities or other special needs, and a member of the Newark Parent leadership team with Newark Unified School district. We gained insight and guidance into the needs of families and those with developmental disabilities.

Meeting with a member of the Newark Parent leadership team, the city heard there needs to be more affordable housing, as families are being displaced, or forced to live in hotels on a short-term basis. The member shared that households are kept out of the rental market due to unattainable 15 NEWARK GENERAL PLAN HOUSING
income requirements, and they cited the need for rent control in order to make housing more attainable. There is a need to have more homeownership opportunities that are attainable to a larger demographic. The lack of stable housing and internet access places these children at a disadvantage both educationally, mentally and physically. Increasing access to enrichment and after school activities at the Silliman Center was seen as a beneficial element for the city to develop in conjunction with affordable housing.

Survey
From March 15th through April 30th 2022, 342 people participated in the City of Newark’s online community conversation about housing issues and opportunities in Newark. 300 of those responses were in English, 38 in Spanish and 4 in Chinese.

Participants were invited to answer a series of 22 questions covering housing experience and preference, environmental justice and demographic information. The survey was hosted on the SurveyMonkey platform accessible via the city’s webpage.

The survey was distributed and advertised in multilingual materials through various platforms to reach as broad of a cross section of the community as possible. It was promoted through the social media pages of the City of Newark, Newark Recreation and Community Services, Newark Police Department, and Newark Unified School District. It was also listed in print newsletters that were sent to all Newark residents, the Clark W. Redeker Newark Senior Center email list, and the Alameda County Health Department Developmental Disabilities council list. To reach those lacking internet access, we conducted in-person outreach at the city’s Family Day in the Park event and the Newark Library where residents and workers could take our survey on paper or an iPad.

We also utilized our partnerships with local organizations to share our survey with special needs populations. We worked in partnership with the group Promotores to reach the Latino community.

We also reached out to nonprofit organizations that support people experiencing and escaping from domestic violence, and transitioning from homelessness, to share the survey with them. With the intention of connecting with families, we reached out to the Newark Unified School District parent leadership committees, and was able to gain valuable insight into the needs of families in the city.

Essential insight from the survey is that quality of life, in addition to increasing housing affordability and homeownership opportunities for Newark residents is of great importance and concern. For the full survey questions and responses, see Appendix B. 16 NEWARK GENERAL PLAN HOUSING
Example survey page Example flyer
WHAT WE HEARD Residents are very concerned about housing affordability 53% of respondents to the English language survey are very concerned about housing affordability. 87% of respondents in the Spanish language survey are very concerned about housing affordability.

The three biggest issues to address for housing affordability:

1. More homeownership opportunities, especially affordable homeownership for first time homebuyers

2. More affordable rental opportunities

3. Low cost home improvements for seniors and low income households The most urgent affordable housing needs are: housing on both ends of the spectrum. Housing for large families as well as for smaller households.

1. Housing for families: Large and intergenerational. Housing for single parents was brought up in comments repeatedly throughout the survey

2. Housing for smaller households

3. Housing for low income and underserved households

4. Housing for seniors
17 NEWARK GENERAL PLAN HOUSING
WHAT WE HEARD Housing prices have risen, making housing unaffordable to many ● 40% of respondents are in housing that is not affordable to them ● 17% of respondents are in housing that they can afford but does not meet their needs ● 43% in housing they can afford and like
WHAT WE HEARD Not everyone feels that they live in a neighborhood of opportunity What would make your neighborhood feel like it has more opportunity?

1. City infrastructure that supports physical activity, including sidewalks, bike lanes, parks, and rec centers

2. Affordable, safe, and healthy housing choices

3. Educational opportunities that are academically and culturally supportive WHAT WE HEARD People are interested in a variety of housing types Residents were most interested in low scale housing types. Backyard cottages were the most favorable housing type. Cottage clusters and Townhomes were similarly favored housing types, while small to mid-size multifamily housing and multi-family buildings downtown were the least favored.

Who We Heard From
There were 342 overall participants, 300 of which responded in English, 38 in Spanish and 4 in Chinese.

There were five demographic questions, including the survey respondent’s connection to Newark, living situation, age and race. This information helped us understand if participants were representative of the city’s general population and helped us refine subsequent outreach and engagement to improve representation.

In summary, most participants identified as White (31%), followed by Hispanic/Latino (24%) and Asian/Asian American (18%). While nearly half were between the ages of 30 and 49, the remaining were split between people aged 20 to 29 (3%), 50 to 69 (21%), and over 70 (5%). The majority of respondents live in Newark (71%) and in a single family home (57%), and nearly half are homeowners (49%).

Community Meeting
The City held an online community meeting with 50 attendees on June 22 2022, to share with the community the findings from the survey and obtain general feedback on proposed goals and 18 NEWARK GENERAL PLAN HOUSING
policies that we had developed in response to research and survey results. We advertised the meeting through email communication to local organizations, posters in laundromats and grocery stores such as 99 Ranch that are located in low-income neighborhoods with a majority of BIPOC community members, as well as on social media sites for the Newark Public Library, the parents of NUSD, community organizations such as the Promotores, and the City of Newark. The meeting provided simultaneous translation in both Mandarin Chinese and Spanish, with small break out groups to help residents feel comfortable discussing their thoughts.

WHAT WE HEARD Newark needs to plan for climate change
● Making Newark the green city by the bay: Incorporating and increasing access to public parks, preserving existing ecologically sensitive land, and increasing tree planting to combat increased heat
● Building for energy efficiency: requiring solar panels on homes, insulation, and water conservation
● Increasing access to transportation options: increasing bus access, and building bike lanes to support active transportation with bikes and scooters. ● Building a walkable city: planning housing close to existing amenities such as schools, parks and grocery stores for walkability
WHAT WE HEARD Residents want to stay in their communities, and right now it’s challenging, with many facing displacement
● Supportive resources: Residents, documented and undocumented, need more support and increased access to housing resources and tenant protections “We all deserve housing”
● Innovative programs: Seniors on a fixed income need more support to remain in their homes and communities
“Developing a shared housing program with othersthat need a room to rent, connectseniors with single people who need affordable housing. Helpsseniors on limited incomes” ● Protect tenants: The city needs programs to combat gentrification such as protections from rapid increases in rent
“Rentsincrease but our incomes do not. The median income isreally very high for Newark,so you have a lot of people who need housing at the low and very low incomes.” 19 NEWARK GENERAL PLAN HOUSING
● Build + preserve homes: More affordable housing is needed for a variety of income levels and housing types. Families, and those transitioning out of homelessness are especially in need.
“It is very hard to move people who have been homelessinto permanent housing, we need more optionsfor those that are on SSI and extremely low incomes” – Director of Second Chance Public Communication for the Draft Housing Element
Newark released the Draft Housing Element for Public Review for 30 days on February 24th, 2023 to March 27th, 2023. The greater Newark community was made aware of the public review and comment period through a variety of channels, including social media, email, the website and a community meeting.

Social media outreach was conducted multiple times a week, with bilingual posts in English and Spanish connecting residents with information about the housing element update such as the release of the draft for comment and the community meeting.

City staff sent out an email announcement that the housing element is available for public comment to 16 community based organizations that are representative of the ethnic and linguistic diversity of Newark. Other organizations included the Alameda County coalition for disability, Def plus, and the domestic violence shelter. Working with the Newark Unified School District, Newark sent out a bilingual community meeting invite over Peachjar, sending the message to parents and caregivers district wide. City staff engaged with the Spanish speaking community, meeting with the local Promotoras group and providing a translated summary of the housing element in Spanish on the website.

Newark hosted a virtual community meeting, the evening of March 22nd, 2023. The meeting provided Spanish and American Sign Language translation to ensure the attendees would be able to participate fully. City staff got the word out through email, social media posts on city and public library sites, and bilingual posters in key locations such as community center, library and laundry mat to reach those without access to the internet.

The website continues to be a source of information for updates on community meetings and Housing Element timelines. A recording providing the public with an overview of the housing element update, how to access and review the draft, the draft goals and a highlight of some of the proposed programs was posted to walk community members through the process.

Detailed Public Comments are provided as Appendix D below. 20 NEWARK GENERAL PLAN HOUSING
SECTION 2 HOUSING NEEDS
The Housing Needs Assessment analysis of housing and population characteristics, housing needs for vulnerable population groups, as well as the cities growth and employment, to provide the foundation for the development of the goals, policies and programs to meet the future and current needs of the residents.

This section pulls from various sources, primary data sources were compiled by the Association of Bay Area Governments (ABAG) in 2021. ABAG utilized the US Census, American Community Survey (ACS), the US Department of Housing and Urban Development (HUD), California Department of Finance (DOF), California Employment Development Department (EDD). If possible, data was updated to most recent available data and local sources were utilized.

SUMMARY
● Population – Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of Newark increased by 15.3% from 2000 to 2020, which is above the growth rate of the Bay Area
● Age – In 2019, Newark’s youth population under the age of 18 was 10,015 and senior population 65 and older was 6,038. These age groups represent 21.2% and 12.8%, respectively, of Newark’s population.
● Race/Ethnicity – In 2020, 23.7% of Newark’s population was White while 3.9% was African American, 33.9% was Asian, and 34.8% was Latinx. People of color in Newark comprise a proportion above the overall proportion in the Bay Area as a whole. 1 ● Employment – Newark residents most commonly work in the Manufacturing, Wholesale & Transportation industry. From January 2010 to January 2021, the unemployment rate in Newark decreased by 3.7 percentage points. Since 2010, the number of jobs located in the jurisdiction has increased by 4,650 (29.9%). Additionally, the jobs-household ratio in Newark has increased from 1.33 in 2002 to 1.49 jobs per household in 2018. 1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity. The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.

HOUSING NEEDS 21

NEWARK GENERAL PLAN HOUSING
● Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Newark increased, 11.2% from 2010 to 2020, which is above the growth rate for Alameda County and above the growth rate of the region’s housing stock during this time period. ● Home Prices – A diversity of homes at all income levels creates opportunities for all Newark residents to live and thrive in the community.
○ Ownership – The largest proportion of homes had a value in the range of $750k-$1M in 2019. Home prices increased by 133.9% from 2010 to 2020. ○ Rental Prices – The typical contract rent for an apartment in Newark was $2,110 in 2019. Rental prices increased by 61.1% from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $84,720 per year.
2 ○ Housing Type – It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020, 69.6% of homes in Newark were single family detached, 9.5% were single family attached, 4.4% were small multifamily (2-4 units), and 16.5% were medium or large multifamily (5+ units).

Between 2010 and 2020, the number of single- family units increased more than multi-family units. Generally, in Newark, the share of the housing stock that is detached single family homes is above that of other jurisdictions in the region. ● Cost Burden – The U.S. Department of Housing and Urban Development considers housing to be affordable for a household if the household spends less than 30% of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30% of its monthly income on housing costs, while those who spend more than 50% of their income on housing costs are considered “severely cost-burdened.” In Newark, 19.2% of households spend 30%-50% of their income on housing, while 12.4% of households are severely cost burdened and use the majority of their income for housing. ● Neighborhood – 9.7% of residents in Newark live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while 11.0% of residents live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.
3 3 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing 2 Note that contract rents may differ significantly from, and often being lower than, current listing prices.

HOUSING NEEDS 22

NEWARK GENERAL PLAN HOUSING
● Special Housing Needs – Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Newark, 7.6% of residents have a disability of any kind and may require accessible housing. Additionally, 18.7% of Newark households are larger households with five or more people, who likely need larger housing units with three bedrooms or more. 11.8% of households are female-headed families, which are often at greater risk of housing insecurity.

A. Population Growth and Trends
In recent decades, Newark’s population has seen rapid growth, with an increase of 15.3 percent from 2000 to 2020; this rate is above that of the region as a whole, at 14.8 percent. In 2020, the population of Newark was estimated to be 48,966 (see Table 2-1). From 1990 to 2000, the population increased by 12.2 percent, while it increased by just 0.2 percent during the first decade of the 2000s. In the most recent decade, the population increased by 15 percent. The population of Newark makes up three percent of the population in Alameda County.

Table 2-1: Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Newark 37,861 39,681 42,471 43,522 42,573 44,371 48,966 Alameda
County
1,276,702 1,344,157 1,443,939 1,498,963 1,510,271 1,613,528 1,670,834 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Source: California Department of Finance, E-5 series
Age
In recent years the population of youth has declined slightly with continued growth in those 55 and over. In 2019, Newark’s youth population under the age of 18 was 10,015 and the senior population 65 and older was 6,038. These age groups represent 21.2 percent and 12.8 percent of Newark’s population. Figure 2-1 shows slight increases in population in the 25-34 age group, and the 55 to 64+ age group. The increase in senior population can possibly be attributed to the establishment of a new affordable senior housing development. Community members have shown a preference for more walkable, mixed-use neighborhoods that are close to work, schools, parks, and amenities. The majority of seniors prefer to stay in their homes and communities, known as aging-in-place. Yet many live on fixed incomes and may have mobility issues as they age, which Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.

HOUSING NEEDS 23

NEWARK GENERAL PLAN HOUSING
require supportive services. Similar financial and mobility obstacles exist for many of Newark’s households with special needs. Younger generations are less likely to own homes and have less savings than previous generations; they are more likely to live alone and delay marriage. Yet, many are growing their families, reflected by a higher percentage of families with children in Newark versus the County and Bay Area, and therefore may be in greater need of support when purchasing their first home. Coupled with increasing housing prices, it is more difficult for younger generations to rent or purchase a home than it is for current residents. For these reasons, Newark residents consider the three biggest issues to address housing affordability as: (1) more homeownership opportunities, especially for first time homebuyers; (2) more affordable rental opportunities; and (3) low cost home improvements for seniors and low income households. We therefore must address how to support our seniors as they get older so they can stay in their homes and communities, and make sure young people and households with special needs, new families, and our workers can find housing that is affordable and accessible.

Figure 2-1: Population by Age, 2000 to 2019
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B01001 HOUSING NEEDS 24

NEWARK GENERAL PLAN HOUSING
Race & Ethnicity
Since 2000, the percentage of residents in Newark identifying as White has decreased – and at the same time, the percentage of residents of all other races and ethnicities has increased – by 18.6 percentage points, with the 2019 population standing at 11,168 (see Table 2-2). In absolute terms, the Asian / API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the most. In 2020, 23.7 percent of Newark’s population was White while four percent was African American, 33.9 percent was Asian, and 34.8 percent was Latinx. People of color in Newark comprise a proportion above the overall proportion in the Bay Area as a whole. 4 When planning for housing, we need to consider a variety of housing needs—like larger homes for multi- generational families or those with more children—and how to create opportunities for everyone to access quality, affordable housing near schools, transit, jobs, and services.

Past exclusionary practices have prevented people of color from purchasing homes, living in certain neighborhoods, and building wealth over time. As a result, they are more likely to experience poverty, housing insecurity, displacement, and homelessness. And while many of our communities are very diverse, we are still contending with segregation and a lack of equitable opportunities. To help prevent displacement due to gentrification and to create a future where it is possible for everyone to find the housing they need, it will be important to plan for a variety of housing types and affordability options in all neighborhoods.

Table 2-2: Population by Race 2000 to 2019
Year
American Indian
or Alaska Native
Asian / API
Black or African
American
White
Other Race or
Multiple Races
Hispanic or
Latinx
2000 148 9,329 1,639 17,103 128 12,145
2010 95 12,005 1,908 11,726 1,845 14,994
2019 130 16,002 1,818 11,168 1,661 16,392
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001 4 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity.

The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latino status, to allow for an accounting of the Latinx population regardless of racial identity. The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latino, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.

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Employment Characteristics
By 2050 the number of jobs in South Alameda County will increase to 221,000, 19% ofthe projected growth for the County
5 In Newark there are 17,935 employed residents, and 17,168 jobs
6 - the ratio of jobs to resident workers is 0.96; Newark is a net exporter of workers. Despite the overall job growth expected in the county, 92 percent of Newark residents work outside of the City, with a greater number today employed in the peninsula and Silicon Valley.

Figure 2-2 shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively low- income workers but have relatively few housing options for those workers - or conversely, it may house residents who are low wage workers but offer few employment opportunities for them. Such relationships can potentially contribute to an unbalanced demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers in a wage group relative to jobs means the community will export those workers to other jurisdictions.

Newark has more low-wage jobsthan low-wage residents(where low-wage refers to jobs paying less than $25,000). At the other end of the wage spectrum, the city has more high-wage residents than high-wage jobs(where high-wage refers to jobs paying more than $75,000). In addition to the inflow of workers, our population is growing naturally, meaning more people are living longer while our children are growing up and moving out into homes of their own. All of this impacts housing demand.
6Employed residentsin a jurisdiction is counted by place of residence (they may work elsewhere) while jobsin a jurisdiction are counted by place of work (they may live elsewhere). The jobs may differ from those reported abode as the source for the time series is from administrative data, while the cross-sectional data is from a survey.
5 Plan Bay Area 2050 Projected Growth Pattern.

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Figure 2-2: Wage or Works by Place of Residence and Work, by Income, 2015- 2019 Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B08119, B08519 HOUSING NEEDS 27

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B. Housing Tenure
The 2020 Decennial Census estimates a total of 15, 371 housing units in Newark, with 14,946 as occupied housing units . Of these occupied housing units, 10,185 or 68 percent were owner occupied and 4,761 or 32 percent were renter occupied, compared to approximately 47 percent of Alameda County households that rent and 44 percent of Bay Area households.

Housing Stock Characteristics
This section examines housing stock in Newark from age, condition, type to understand current and emerging needs and analyzing vacancy and cost to understand the affordability.

Housing Age and Type
Housing in Newark was primarily built before 1980, with 53 percent built from 1960 to 1979 (see Figure 2-3). In 2020, 70 percent of homes in Newark were single family detached, 9.5 percent were single family attached, four percent were small multifamily (2-4 units), and 16.5 percent were medium or large multifamily (5+ units). Between 2010 and 2020, the number of singlefamily units increased more than multi-family units. Generally, in Newark, the share of the housing stock that is detached single family homes is above that of other jurisdictions in the region. With 10,385 single family homes in 2020 and 659 two to four unit homes, there is opportunity for Newark to support the increase of missing middle housing types. Programs such as SB9 can further support these efforts, as well as program H2.8 Zoning for Missing Middle Housing.

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Figure 2-3: Housing Age
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019: Table B25034 HOUSING NEEDS 29

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Table 2-3: Number and Type of Housing Units in Alameda County 2022

POPULATION HOUSING UNITS
City Household
Total
Housing
Units
Single Family
Detached
Single Attached Two to Four Five Plus Mobile Homes Occupied Vacancy
Rate
Persons per
Household
# % # % # % # % # %
Alameda 75,677 33,524 13,993 41.7% 3,482 10.4% 6,003 17.9% 9,920 29.6% 126 0.4% 31,473 6.1% 2.40 Albany 18,450 7,946 4,864 61.2% 277 3.5% 954 12.0% 1,823 22.9% 28 0.4% 7,545 5.0% 2.45 Berkeley 105,151 52,921 21,534 40.7% 2,128 4.0% 10,307 19.5% 18,730 35.4% 221 0.4% 48,377 8.6% 2.17 Dublin 68,482 24,977 13,331 53.4% 3,524 14.1% 812 3.3% 7,254 29.0% 56 0.2% 24,040 3.8% 2.85 Emeryville 12,396 7,656 424 5.5% 406 5.3% 766 10.0% 6,023 78.7% 36 0.5% 7,025 8.2% 1.76 Fremont 227,195 79,749 44,781 56.2% 10,210 12.8% 2,718 3.4% 21,314 47.6% 725 0.9% 76,507 4.1% 2.97 Hayward 156,757 52,870 27,328 51.7% 5,599 10.6% 3,063 5.8% 14,476 53.0% 2,403 4.5% 50,794 3.9% 3.09 Livermore 85,444 33,087 22,536 68.1% 3,218 9.7% 1,652 5.0% 5,140 22.8% 541 1.6% 31,968 3.4% 2.67 Newark 47,029 15,811 11,040 69.8% 1,457 9.2% 688 4.4% 2,626 23.8% 0 0.0% 15,329 3.0% 3.07 Oakland 414,325 183,729 75,322 41.0% 7,115 3.9% 33,457 18.2% 67,272 89.3% 562 0.3% 171,880 6.4% 2.41 Piedmont 10,973 3,964 3,679 92.8% 68 1.7% 138 3.5% 78 2.1% 0 0.0% 3,846 3.0% 2.85 Pleasanton 76,830 29,750 18,004 60.5% 2,858 9.6% 1,687 5.7% 6,806 37.8% 395 1.3% 28,581 3.9% 2.69 San Leandro 87,506 32,952 19,659 59.7% 2,008 6.1% 1,952 5.9% 8,436 42.9% 898 2.7% 31,851 3.3% 2.75 Union City 67,434 21,947 13,762 62.7% 2,856 13.0% 821 3.7% 3,489 25.4% 1,019 4.6% 21,467 2.2% 3.14 Source: California Department of Finance, City/County Population Estimates, E5, 2022 HOUSING NEEDS 30

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Housing Cost and Vacancy
Housing Costs and Vacancy have a pronounced effect on residents' ability to find housing that is affordable , that fits their needs, and be able to purchase a home, allowing them to build equity and stability in the community. Newark has experienced increasing housing costs over the past decade.

The Zillow Home Value Index shows home prices $ 542,000 in 2013, to more than double that in 2022, with an average home value of $1,169,000. Coupled with low vacancy rates of three percent, Newark residents face numerous housing challenges. In relation to other cities in Alameda County, Newark provides fewer housing options, but has a similar percentage of housing types as Union City, and fewer five plus units than Fremont. Only Newark and Piedmont do not have any mobile homes.

In relation to Alameda County and the Bay Area, Newark has a lower percentage of vacancies, with a 3 percent total vacancy rate( Table 2-3) 14 % of rental units are vacant, in comparison to Alameda County at 24 % and the Bay Area at 26% ( Figure 2-8). The largest vacancies are for units that are for sale at 23% and for seasonal use at 30%. Taking into account the increase in housing prices over the last 10 years, with a significant spike in 2018, brings ownership costs to over $900,00, the large vacancy rates for homes sales correlates. Throughout community engagement, community members echoed the data to share that housing costs are too high and unattainable for current residents. In response, programs such as H2.2 an Accessory Dwelling Unit program to incentivise and support the increased development of ADU production, Program H2.6 to Work in Partnership with Newark Unified School District to find creative ways to utilize school properties, Program H2.7 the Affordable housing fund to support non profit developers in developing affordable housing, H4.4 the Small Sites program supports the purchase of small scale multi family housing by affordable housing organizations and H5.1 First Time Homebuyer Assistance. As seen in Figure 2-7, BIPOC communities have lower rates of home ownership, and programs such as H5.1 will focus on supporting those populations.

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Figure 2-4: Newark Zillow Home Value Index, 2013 -2022
The ZHVI is a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums.

Source: Zillow Home Value Index (ZHCI) 2013-2022
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Figure 2-5: Home Values of Owner Occupied Units, 2015-2019 Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B25075 Rental Cost and Affordability
With the recent increase in rents in the Bay Area, affordable housing has become much harder for lower- and moderate-income households to find. This rent burden is an important issue for many households. In Newark 44 percent of rents are from $2,000 to $3,000 dollars per month from the 2021 American Community Survey. Conversely, only 17 percent of residents pay between $500 and $1,500 dollars per month. An indicator of the few choices available for deed restricted affordable housing in the City, which is consistent with what we have heard from community members. This is a slight change from 2019, with a reduction of those paying $1,00 to $2,500 (see Table 2-4), and a sharp increase in those paying $3,000 dollars or more, from 7 percent in 2019 to 20 percent in 2021. The percentage of those paying $500 to $1,000 dollars per month doubled from 3 percent to 6 percent, potentially tied to new affordable senior housing developments.

Newark, in relation to Alameda County and the Bay Area, has an average of 24 percent of residents paying from $2,000 to $3,000 dollars in rent, a higher percentage than both Alameda and the Bay Area with an average of 14 percent (Figure 2-6). In Newark 3 percent of residents were paying $500 to $1,000 dollars per month in cash rent, significantly fewer in comparison to Alameda County at 12 percent and the Bay Area at 10 percent. This wide discrepancy could be attributed to the lack of deed restricted affordable housing, an abundance of single family homes, HOUSING NEEDS 33

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and general housing pressure from high wage earners of Silicon Valley. Table 2-5 shows most recent rents show a general increase in rents from the previous years, with housing for two and three bedrooms seeing the largest increases. With some of the largest family sizes in Alameda County, this places extreme pressure on larger families looking for housing. Housing for large families is one of the key populations the city is focusing on for new housing through their Affordable Housing Action Plan. Programs such as H 2.1 and H2.2 will open up new housing opportunities for residents. H2.7 provides funding for affordable housing developments in Newark.

Figure 2-6: Rents for Renter Occupied Units in Newark, Alameda County, and the Bay Area, 2015- 2019 Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056 HOUSING NEEDS 34

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Table 2-4: Newark Cash Rent, 2021
Rent Percent Population
Less than $500 per month 5% 220
$500 to $1,000 per month 6% 270
$1,000 to $1,500 6% 280
$1,550 to $2,000 18% 799
$2,000 to $2,500 22% 979
$2,500 to $3,000 22% 958
$3,000 or more 20% 860
Total with cash rent 100% 4,366
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2017- 2021), Table B25056 Table 2-5: Newark Rents, 2023
Unit Average Rent Year over year change
Studio $1,600 +$200
One Bedroom $2,300 +$55
Two Bedroom $2,900 +$299
Three Bedroom $3,750 +$314
Four Bedroom + $4,950 +$133
Source :Zillow.com, accessed June 21st, 2023
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Figure 2-7: Housing Tenure by Race, 2015- 2919
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B25003 (A-1) Vacancy Rate
Figure 2-8: Vacant Units By Type, 2015- 2019
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B25004 HOUSING NEEDS 36

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Overpayment and Overcrowding
Overall, many residents are paying too much for housing, while many others have been priced out entirely. If a household spends more than 30 percent of its monthly income on housing, it is considered cost-burdened. If it spends more than 50 percent, it is considered severely cost-burdened. In Newark, 12 percent of households spend 50 percent or more of their income on housing, while 19 percent spend between 30 to 50 percent. However, these rates vary greatly across income and race. Of those who are extremely low income—making 30 percent or less of the area median income (AMI)— 365 renter households, or 51 percent, spend more than half of their income on housing, as do extremely low-income owners at a slightly lower number of 255 households
7 . Figure 2-9 shows that renters are more likely to be cost burdened, with twice the number of renters (30%) spending more than 30 percent of their income on housing compared to 16 percent of homeowners, and 14 percent of renters are severely cost burdened. This leaves them with little to meet other basic needs, such as food and healthcare. Since low-income residents and communities of color are the most cost burdened, they are at the highest risk for eviction, displacement, and homelessness. Through the Inclusionary Housing Ordinance, Newark will be able to support the development of affordable housing throughout the city, with a focus on special populations such as seniors and large families.

Overcrowding is defined by the US Census as households with 1.01 persons or more per room (excluding bathrooms and kitchens). Units with more than 1.5 persons per room are considered severely overcrowded. Newark residents are experiencing both overcrowding and severe overcrowding. Table 2-6 shows Newark with 9 percent of the population living in overcrowded conditions, and three percent in severely overcrowded households.

Figure 2-9: Cost Burdened Households, Renters and Homeowners, 2015- 2019 US Census Bureau, American Community Survey, 5 year data, 2015-2019, Table B25070, B25091 7 Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release HOUSING NEEDS 37

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Figure 2-10: Low Income Cost Burdened Households, Renters and Homeowners, 2015- 2019 U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release. Note: For this figure, the definition of cost burdened isspending more than 30% of income on housing.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
Table 2-6 Overcrowding by Regional Population, 2013-2017 Geography

1.00 occupants per
room or less

1.01 to 1.50
occupants per
room

1.50 occupants per
room or more
Newark 88% 9% 3%
Alameda County 92% 5% 3%
Bay Area 93% 4% 3%
Source: Housing and Urban Development, Comprehensive Housing Affordability Strategy, ACS Tabulation. 2013-2017 HOUSING NEEDS 38

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Figure 2-11: Overcrowding by Tenure and Severity, 2013- 2017 Source: Housing and Urban Development, Comprehensive Housing Affordability Strategy, ACS Tabulation. 2013-2017 Substandard Housing Units
High housing costs can often result in households, particularly renters, living in substandard conditions to afford housing. Through public comment and mapping of code enforcement reports, there is a high concentration of substandard housing conditions in the Mirabeau and Old Town/ Central neighborhoods from 2018 to the present, some of the oldest housing stock in the city. US Census data shows that a small number of homeowners and renter households experience substandard housing with .3 percent having substandard kitchens. That would translate to 42 homeowners and 37 rental units. Homeowners reported 0.1 percent of homes without adequate plumbing, or 12 homes. There were no rental units reported. Due to the fact that over 50 percent of Newark’s housing stock was constructed before 1980, there is potential for other buildings in need of rehabilitation in the near future, and Newark will continue to offer and expand upon home maintenance programs for low and moderate income residents, with a focus on informing residents in the Mirabeau Park and Old Town/ Central Newark neighborhoods. The city has identified 40 units that could use rehabilitation and repair. The existing rehabilitation program has supported about 10 homes per year and with the addition of programs such as H1.1 Housing Rehabilitation and Repair, supporting homeowners with repairs, and H1.2 Citywide inspection program, which will inspect rental properties to ensure safe and healthy living conditions for all will help in addressing these needs and support even more households.

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Table 2-7: Substandard Housing Units, 2015-2019
Building Amenity Owner Renter
Percentage
Kitchen 0.3% 0.3%
Plumbing 0.1% 0.0%
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B25053, B25043, B25049 Subsidized Housing Units at Risk
Currently Newark has a total of 274 low income subsidized housing units (Table 2-8), owned by non profit housing developers. Due to the ownership structure of the housing units, the California Housing Partnership finds these units are at low risk of conversion to market rate housing in the next ten years. Newark Station Seniors, Newark Gardens l and Newark Gardens ll are senior housing developments in Newark that comprise the total number of subsidized housing units.

Table 2-8: Subsidized Affordable Housing Units at Risk of Conversion to Market Rate 2020 Geography Low Moderate High Very High
Total Assisted
Units in Database
Newark 274 0 0 0 274
Alameda County 23,040 167 189 106 23,502
Bay Area 110,177 3,375 1,854 1,053 116,459
Source: Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developmentsthat do not have one of the aforementioned financing sources may not be included.

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C. Housing Needs for Special Needs Populations
Seniors
Seniors in Newark are a growing population, as long time residents continue to age and the city adds more affordable senior rental housing. As of the 2020 US Census, there are 6,005 Seniors in Newark. Seniors in Newark overwhelmingly are home owners at every income level, with low income seniors having the highest percentage of renters at 37 percent. 8 Low income seniors
experience higher rates of cost burden then moderate and above moderate income counterparts.

Figure 2-12 shows that 37 percent of very low income seniors are cost burdened with 22 percent extremely cost burdened.

Figure 2-12: Senior Households by Income and Tenure, 2013- 2017 Source: Housing and Urban Development, Comprehensive Housing Affordability Strategy, 2013-2017 8 Source: US Department of Housing and Urban Development. Comprehensive Housing Affordability Strategy (CHAS) ACS Tabulation, 2013-2017 release
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Figure 2-13: Cost Burdened Rates by Income Level, Seniors, 2013- 2017 Source: Housing and Urban Development, Comprehensive Housing Affordability Strategy, 2013-2017 Available affordable housing for seniors in Newark includes: Newark Gardens, Newark Gardens 2 , Newark Station, and Timber Senior Housing is under construction with an anticipated completion later this year. As the senior population continues to grow, there will be increased need for housing that is accessible, affordable to those on fixed incomes and allows residents to age in place. In addition to increased types of housing options, seniors need support with the maintenance of their existing homes and their age and spaces that are accessible. Programs to address the growing senior population are program H1.1 Financial assistance with home repair, the adoption of H2.4 Universal Design Ordinance, and program H4.5 will develop a Shared Housing Partnership.

Disability
People with disabilities often face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and often need accessible designed housing to live more independent lives. In Newark, eight percent of the population has a disability of any kind, with the majority being ambulatory (Table 2-9). Due to housing challenges of affordability, accessibility and HOUSING NEEDS 42

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discrimination, 87 percent
9 of people with disabilities live with family members in Newark.

Partnering with local organizations that serve people with disabilities will support Newark in developing more housing options to meet the diverse needs of this population. Through community engagement we have connected with organizations providing resources and support to those with disabilities: Deaf Plus, Housing Consortium of the East Bay, and Alameda County Public Health Disability Council. Program H4.7 will identify housing opportunities for those with Developmental disabilities, and program H2.4 for a Universal Design Ordinance.

Table 2-9: Disability by Type, 2015-2019
Persons with Disability Percentage
Total percentage of people with Disabilities 8%
With an ambulatory difficulty 4%
With an independent living difficulty 3%
With a hearing difficulty 3%
With a cognitive difficulty 2%
With a self-care difficulty 2%
With a vision difficulty 1%
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B18102, B18103, B18104, Table B18105, Table B18105, B18107
People Experiencing Homelessness
People experiencing homelessness have steadily increased in Alameda County since 2017, with 9,747 sheltered and unsheltered people at the most recent point in time count on February 22, 2022. The city of Newark has a documented reduction of people experiencing homelessness, from 89 in 2019, to 58 sheltered and unsheltered people in 2022. The point in time count found a total of 32 unsheltered individuals, with 34 percent, or 11 people, living in a tent, with 8 living outside and 7 in a RV. Fewer people were found living in their car, at 6 people or 19 percent. It is no surprise that the largest number of people outside of shelters are living in tents, as the locations with the highest concentrations of people experiencing homelessness are in the undeveloped areas along highway 84, in the Eucalyptus grove, and along the 880. These sites are all concentrated in the Mirabeau and Mayhews Landing areas, in the northern portion of the city due 9 Source: California Department of Developmental Services, Consumer Count by California Zip Code and Residence Type (2020).

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to the proximity of open space for tents along the freeway.

Although Newark has a significantly lower number of people experiencing homelessness than neighboring jurisdictions, housing and homeless support is the most prevalent service request for Newark callers to the countywide 2-1-1 referral service, representing about 42% of all service requests. Newark residents are seeking referrals for low cost rental listings, rent payment and deposit assistance, supportive and transitional housing, emergency shelter, among other services (Eden I&R Referral Service, January 2020 through March 2022).

Currently Second Chance provides transitional housing for those experiencing homelessness in Newark. The facility has 32 beds, with the shelter at 81 % capacity on the point in time count. In conversation with John Balentine, Executive Director of Second Chance, he shared that as an organization, they budget funds for transportation, providing bus passes and having a van to transport residents if public transportation is not sufficient.

The city has engaged in a number of actions to address homelessness in Newark. There is a partnership with the Fremont Family Resource Center to provide support to Newark households at risk of becoming homeless, and the city was awarded a HomeKey grant to convert the Towne Place Suites extended stay hotel into 124 supportive, affordable residential units known as Cedar Community Apartments. The Housing Navigation Center in Fremont has prioritized space for those experiencing homelessness from the greater Tri City area. The 2021 Housing Navigation Center Annual report showed 8 percent or 6 Newark residents were supported. The City also partners with the city of Fremont to provide access for personal hygiene, with a mobile unit coming to Newark once a week for showers and laundry.

Utilizing American Rescue Plan Act funding, the city is working to establish a local family resource center in the Old Town/ Bayside neighborhood. This resource center would provide an initial point of access to any residents in need of social services. Some services could be accessed directly at the center through third party social service providers or referrals could be made to other agencies,and a space for the Promotores, a local organization for the Latino Community. Most recently the city has created a Homelessness Committee with members from various City departments to develop a cohesive plan to address homelessness and have launched a Human Resources webpage, connecting the community with resources for people experiencing homelessness such as housing, transportation. and food pantries around the city.

The city has developed a number of programs in response to the needs of people experiencing homelessness identified : Program H2.5 will continue to build upon the work the city has undertaken to develop a local response to homelessness. Program H2.10, makes changes to increase uptake of Single Room Occupancy or (SROs), an affordable housing type, Program H4.10, identifies zoning changes for special needs housing, and Program H4.8 connects residents with foreclosure assistance. The following is a list of agencies operating support services, emergency shelters, and transitional and supportive housing in Newark and the surrounding area:

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● Viola Blythe Community Services Center, Newark. Viola Blythe provides services for Children, men, women and families in immediate need can use the services and programs of the Viola Blythe Community Service Center. No fees are charged for any services provided. Some services include food distribution, baby food and formula, clothing, children’s shoe fund, and referrals to other agencies.
● Clean Start Mobile Hygiene Unit. For someone experiencing homelessness, keeping yourself and your clothes clean can be incredibly challenging, and can greatly impact your ability to get and keep a job, or simply participate in society. To meet this need, the City of Fremont, City of Newark, and several community partners developed the Clean Start Mobile Hygiene Program to provide much-needed shower and laundry services to our homeless neighbors.This mobile hygiene van travels between Fremont, Newark and Union City each week.
● Centro de Servicios, Union City. Centro de Servicios has assisted more than 800 families and individuals every month since its inception in 1974. This nonprofit corporation is a major service provider for the homeless population in Alameda County’s Tri-City area. The center provides basic necessities, such as food, clothing, and blankets as well as referrals, counseling, job listings, and workshops to its clients. Recently celebrating 40 years of operations, Centro de Servicios serves over 1,300 families per month, out of multiple locations. Staff estimates that they assist at least 20-50 homeless or at-risk clients from Union City per week. Most (80 percent) of these clients are Latino. Many live in substandard housing, in their cars, or at local parks and campgrounds. Staff makes referrals to nearby shelters, especially Sunrise Village in Fremont and Second Chance in Newark. ● Second Chance Addiction Recovery. Second Chance is a counseling and recovery agency that operates five outpatient centers in addition to a short-term emergency shelter. They have locations in Newark, Hayward, Phoenix, and the Tri-City area. The emergency shelter has 30 beds for single men, women, and for families. Addiction recovery services are provided on-site and there is not typically a waiting list to receive treatment and recovery services.
● Abode Services (formerly known as Tri-City Homeless Coalition), Fremont. Abode Services operates nearly 60 primary programs across six counties and has experienced dramatic growth in response to the increasing need for affordable housing and services for homeless people. Abode Services works to provide housing and services to homeless people in the community as they work to help people remain stably housed and live as independently as possible. In 2021 they served 14,700 adults and children across their programs. In Alameda and Santa Clara Counties, Abode offers three main types of services:
emergency shelter and street outreach services, supportive housing for formerly homeless families and individuals, and supportive services, such as mental health services and employment support. They provide extensive services to Tri-City residents, including permanent supportive housing, emergency shelter and services at Sunrise Village Emergency Shelter in Fremont, and social and health services though the HOPE Project Mobile Health Clinic. Their programs serve a wide variety of people, including families with HOUSING NEEDS 45

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children, at risk youth exiting foster care, veterans and their families, and people who are chronically homeless. In 2021, 5,542 participants throughout Alameda County received support.
● Safe Alternatives to Violent Environments (SAVE). SAVE is a non-profit community-based organization founded in 1976 to address domestic violence. They provide supportive services, advocacy and education, and a 25-bed safe house for families fleeing abuse. From 2020 to 2021, 1,265 participants received critical services from SAVE. SAVE also provided shelter to 98 women and children and provided rent subsidies and ongoing case management to 60 families in the Housing First Program.

Large Households
Large Families are considered to have 5 or more people, bringing about the need for larger housing units with three bedrooms or more. Figure 2-13 shows Newark has a larger percentage of families with 3 or more people than Alameda County and the Bay Area, with 38 percent of households with 3 or more, and 19 percent of households with five or more people. While Newark has a large inventory of single family homes, the cost of rent and ownership place many of these homes beyond reach for families. Families also face costs such as child care, increased transportation and medical care that further reduce their housing budget allowance. The pace of construction of multifamily and affordable units has not kept pace with that of market rate single family homes in Newark. Program H5.2 Affordable Housing Development Programs work to increase the number of affordable housing constructed in the city. Newark’s Affordable Housing Action Plan has identified large families as a community of focus for new housing needs.

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Figure 2-14: Households by Household Size, 2015- 2019
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B11016 Female Headed Household
Government Code Section 65583(a)(7) identifies families with female heads of households as a group that may have special housing needs and requires the City to analyze the housing needs of these households. Female-headed households are households led by a single female with one or more children under the age of 18 at home. In Newark, 11 percent of households are female-headed families, which are often at greater risk of housing insecurity. A greater number of single parent headed households are renters, with 67 percent of married households owning homes, compared to 16 percent of female headed households (Figure 2-15). Female headed households have a significantly higher vulnerability to poverty, 22.8 percent of female-headed households with children fall below the Federal Poverty Line, while 5.7 percent of female-headed households without children live in poverty (Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012 ). As Female headed households face challenges of familial housing discrimination, limited income due to wage discrimination against women makes this population have higher rates of poverty and vulnerability to being housing cost burdened.

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Figure 2-15: Household Type, 2015- 2019
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B11001 HOUSING NEEDS 48

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Figure 2-16: Household Type by Tenure, 2015- 2019
Source: US Census Bureau, American Community Survey, 5 Year Data, 2015-2019, Table B25011 Existing housing need for extremely low-income households Residents with extremely low incomes, less than 30% of the Area Median Income, face extreme housing challenges due to fixed or low incomes, credit, disability, family structure and access to affordable housing. In Newark, 58% of households make more than 100% of the Area Median Income (AMI), compared to 10% making less than 30% of AMI, which is considered extremely low-income (see Figure 2-17). In Newark, renters are disproportionately experiencing cost burden, with 30 percent of renters cost burdened and 14 percent spending more than 50 percent of their income on housing (Figure 2-9) . Regionally, more than half of all households make more than 100% AMI, while 15% make less than 30% AMI. In Alameda County, 30% AMI is the equivalent to the annual income of $34,850 for a family of four. Many households with multiple wage earners – including food service workers, full-time students, teachers, farmworkers and healthcare professionals – can fall into lower AMI categories due to relatively stagnant wages in many industries.

To estimate the projected housing need for extremely low-income households, 50 percent of Newark’s 464 very low-income RHNA units are assumed to serve extremely low-income households. Based on this methodology, the City has a projected need of 232 units for extremely HOUSING NEEDS 49

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low-income households over the 2023-2031 Housing Element planning period. More than half of this allocation will be provided through the Cedar Creek Apartments, which is already in the development pipeline and has received $6M in funding support from the City’s Affordable Housing Impact Fee Fund. Additional proposed programs to support the housing needs for this population include Program H5.2 Affordable Housing Development Programs work to increase the number of affordable housing constructed in the city.

Figure 2-17: Households by Household Income Level, 2013-2017 Source: Housing and Urban Development, Comprehensive Housing Affordability Strategy, 2013-2017 Farmworkers
The number of farmworkers living in Newark has declined over the years, with the student population at 57 students for the 2019-2020 school year. The previous years saw 79 students for 2017-2018 and 72 for the 2018 to 2019 school year. Table 3-12 shows the trends for both Alameda county and the greater Bay Area see a similar decline in the migrant farmworker student population. Generally, the number of farmworkers living in Alameda county has been declining since 2012, with fewer than 400 residents working in the industry in a permanent position. It is important to recognize that farmworkers could be under-counted by the census due to their HOUSING NEEDS 50

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migrant nature. Farming and farmworkers are a significant element of the state's economy, but play less of a role in the Bay Area. Due to lower wages, language barriers, and inconsistent work, farmworkers can have difficulty securing housing, and for these reasons could experience overcrowding and substandard housing conditions. To support these populations, program H2.6 Work in Partnership with Newark Unified School District to ensure that housing resources are reaching families that need them and and Program H5.2 Affordable Housing Development Programs work to increase the number of affordable housing constructed in the city.

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SECTION 3 AFFIRMATIVELY

FURTHERING FAIR HOUSING
A. Affirmatively Furthering Fair Housing
Historic and current land use policies and planning play a key role in the ability of individuals and families to live in neighborhoods with opportunity, including academically and culturally supportive schools, a wide variety of living wage jobs, and convenient access to transit and services. In response to continued housing discrimination, which prohibits discrimination regarding the sale, rental, and financing of housing based on race, color, religion, national origin, sex, familial status, and disability status — people within protected classes continue to encounter limits in housing choice and mobility. In 2018, the California State Legislature passed Assembly Bill (AB) 686 to expand upon the fair housing requirements and protections outlined in the Fair Employment and Housing Act (FEHA); and, protect the requirement to affirmatively further fair housing (AFFH) as published in the 2015 U.S. Department of Housing and Community Development’s (HUD) Affirmatively Furthering Fair Housing Rule. California’s Department of Housing and Community Development (HCD) defines AFFH as taking meaningful actions to explicitly address, combat, and reverse disparities resulting from past patterns of segregation to foster more inclusive communities. As part of this, housing elements are required to include the following components:
● Inclusive and Equitable Outreach: Housing elements must make an effort to equitably include all community stakeholders in the housing element participation process. ● Assessment of Fair Housing: All housing elements must include an assessment of fair housing. This assessment should include an analysis of the following four fair housing issues: integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs, including displacement risk.
● Analysis of Sites Inventory: Local jurisdictions must evaluate and address how particular sites available for housing development will meet the needs of households at all income levels. The housing element must analyze and conclude whether the identified sites improve or exacerbate conditions for fair housing.
● Identification of Contributing Factors: Based on findings from the previous steps, housing elements must identify, evaluate, and prioritize the contributing factors related to fair housing issues.

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● Goals and Meaningful Actions to AFFH: Local jurisdictions must adopt fair housing goals and actions that are significant, meaningful, and sufficient to overcome identified patterns of segregation and affirmatively further fair housing. The housing element should include metrics and milestones for evaluating progress and fair housing results.

B. History of the Land and People
The land that is now Newark is the aboriginal homeland to the Muwekma Ohlone Tribe, Ohlone, Confederated Villages of Lisjan and Tamien Nation. Throughout the period of European colonization, aboriginal tribes were removed from their lands and in some circumstances moved into mission settlements, such as the Mission San José, and subjected to religious conversion practices and forced labor. In the Early 20th century Newark was still primarily marshland and waterways leading into the San Francisco Bay. Land speculation brought investors to the area and Newark became home to a dairy farm and tourism from around the county for picnicking and entertainment. Over time a railroad connection was established south to Santa Cruz and North to Alameda and industry followed. Incorporated as a city in 1955, Newark has been the home to steel foundries, manufacturing, and a large and successful solar evaporation of salt production that rivaled the entire Bay Area. Newark’s development and land use was divided, with manufacturing isolated to the western portion of the city. The residential portion consisted of single family homes built during the post war building boom that were accessible to white families only through government backed low interest loans provided by the Federal Housing Administration. As manufacturing moved out of Newark in the 1970’s and 1980’s, Newark has transitioned to an economy of technology and education. The transition has also transformed the city from primarily White to one with a majority of residents from Asia and Latin America.

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Ann Marie Sayers, Ruth Orta, Corrina Gould and Caleen Sisk at Living On Ohlone Land, Photo by Christopher McLeod
Although Newark has no redlining maps or racially restrictive covenants on file, de facto discrimination has shaped access to housing historically and into the present day. From discrimination in governmental lending for single family homes, to the real estate industry and personal prejudice, Newark’s growth as a city coincided with unregulated racial discrimination in housing during the 1950s and 1960’s. Through oral history accounts of Jean Ficklen, founder of Afro-American Cultural & Historical Society and first African American teacher in Newark, we learn of the discrimination her family faced in finding housing in the Bay Area as an African American family in the 1960’s. Ms. Ficklen and her family were looking for housing closer to her husband’s employment at the Lockheed Missile and Space Center in Sunnyvale, California, a 54 mile commute one way to Richmond where they lived. They found a home in Hayward that they liked, and after meeting with the realtor, were set to move to a house there. The day before they were scheduled to move, the house was no longer available to them. They were offered a house to rent in Newark but were asked not to tell who rented it to them. Soon after they moved to the neighborhood, for sale signs went up, typical of the times of neighborhood blockbusting fueled by fear and discrimination (J.Ficklen, Personal communication, January 21, 2021).

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C. Summary of Fair Housing Need
Fair housing
● A lack of affordable housing for residents for sale and rent is one of the largest fair housing issues Newark faces. Due to decades-long reduction in federal funding for affordable housing production, and a lack of affordable housing production at the city level, there is a shortage of housing at prices that meet the needs of current and future residents. ● Disability and race are the highest reported instances of discrimination in Newark over the past five years. In 2020-2021 Echo Housing saw 10 cases of reported discrimination based on disability and 4 cases in National origin. The city heard from residents, specifically the Latinx community that there are significant challenges to accessing housing. A report from El Tiempano found that women and undocumented residents faced the most challenges, specific issues faced by residents were:
○ Difficulty of providing documentation when many undocumented immigrants are paid under the table or are not named on rental leases
○ Challenges accessing information digitally
○ Complicated/confusing applications without assistance readily available Segregation and Integration
● There is a significant level of segregation between Latinx and White residents with an index of .229 or 22.9%. Meaning that 22 percent of Latinx or white residents would need to move to address this. Due to the fact that the Latinx community is 30 percent of the population in Newark, this indicates a significant level of segregation between Latinx and White residents in Newark, slightly higher than segregation at the regional level. ● Asian residents are the most isolated at 0.451, meaning the average Asian residentlives in a neighborhood thatis 45.1% Asian. Asian residents also have the highest percentage (36.7%) of residents making more than 100 percent of area median income. ● Other ethnicities in Newark have a higher likelihood of interacting with people outside their race. White residents have seen the greatest reduction in isolation, from 43 percent in 2000 to 27 percentin 2020.

Access to Opportunities
● Overall, Newark consists of two census tracts that are considered high resource areas (NewPark Place and Birch Grove) while the remaining six tracts (Lake- Rosemont, Mirabeau Park, Mayhews Landing, Gateway/Bayshore, Old Town and Central Newark) are considered moderate resource areas.

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● The City’s high resource areas have both dominant and secondary populations that are either White or Asian. In NewPark Place, nearly 51% of the population is Asian and 23% is White. In Birch Grove, 35% is White while nearly 29% is Asian. ● Five out of six of the City’s moderate resource areas have dominant populations that are Hispanic/Latinx, ranging from almost 34% in Mayhews Landing to nearly 53% in Old Town/Central Newark. In the remaining moderate resource area, Lake-Rosemont, 40% of the population is White, making it the dominant population while nearly 29% is Hispanic/Latinx.
● There are large disparities in environmental outcomes in Newark, with low outcomes in central Newark and a portion of the Old Town area that is also home to a majority of lower income and Hispanic/Latinx residents.

Disparate Housing Needs
Overcrowding
BIPOC (Black, Indigenous and People of Color) populations are the most cost burdened and experience disproportionate rates of overcrowding. Central Newark in the Old Town area has 9 percent of households experiencing overcrowded housing, with 5 percent of households experiencing extreme overcrowding in the Northwest corner of the city. As shown in Figure 3-2, these two areas are predominantly occupied by communities of color, with 80 to 100 percent of residents in the Old Town area. Mixed race residents face the highest rates at 33 percent, followed by Hispanic/Latinx (30%) and Indigenous residents at 22 percent.

Cost Burdened
Newark’s low and moderate income populations and renters experience the highest levels of cost burden. BIPOC communities, Black (41%), Indigenous (46%), Multi Racial (46%), and Latinx (47%) residents are the highest cost burdened, and most vulnerable to displacement, overcrowding and homelessness. Asian and White residents are the least cost burdened at 27 percent and 21 percent respectively. Renters are more likely to be cost burdened, with twice the number of renters (30%) spending more than 30 percent of their income on housing compared to 16 percent of homeowners.

Families
Households with children face additional challenges accessing housing that meets their needs for both size and cost. Housing survey results conducted from March 15th through April 30th 2022, found that when asked what are the most urgent housing needs at this time, 50 percent responded that housing for families was the greatest need. There was a special interest in housing for single AFFIRMATIVELY FURTHERING FAIR HOUSING 56

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parents, as female-headed households make up 17 percent of all households and 22.8 percent of female-headed households with children fall below the Federal Poverty Line.

People Experiencing Homelessness
Through community engagement we have been alerted to the high number of residents experiencing homelessness that are finding shelter in local motels that are not reflected in point in time counts. Homelessness in Newark affects all racial and ethnic groups, although not equally.

There is a significant population of families experiencing homelessness, with about 5% of all students In Newark, which further indicates the lack of affordable housing. Notably, about 96 percent of homeless students in Newark are students of color, with over 167 of these students being Hispanic or Latino. While NUSD has only a small number of Pacific Islander students (98 students), about 28 percent of them are homeless.

D. Fair Housing Assessment
Regional Barriers to Fair Housing
The following is a summary of key barriers to housing in Alameda county, compiled by Alameda County, in the Analysis of Impediments to Fair Housing Choice in January of 2020. ● Across the County, segregation has increased between White residents and BIPOC communities within the last decade, with White residents comprising the majority of homeowners but only approximately a third of the County’s population. ● BIPOC households continue to have disproportionate levels of housing discrimination as renters and in the housing market. Overall, the rate of mortgage approvals has gone up in the last seven years, but the disparities in the rate of approval across race and ethnicity has stayed relatively the same. Black applicants continue to have the lowest approval rate at

59.1 percent and Hispanic applicants the second lowest at 61.5 percent compared to White applicants at 70 percent.
● BIPOC communities are displaced residents are being displaced from areas with a traditionally large population and have less access to proficient schools, jobs, and environmental health.

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● The average home sales prices have increased from approximately $300,000 to nearly $900,000 in less than 20 years (unadjusted for inflation). ● Wages have not kept up with rent increases, currently the wage needed to rent an average housing unit in the County is $44.79 an hour or $93,000 a year. Median rents have risen an average of $1,000 (unadjusted for inflation) since 2010, representing an increase of 55 percent in a 9-year period.
● Homelessness has increased by 42 percent since 2017.
● BIPOC households, especially black and Hispanic/ Latinx households, have the highest rate of disproportionate housing needs, which includes having incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and households with a cost burden greater than 30 percent.
● Based on community feedback, Housing Choice Voucher holders and those with disabilities often find it difficult to find an appropriate housing unit. Some find it difficult to find an appropriately sized unit that will take their voucher and others experience that the vouchers will not cover the rent of an appropriately sized unit. ● Disability, race, and familial status are the most common bases of housing discrimination complaints forwarded to the California Department of Fair Employment and Housing and the office of Fair Housing and Equal Opportunity.

Fair Housing Outreach Capacity and Enforcement
Fair housing complaints can be used as an indicator to identify characteristics of households experiencing discrimination in housing. Pursuant to the California Fair Employment and Housing Act [Government Code Section 12921 (a)], the opportunity to seek, obtain, and hold housing cannot be determined by an individual’s “race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, genetic information, or any other basis prohibited by Section 51 of the Civil Code.” Fair housing issues that may arise in any jurisdiction include but are not limited to:
● Housing design that makes a dwelling unit inaccessible to an individual with a disability; ● Discrimination against an individual based on race, national origin, familial status, disability, religion, sex, or other characteristic when renting or selling a housing unit; and ● Disproportionate housing needs including cost burden, overcrowding, substandard housing, and risk of displacement.

The following are organizations at the state and county level that provide resources and support for fair housing and eviction defense.

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East Bay Community Law Center (EBCLC): EBCLC’s Housing Program focuses on defending eviction lawsuits brought against low-income tenants, as well as enforcement of local rent and eviction control ordinances. The program emphasizes defense of long-term tenancies to preserve the value of rent-controlled units. EBCLC also prioritizes subsidized tenancies such as those in Section 8 and conventional public housing programs, as well as on behalf of tenants with disabilities.

Housing and Economic Rights Advocates (HERA): HERA is a California statewide, not-for-profit legal service and advocacy organization dedicated to helping Californians — particularly those most vulnerable — build a safe, sound financial future, free of discrimination and economic abuses, in all aspects of household financial concerns. They provide free legal services, consumer workshops, training for professionals and community organizing support, create innovative solutions and engage in policy work locally, statewide and nationally.

Housing Equality Law Project(HELP): HELP seeks to expand legal protections in fair housing through advocacy, leadership training, education and outreach, and enforcement of anti-discrimination laws.

Newark works with ECHO Housing for fair housing enforcement. ECHO provides fair housing counseling and education, tenant/landlord counseling and mediation, and other housing-related programs. To address the needs of Limited English Proficient speakers, ECHO provides services and classes in Spanish, has online information available in multiple languages, and has access to interpretation and translation services. ECHO programs include:
● Fair housing counseling, investigation, education, and enforcement ● Tenant/landlord counseling and mediation
● Rental Assistance Program
● Home Seeking Services
● Shared Housing Counseling & Placement
● Homebuyer Education Workshops
ECHO Housing has compiled fair housing complaints in Newark that align with those at the county level, with the majority regarding race and disability. In Newark, disability has the highest share of complaints filed from 2016 to 2021 at 27, with race at 16 complaints. City staff conducted one on one interviews with affordable housing providers. Through communication with Darin Lounds on April 29th, 2022, Executive Director of the Housing Consortium of the East Bay, he shared that many people with disabilities are well educated in the process, which can make it appear there are a larger number of instances of discrimination in comparison with other types of discrimination.

El Timpano is a non profit, community based organization in Alameda County that provides access AFFIRMATIVELY FURTHERING FAIR HOUSING 59

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to information for Spanish and Mayan speaking communities through a text based SMS platform.

They conducted an in depth investigation on the barriers that residents are experiencing accessing housing resources during COVID-19. They found that women and undocumented residents faced the most challenges, with specific issues faced by residents were:
● Difficulty of providing documentation when many undocumented immigrants are paid under the table or are not named on rental leases,
● Challenges accessing information digitally
● Complicated/confusing applications without assistance readily available Through communication through text and phone interviews, the organization found that changes that would be most impactful in supporting increased access would be less documentation-heavy requirements, help with the application process over the phone or in person, more promotion and support in Spanish, and a shorter application process.

Table 3-1: Newark Fair Housing Complaints, 2016-2021
Fiscal Year Race
National
Origin
Disability
Familial
Status
Marital
Status
Religion Sex
Source of
Income
Age Other TOTAL
2016-2017 10 0 5 0 0 0 0 0 0 0 15
2017-2018 1 0 1 0 0 0 0 0 0 0 2
2018-2019 4 0 1 0 0 0 0 0 0 0 5
2019-2020 1 0 10 0 0 0 0 0 0 0 11
2020-2021 0 4 10 0 0 0 0 2 0 0 14
Source: ECHO Housing
Table 3-2: Fair Housing Complaints Forwarded to Fair Housing and Equal Opportunity Alameda County, January 2017- June 2020
Complainttype
2017-2021
Total
2017 2018 2019 2020 Cases % of Total
Color 1 1 1 0 3 1.5%
Disability 32 26 28 15 101 49.8%
Familial Status 10 5 3 2 20 9.9%
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Complainttype
2017-2021
Total
2017 2018 2019 2020 Cases % of Total
National Origin 4 4 0 1 9 4.4%
Hispanic Origin 2 2 0 0 4 2.0%
Race 7 9 5 2 23 11.3%
Asian 0 1 0 0 1 0.5%
Black 5 4 5 2 16 7.9%
Black and White 0 1 0 0 1 0.5%
Native American 1 1 0 0 2 1.0%
White 1 2 0 0 3 1.5%
Religion 1 2 2 0 5 2.5%
Retaliation 7 9 8 1 25 12.3%
Sex 7 5 5 0 17 8.4%
Total Cases 69 61 52 21 203 100%
HUD Note: Percents do not add up to 100 due to cases containing multiple bases of discrimination.

Local Knowledge on Capacity and Enforcement
Four key issues in the capacity and enforcement of fair housing have been identified in the Alameda County Analysis of Impediments to Fair Housing document, and by the Executive Director of ECHO Housing:

1. Inadequate funding and organizational capacity are the primary limitations for improving and expanding upon existing fair housing enforcement. Recividng funding from a couple jurisdictions in the County is insufficient.

2. Limited sources of funding and HUD capping allocation amounts of Community Development Block Grants for fair housing activities limits the participating jurisdictions from being able to utilize more of these funds for fair housing work.

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3. Reduction in the number of fair housing organizations and activities in the region has taken place, with at least two fair housing agencies in the East Bay have closed their doors.

4. A lack of affordable housing supply due to significant decreases in funding from the federal government since 2008. Guidance from HCD suggests a connection between fair housing complaints and that the lack of affordable housing that is needed is affordable to persons on public assistance, accessible housing for persons with disabilities, and senior citizens, single parent households and large families. Although local tax funding has been approved in select jurisdictions, a large funding shortcoming remains.

The Alameda County Collaborative, an ad-hoc group of housing program professionals working for local Alameda County jurisdictions, held a panel with representatives from community-based organizations (CBOs) on April 25, 2022. The participating CBOs’ clientele included members of protected classes, including immigrants and non-English speakers; households with special needs, including persons with disabilities and seniors; and persons who are experiencing fair housing issues. This document synthesizes key points the CBOs presented.

Community-Based Organizations identified key barriers and obstacles thatthey and their clients face related to fair housing, including:
● Insufficient access to information due to language/technology barriers (particularly for immigrant communities and seniors); fear/distrust of the system; and difficulty understanding rights/resources
● Complex, inflexible application requirements for housing resources that may vary between jurisdictions, exclude certain people (e.g., undocumented, formerly ● incarcerated), or be difficult to meet
● Communication between CBOs and property owners is difficult to navigate, requires individual relationships with each location
● Overall cost of housing (most CBOs’ clients fall under the 30% AMI) and need for tenant protections
The CBOs recommend these strategies to strengthen outreach efforts:
● Meet people where they are—engage with existing outreach channels ● Partner with school districts to distribute information, as well as any civic organizations such as libraries, religious institutions, medical services ● “Train the trainer” approach to educate existing service providers on housing rights and referrals for their clients
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● Provide materials appropriate for audience (e.g., physical flyers for seniors; video/audio content for Mam speakers)
Solutions that panelists recommended for housing projects to better serve their clients:
● Identify onsite supportive services that are appropriate for residents early in process ● Early and sustained relationships between service providers and properties, especially relative to preparing eligible residents for the document/application needs for housing ● Renters’ protection and long-term rental subsidies, particularly for households under 30% AMI
● Greater flexibility in application process (make it easier for CBOs and their clients to navigate, remove barriers for undocumented people)
Through housing survey responses and small group conversations in community meetings, The city has constantly heard from Newark residents and community organizations that there is both not enough affordable housing at levels accessible for those earning lower wages, as well as access to housing resources and application requirements for housing that make accessing housing out of reach.

Segregation and Integration Patterns
Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, White residents and above moderate-income residents are significantly more segregated from other racial and income groups . The highest levels of racial segregation occur between the Black and white populations. The analysis completed for this report indicates that the amount of racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley, which concluded that “although 7 of the 9 Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year 2000 and has generally declined since.” However, compared to cities in other parts of California, Bay Area jurisdictions have more neighborhood level segregation between residents from different racial groups. Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the state.

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Segregation is the separation of different demographic groups into different geographic locations or communities, meaning that groups are unevenly distributed across geographies. The city looked at two spatial forms of segregation: neighborhood level segregation within a local jurisdiction and city level segregation between jurisdictions in the Bay Area.

Neighborhood level segregation: Segregation of race and income groups can occur from neighborhood to neighborhood within a city.

City level segregation: Race and income divides also occur between jurisdictions in a region.

Newark and Regional Segregation
To understand how Newark is connected to the total segregation of the Bay Area, one can look at the difference in the racial composition of a jurisdiction compared to the racial composition of the region as a whole. The racial demographics in Newark for the years 2000, 2010, and 2020 can be found in Table 3-3 below. The table also provides the racial composition of the nine-county Bay Area. As of 2020, Newark has a lower share of white residents than the Bay Area as a whole, a higher share of Latinx residents, a lower share of Black residents, and a significantly higher share of Asian/Pacific Islander residents.

Latinx residents are primarily in close proximity to major highways and arterial roads such as Thornton Avenue, with White and Asian populations predominantly living to the North and South of Newark. The highest non white populations at 80 to 100 percent are concentrated along Thornton Ave in Old Town.

Table 3-3: Population by Racial Group, Newark and the Region, 2000 to 2020 Race Newark Bay Area
2000 2010 2020 2020
Asian/Pacific Islander 21.1% 28.2% 42.6% 28.2%
Black/African American 3.9% 4.5% 3.1% 5.6%
Latinx 28.6% 35.2% 30.2% 24.4%
Other or Multiple Races 6.2% 4.6% 5.3% 5.9%
White 40.3% 27.5% 18.8% 35.8%
Source: Universe: Population. Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 isfrom U.S. Census Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 censustract geographies and isfrom U.S. Census Bureau, Census 2000, Table P004.

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Figure 3-1: Predominant Racial Groups in Newark
Source: HCD AFFH Data Resources and Mapping Tool.

Race and Ethnicity
Asian and Hispanic/Latinx populations have grown significantly over the past 20 years to become the majority populations, with decreasing Black and White populations. The Asian population in Newark is multi-ethnic, with the largest being Chinese (10.1 %), followed by Filipino (9.6%) and Asian Indian (8.9%).

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Table 3-4: Race and Ethnicity of Newark Residents, 2000 to 2020 Year
American Indian
or Alaska Native,
Non-Hispanic
Asian / API,
Non-Hispanic
Black or
African
American,
Non-Hispanic
White,
Non-Hispanic
Other Race or
Multiple Races,
Non-Hispanic
Hispanic or
Latinx
2000 148 9,329 1,639 17,103 128 12,145
2010 95 12,005 1,908 11,726 1,845 14,994
2020 107 17,315 1,534 10,629 1,822 15,975
Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates Figure 3-2: Racial Demographics of Newark, 2018
Source: HCD AFFH Data Resources and Mapping Tool.

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Dissimilarity Index
Dissimilarity Index Guidance for Cities with Small Racial Group Populations The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that group represents approximately less than 5% of the jurisdiction’s total population.

If a jurisdiction has a very small population of a racial group, this indicates that segregation between the jurisdiction and the region (inter-city segregation) is likely to be an important feature of the jurisdiction’s segregation patterns.

Table 3-5 below provides the dissimilarity index values indicating the level of segregation in Newark between white residents and residents who are Black, Latinx, or Asian/Pacific Islander.

The table also provides the dissimilarity index between white residents and all residents of color in the jurisdiction, and all dissimilarity index values are shown across three time periods (2000, 2010, and 2020).

In Newark, the highest segregation is between Black and White residents (see Table 3-5).

Newark’s Black/white dissimilarity index of 0.244 means that 24.4 percent of Black or White residents would need to move to a different neighborhood to create perfect integration between Black residents and white residents. However, this dissimilarity index value is not a reliable data point due to small population size. See callout box above for more information. Latinx residents have rates of segregation between White residents with an index of .229 or 22.9 percent. Due to the fact that the Latinx community is 30 percent of the population in Newark, this indicates a significant level of segregation between Latinx and White residents in Newark, slightly higher than segregation at the regional level.

Table 3-5: Dissimilarity Index Between Racial Groups, 2000 to 2020 Race Newark Bay Area
2000 2010 2020 2020
Asian/Pacific Islander vs. White 0.183 0.170 0.192 0.185 Black/African American vs. White 0.180* 0.204* 0.244* 0.244 Latinx vs. White 0.286 0.230 0.229 0.207
People of Color vs. White 0.204 0.173 0.169 0.168
Universe: Population. Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 isfrom U.S. Census Bureau, Census 2010, Table P4. Data for 2000 isstandardized to AFFIRMATIVELY FURTHERING FAIR HOUSING 67

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2010 censustract geographies and isfrom U.S. Census Bureau, Census 2000, Table P004. Note: If a number is marked with an asterisk (*), it indicatesthat the index is based on a racial group making up lessthan 5 percent of the jurisdiction population, leading to unreliable numbers.

Isolation Index
Within the City of Newark the most isolated racial group is Asian residents. Newark’s isolation index of 0.451 for Asian residents means that the average Asian resident lives in a neighborhood that is 45.1% Asian. Other racial groups are less isolated, meaning they may be more likely to encounter other racial groups in their neighborhoods. The isolation index values for all racial groups in Newark for the years 2000, 2010, and 2020 can be found in Table 3-6 below. Among all racial groups in this jurisdiction, the white population’s isolation index has changed the most over time, becoming less isolated from other racial groups between the years 2000 and 2020.

Table 3-6: Isolation Index for Newark and the Bay Area, 2000 to 2020 Race Newark Bay Area Average
2000 2010 2020 2020
Asian/Pacific Islander 0.236 0.307 0.451 0.245
Black/African American .041 0.048 0.032 0.053
Latinx 0.331 0.386 0.334 0.251
White 0.431 0.297 0.207 0.491
Universe: Population. Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 isfrom U.S. Census Bureau, Census 2010, Table P4. Data for 2000 isstandardized to 2010 censustract geographies and isfrom U.S. Census Bureau, Census 2000, Table P004.

Income status
There are fewer very low and extremely low income households in Newark than Alameda County and the Bay Area, and with slightly higher percentages of moderate and above moderate income households than Alameda County and the Bay Area. Low income households at 50-80 percent area median income are relatively equal across geography at 12.6 percent for Newark, Alameda County (11.6 percent) and the Bay Area (13 percent). In Newark, low income households are concentrated in the central portion of the city, with the highest concentrations found along Thorton avenue in the Old Town area. Figure 3-4 shows income by race in Newark. The areas with 50 percent or greater of low to moderate income populations also have the highest concentrations of BIPOC residents. Higher income residents are found outside of Central Newark, as seen in Figure 3-5. While the majority of Newark is single family housing, Central Newark is where older housing stock is found along a major arterial road, with lower rents as a result. The majority of very AFFIRMATIVELY FURTHERING FAIR HOUSING 68

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low and low income residents are Black, Hispanic/ Latino and Asian/ Pacific Islander. Figure 3-4 shows these populations are approximately 67 percent of the population for very low incomes and 68 percent for low income. For moderate and above moderate income populations, the demographics shift sharply to a greater percentage of White residents (44 percent) for moderate income and above moderate income White residents (36 percent) and Asian and Pacific Islander residents (37 percent) make up the larger percentage of residents in these income categories.

Asian and Pacific Islanders have comprised a large percentage of both the lowest and highest income categories. Although the Censuses data combines the groups, we know from other research that Pacific Islander students in Newark Unified School District have high levels of homelessness.

Figure 3-3: Household Income levels for Newark, Alameda County and the Bay Area, 2013- 2017 Source: US Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy. ACS tabulation, 2013-2017 release
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Figure 3-4: Income by Race and Ethnicity, 2013- 2017
Source: US Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy. ACS tabulation, 2013-2017 release
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Figure 3-5: Median Household Income, 2015- 2019
Source: HCD AFFH Data Resources and Mapping Tool.

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Figure 3-6: Low to Moderate Income Households and Percent Non-White Population, 2018 Source: HCD AFFH Data Resources and Mapping Tool.

Family Status
Newark has the largest household size in Alameda County. According to the County of Alameda’s Regional Analysis of Impediments to Fair Housing Choice (2020), there is a higher percentage of families with children in Alameda County as a whole compared to other family types, but the overall proportion of families with children has decreased by 6 percent from 1990 to 2017.

According to the 2021 ACS 5 year data, there are 9,693 children under the age of 18 in Newark, with the majority, 7,546 in married couple households. Figure 3-22 Shows 80 percent and higher of married couples with children are found in the north east, north west and south east corners of the city. These areas include Lake-Rosemont, a moderate opportunity neighborhood of single family homes, NewPark Place and Sanctuary Village, a newer single family housing development and an area identified as high opportunity. The neighborhood to the South East surrounding Lincoln Elementary school is an older single family neighborhood with smaller single story homes.

Central Newark has 60 to 80 percent of married couple households with children. This area also AFFIRMATIVELY FURTHERING FAIR HOUSING 72

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has more civic and commercial uses. Only one area in North central Newark has a concentration of single mother households from 20 to 40 percent. The majority of the city is 20 percent or below.

This is an area with older single family housing stock and a recently closed elementary school.

Disability
As seen in Figure 3-60, there is no concentration of residents with a disability in Newark. The majority of residents with a physical disability are seniors, and are primarily related to ambulatory movement. Through community engagement, especially with the senior community, there is a strong interest in shared housing and accessory dwelling units in order to remain in their communities. City is proposing programs such as H2.2 Accessory Dwelling Unit incentive program, H4.5, connecting residentings to existing shared housing programs and H4.7, Increasing housing opportunities for those with developmental disabilities.

E. Racially and/or Ethnically Concentrated Areas of
Poverty + Affluence
Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) are neighborhoods in which there are both racial concentrations and high poverty rates. HUD’s definition of a R/ECAP is:
● A census tract that has a non-white population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR ● A census tract that has a non-white population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the county, whichever is lower. Households within R/ECAP tracts frequently represent the most disadvantaged households within a community and often face a multitude of housing challenges. R/ECAPs are meant to identify where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity. While there are several R/ECAPs in Alameda County, the majority are concentrated in the City of Oakland with a few in Berkeley, one in Hayward, and one in the unincorporated county (see Figure 3-7). No R/ECAPs were identified in Newark.

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Figure 3-7: Area of High Segregation and Poverty, 2021
Source: HCD AFFH Data Resources and Mapping Tool.

Racially and/or Ethnically Concentrated Areas of Affluence Racially or Ethnically Concentrated Areas of Affluence (RCAAs) are neighborhoods in which there are both high concentrations of non-Hispanic white households and high household income rates.

HCD has not yet established one standard methodology for determining RCAAs in California, but for the purpose of this analysis an RCAA is defined as a census tract with: 1) an average total AFFIRMATIVELY FURTHERING FAIR HOUSING 74

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White population that is 1.25 times higher than the average total White population in the Bay Area region and 2) a median household income of $141,996 or higher (1.5 times higher than the Bay Area AMI in 2019). Based on this methodology, there are RCAAs throughout the eastern county spanning from Dublin, Livermore, and the unincorporated eastern county up through Castro Valley and Contra Costa County area. There are also RCAAs in the City of Alameda and Oakland. There are no RCAAs within Newark based on this methodology.

Although Newark does not have areas that have been identified as Racially or Ethnically Concentrated Areas of Affluence through this methodology, there are areas of concentrated affluence in Newark, where residents are making more than $141,000, but do not have the levels of white population to identify as an area of Racially or Ethnically Concentrated Area of Influence.

F. Disparities in Access to Opportunity
Historically, and into the present day, affordable housing in the United States has been disproportionately developed in BIPOC neighborhoods that have been disinvested with high poverty rates, thereby reinforcing the concentration of poverty and racial segregation in low opportunity and low resource areas. Several agencies, including HUD and HCD, in coordination with the California Tax Credit Allocation Committee (TCAC), have developed methodologies to assess and measure geographic access to opportunity in areas throughout California. For this assessment, the opportunity indices prepared by HUD and HCD/TCAC are used to analyze access to opportunity in the City of Newark. Access to opportunity is measured by access to healthy neighborhoods, education, employment, and transportation. At the county level, Alameda county is close to equal in the percentage of the county that is high resourced (36%) and the percentage that is low resource (39%). Figure 3-8 shows the distribution of opportunity at the regional level. A large portion of the county is classified as low to moderate opportunity. Higher opportunity areas are found in Berkeley, Alameda, San Leandro, and Fremont. Figure 3-9 shows the composite opportunity areas in Newark. The majority of the city is identified as moderate and high resource, with no low resource areas or areas of high segregation and poverty. Through a community housing survey conducted by the city, residents were asked if they feel their neighborhood has opportunities for you and your family, 18 percent said no and 28 percent said somewhat. When asked what would make it feel that there was more opportunity the top three responses were:

1. City infrastructure that supports physical activity, including sidewalks, bike lanes, parks, and rec centers

2. Affordable, safe, and healthy housing choices

3. Educational opportunities that are academically and culturally supportive “I think increasing accessreally hasto do with increasing the supply first and putting affordable housing in AFFIRMATIVELY FURTHERING FAIR HOUSING 75

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high resource areas and near public transit as well asretail.” Figure 3-10 shows the distribution of opportunity areas by race. Asian residents comprise the majority of the residents in the high resource areas at 63.8 percent, followed by White residents (16%), and Hispanic/ Latinx (11.5%). Low resourced or high segregation and poverty areas are primarily populated by Hispanic/ Latinx (39.7%) and Asian (38.3%) residents. Moderate resource areas are representative of the population with 36.9 percent of Hispanic/ Latinx residents, Asian residents (29.7%) and African American (3.5%).

HUD Opportunity Index HUD’s opportunity indices compare data indicators by race and ethnicity, for households below the poverty line, between jurisdictions, and for the region overall. The indices include the following:

Table 3-7: Domains and List of Indicators for Opportunity Maps, 2021 Domain Indicators
Environmental CalEnviroScreen 4.0 from pollution burdens and socio economic factors are indicators
Economic Poverty, Adult education, Employment, Job proximity, Median home value
Education Math proficiency, Reading proficiency, High School graduation rates, Student poverty rates
Poverty and Racial
Segregation
Poverty: tracts with at least 30 percent of population under federal poverty line Racial Segregation: Overrepresentation of people of color relative to the county (i.e., Tracts with a racial location quotient higher than 1.25 for Black, Hispanic, Asian, or all people of color in comparison to the county) Source: CA Fair Housing Task Force, Methodology for TCAC/HCD Opportunity Maps, December 2021.

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Figure 3-8: Distribution of TCAC Opportunity Areas in the San Francisco Bay Area, 2022 Source: CA Tax Credit Allocation Committee, 2022
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Figure 3-9: Composite of Opportunity Areas in Newark, 2022 Source: CA Tax Credit Allocation Committee, 2022
Figure 3-10: Percentage of Residents in Low, Moderate and High Resourced Areas by Race, 2015- 2019 AFFIRMATIVELY FURTHERING FAIR HOUSING 78

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Highest Resourced Area
Source: CA Tax Credit Allocation Committee / California Housing and Community Development (HCD),Opportunity Maps(2020); U.S. Census Bureau, 2015-2019 American Community Survey 5-Year Estimates. Table B03002 Economic Opportunity and Jobs proximity Index
The TCAC/HCD Economic Opportunity map measures economic opportunity through poverty, levels of adult education, employment, proximity to employment, and median home values. The majority of Newark has an economic score of less than .25 and .25 to .50, indicating less than positive economic opportunity. The southern corner of the city has higher economic opportunity with a score of .50 - .75. The area has a predominant Asian population and a median income greater than 125,000.

Newark has a close proximity to jobs in the eastern portion of the city, close to Silicon Valley. Areas in the northern portion of the city are furthest from jobs, although in the future the south west portion of the city will potentially have access to regional transportation through the creation of AFFIRMATIVELY FURTHERING FAIR HOUSING 79

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the Dumbarton rail line. Economic opportunity was not cited though community engagement as a concern. Newark has a relatively low unemployment rate of 3.5 percent, but does have a larger percentage of residents leaving the city for work, than remaining in the city.

Figure 3-11: Jobs Proximity Index Composite, 2014-2017
Source: HCD AFFH Data Resources and Mapping Tool
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Figure 3-12: Economic Opportunity Score, 2021
Source: HCD AFFH Data Resources and Mapping Tool.

Environmental Opportunity
Exposure to a variety of environmental pollutants causes detrimental effects on human health, especially for children. The environmental opportunity score looks at 12 indicators to determine the level of environmental health of a community. The score is created through the consideration of both the pollution burden of exposure, and the population characteristics of an area. Newark has a mixed classification of environmental impacts, with portions of the city identified as having more positive environmental outcomes and others with less.

As a whole, Newark has fine particulate matter rates of 7.2 micrometers, which are higher than the World Health Organization guideline of 5 micrometers, but lower than the US EPA standard of 12 micrometers. These levels can be attributed to industrial outputs, diesel exhaust from major arterials, and two freeways that border Newark. From December 1, 2019 - November 30, 2020, AFFIRMATIVELY FURTHERING FAIR HOUSING 81

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Aclima collated data showing particulate samples of 8.7 micrometers along Thornton Avenue. The CalEnviroScreen score ranks census tracks from 1 to 100, with 100 being the highest percentile of communities disproportionately burdened by multiple sources of pollution and with population characteristics that make them more sensitive to pollution. Figure 3-13 shows the patchwork distribution of outcomes, with the lowest environmental outcomes in central Newark and a portion of the Old Town area that is also home to a majority of BIPOC and low income residents.

The census tract is 47 percent Hispanic / Latinx, Asian (26.6%) and African American (4.1%) residents. This area has an overall pollution burden percentile of 61 and 76th percentile for asthma, while areas with higher environmental outcomes are in the Northwestern corner of the city. Long-term exposure may increase the risk of respiratory disease, heart disease, decreased lung function, premature birth, and reduced life expectancy. For Newark, with a high percentage of families with children in the city, addressing environmental issues is vital to addressing environmental justice.

According to an analysis conducted by ESA towards the preparation of an Environmental Justice Element in Newark, the following are major indicators of environmental contamination:

1. Ozone Concentrations,

2. PM 2.5 Concentrations

3. Diesel PM Emissions

4. Drinking-Water Contaminants

5. Pesticide Use

6. Toxic Releases from Facilities

7. Traffic Density

8. Cleanup Sites

9. Groundwater Threats

10. Hazardous Waste Generators and
Facilities

11. Impaired Water Bodies

12. Solid Waste Sites and Facilities
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Figure 3-13: Environmental Opportunity Score, 2021
Source: HCD AFFH Data Resources and Mapping Tool.

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Figure 3-14: CalEnviroScreen and Non-White Population, 2021 and 2018 Source: HCD AFFH Data Resources and Mapping Tool.

Education
Equitable access to culturally relevant and engaging educational opportunities is foundational in increasing opportunities for all residents. Newark Unified school district has 11 schools in total, with 2 of its eight elementary schools either closed within the past year or scheduled to close in following the 2022 school year. The school board is making the choice to close schools in response to a 6 million dollar budget shortfall, due to declining enrollment.

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Figure 3-15: Newark School Enrollment, 2017-2022
Source: Data collected by the California Department of Education (CDE) through the California Longitudinal Pupil Achievement Data System (CALPADS)
The racial and ethnic makeup of the district is highly diverse, with Hispanic/Latinx students comprising the majority of the population at 51.9 percent, followed by Asian at 16.8 percent, White at 10 percent and Filipino at 8.9 percent . Figure 3-16 goes into detail of the full district breakdown.

Figure 3-16: Race and Ethnicity of Newark Unified School District, 2020-2021 School Year AFFIRMATIVELY FURTHERING FAIR HOUSING 85

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Source: Data collected by the California Department of Education (CDE) through the California Longitudinal Pupil Achievement Data System (CALPADS).

Students in the Newark Unified school district have a comparable percentage of students qualifying for free or reduced lunch as Alameda County, at 40.5 percent and 40.7 percent respectively. Both are below the state average at 57.8 percent. Within the district there is a wide range of students that qualify for free and reduced lunch. The California Department of Education district level data for the 2021 to 2022 school year finds Shilling Elementary with the highest percentage of students that qualify for free or reduced lunch at 60 percent, followed by Musick Elementary at 57 percent, one of the schools that is slated to be closed for the 2022-2023 school year, with students distributed among other schools. Schools with the lowest levels of students qualifying for free or reduced lunch are John F Kenedy Elementary school at 23 percent, and Birch Grove Intermediate and Primary schools at 28 and 30 percent respectively.

Table 3-8: Selected District Level Data - 0161234--Newark Unified for the year 2021-2022 School Free or Reduced Price Meals
Non-public non-sectarian schools 3 (42.9%)
August Schilling Elementary 227 (59.9%)
Birch Grove Intermediate 118 (28.0%)
Birch Grove Primary 108 (30.0%)
Bridgepoint High (Continuation) 29 (46.8%)
Coyote Hills Elementary 260 (50.0%)
Crossroads High (Alternative) 70 (43.2%)
E. L. Musick Elementary 101 (57.4%)
John F. Kennedy Elementary 92 (23.0%)
Lincoln Elementary 174 (46.8%)
Newark Junior High 280 (41.2%)
Newark Memorial High 632 (38.7%)
District Total: 2,094 (40.5%)
County Total: 87,363 (40.7%)
State Totals: 3,404,572 (57.8%)
Source: California Department of Education, 2022
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The city asked residents through the housing survey what would need to change to feel that their neighborhood is high in opportunity, and residents identified education as one of the top three things. Educational opportunity is measured by Math and Reading Proficiency, High School Graduation Rate, Student Poverty, High Segregation and Poverty. Overall according to the HCD AFFH Data viewer, the majority of Newark has lower than average education opportunities. The one area of Newark that has more positive educational outcomes is near Birch Grove Primary school. The elementary schools have similar performance levels on state indicators, which indicates the role of student poverty in the classification. We recognize that although measures of achievement such as test scores and levels of poverty are indicators, it is difficult to fully measure what a school means for a community. When Graham Elementary was threatened with closure, the primarily Latinx school community rallied together to share what the school community means to them to the school board in hopes of evading closure. Ultimately the school was combined with Snow elementary to form a new school, Coyote Hills Elementary.

Figure 3-17: Educational Opportunity Index, 2021
Source: HCD AFFH Data Resources and Mapping Tool.

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Transportation Access and Cost
To better understand housing affordability, it is important to look at transportation costs associated with a location. Figure 3-19 shows the combined housing and transportation costs in Newark. Due to Newark being low density and auto oriented, with a lack of high frequency public transportation options, the majority of households spend more than 45% of their income on housing and transportation. Only 4 percent of households have combined costs less than 30% of income. Newark has no neighborhoods identified as location efficient, with housing that is close to jobs and services, with a number of transportation options. Due to this fact, 49 percent of residents spend 45 to 54 percent of their income on housing, with 23 percent spending 54 to 66 percent.

Currently, Newark is served by Alameda County Transit (AC Transit) bus service. Public transportation is accessible on major arterials such as Newark Blvd, Ceder, and Thorton. Unlike neighboring Union City and Fremont, there is no BART station in Newark, although a number of bus routes do connect with the Fremont BART station. Public transit options are more accessible in the northern portion of the city, with the addition of three school bus lines from AC Transit during the school year to Newark Memorial High School. Residents in our community meeting expressed the desire for more options beyond the personal automobile such as increased bus service and infrastructure for biking to reduce traffic congestion and be responsive to climate change. Newark’s Pedestrian and Bicycle Master plan outlines a number of improvements, such as protected bike lanes, pedestrian overpass for train tracks and an increase in the number of bike lanes.
“Housing close to walkable parks and transit. Also need more transit options.” – Community comment AFFIRMATIVELY FURTHERING FAIR HOUSING 88

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Figure 3-18: Alameda County Transit Bus Stops and Proposed Transit Stations, 2022 Source: AC Transit, adapted by Community Planning Collaborative, 2022 AFFIRMATIVELY FURTHERING FAIR HOUSING 89

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Figure 3-19: Housing and Transportation Costs as a Percentage of Income Source: The Center for Neighborhood Technology’s Housing and Transportation (H+T®) Affordability Index, G. Disproportionate Housing Needs for Low-income
Households and Protected Classes
Familial Status
The Fair Housing Act (FHA) bans discrimination based on certain protected classes, including "familial status," which refers to the presence of at least one child under 18 years old. Under the FHA, familial status discrimination occurs when a landlord, property manager, real estate agent, or property owner treats someone differently because they have a family with one or more individuals who are under 18 years of age. A “family” also includes people who are pregnant and people who are in the process of securing legal custody of a person under 18 years of age, including a family that is in the process of adopting a child, or foster parents. All families with children are protected by the FHA against familial status discrimination, including single-parent households and same-sex couples with children. Rules that unreasonably restrict children or limit the ability of children to use their housing or the common facilities at the property may violate the FHA. Moreover, enforcing certain rules only against families with children may also violate the FHA. The following are the types of conduct that may violate the FHA:

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● Refusing to rent, sell, or negotiate with a family because the family has one or more children under 18 years of age.
● Advertising a preference for households without children or otherwise discouraging such families.
● Telling an individual or family no unit is available even though a unit is in fact available. ● Forcing families into housing units that are larger than necessary. ● Designating certain floors or buildings for families with children, or encouraging families with children to reside in particular areas.
● Charging additional rent, security deposit, or fees because a household has children under 18 years of age.

Figure 3-20: Percentage of Households With Children Under 18 Years of Age, 2015- 2019 Source: U.S. Census Bureau, 2015-2019 American Community Survey 5-Year Estimates. Table B11005 Newark has many family households with an average family size of 3.61 people (ACS 2016-2020).

The city has 37 percent of households with a child under 18 years of age. This rate is higher than both Alameda County (32%) and the Bay Area (30.5%). Although discrimination based upon family status has not been reported in Newark, it has been reported at the county level. Households with children face additional challenges accessing housing that meets their needs for both size and cost.

Survey results found that when asked what are the most urgent housing needs at this time, 50 percent responded that housing for families was the greatest need.

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Figure 3-21: Family Structures in Newark, 2015- 2019
Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates. Table S1101 “I would love to see more housing programs accessible for families currently in Newark” – Community Member
Households headed by one person are often at greater risk of housing insecurity, particularly female headed households, who may be supporting children or a family with only one income. In Newark, the largest proportion of households are Married-Couple Family Households at 75% of total, while Female Headed Households make up 17 percent of all family households and male headed comprise 8 percent. Throughout engagement with the community, the city has heard from residents that housing for families, and single parents in particular is a high need. "I’m an inside wireman electrician for 26 years. I cannot afford to buy a home in thistown as a single father of 2. $2million per home isridiculously high. I am a critical worker, not just essential, and cannot afford to stay with these house prices."
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable even more challenging.

Figure 3-24 shows In Newark, 22.8% of female-headed households with children fall below the Federal Poverty Line, while 5.7% of female-headed households without children live in poverty (Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012 ).

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Figure 3-22: Percent of Married Couples with Children, 2015- 2019 Source: HCD AFFH Data Resources and Mapping Tool.

Figure 3-23: Percent of Children in a Female Headed Household, 2015- 2019 Source: HCD AFFH Data Resources and Mapping Tool.

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Figure 3-24: Poverty Levels of Female Headed Households in Newark, 2015- 2019 Source: U.S. Census Bureau, 2015-2019 American Community Survey 5-Year Estimates. Table B17012 Household Size
Figure 3-25: Comparison of Household Size for Owners and Renters in Alameda County and Newark, 2015- 2019
Source: U.S. Census Bureau, 2015-2019 American Community Survey 5-Year Estimates. Table CP04, Comparative AFFIRMATIVELY FURTHERING FAIR HOUSING 94

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Housing Characteristics
Seniors
The senior population in Newark has increased significantly since 2010, with a 47 percent increase, compared with a 39 percent increase from Alameda county. This could partially be attributed to the construction of Newark Station, a 75 unit building completed in 2019. Figure 3-27, shows seniors in Newark are overwhelmingly home owners at all income levels, with seniors at the lowest income level having the highest percentage of renters at 37 percent. Housing needs change as we move through life, and due to seniors living on fixed incomes in smaller households, Newark needs housing types and programs to support seniors to age in place and remain in their community.
“Developing a shared housing program with othersthat need a room to rent, connectseniors with single people who need affordable housing. Helpsseniors on limited incomes” – Community meeting comment
Figure 3-26: Increase of Senior Population, 2010 to 2019 Source: American Community Survey 2015- 2019, 5-Year Estimate AFFIRMATIVELY FURTHERING FAIR HOUSING 95

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Figure 3-27: Seniors Income Level, Owners and Renters, 2015 -2019 Source: American Community Survey 2015- 2019, 5-Year Estimate Disability Status
The U.S. Census Bureau defines disability as one of the following: hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty. In Newark 3,561 residents over the age of 5 had a disability in 2018. This group equates to approximately 8 percent of the non-institutionalized population over age five in the City, which is slightly lower than the county (10 percent) and lower than the Bay Area (11 percent). Figure 3-28 shows the population of persons with a disability by age in the City. At the local level, seniors in Newark have the highest rates of disability of all age groups at 52 percent. Ambulatory difficulty and independent living were the highest for seniors at 23 and 22 percent, followed by hearing difficulty (13%). African Americans have significantly higher rates of disability compared to other racial and ethnic groups in the city at 22 percent, followed by White residents at 13 percent. Those living with a disability often have specialized housing needs due to living on a fixed or limited incomes, physical or intellectual disabilities or increased health care costs. This points toward a need for housing that incorporates universal design, is integrated within the community, in close proximity to public transportation, and supports seniors to age in place.

In conversation with Darin Lounds, executive director of the Housing Development Consortium of the East Bay, he shared a number of ways that the city of Newark can support inclusive housing options for people with developmental disabilities:

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● Work with tax credit developers in larger multi families, to have a percentage devoted to people with disabilities. It is key for jurisdictions to work with developers when they are proposing new developments.
● Transit lines are most important. Only 10% of the demographic own a vehicle. Parking needs are more of a commercial need to provide services, less of a residential need. ● Discrimination: when property owners hear the income is SSI or disability, or someone with visible disability, they form assumptions about their ability to maintain a home. The regional center helps people to live in the community, they have a circle of support. ● Maximum integration is key, not just a big building with one demographic Table 3-9: Residents With A Disability, Newark and Region, 2015- 2019 Geography No disability With a disability Percentage
Newark 43,583 3,561 8%
Alameda County 1,496,381 151,368 10%
Bay Area 6,919,762 735,533 11%
Source: U.S. Census Bureau, American Community Survey 5-Year estimate 2015-2019. Table B18101 Figure 3-28: Disability Status By Age, 2016- 2020
Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates. Table S1810 AFFIRMATIVELY FURTHERING FAIR HOUSING 97

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Figure 3-29: Newark Senior Population with Disability, 65 years and Older, 2016- 2020 Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates. Disability Characteristics, Table S1810
Figure 3-30: Disability Status by Race, 2016- 2020
Source: U.S. Census Bureau, 2016-2020 American Community Survey 5-Year Estimates. Disability Characteristics, Table S1810
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Cost Burden and Overpayment
From 2010-2019, Newark has experienced large increases in both rental and homeownership costs. Two-bedroom rents increased by 45 percent, while two-bedroom home prices have increased by 122 percent (Costar, 2010 and 2019 American Community Survey, 5-Year Estimates, Redfin). The growth in housing costs has outpaced the growth in income leading to large numbers of households cost burdened and experiencing homelessness.

The Department of Housing and Urban Development considers housing to be affordable for a household if the household spends less than 30% of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30% of its monthly income on housing costs, while those who spend more than 50% of their income on housing costs are considered “severely cost-burdened.” In Newark, 44 percent of households spend 30%-50% of their income on housing, while 14 percent of households are severely cost burdened and use the majority of their income for housing. Over time, households have become increasingly cost burdened, with a 20 percent increase from 2010 to 2019. Figure 3-31 shows how households in Newark are cost burdened by income. While residents are cost burdened and severely cost burdened at all income levels, residents making below 50 percent area median income experience the highest levels. Fifty-seven percent of residents earning up to 30 percent of the area median income are severely cost burdened, with 22 percent spending 30 to 50 percent of their income on housing. Homeowners Median income households are still finding themselves costburden with 60 percent of households making 50 to 80 percent of median income are cost burdened.

Figure 3-33 shows that renters are more likely to be cost burdened, with twice the number of renters (30%) spending more than 30 percent of their income on housing compared to 16 percent of homeowners, and 14 percent of renters are severely cost burdened. This places renters at a greater risk of living in overcrowded housing, displacement and homelessness.

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Figure 3-31: Cost Burden Renter Households in Newark Over Time, 2015- 2019 Source: American Community Survey 2015-2019, 5-Year Estimate Figure 3-32: Cost Burdened by Income, 2013- 2017
Source: US Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy. ACS tabulation, 2013-2017 release
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Figure 3-33: Cost Burdened Households, Renters and Homeowners, 2015- 2019 US Census Bureau, American Community Survey, 5 year data, 2015-2019, Table B25070, B25091 Figure 3-34: Overpayment by Renters, 2015- 2019
Source: HCD AFFH Data Resources and Mapping Tool.

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Figure 3-35: Overpayment by Homeowners, 2015- 2019
Source: HCD AFFH Data Resources and Mapping Tool.

Cost Burdened Households by Race
Residents who are cost burdened in Newark are disproportionately experienced by some ethnic groups more than others. Figure 3-36 exhibits the changing demographics of being cost burdened in Newark. Black (41%), Indigenous (46%), Multi Racial (46%), and Latinx (47%) residents are the highest cost burdened, and most vulnerable to displacement, overcrowding and homelessness.

Asian and White residents are the least cost burdened at 27 percent and 21 percent respectively.

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Figure 3-36: Cost Burdened Residents by Race, 2013-2017 Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release Note: Hispanic category is not exclusive of other categories.

Overcrowding
An overcrowded household is defined as having more than one person per room, with severe overcrowding with more than 1.5 people sharing a room. Often immigrant communities, low income families and renter-occupied households are more likely to experience household overcrowding. Referred to as "doubling up"—living with family members or friends for economic reasons—is the most commonly reported living situation for families and individuals before experiencing homelessness.
10 Renters in Newark are more likely to live in overcrowded conditions than homeowners. Figure 3-37 shows renters experience overcrowding at 3 times the rate as homeowners at 18 percent, and severe overcrowding at 9 percent.

Central Newark in the Old Town area has 9 percent of households experiencing overcrowded housing, with 5 percent of households experiencing extreme overcrowding in the Northwest corner of the city. As shown in Figure 3-39, these two areas are predominantly occupied by communities of color, with 80 to 100 percent of residents in the Old Town area. Mixed race residents face the highest rates at 33 percent, followed by Hispanic/ Latinx (30%) and Indigenous residents at 22 percent. The Old Town Neighborhood specific plan has zoning changes that 10 Healthy Communities Data and Indicators Project, California Department of Public Health, Percent of Household Overcrowding, 2017
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remove constraints to the production of affordable housing. The upcoming development in the Old Town neighborhood by Satellite Affordable Housing, will provide 56 units of affordable housing, a quarter are 3 bedrooms specifically for large families. “Familiesthat are doubled up, tripled up can really use some programsthat help them find more suitable accommodationsin the community they want to stay in”
— Community meeting breakoutsession comment
Figure 3-37: Percent of Owner and Renter Households Living in Crowded Conditions, 2013- 2017 U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), ACS Tabulation 2013-2017
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Figure 3-38: Overcrowding by Race and Ethnicity, 2015- 2019 Source: US Census Bureau, American Community Survey, 5 year data, 2015-2019, Table B25014 Figure 3-39: Overcrowding and Severe Overcrowding in Newark and Non-White Population, 2015- 2019 and 2018
Source: HCD AFFH Data Resources and Mapping Tool.

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Housing Choice Vouchers and Subsidized Housing Developments Newark has seen minimal development of subsidized housing, with three subsidized senior housing developments in the city, and a fourth subsidized senior housing development under construction with 79 units. The use of housing choice vouchers is low in Newark, with the majority of the city seeing a 5 to 15 percent use, and the remainder with 5 percent or less. Table 3-10 details the current subsidized housing in Newark. The city has 274 low income units at a low risk of conversion, with no units at the moderate, high and very high income brackets. The majority of subsidized housing in Newark is found in moderate resource areas, with one development in a low resource designated area
Table 3-10: Housing Units at Risk of Conversion, 2022
Name Address
Affordable
Units
Total
Units
Active
Program(s)
Risk
Level
2021 TCAC/HCD
Opportunity Map
Designation
Newark Station
Seniors
37433 Willow
Street,
Newark
74 75 LIHTC Low Low resource
Rosemont aka
Newark Gardens I
35300 Cedar
Blvd, Newark
150 150 HUD Low Moderate resource
Newark Gardens II
35322 Cedar
Blvd, Newark
50 50 HUD Low Moderate resource
Source: California Housing Partnership, 2022
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Figure 3-40: Subsidized Housing and Housing Choice Vouchers, 2021 Source: HCD AFFH Data Resources and Mapping Tool.

Rates of Homeownership
Homeownership in the United States has functioned as the key to generational wealth. Due to historic discrimination from the federal government, the real estate industry, BIPOC communities have lower homeownership rates in comparison to White residents. Addressing disparities between races in rates of homeownership is one way to address historic discrimination and access to wealth, furthering fair housing work. Newark has higher rates of homeownership at 69 percent, than Alameda County (54%) and the Bay Area (56%). Figure 3-42 shows homeowners in Newark are predominantly identified as White and Asian, with the lowest rates of homeownership being found with Indigenous, Black and Hispanic or Latinx residents. This corresponds with rates of acceptance for mortgages. Figure 3-43 shows that White and Asian residents have the highest rate of loan approval with Indigenous and Hispanic/ Latinx residents having the highest rates of application denied.

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Figure 3-41: Housing Tenure in Newark, 2015- 2019
Source: U.S. Census Bureau, American Community Survey 5 year data, 2015-2019, Table B25003 Figure 3-42: Rates of Homeownership by Race, 2015- 2019 Source: U.S. Census Bureau, American Community Survey 5 year data, 2015-2019, Table B25003 AFFIRMATIVELY FURTHERING FAIR HOUSING 108

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Mortgage Loan Access/Rates of Denial Loan Access/Rates of Denial Figure 3-43: Mortgage Applications and Acceptance by Race, 2018-2019 Source: Federal Financial Institutions Examination Councils(FFIEC) Home Mortgage Disclosure Act Loan/ Application register Files
Substandard Housing
Concern over increased risk of displacement due to code enforcement violations has prompted a look at how substandard housing is addressed in communities. The majority of the community’s housing stock is older than 40 years old, which can increase the need for repairs. Oftentimes it is low income renters and homeowners that will be living in substandard housing conditions. While rates of substandard housing, including housing without kitchen or bathroom facilities, is less than one percent, these units could be underreported. As described in section 2 of the housing needs assessment, the neighborhoods of Mirabeau and Old Town / Central Newark through code enforcement data show significant need of rehabilitation. Currently Newark is responsive to code enforcement reports of housing in need of repair, and is planning to develop a new system for addressing code violations that reduce the risk of housing being removed from the market.

Program H1.2 outlines how the city will develop a rental inspection program that will provide a structured process for property owners to address code violations. There will be a process of reinspection, and the creation of an online reporting process for tenants. Program H1.1 Programs for housing repair and rehabilitation works to expand upon the existing program, to incorporate targeted outreach to identified neighborhoods of need.

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People Experiencing Homelessness
The City has provided continuous support for regional efforts to end homelessness, such as the Alameda County EveryOne Home Program, which prioritizes supportive housing. Newark adopted a resolution declaring a shelter crisis, and authorized the City’s participation in the Homeless Emergency Aid Program (HEAP).

People experiencing homelessness have steadily increased at the county level since 2017, with 9,747 sheltered and unsheltered people at the most recent point in time count on February 22, 2022. The city of Newark has a documented reduction from 89 people experiencing homelessness in 2019, to 58 people in 2022. Data from a 2021 Newark Police Department report provides an overview of unsheltered persons in Newark including known encampments:
● Eucalyptus Grove (Highway 84, north of Jarvis Avenue) ● Highway 84 Eastbound off-ramp to Newark Boulevard
● Residence Inn hotel area (near the off-ramp)
● Sycamore Street at the Union Pacific railroad tracks
● Thornton Avenue at Interstate 880
● Home Depot and surrounding businesses parking lot
Housing and homeless support is the most prevalent service request for Newark callers to the countywide 2-1-1 referral service, representing about 42% of all service requests. Newark residents are seeking referrals for low cost rental listings, rent payment and deposit assistance, supportive and transitional housing, emergency shelter, among other services (Eden I&R Referral Service, January 2020 through March 2022). Currently Second Chance provides transitional housing for those experiencing homelessness in Newark. The facility has 32 beds, with the shelter at 81 % capacity on the point in time count. The city has engaged in a number of actions to address homelessness in Newark. There is a partnership with the Fremont Family Resource Center to provide support to Newark households at risk of becoming homeless, and has been awarded a HomeKey grant to convert the Towne Place Suites extended stay hotel into 124 supportive, affordable residential units known as Cedar Community Apartments. Most recently the city has created a Homelessness Committee with members from various City departments to develop a cohesive plan to address homelessness.

Through community engagement, the city has been alerted to the high number of residents experiencing homelessness that are finding shelter in local motels. The challenge with this is that these populations are uncounted, so while the city does not have a full sense of how many individuals and families are there, through communication with parent liaisons with the Newark Unified School district and from a community member experiencing homelessness that those residing in the hotels hold jobs outside of the home, but due to a variety of issues such as the cost of housing, requirements such as three times the income, and credit scores, these community members are kept from accessing stable housing.

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Although the documented number of people experiencing homelessness in Newark is low, there are high rates of racial disparity compared to the population of Newark and Alameda County as a whole. As exhibited in Figure 3-46, although the African American population in Newark is 3 percent, they make up 27 percent of the population experiencing homelessness. The Latinx population of Newark is almost equal to that of those experiencing homelessness at 31 percent.

White residents have the highest rate of residents experiencing homelessness at 58%, with their portion of the population in Newark at 29 percent.

Figure 3-44: Total Count of People Experiencing Homelessness For The Point In Time Count On February 22, 2022
Source: 2022 Point in Time Count. Everyone Count, February 22, 2022.

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Figure 3-45: Unsheltered Individuals in Newark and Alameda County, 2022 Source: 2022 Point in Time Count. Everyone Count, February 22nd 2022.

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Figure 3-46: Sheltered Individuals by Race, 2022
Source: 2022 Point in Time Count. Everyone Count, February 22nd 2022.

Access to affordable, stable housing is foundational for children and their families to be healthy - mentally and physically and support student success in school. Over the past few years the pandemic has amplified the disparities in housing, and with learning transferring online, many students did not have the resources to make that transition. Although schools have returned to in-person teaching, the number of families that are still struggling to access resources and affordable housing are high.

In Newark, the student population experiencing homelessness totaled 300 during the 2019-20 school year and increased by 9 percent since the 2016-17 school year. By comparison, Alameda County has seen a 18.7 percent decrease in the population of students experiencing homelessness since the 2016-17 school year, and the Bay Area population of students experiencing homelessness decreased by eight percent. During the 2019-2020 school year, there were still some 13,718 students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with the potential for longer term negative effects.

The number of students in Newark experiencing homelessness in 2019 represents 10.5 percent of the Alameda County total and two percent ofthe Bay Area total.

In the most recent school year (2021-22), NUSD had 251 students that were homeless (about 5% of all students), which further indicates the lack of affordable housing. Notably, about 96 percent of homeless students in Newark are students of color, with over 167 of these students being Hispanic or Latino. While NUSD has only a small number of Pacific Islander students (98 students), AFFIRMATIVELY FURTHERING FAIR HOUSING 113

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about 10.8 percent of them are homeless (Source: California Department of Education (ED-Data).

Table 3-11: Students in Local Public Schools Experiencing Homelessness, 2016 to 2020 Academic Year Newark Alameda County Bay Area
2016-17 275 3,531 14,990
2017-18 236 3,309 15,142
2018-19 192 3,182 15,427
2019-20 300 2,870 13,718
Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools. Notes: The California Department of Education considersstudentsto be homelessif they are unsheltered, living in temporary sheltersfor people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other persons due to the loss of housing or economic hardship. The data used for thistable was obtained at the schoolsite level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography. Source: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). Thistable isincluded in the Data Packet Workbook as Table HOMELS-05.

Farmworkers
The number of farmworkers living in Newark has declined over the years, with the student population at 57 students for the 2019-2020 school year. The previous years saw 79 students for 2017-2018 and 72 for the 2018 to 2019 school year. Table 3-12 shows the trends for both Alameda county and the greater Bay Area see a similar decline in the migrant farmworker student population. Generally, the number of farmworkers living in Alameda county has been declining since 2012, with fewer than 400 residents working in the industry in a permanent position. It is important to recognize that farmworkers could be under-counted by the census due to their migrant nature. Farming and farmworkers are a significant element of the state's economy, but play less of a role in the Bay Area. Due to lower wages, language barriers, and inconsistent work, farmworkers can have difficulty securing housing, and for these reasons could experience overcrowding and substandard housing conditions.

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Table 3-12: Migrant Farmworker Student Population, 2016 to 2020 Geography 2016-17 2017-18 2018-19 2019-2020
Newark 75 79 72 57
Alameda County 874 1,037 785 790
Bay Area 4, 630 4,607 4,075 3,976
Source: California Department of education, California Longitudinal Pupil Achievement Data system, Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020) Figure 3-47: Permanent and Seasonal Farmworkers at the County Level, 2022 to 2017 Source: U.S. Department of Agriculture, Census of Farmworkers(2002,2007,2012,2017), Table 7: Hired Farm Labor.

Note: Farm workers are considered seasonal if they work on a farm lessthan 150 days a year, while farm workers who work on a farm more than 150 days are considered to be permanent workersfor that farm.

Gentrification and Displacement
“It isreally sad to see what is happening to our little old town of Newark. I moved here back in 1995 to raise my family. It was a small town and where I wanted to raise my family. My children are NUSD and now currently in college. The Tech Giants have moved into our backyards causing GENTRIFICATION raising rentsthat our families can't afford. Forcing them to leave and forsome to become homeless sleeping in their cars with school-aged children. Also the high number of Homeless on ourstreets with mental health issues on the corners of all freewaysintersections. How isit that we all live in one-million-dollar houses and see all this around us? This breaks my heart we need to see more affordable housing, rent control, good schools with proper equal education for all of ourstudentsin our community.

All the tech giants use these Big Charter busesto send their employeesto Facebook, Google, and Yahoo.

Newark should start charging them a fee so that we can have funds available to provide free tutoring for school-aged studentsstruggling in math.” – Newark Resident AFFIRMATIVELY FURTHERING FAIR HOUSING 115

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Defining Sensitive Communities: (Urban Displacement Project, 2020) Communities sensitive to displacement were measured through a number of indicators.

Neighborhoods with a high proportion of residents vulnerable to displacement in the case of rising housing costs, and market-based displacement pressures present in and/or near the community.

Communities were designated sensitive if they currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost.

Vulnerability includes metrics for the share of very low income residents, share of renters, share of people of color, and share of very low income households (50% AMI or below) that are severely rent burdened (spending 50% of income on rent). Market-based displacement pressures include percent change in rent between 2012-2017 above county median rent increases.

The City of Newark has grown its job base by 37% since 2010, significantly outpacing the County’s job growth, which was also strong. While the City has a higher share of job growth in high-paying industries compared to the County, over 40% of the City’s job growth still came from lower wage industries paying less than $75,000 a year. Currently, residents are unable to find housing at a cost and requirements accessible to them, which has led to residents finding shelter in motels. Concern around gentrification is a consistent narrative from residents, many of whom find themselves unable to find housing in a city they have grown up in, and have community connections. “Programas de vivienda que combaten la gentrificación.” (Housing programsthat combat gentrification) – Community Meeting Comment
Figure 3-49 shows areas in Newark that are vulnerable to gentrification and displacement, according to the 2017 study from the Urban Displacement Project, University of California, Berkeley. The area corresponds to a majority of BIPOC populations with an average of 82 percent non white, specifically Hispanic/ Latinx communities, cost burdened and overcrowded households.

The city of Newark has a number of redevelopment projects underway in the Old Town Area, Bayside, and ParkPlace. These projects are working to add more housing to the city through the redevelopment of industrial land into a walkable neighborhood close to commuter rail, repurpose an aging shopping mall, and revitalize a historic district.

Old Town
Old Town is the historic commercial district of Newark that has experienced disinvestment over the years. The neighborhood has a history of a variety of housing types and businesses, with a number of food manufacturing and local restaurants. The Old Town Specific plan looks to revitalize the neighborhood, making it more pedestrian friendly and implement zoning changes to bring higher density housing and mixed use buildings into the neighborhood.

The area has lower rents than the surrounding areas of the city, and is home to a predominantly AFFIRMATIVELY FURTHERING FAIR HOUSING 116

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Hispanic/ Latinx population of residents and associated small businesses (fig 3-49). The neighborhood has the highest level of low income residents, with 53 percent of renters cost burdened.

With improvements to the Dumbarton transportation corridor, connecting Newark and the surrounding area to Silicon Valley, this will open up the area for increased development pressure that could result in displacement of existing residents and small businesses.

Bayside Newark
Bayside Newark is a 200-acre planned neighborhood on land previously used for industrial production and manufacturing. The city is implementing a specific plan for a walkable neighborhood with a variety of housing types, recreational open space, and everyday services adjacent to the future Dumbarton rail line. Although there was no residential or small business in the planning area, it is still important to note the impact that the commuter rail line and the inclusion of hundreds of new market rate housing units will have on the demographics of the city.

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Figure 3-48: Map of Plan and Dumbarton Corridor, 2010
Source: Dahlin Group, 2010
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Figure 3-49: Areas in Newark Vulnerable to Displacement and Percentage of Communities of Color, 2018 and 2022
Source: HCD AFFH Data Resources and Mapping Tool.

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Displacement From Environmental Hazards
Environmental hazards can cause both physical and social vulnerabilities specifically in low income, disabled, and BIPOC communities. Many communities and households face social vulnerabilities that are intensified during the short- and long-term recovery period after a disaster.

Access to information, housing, and social services are disrupted during and after a disaster, straining local housing markets and service providers. Due to the lack of affordable housing due to a mismatch between housing costs and income, communities are vulnerable to local shocks such as a natural disaster. For households that were struggling to find and/or maintain affordable housing before a major event, resulting in displacement of residents and an increase in homelessness.

These events also compromise the ability for residents with disabilities to find accessible temporary shelter.

Newark is susceptible to multiple major types of environmental hazards that are visible through the Association of Bay Area Governments Hazard Viewer: Flooding due to sea level rise, tsunamis, and earthquakes. Figure 3-50 of the FEMA flood map shows extreme flooding at the 100 year flood line, engulfing much of the southern portion of the city. At the 500 year flood level, the flooding will move well into established housing, schools and commercial establishments. Flooding most significantly affects areas that are identified as high in opportunity currently, but also encroaches on areas in the city that have been identified as vulnerable to displacement through the Urban Displacement Project.

With Newark being in close proximity to the Hayward fault line, there is the possibility of severe shaking in the event of an earthquake. Residents in our community survey cited multi-year drought as their greatest environmental concern at 52 percent, followed by flooding and sea level rise (44%) and earthquakes (35%). In our community meeting, concern about development in sensitive areas was highlighted, especially ensuring that vulnerable residents are aware of the environmental hazards in their neighborhood.
“Restrict or limit construction of new development in zones or overlay areasthat have been identified or designated as hazardous areasto avoid or minimize impactsto coastal resources and property from sea level rise impacts.” – Community meeting comment
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Figure 3-50: 100 Year and 500 Year Flooding Projections for the City of Newark Source: Association of Bay Area Governments Hazard Viewer AFFIRMATIVELY FURTHERING FAIR HOUSING 121

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H. AFFH Analysis of Sites
State law, Government Code Section 65583(c)(10), requires the sites analysis to be analyzed with respect to AFFH to ensure that affordable housing is dispersed equitably throughout the City rather than concentrated in areas of high segregation and poverty or low resource areas that have historically been underserved. By comparing the sites inventory to the fair housing indicators in this assessment, this section analyzes whether the sites included in the 2023-2031 Housing Element sites inventory improve or exacerbate patterns of segregation, fair housing conditions, and access to opportunity throughout the City.

Newark was allocated a total of 1,874 new housing units to plan for during the Sixth Cycle Housing Element planning period. This RHNA allocation includes 464 very low-, 268 low-, 318 moderate-, and 824 above moderate-income units. Using data and research from the HCD AFFH Data and Mapping Tool 1.0, Table 3-13 presents the housing unit capacity and existing conditions as they relate to indicators of fair housing analyzed in this assessment for each census tract in the city. For more information about the indicators, refer to the local assessment discussed previously in this chapter. The census tracts and sites inventory are mapped and shown in Figure 3-51.

Newark has several physical constraints that present challenges in developing the sites inventory and planning for future growth. These constraints include sensitive wetland habitat and flood plains along the western city boundary and limited vacant land. Because of these constraints, sites included in the 2023-2031 Housing Element inventory are largely located in specific plan areas that are redeveloping existing shopping malls and former industrial lands, with several additional sites located in the Old Town/ Central area.

Newark is a racially and ethnically diverse city, with higher levels of segregation than neighboring jurisdictions such as Union City. As shown in the Table 3-13 BIPOC residents are the majority of the population in all census tracts. Residents identifying as Hispanic/ Latinx compose the largest segments of the population in census tract 4443.02 (Bayside/ Old Town), and census tract 4444 (Old Town/ Central Newark). The sites inventory provides some opportunity to balance the distribution of the various racial/ethnic groups in the city as well as access to opportunity, as sites at all income levels are found in areas with high opportunity and lower predominance of Hispanic/ Latino populations. The sites in NewPark Place, Birchwood, Bayside /Old Town, and Old Town/Central Newark open up opportunities to diversify the area through income and race/ethnicity. Although there are no sites included in the inventory in the northern neighborhoods of the city (Lake-Rosemont, Mirabeau, and Mayhews Landing), proposed programs will work to address the concentration in specific neighborhoods and open up single family neighborhoods to new missing middle housing types identified through community engagement as filling a crucial need for large and small households throughout the city.

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Figure 3-51: Housing Sites for the RHNA 6th Cycle
Source: Community Planning Collaborative, 2023.

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Table 3-13: Distribution of Housing Capacity by Census Tract with AFFH Indicators RHNA Capacity
AFFH Indicators
Integration and Segregation
Access to
Opportunity
Displacement
Risk
Census
Tract
Neighborhood
Total
Households
Owner
Households
Renter
Households
Lower Moderate
Above
Moderat
e
Median
Household
Income
AMI less
than 50%
AMI
50 -
80%
AMI 80
- 100%
AMI
greate
r than
100%
Hispanic /
Latino
Non-White
Population
Disability
Rate
Resource
Designation
Overcrowding
Rate
4441
LakeRosemont
2,573 2,162 411 0 0 0 $116,812 20% 8% 10% 62% 28% 74% 10% Moderate
Resource
0%
4442
Mirabeau
Park
1,887 1,484 403 0 0 9 $126,028 14% 12% 9% 64% 35% 81% 7% Moderate
Resource
2%
4443.01
Mayhews
Landing
1,189 862 327 0 0 0 $121,156 11% 6% 12% 72% 38% 76% 8%
Moderate
Resource
2%
4443.02
Bayside/ Old
Town
1,500 762 738 70 21 649 $105,188 24% 12% 13% 51% 66% 89% 6% Moderate
Resource
6%
4444
Old Town /
Central
Newark
1,519 848 671 201 44 120 $93,094 19% 13% 19% 49% 59% 86% 8% Moderate
Resource
0%
4445
Old Town /
Central
Newark
2,025 879 1,146 118 42 36 $109,441 16% 14% 9% 60% 21% 88% 7% Moderate
Resource
5%
4446.01 Birch Grove 1,779 1,543 236 155 1 296 $139,119 9% 11% 4% 76% 18% 84% 7% High
Resource
0%
4446.02
NewPark
Place
1,575 1,129 446 178 18 536 $128,229 14% 5% 8% 74% 11% 90% 5% High
Resource
0%
Source: Community Planning Collaborative, City of Newark. HCD AFFH Data Resources and Mapping Tool.

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Potential Effects of Segregation and Integration
Race and Ethnicity
In Newark, neighborhoods are predominantly Hispanic/ Latinx. Lake-Rosemont and Birch Grove Neighborhoods are the only neighborhoods in the city where White residents have a slim or sizable gap. The NewPark Place and Sanctuary West areas throughout the city have a predominantly Asian population (composed of a mix of different ethnicities). Generally, the sites inventory will provide some opportunity to balance the distribution of the various racial/ethnic groups in the city. As described above, Hispanic/ Latinx residents are the most segregated group and Asian residents are the most isolated compared to other groups. The sites inventory will not exacerbate segregation by race and ethnicity in Newark due to the high numbers of housing sites in areas that are predominantly Hispanic/ Latinx and Asian, providing new opportunities for housing mobility in the city.

Using the residential sites identified in the site inventory, we look to understand how new housing will impact segregation and integration of race, ethnicity and income level. Figure 3-52 shows the majority of identified sites are concentrated in the areas with a predominantly Latinx/Hispanic population. These areas correspond with the Old Town specific plan, that increases zoning to encourage investment in affordable housing and the transit oriented nature of Bayside Newark. In the Birchwood area, with the highest median incomes in the city, two housing projects, one the Timber Affordable senior housing project and the second, the E-Z 8 Motel site will provide 184 low and moderate income homes, and opportunities for those of other races with lower incomes in an area that has a slim white majority. The redevelopment of NewPark Mall, within the NewPark Place area, will provide 174 low and moderate income units in a high resource neighborhood with a predominantly Asian population. While the increase in above moderate income housing in areas that are predominantly low and moderate income will increase the diversity of incomes and increased investment in the area, it can also lead to higher rents for the surrounding households, and displacement. In response to the concentration of housing opportunity sites located in the central and southern portions of the city, Newark will be implementing a number of programs to expand housing development and housing choice for multiple incomes throughout the city.

Programs include: Program H2.1 SB9 and SB10 ordinance as well as H2.8 Zoning for Missing Middle Housing, H2.2 to reduce constraints and expand accessibility for ADU production, in order to achieve a greater geographic diversity of housing type and location. Program H2.6 looks at public school sites in Newark as locations for affordable housing to district employees, and has the potential to both provide affordable family sized housing and increase access to opportunities throughout the city.

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Figure 3-52: Sites by Racial Predominance, 2010
Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

Income
Newark has a population with a high median income, with 50% of residents making more than 100 percent of the median income. Despite this, there is still a large population of residents who are low income, with 10 percent of residents making less than 30 percent of the median income and 13 percent with moderate incomes. Through a variety of programs, the City is working to increase the development of housing for all income types, including housing for those with extremely low incomes, seniors, large families and those with moderate incomes. The Housing Element includes programs to establish development standards that facilitate missing middle housing that is affordable to middle-income households in single-family neighborhoods (Program H2.8) and promoting the development of ADUs throughout the city (Program H2.2).

Fifty percent of sites (2,075 units) are located within the NewParkPlace and the areas, which have a median income of $139,000. The NewParkPlace developments have 28 percent of the total low income units, the largest number of low income units in the city, along with the largest percentage AFFIRMATIVELY FURTHERING FAIR HOUSING 126

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of above moderate units at 58 percent. Although the lower income sites are distributed amongst The Old Town/ Central, Bayside, Birch Grove and NewParkPlace areas, these census tracts have a range of median incomes between $93,094 to $1390,111, and accounts for 91 percent of the lower-income capacity, 84 percent of the moderate-income capacity, and a majority (2,291 units) of the above-moderate income capacity. The sites in the Bayside /Old Town area are zoned for a variety of housing options to be built, with the greatest capacity of low and moderate income sites which will in turn help to diversify income levels in the area. Table 3-14 show that 23 percent of the lower-income sites are in census tracts with incomes below $93,000. This is driven by the capacity on sites in the Old Town/ Central area along Thornton Boulevard and works to ensure that housing is affordable to existing residents in order to support them to stay in place as investments come to the area. The sites inventory for all other income levels (i.e., lower-income sites, moderate income sites, mixed income sites, and pipeline projects) will not have a significant impact on patterns of segregation and integration by the remaining fair housing indicators including familial status and disability status due the even distribution of those populations in the City.

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Figure 3-53: Site Distribution by Median Income, 2015- 2019 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

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Table 3-14: Site Distribution by Median Income, 2015- 2019 Census
Tract
Neighborhood
Lower
income
Moderate
income
Above
Moderate
Total Units
units % units % units %
unit
s
%
Median
Household
Income
AMI less
than 50%
AMI 50
- 80%
AMI 80
- 100%
AMI
greater
than
100%
4441
LakeRosemont
0 0% 0 0% 0 0% 0 0% $ 116,812 20% 8% 10% 62%
4442 Mirabeau Park 0 0% 0 0% 9 0.5% 9 0.4% $ 126,028 14% 12% 9% 64% 4443.01
Mayhews
Landing
0 0% 0 0% 0 0% 0 0% $ 121,156 11% 6% 12% 72%
4443.02
Gateway /
Bayshore/ old
Town
70 10% 21 17% 649 39% 740 30% $ 105,188 24% 12% 13% 51% 4444
Old Town /
Central
Newark
201 28% 44 35% 120 7% 365 15% $ 93,094 19% 13% 19% 49%
4445
Old Town /
Central
Newark
118 16% 42 33% 36 2% 196 8% $ 109,441 16% 14% 9% 60%
4446.01 Birch Grove 155 21% 1 1% 296 18% 452 18% $ 139,119 9% 11% 4% 76% 4446.02 NewPark Place 178 25% 18 14% 536 33% 732 29% $ 128,229 14% 5% 8% 74% Source: Community Planning Collaborative, 2023.

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Figure 3-54: Site Distribution By Percent of Low and Moderate Income Residents, 2015- 2019 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

Potential Effects on Access to Opportunity
According to 2022 TCAC data, Newark is a mix of moderate and high resource areas. The Birchwood, NewParkPlace areas comprise Newark’s high resource areas, while the rest of the city is considered moderate resource areas, as highlighted in Figure 3-56. Newark does not have any low resource areas, areas of high segregation, or highest resource areas.

A percentage breakdown of proposed and sites zoned for housing by resource area in Figure 3-56 shows that 46 percent of low income units are located in high resource areas. A significant percentage of planned and proposed moderate income housing, 85 percent, are located in moderate resource areas as are 54 percent for low income units. For the most part, both low and above moderate housing are relatively evenly distributed across moderate and high resource areas. While a high percentage of moderate units are planned and proposed for moderate resource areas, this figure does not take into account the additional units expected from missing AFFIRMATIVELY FURTHERING FAIR HOUSING 130

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middle and ADU programs which will be prioritized for high resource areas.

In the higher resource areas there is a mix of housing both in the pipeline for development and sites identified for new housing. Pipeline projects include site 9, Cedar Community Apartments, a HomeKey project that provides 124 units of housing for those with extremely low incomes. The focus will be on providing housing for those that are homeless and those at risk of homelessness, with 11 units reserved for veterans that have experienced homelessness. The redevelopment of NewPark Mall consists of two mixed income projects providing housing for very low, low and moderate income households, and one pipeline project serving those with above moderate incomes. Pipeline and housing opportunity sites in the Birchwood and NewPark Place areas will provide 352 units of low and moderate income housing in high opportunity areas. By providing housing opportunities for very low, low and moderate income households in high resourced areas the city is addressing the need to expand housing choices available to those looking for affordable housing close to shopping, parks, transportation and quality schools and support vulnerable populations.

Newark is making targeted investments in the Old Town/ Bayside area, with active transportation infrastructure improvements connected to the Old Town Specific Plan and the Bicycle master plan, and supporting small businesses and community members through facade improvement grants for small businesses in the Old Town area and the construction of a family resource center. See the chapter on transportation and the Public Realm for more details on city lead investments. These investments will provide needed improvements in an area that is lower income than surrounding areas.

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Environmental Outcomes
Figure 3-55: Site Distribution by CalEnviroScreen Percentile Score, 2021 Source: Adapted by Community Planning Collaborative, 2023. HCD AFFH Data Resources and Mapping Tool and CalEnviroScreen Data
CalEnviroScreen is a mapping tool that helps identify California communities that are most affected by many sources of pollution, and where people are often especially vulnerable to pollution’s effects. The tool uses environmental, health, and socioeconomic information to produce scores at the census tract level and is indexed allowed for cross community comparison.

Tracts with high scores experience a much higher pollution burden than areas with low scores.

As displayed in Figure 3-55 above, sites identified by Newark as being suitable for accommodating lower-income RHNA housing during the planning period are located in areas with low to very-low levels of environmental risk. Both planned and proposed projects and sites zoned for housing are in areas with a relatively low incidence of environmental contamination per CalEnviroScreen.

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Environmental Quality
Bayside Newark
This project area includes 233 acres of land that historically has contained various industrial, manufacturing, chemical processing and salt production facilities since the early twentieth century. Due to the history of industrial use on the site, the city has remediated portions of the site. One form of contamination was a groundwater plume that exists in shallow groundwater beneath portions of the Plan area. The San Francisco Bay Regional Water Quality Control Board (RWQCB) is directing mitigation of this groundwater plume in collaboration with the Alameda County Water District (ACWD). Some properties within the Specific Plan area also contain soil impacted hazardous substances. The Department of Toxic Substances Control (DTSC) is directing the remediation of impacted soils at these properties.

The specific plan includes neighborhood focused retail, new infrastructure to support new residential and commercial development, new parks and the Bayside Trail, as well as new residential units in a variety of sizes and types.

Old Town Specific Plan Area
Central Newark and sites within the Old Town Specific Plan are at high risk of exposure to particulates from diesel fuel. In an effort to increase health equity in the area, and create a safer environment for walking and biking, the city will conduct a truck route study in 2023, looking to remove semi trucks from using Thornton avenue in the old town district.

Transportation and the Public Realm
Through public participation, pedestrian improvements and access to public transportation have been consistent themes that are associated with opportunity for a variety of populations, as well as being conscientious of climate change and the environment.

Figure 3-57 shows the distribution of housing sites and bus routes in Newark. We have heard from the disability community that having affordable housing in close proximity to transit is important for their community. There is also an understanding that transportation can be a significant expense, to providing housing in close proximity to transportation, new developments can lessen the cost burden and support more sustainable development.

In 2017 Newark City Council approved the Pedestrian and Bicycle master plan, in order to prioritize and implement infrastructure improvements and educational/enforcement programs that will improve the biking and walking environment in Newark. The following is an overview of pedestrian and bicycle improvements to be undertaken during the Housing Element cycle:

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● Cherry street will be improved by a class 4 separated bike lane from Central Ave to Stevenson blvd.
● The Central ave overpass, with an estimated completion in 2025, will eliminate railroad grade crossing for pedestrians, creating a separated crossing at Sycamore and Filbert, make it easier for pedestrians to cross safety, and the addition of new bike lanes ● In Old Town, with an estimated completion date of 2025 there will be bike and pedestrian improvements: a road diet, widened sidewalks, bike lines where there are none, high visibility crosswalks.
● The Bay Trail will be extended through the Bayside Newark development ● The city has received grant funding to add sidewalks and for the development of a cycle track on Thornton ave, between Gateway blvd and Hickory street, to improve access to the wildlife refuge. This will add bike lanes to the west side to make it safer to access the wildlife refuge. Estimated project completion will be in 2029. ● Grant funding to install the rapid fire beacons where the residents have expressed concerns over safe crossing, especially for students. One is planned for Old Town at Mulberry street, and near the Bayshore district on Enterprise drive.

Through area specific plans, Newark is investing in their public realm through pedestrian improvements for active transportation and pedestrian safety through more human scale streets.

The Old Town Specific plan will be directing infrastructure investments in the form of streetscape improvements, such as wider sidewalks, bike lanes, high visibility crosswalks and traffic calming.

Through the Old Town Area, Thornton Avenue will be reduced to slow traffic and increase space for walking and biking. Public art and new gathering spaces will support placemaking efforts to celebrate Newark past and present.

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Table 3-15: Sites along transit lines and High or Moderate Opportunity Areas, 2022 Housing Site
Specific Plan Area and / or
Opportunity area Pedestrian Improvements
14 High Resource (NewPark
Place)
5, 6, 7, 13, 17, 22 High Resource (Birchwood)
8, 9, 16, 19, 21, 28
Moderate Resource (Old
Town)
Changes will be made to Thornton Ave to facilitate
safer walking and biking in the area. There will be
traffic calming measures, bike lanes and wider
sidewalks.
10, 15, 20, 21, 24, 25
Moderate Resource (Old
Town / Central Newark)
Source: Tax Credit Allocation Committee, 2022, ACTrans 2022, City of Newark Figure 3-56: Percentage of Housing Units by Resource Opportunity Area, 2022 Source: Tax Credit Allocation Committee, 2022, Community Planning Collaborative Sites Analysis AFFIRMATIVELY FURTHERING FAIR HOUSING 135

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Figure 3-57: Site Distribution by Resource Level and Transportation Access, 2022 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool Potential Effects On Disproportionate Housing Needs
As previously mentioned, Newark has a large portion of residents that have housing needs that make them vulnerable to displacement due to being cost burdened, large families, female headed households or a senior. As highlighted in Figure 3-59 the areas vulnerable to displacement also correspond with portions of the city with BIPOC populations above 80%, specifically Hispanic / Latinx residents. The areas that are vulnerable to displacement in the Old Town, Bayside area also have higher rates of cost burden. With a focus on increasing affordable housing opportunities in the Old Town/ Central area, 57 percent of sites are for lower income households, as well as sites identified as mixed income developments will provide housing options that will support community members ability to remain in their neighborhoods.

The city is planning to develop and implement a number of policies and programs to support residents to stay in place such as a local preference policy, program H4.2 a community/tenant AFFIRMATIVELY FURTHERING FAIR HOUSING 136

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opportunity to purchase act, and program H4.1 Develop Anti Displacement programs for the Old Town area.

Figure 3-58 Distribution of Sites by Rates of Cost burdened, 2015- 2019 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

Cost Burdened Households
● 30% of housing sites are affordable for very low, low and moderate income households and are distributed throughout the city.
● Recognizing the role that access to transportation plays, 25 percent of housing units are along existing bus lines and are affordable to very low, low, and moderate income households.

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Figure 3-59: Distribution of Sites by Displacement Risk and Percent BIPOC population, 2017 and 2018 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

People with Disabilities
Residents with disabilities in Newark are a lower percentage then the county at 8 percent, and are equally distributed throughout the city. Through conversation with the executive director of the Housing Consortium of the East Bay, he identified important aspects of housing development for those with physician and developmental disabilities. Having housing in close proximity to public transit to connect with jobs and services is key, as only 10 percent of the demographic owns a car.

In Newark, major transit lines run along Thornton Ave, Central Ave and Sycamore street. Housing sites are well positioned to be within a half mile walking distance of transit as shown in Figure 3-57. With The majority of sites centrally located near parks, libraries and transit, new housing in Newark will be accessible to those with limited mobility. Fifty two percent of housing sites along existing transit routes are to be affordable to those with very low, low and moderate incomes, yielding an expected total of 754 units.

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Figure 3-60: Housing Sites Vis-a-Vis Disability Status, 2015- 2019 Source: Adapted by Community Planning Collaborative, 2022. HCD AFFH Data Resources and Mapping Tool.

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I. Contributing Factors and Meaningful Actions
The City of Newark has a significant Asian and Hispanic/Latinx population, a large number of families, and few affordable rental and home ownership opportunities available for residents. A history of housing discrimination and disinvestment have brought uneven opportunity and quality of life for BIPOC residents. Housing pressures from workers in Silicon Valley are increasing housing costs for long term residents. The city is constrained by ecologically sensitive marshlands of the San Francisco Bay, and is vulnerable to flooding and sea level rise, which plays a key role in planning for growth in a sustainable manner.

There is an urgent need for affordable housing, especially for families and seniors. There is a high percentage of students experiencing homelessness, single parent households in poverty, and multigenerational families - all with disparate housing needs. Old town and Central Newark have low environmental outcomes, due to pollution from industrial and truck traffic that disproportionately affects children and seniors.

Newark’s BIPOC community are disproportionately cost burdened renters, who face increasing rents with few protections. Many residents shared the challenge of finding affordable rental housing, and the desire for stability and the opportunity to build wealth through homeownership.

The city is committed to furthering fair housing in Newark and has identified the contributing factors, and policies and programs to implement in order to increase access to opportunity and affordable housing options in the city, especially for those communities most vulnerable to gentrification and displacement.

Mobility Strategies Removing barriers to housing in areas of opportunity and strategically enhancing access.

PROGRAM H2.8: Zoning for Missing Middle Housing Types.

PROGRAM H5.1: First-Time Homebuyer Assistance
PROGRAM H7.1: Develop training programs in collaboration with Alameda County Housing Authority for property owners to understand the housing choice voucher program
PROGRAM H4.6: Support tenant stability though minimum lease terms and relocation assistance
PROGRAM H4.8: Connect Residents with Foreclosure Assistance PROGRAM H7.4: Affirmatively Market Affordable Housing
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New Housing Choices in Areas of Opportunity Promoting housing supply, choices and affordability in areas of high opportunity and outside of areas of concentrated poverty
PROGRAM H2.1: Encourage New Housing options in areas of the city close to services such as parks, schools and grocery stores.

PROGRAM H2.2: Accessory Dwelling Unit program
PROGRAM H2.6: Work in Partnership with Newark Unified School District to develop new housing
PROGRAM H2.7: Affordable housing development fund.

PROGRAM H2.8: Zoning for Missing Middle Housing types
PROGRAM H2.10: Single Room Occupancy Housing
PROGRAM H4.5: With community partners, connect residents to existing shared housing programs
PROGRAM H5.2: Affordable Housing Development Programs
PROGRAM H5.6: Affordable Housing Overlay Zone
PROGRAM H5.3: Public Lands for dedicated affordable housing.

PROGRAM H2.3: A Community Plan for the 4 Corners Area
Place Based Strategies (Amenities, Economic Development) Conserving and improving assets in areas of lower opportunity and concentrated poverty such as targeted investment in neighborhood revitalization, preserving or rehabilitating existing affordable housing, improving infrastructure, schools, employment, parks, transportation and other community amenities.

PROGRAM H1.1: Housing Rehabilitation and Repair Programs.

PROGRAM H2.9: Area Specific Plans
PROGRAM H4.1: Develop anti displacement programs for the Old-Town Newark Specific Plan area
PROGRAM H6.3: Cool Roofs for cool homes
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Anti Displacement Strategies + Tenant Protection (Fair Housing Outreach and Enforcement) strategies that protects residents in areas of lower or moderate opportunity and concentrated poverty and preserves housing choices and affordability
PROGRAM H1.2: Develop a citywide rental inspection program to maintain high quality housing throughout the city
PROGRAM H4.2: Develop a Tenant/Community Opportunity to Purchase Policy PROGRAM H4.3: Develop a Just Cause Eviction Ordinance
PROGRAM H4.4: Small Sites Program
PROGRAM H4.9: No Net Loss of Units
PROGRAM H5.1: First-Time Home Buyer Assistance
PROGRAM H7.2: Partner with community organizations to ensure that community members have access to tenant rights information and Fair Housing in multiple languages
PROGRAM H7.3: Work with Newark Unified school district to distribute housing resources to families enrolled in the district
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Table 3-16: Summary of Contributing Factors and Actions Regarding Housing Issues in Newark Fair Housing Identified Issue Contributing Factor
Prioritization and
Geographic target Meaningful actions
Population of children and
families experiencing
homelessness.

Lack of available rental housing
that is affordable to those making
at or below the median income.

There is no affordable housing
available for rent and for those
transitioning out of homelessness.

HIGH.

City wide with a
focus in supporting
the students in
schools in the Old
Town/ Central area
● Develop a strong working relationship and partnership with the Newark Unified School district to increase access to resources to families in the District. PROGRAM H7.3
● Build more housing for low and extremely low income residents and those transitioning from and experiencing homelessness.

PROGRAM H2.7
● Prioritize publicly owned land for affordable housing development. PROGRAM H5.3
● Implement an affordable housing overlay zone to incentivize the construction of affordable housing for very low, low, and moderate income households in targeted areas. PROGRAM
H5.6
● Develop a local response to support people experiencing homelessness, with specific attention to the racial disparities and large population of youth and families. PROGRAM H2.5; PROGRAM H7.3
● Support Tenants through minimum lease terms and relocation assistance. PROGRAM H4.6
● Work with partners to develop scattered sites for shared housing utilizing funding sources such as Project Home Key.

PROGRAM H4.11
Ineffective outreach and
access to information for
renters and property
owners,those with limited
English, lack of existing
knowledge of resources, or
limited time
Resources for renters are not
easily accessible currently. Those
with limited English language, lack
of access to a personal computer
and or internet connection need
additional support and resources
tailored to their needs. Landlords
need training to better understand
laws and regulations
HIGH
Citywide with a
focus on supporting
the significant
Hispanic/ Latinx
and Asian
populations in the
Old Town / Central
area
● Partner with a local non profit to co produce tenants rights materials and support systems for communities that have not been equitably served by existing resources and processes.

PROGRAM H7.2
● Update the city website to make housing resources easier to access for populations that have limited English. PROGRAM H7.2; PROGRAM H7.3; PROGRAM H7.4
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Fair Housing Identified Issue Contributing Factor
Prioritization and
Geographic target Meaningful actions
Significant negative
environmental outcomes for
existing low income BIPOC
communities & increased
risk of climate related
displacement
Due to high levels of air pollution
from freeway pollution and truck
traffic on Thornton Avenue, and
high levels of cost burden
residents, the majority of Newark
has less positive environmental
outcomes.

MEDIUM
Focus on the
Bayside/Old Town
● Flood Risk Disclosure for New Development. As a significant portion of Newark falls within the 100 and 500 year flood plain, ensuring that development is built in response to climate change. PROGRAM H6.4
Displacement pressure for
BIPOC communities. Large
cost burden BIPOC
community and a low
inventory of affordable
rental homes for all
segments ofthe population
Due to close proximity to Silicon
Valley, the housing market has
become more attractive to those
working in the tech industries in
the area. As rents continue to
increase, residents with incomes
at or below the median income are
not able to find rentals they can
afford.

HIGH
Focus on areas
identified as
vulnerable to
displacement such
as the Old
Town/Central,
Bayside areas and
renters around the
city
● Increasing renter support by developing and implementing a Just Cause Eviction Ordinance, to ensure that renters clearly know their rights. PROGRAM H4.3
● Developing a Local Preference policy to support housing that prioritizes those residents currently living in Newark. POLICY H4.1
● Developing a community / tenant opportunity to purchase ordinance. PROGRAM H4.2
● Develop an anti displacement plan for the Old Town/ Central Newark areas. PROGRAM H4.1
● Support tenant stability though minimum lease terms and relocation assistance. PROGRAM: H4.6
● Develop a city wide rental inspection program. PROGRAM H1.2
Lack of affordable rental
homes for all segments ofthe
population, with protected
classes being the most
affected. A large number of
single parentfamilies in
Newark in poverty
Newark’s housing stock is
primarily composed of market rate
single family homes for ownership
or rent. The most recent
subsidized housing constructed
was the first built in the city in over
20 years, and currently all
subsidized housing is for seniors.

HIGH
Citywide focus on
new housing on
Newark Unified
school district sites,
and a focus on
missing middle
housing types in the
Birch Grove, Lakes,
Mirabeau, and
● Develop an Affordable Housing NOFA to encourage affordable housing developers to locate projects in the city for high need populations. POLICY H5.5
● Develop a program for the development of low and moderate income Accessory Dwelling Units in the city, with the intention of increasing housing options for public service workers and residents that are in need of affordable housing such as single parents. PROGRAM H5.5
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Fair Housing Identified Issue Contributing Factor
Prioritization and
Geographic target Meaningful actions
Mayhews Landing
neighborhoods.
ownership opportunities, encourage more on site affordable units and ensure affordability requirements will address those at residents at low incomes
● Generate local funds for affordable housing production and programming through an affordable housing fee program.

PROGRAM H5.2
● In collaboration with a non profit organization, implement a shared housing program in Newark. PROGRAM H4.5
● Work in partnership with the Newark Unified School District to plan for affordable housing production and build upon the existing partnership between the City of Newark and Newark Unified School District to bring forward implementable plans for affordable housing school owned properties. PROGRAM H2.6
● Develop new housing options in established neighborhoods of the city close to services such as parks, schools and grocery stores. PROGRAM H2.1
Low homeownership levels
for Black, Indigenous and
Hispanic/ Latinx residents
History of housing discrimination
in Newark as well as mortgage
lending discrimination has led to a
lack of access to home ownership
opportunities for Black,
Indigenous and HIspanic/ Latinx
residents.

MODERATE
Focus on supporting
BIPOC residents, as
part ofthe Newark
Affordable Housing
Action Plan work
● Develop a below market rate homeownership program in
partnership with a non profit organization to expand home ownership for first time homebuyers and BIPOC community members. PROGRAM H5.1
● Connect residents to foreclosure assistance, With a focus on Hispanic/Latinx, Indigenous and Black residents. PROGRAM H4.8
Disproportionate access to
opportunity across the city.

Areas with low access to
opportunity are primarily in
areas with high proportion of
Hispanic/ Latinx, Asian and
Older areas of the city such as Old
Town have seen a lack of
investment over the years in the
historic commercial and
residential district and private
investment has gone into newer
HIGH
Programs and
policies focused in
the Old Town/
Central Newark
area. Family sized
● Develop new affordable homes in opportunity areas
throughout the city, close to parks, schools and public transportation. PROGRAM H2.1
● Invest in improving the infrastructure and affordable housing opportunities in Old Town and Bayside neighborhoods in
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Fair Housing Identified Issue Contributing Factor
Prioritization and
Geographic target Meaningful actions
Indigenous residents
High segregation of Hispanic
/ Latinx population
developments. Due to the
disinvestment, the area has
supported lower rents than the
surrounding neighborhoods,
supporting a primarily BIPOC
neighborhood of residents.
housing and
pedestrian
improvements are
planned/in process
Newark through the Old Town specific plan, to create areas of high opportunity where residents currently reside. PROGRAM H2.9
● Open up single family zoning in larger portions of the city for low scale “missing middle housing” types such as courtyard housing that were identified in the housing survey. PROGRAM H2.8
● Update inclusionary zoning policy to ensure new affordable homes are built on site, with no in lieu fee option
● Accessory Dwelling Unit program to support the development of new housing distributed throughout the city and with 25 percent in high opportunity neighborhoods. PROGRAM H2.3 ● Develop an Anti Displacement program for the Old
Town/Central areas, PROGRAM H4.1
● Develop a program for the preservation of unsubsidized affordable housing in the city, especially in areas of high displacement risk. PROGRAM H4.4
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SECTION 4 HOUSING CONSTRAINTS
State housing law requires the City to review both governmental and non-governmental constraints to the maintenance and production of housing for all income levels. Examples of such constraints include development standards, local processing and permit procedures, development fees, construction costs, and compliance with various State laws to facilitate housing for lower-income and special needs households. State law requires the local governments to take action through their Housing Element to “address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing including housing for all income levels and housing for persons with disabilities,” (Government Code Section 65583(c) (3)). A thorough understanding of the potential constraints to development can help to create appropriate policy responses
A. Governmental Constraints
Government regulations can potentially constrain the supply of housing available in a community if those regulations limit opportunities to develop housing, impose requirements that unnecessarily increase the cost to develop housing, or overcomplicate the development process for developers. State law requires that housing elements contain an analysis of the governmental constraints on housing maintenance, improvement, or development of housing for all income levels including special needs households and persons with disabilities (Government Code, Section 65583(a) (4)). Potential constraints to housing include land use controls, development processing procedures and fees, impact fees, on- and off-site improvement requirements, and building and housing codes and enforcement. This section discusses these standards and assesses whether any serve as a constraint to affordable housing development in Newark.

Land Use
The City of Newark controls the location, type, density, and scale of new development through the General Plan, the Zoning Ordinance, and various specific plans.

General Plan
Every jurisdiction in California is required to prepare a comprehensive, long-term General Plan to guide decision making. Newark’s General Plan, adopted in 2013, sets forth the City’s vision, goals, and policies to shape development of the city. The updated plan created new opportunities for residential and mixed-use development throughout the city and has subsequently been supplemented by Specific Plans (described below) that further set forth plans and policies to HOUSING CONSTRAINTS 147

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accommodate a range of housing types in key priority growth areas to create inclusive housing opportunities for Newark residents. These new residential development opportunities are reflected in the increased capacity of the Housing Element sites inventory. The Land Use Element of the General Plan has five land use designations that allow for residential use as follows:

Table 4-1: General Plan Land Use Designations
Land Use
Designation
Housing Capacity General Uses
Low Density
Residential
Less than 8.7 units
per net acre
This designation is intended for single-family residential development on lots larger than 5,000 square feet. It corresponds to most of Newark’s residential neighborhoods. Multiple zoning districts apply within Low Density Residential areas to distinguish areas with different minimum lot sizes. Other compatible uses, such as schools, childcare centers, parks, and religious facilities may also be located in areas with this designation, subject to appropriate permitting requirements.

Low-Medium
Density
Residential

8.7 to 15 units per
net acre
This designation is intended for small lot single-family homes, zero lot line and patio homes, mobile home parks, and other areas characterized by a mix of older single-family homes and small multi-unit buildings.

These areas have the basic characteristics of single-family neighborhoods, such as front and rear yards, driveways, and garages, but have smaller lots and a wider variety of housing types. Densities in areas with this designation range from 8.7 to 15 units per net acre, but the higher end of this range (e.g. from 11 to 15 units per acre) will only be allowed on properties which have their primary access on an arterial or collector street and which are found to be compatible with the character and intensity of residential development in the immediate area. Other compatible uses, such as schools, childcare centers, parks, and religious facilities may be located in all areas with this designation, subject to appropriate permitting requirements.

Medium
Density
Residential
14 to 30 units per
net acre
This designation is intended for garden apartments and condominiums, townhomes, row houses, 4 to 8 plexes, and older areas that contain a mix of multi-family and single-family homes within this density range. These areas tend to be multi-family in character but retain some of the characteristics of suburban neighborhoods such as landscaped yards, off-street parking, common open space, and low building heights.

Densities in areas with this designation range from 14 to 30 units per net acre, but the higher end of this range (e.g. from 22 to 30 units per acre) will only be allowed on properties which have their primary access on an arterial or collector street and which are found to be compatible with the character and intensity of residential development in the immediate area.

Additionally, to ensure that land with this designation is used as efficiently as possible, a minimum density standard of 14 units per net acre applies. Other compatible uses, such as schools, childcare centers, parks, and religious facilities may also be located in areas with this designation, subject to appropriate permitting requirements.

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Land Use
Designation
Housing Capacity General Uses
High Density
Residential
25 to 60 units per
net acre
This designation is intended for apartment and condominium complexes that are generally three stories or more. On larger parcels with this designation, common open space and other shared amenities are typically provided. Structured (or basement level/ podium) parking is also common. Densities range from 25 to 60 units per acre, corresponding to site area allowances of 725 to 1,450 square feet of lot area per each dwelling unit. To ensure that land with this designation is used as efficiently as possible, a minimum density standard of 25 units per net acre applies. Other compatible uses, such as schools, childcare centers, parks, and religious facilities may also be located in areas with this designation, subject to appropriate permitting requirements.

Commercial
Mixed-Use
30 to 60 units per
net acre.

FAR of 0.5 to 2.0
This designation supports a combination of office, residential, and retail use, with an emphasis on specialty commercial uses such as antique stores, boutiques, galleries, cafes, and restaurants. Development standards should foster a walkable, pedestrian-oriented character that emphasizes a fine-grained building scale and streetscape. Structures that are entirely residential or entirely commercial are both permitted, but the optimal development form on larger sites would include housing located above ground level retail shops or services. This designation is used in Old Town Newark, where it recognizes the historic scale, lot pattern, and context of this district. Floor area ratios (FARs) are generally in the range of 0.5 to 2.0. The actual intensity of development on any given site is dictated by a number of factors, including height limits, parking and landscaping requirements, and site size and dimensions.

Multiple zoning districts apply in this designation, with one zone focused on ground floor retail uses and the other allowing more diverse ground floor uses, such as offices and housing.

Regional
Commercial
Greater than 30
units per acre.

FAR of 0.2 to 4.0
This designation supports the largest and most complete shopping facilities in the city. The emphasis is on a broad array of goods and services, including department stores, retail shops, restaurants, entertainment facilities, and similar uses which draw patrons from throughout Newark and the surrounding region. This designation is applied to NewPark Mall and some of the commercial areas on the Mall’s perimeter. Uses such as hotels and corporate office buildings are acceptable in areas with this designation. Housing at densities greater than 30 units per acre may be included in Regional Commercial areas if such housing is a component of a large-scale planned development which is primarily oriented around regional retail commercial uses. FARs are generally in the range of 0.2 to 4.0. The actual intensity of development on any given site is dictated by a number of factors, including height limits, parking and landscaping requirements, and site size and dimensions.

Source: City of Newark General Plan, 2013
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Zoning
The City’s zoning and development regulations establish permitted and conditionally permitted uses within each zone and standards which dictate how much development can occur on a given parcel of land such as minimum and maximum densities, height, setbacks, and lot coverage. The City Zoning Ordinance is adopted as Title 17 of the Municipal Code. Title 17, as well as all the other titles that comprise the Newark Municipal Code, are easily accessible on the city’s website at www.newark.org.

The current zoning ordinance includes four residential zoning districts (RS Residential Single Family, RL Residential Low Density, RM Residential Medium Density, RH Residential High Density, and two mixed-use/commercial districts that allow for residential development (CMU Commercial Mixed Use, RC Regional Commercial). These “base” zoning districts are supported by combining districts or “overlay” districts, including the Form Based Code Overlay District, Planned Development and Old Town Newark Overlay District (Table 4-2).

As shown in Table 4-1, the current zoning districts which permit multifamily housing provide a base density range of 30-60 DU/A with the exception of the RC zone, which permits higher densities. In practice, projects in Newark such as the Newpark Place Phase 1A have significantly exceeded these base densities.

Development Standards
Residential development standards established in the Zoning Ordinance are designed to provide orderly development of the City and to protect and promote the health, safety, and welfare of local residents and to implement the policies of the General Plan. An analysis of the residential standards, shown in Table 4-2, shows that Newark’s development standards (prior to the adoption of the zoning amendment required by Program H3.6) are typical for Bay Area communities and are not a constraint to the development of housing. These standards are intended to balance the need for predictable, orderly development with the need to allow the maximum possible residential density. Through program H2.12, the City will address potential barriers to residential development at all density levels through regular review and if necessary, amend the relevant development standards.

Minimum Lot Area
In the RS district, the vast majority of residential development during the planning period is anticipated to occur through ADUs and SB 9 Urban Lot Splits and Urban Housing Developments. These development types are not required to observe minimum lot size requirements for the underlying zoning district. The minimum lot sizes for the RS district HOUSING CONSTRAINTS 150

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range from 6,000 to 10,000 square feet depending on the zoning designation which correlates to the development patterns of the surrounding subdivisions. The minimum lot sizes for the RM and RH districts, 6,000 square feet, do not affect the development potential of multi-family developments which allow multiple units to be constructed on a single parcel. The minimum lot size for CMU is 20,000 square feet which could be considered a constraint since many of the CMU parcels abutting Thornton Avenue are less than half an acre which would require lot consolidation in order to facilitate redevelopment. The City will investigate this possible constraint as part of Program H2.12 Setbacks
In the RS district, the vast majority of residential development during the planning period is anticipated to occur through ADUs and SB 9 Urban Lot Splits and Urban Housing Developments.

These development types are not required to observe setback requirements for the underlying zoning district. As a program of the Housing Element, a local SB 9 ordinance will be prepared to provide specific development standards for SB 9 projects. A standard residential subdivision in an RS district would not be constrained from achieving maximum density by setback requirements.

As shown in the Table 4-2, front setbacks decrease from 20 feet in RL to 15 feet in RM and RH districts, Street side setbacks decrease from 10 feet in RL to 8 feet, and rear setbacks decrease from 15 feet to 10 feet. CMU and RC districts can be developed to the lot line, but have setbacks imposed if they are adjacent to RS districts or a lot which is developed with a single family residence. The City’s setbacks are typical for a community of its size and development patterns and are not considered barriers to achieving maximum density.

Height
Height limitations are intended to allow projects to achieve the maximum allowable density, while also being responsive to community character. In the RS district, the height limit is 30 feet which allows for the construction of typical two-story homes. In the RM and RH districts, heights greater than 35 feet and up to 75 and 100 feet respectively are permitted with a Minor Use Permit, which may be granted at the discretion of the Community Development Director without a public hearing. In practice, these height limits are reasonable to allow the maximum density and range of product types that are typical in these zones. However, the requirement for an MUP may still be a constraint to development, so Program H2.12 includes the objective of removing this barrier. In the RL, RM, and RH districts, the height limits are 35, 75, and 100 feet respectively, which allow for the construction of three-story townhomes up to multi-story apartments or condominiums in the upper range.

Planned and proposed projects included in the Element generally do not reach the maximum allowable heights for their respective zoning districts but still achieve considerable residential densities. The proposed SAHA development, zoned RH, shows that heights are not a barrier in HOUSING CONSTRAINTS 151

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achieving maximum densities since the project has a height of 60 feet and achieves a density of 105 dwelling units per acre. Waymark Homes, a proposed three-story attached townhome development which is zoned RM, reaches a height of 37 feet and a density of 22 dwelling units per acre, which is the maximum for the district.

The districts that provide the highest densities for residential development also provide for the highest maximum heights, including the RC district which is 250 feet and the CMU district which is 60 feet or 75 feet within the Old Town Newark Specific Plan area. According to an analysis of the CMU zone, currently only one parcel is outside of the Old Town Specific Plan area and is subject to the 60-foot height limit. While few parcels are zoned CMU in Newark, the 60-foot height limit could potentially be a barrier to reaching maximum allowable densities, especially if the City decides to use this zoning in future locations. The City will review this concern (Program H2.12) and provide flexibility as needed to make maximum densities achievable.

In order to be responsive to community character, the City has scaled height restrictions if the parcel is adjacent to a less intensive zone district. However, this restriction only applies to the area of the parcel which is within 20 feet of the less intensive district, including setbacks, therefore it is not considered a barrier to achieving maximum density. As with other development standards described in this section, height limits and any associated city processes will be continually evaluated during the course of the planning period per Program H2.12.

Lot Coverage
Maximum lot coverage standards vary from 50 percent in RS and RL districts to 55% in RM and RH districts. Lot coverage increases in the RM district to 65% for development within the Old Town Specific Plan area. The CMU and RC districts have no maximum standards. These standards are typical in many Bay Area communities and in Newark have not been perceived as a barrier to development and achieving maximum densities.

Parking
Because off-street parking often requires large amounts of land and structured parking is expensive to build, parking requirements are one of the development standards that can most negatively impact the feasibility of new housing development. Compared to many neighboring jurisdictions, Newark currently has somewhat higher parking requirements for most housing types than neighboring jurisdictions. For multifamily housing, Newark has higher requirements for studio and one-bedroom units than Fremont, as well as higher requirements for covered parking.

Although Newark and Fremont have the same guest parking requirement of 0.5 spaces per unit, Fremont does not have the same requirements for covered parking, and removes minimum parking requirements entirely in areas near transit. Additionally Newark requires one space per unit to be located in a garage, a requirement that can significantly increase the cost of development.

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Senior housing. Although it has been found that seniors do not have the same rates of driving, Newark has higher parking requirements than neighboring Union City and Fremont, at one space per unit.

ADUs. Union City does not list a parking requirement for ADU’s, but Newark has a higher parking requirement than Fremont, which has no parking requirements at all for ADU and JADU units.

Because Newark has higher parking requirements for multi-family, senior housing and accessory dwelling units this Housing Element update provides an opportunity for significant changes in parking requirements such as removing parking minimums and aligning requirements to be more in line with neighboring jurisdictions. Although the City complies with State density bonus parking standards upon request, the City’s parking requirements can be a potential constraint on the production of housing in some cases. In order to address this constraint, the City will implement Program H3.5 and will commit to developing new, lower parking standards to facilitate residential development, particularly on sites identified for the development of lower-income housing. This will also include a reduction of required guest parking from 0.5 to 0.25 spaces per unit.

Open Space Requirements
Newark has open space square footage requirements per unit in the RL, RM, RH and CMU and RC districts which are 400, 300, 200, 50, and 50 square feet respectively. The required open space is the product of the number of units multiplied by required square footage. Required open space consists of two types: common and private. This is no minimum private open space requirement.

Common open space must be a minimum of 50% of the required open space, but may be more, up to 100% of the requirement. Within the Old Town Specific Plan area, the RM district only requires 100 square feet of open space per unit. The open space requirements in the RL and RM districts may be considered high and have the potential to limit densities. Through Program H2.12, the City will review and revise the open space requirements as necessary including adjustments to the minimum area and dimensional requirements, as well as to provide more flexibility for open space types, location, and usability.

Minimum Commercial Component in Mixed Use Zones
Parcels within the CMU zone that have frontages on Newark Blvd. and Thornton Ave. between the Union Pacific Railroad and Olive Street are required to have nonresidential uses that occupy no less than 15% of the gross lot area on their ground floors. Ground non-residential use is also a requirement for all development in the RC district. The intent of this standard is to promote walkable and vibrant mixed-use neighborhoods with a strong sense of place, however the standard is a potential barrier since recent development in Newark has been predominantly residential. Outside of these major commercial corridors, 100% residential projects are permitted.

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Table 4-2: Residential Development Standards, Newark 2022 Zoning
District
Minimum Lot
Area (sq. ft.)
Max Units Per
Acre
Minimum
Lot Width
(ft.)
Minimum/
Maximum
Setbacks (ft)
Maximum Main
Building
Coverage (%)
Maximum
Height(ft.)
Required
Open Space
Per Unit(sq.
ft.)
RS
RS-6,000:
6,000;
RS-7,000:
7,000;
RS-8,000:
8,000;
RS-10,000:
10,000

8.7 RS-6,000:
60;
RS-7,000:
65;
RS-8,000:
70;
RS-10,000:
80 Front: 20
Interior Side: 5
Street Side: 10
Rear: 20
50 30 n/a
RL
6,000; 3,000
for Single unit
dwelling,
detached
11, up to 15 with
CUP depending
on street
classification
60 Front: 20
Interior Side: 5
Street Side: 10
Rear: 15
50 35 400
RM 6,000
22; up to 30 with
CUP depending
on street
classification, 50
within the Old
Town Specific
Plan area
60 Front: 15
Interior Side: 5
Street Side: 8
Rear: 10
55, 65 within the
Old Town Specific
Plan area
75 (over 35
requires a MUP),
48 within the Old
Town Specific
Plan area, 35
within 20 ft. of an
RS or RL District
300; 100
within the Old
Town Specific
Plan area
RH 6,000 60 60
Front: 15
Interior Side: 5
Street Side: 8
Rear: 10
55 100 (over 35
requires a MUP);
35 within 20 ft. of
an RS or RL
district
200
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Zoning
District
Minimum Lot
Area (sq. ft.)
Max Units Per
Acre
Minimum
Lot Width
(ft.)
Minimum/
Maximum
Setbacks (ft)
Maximum Main
Building
Coverage (%)
Maximum
Height(ft.)
Required
Open Space
Per Unit(sq.
ft.)
CMU 20,000
60, 100 within
the Old Town
Newark Specific
Plan area
100
Front: 0, max. of 10
Interior Side: 0, 20
abutting a RS
district or any lot
developed with a
single family
residence
Street Side: 0, max
of 10.

Rear: 0, 10 abutting
a RS district or any
lot developed with a
single family
residence
n/a
60; 75 within the
Old Town Specific
Plan area; 48
within 20 ft of an
RM District
boundary, 35
within 20 ft. of an
RS or RL District
boundary
50 RC 20,000 120 100
Front: 0
Interior Side: 0
Street Side: 0
Rear: 0
n/a 250 50
Source: City of Newark Zoning Ordinance, 2022
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An analysis of the residential standards, shown in Table 4-2, indicates that these requirements overall are not a constraint to the development of housing.

Specific Plans
The City has four (4) adopted specific plans which have significantly increased the City’s capacity to accommodate new housing development through the coming Housing Element update period and beyond. These plans are expected to guide new housing development during the timeframe of the 2023-2031 Housing Element and are described in more detail below.

Bayside Newark Specific Plan, Adopted July 2021
The Bayside Newark Specific Plan, formerly known as The Dumbarton Transit-Oriented Development (TOD), provides the framework for a proposed new neighborhood that will provide a broad range of new housing, retail and business opportunities in Western Newark, centered around the proposed Dunbarton Commuter Rail station.

This project area includes 233 acres of land that has contained various industrial, manufacturing, chemical processing and salt production facilities since the early twentieth century. The plan steers the development of a contemporary version of a pedestrian oriented neighborhood where housing, recreation, neighborhood retail center and employment opportunities are integrated and connected via pedestrian and bicycle networks. The community would include shops, parks and open space amenities, including a bayside trail. Approximately 8% of the area is designated as low density residential, 33% for medium density residential, 29% for medium/high residential, and 2% for high density residential.

In the proposed design, higher densities of residential development-such as condos-would be located within a quarter-mile radius of the transit station, medium densities-such as townhomes-are located slightly further, and single family dwellings are located farthest from the station. Retail stores and shops are concentrated near the transit station at the intersection of Willow Street and Enterprise Blvd. Higher density housing would be adjacent to the retail area and the transit station. Neighborhood parks would be located within the residential areas and a larger community park would be included. Blocks are generally short and pedestrian-oriented. The street circulation network of streets will have one travel lane in each direction and will utilize traffic calming measures such as bike lanes in both directions, on street parking, and single lane roundabouts with the goal of prioritizing active transportation. The plan has a unit cap of 2,500.

Old Town Specific Plan, Adopted September 2021
The Old Town Specific Plan addresses a 76-acre area which encompasses Thornton Avenue spanning seven blocks from Elm Street to Cherry Street, and residential parcels north and south of the commercial corridor. The plan seeks to develop this corridor into a mixed-use area that accommodates a range of housing types, retail and service businesses, expanded public spaces, and mobility improvement. The Old Town Specific Plan does not allow single unit dwellings, HOUSING CONSTRAINTS 156

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requires densities between 30 and 100 dwelling units per acre, and height maximums of up 75 feet (48 feet within 20 feet of a RM district and 35 feet within 20 feet of an RS or RL district). The plan also requires ground floor retail commercial uses on projects that front Newark Boulevard and Thornton Avenue between The Union Pacific Railroad Tracks and Olive Street.

Through zoning amendments, streetscape improvements, and public and private investments, the plan envisions Old Town Newark as a revitalized mixed-use neighborhood with a strong sense of place, thriving retail and commercial businesses, a range of housing choices for existing and future residents, a streetscape that prioritizes bicyclists and pedestrians, and public spaces. The plan’s grand visions are matched by clear realistic steps for implementation of long-standing goals for revitalization and provide steps to maintain the existing housing stock and avoid displacement of existing residents and businesses.

NewPark Place Specific Plan
The NewPark Place Specific Plan (Plan), adopted in 2018 and implemented as revised in 2021, provides a comprehensive planning and development implementation strategy for a 125-acre area in the southeastern portion of the city adjacent to I-880 which includes the existing NewPark Mall retail center (mall), the parking facilities that surround it, and commercial uses on the perimeter of the center.

The Plan’s vision is to transform the Greater NewPark Mall area into a vibrant urban place through thoughtful land use design, which includes mixed-income residential areas, retail and dining opportunities, community venues, a movie theater, inviting pedestrian-oriented streets and public spaces, and enhanced sidewalks, bicycle lanes, and transit facilities. Creating a premier Bay Area and local destination will re-power the regional retail uses within the mall itself as a vital economic engine for the city. Higher-density multifamily housing across types and affordability levels will comprise the predominant land use type in this reconfigured and revitalized area.

The Plan includes guidance in the form of plans, policies, development standards, and design guidelines and serves as an extension of the general plan making it both a policy and regulatory document. To achieve the development vision for the Greater NewPark Mall area, the Plan contains a framework that is flexible in land use types, development standards, and design guidelines. In collaboration with the city, the developer project sponsor will work within this framework to deliver project designs and programs with desired uses, development form, mobility improvements, and public amenities that create a unique “sense of place”.

The plan is anticipated to build out over an approximate 20-year timeframe, with a total capacity of 1,519 multifamily residential units. The Mixed Use I area (where Phases A through D are located and highlighted in this Element) is expected to redevelop first based on the expressed interest of the property owner/developer. Diverse affordable housing will be an important component of the overall unit mix in the plan area, with at minimum 6 percent of units being affordable to very-low income households, 3 percent to low-income households and 3 percent to moderate-income households per City Council Resolution 10,184.

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The plan calls for building heights between 30 and 200 feet, with a preferred minimum of 60 feet.

The residential densities must be within a minimum of 60 dwelling units to the acre and a maximum of 160 dwelling units per acre, which can be accommodated within the overall plan development area under the Specific Plan’s development standards. Building heights are currently constrained by the lack of adequate emergency response infrastructure Newark and the surrounding communities to safely respond to emergencies on high rise buildings. Because of this, the current plan shows densities on the lower edge of the spectrum.

Southwest Newark Residential and Recreational Project (Area 3 and 4 Specific Plan) This is the largest area proposed for future development in Newark, comprising 856 acres in the area bordered by Mowry Avenue on the west, Stevenson Boulevard on the east, Cherry Street on the north, and Mowry Slough on the south. The Union Pacific Railroad bisects the area. Most of the land is vacant, although the area near the end of Mowry Avenue includes an auto-dismantling yard. The remainder of this area has been disked and graded for agricultural use since the early 1900s.

A Specific Plan was adopted in 2010 and 2015 (Newark Specific Plan - Area 3 and 4 of the General Plan). The Plan calls for the development of housing, a major recreational facility such as an 18-hole golf course, and the dedication of conservation open space on some of the low-lying areas south of the railroad tracks. Areas 3 and 4 contain sub areas where development would be focused.

Area 3, Sub Area B has been developed with 386 single-family residential units; construction was substantially complete by early 2021. This sub area, on land facing Cherry Street just east of Ohlone College, has been developed with a three acre community park, as well as a possible future elementary school on a six acre parcel.

A residential project within Area 3, Sub Area C and Area 4, Sub Area B was approved by City Council in November 2019. This project would include 469 detached single-family homes, open space, new utility infrastructure, and roadways, including a new connecting roadway at the existing terminus of Stevenson Boulevard to the project area. A substantial number of homes are expected to be constructed within the period of the Housing Element.

The City is currently considering a development application for 203 detached single-family homes within Area 4, Sub Area D on a parcel which contain an automobile dismantling yard with retail sales. Entitlements have not been granted as of the publication of the Housing Element.

Once the proposed project within Area 4, Sub Area D has been considered and a final decision has been made, the city may take action to retire the plan in a manner consistent with applicable laws and conforming to previously adopted agreements and approved entitlements.

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Zoning for a Diversity of Housing Types
Housing Element Law (Government Code Section 65583(c) (1) and 65583.2(c)) requires that local governments analyze the availability of sites that will “facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units (SROs), emergency shelters, and transitional housing.” This section discusses relevant regulations that govern the development of the types of housing listed above as required by Government Code Section 65583(a) (3). Table 4-3 summarizes the permitted housing types by zone.

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Table 4-3: Housing Types Permitted by Zone, Newark 2022 Land Use RS RL RM RH CMU RC
Accessory Dwelling Units Permitted Permitted Permitted Permitted Permitted Permitted Single-Unit, Detached Permitted Permitted Permitted Permitted - - Single-Unit, Attached - Permitted Permitted Permitted Permitted 11 -
Two-Unit Dwelling - Permitted Permitted Permitted -
Multi-Unit Development - Permitted Permitted Permitted Permitted 12 Conditional Use
Permit
Required
19 Manufactured/Mobile Home - - - - - -
Employee Housing (6 or
fewer persons)
- - - - - -
Residential Care Facilities (6
or fewer persons)
Permitted Permitted Permitted Permitted Permitted -
Residential Care Facilities (7
or more persons)
- Minor Use
Permit Required
Minor Use
Permit Required
Minor Use
Permit Required
- -
Family Day Care (Group
Residential)
- - Minor Use
Permit Required
Minor Use
Permit Required
Minor Use
Permit Required
-
Family Day Care (Large) Minor Use
Permit Required
Minor Use
Permit Required
Minor Use
Permit Required
Minor Use
Permit Required
- -
Family Day Care (Small) Permitted Permitted Permitted Permitted Permitted - 12 Not allowed on the ground floor. Residential units shall be intended to support retail commercial uses of the project. 11 Single-Unit Dwelling, Attached uses are not permitted in the Old Town Newark Specific Plan area. Residential uses are not allowed on the ground floor along Newark Boulevard frontage and Thornton Avenue frontage, between the Union Pacific Railroad tracks and Olive Street.

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Land Use RS RL RM RH CMU RC
Single-Room Occupancy
Units
- - -
Conditional Use
Permit Required
Conditional Use
Permit Required
-
Emergency Shelters
- - Minor Permit
Required
Permitted _ -
Supportive Housing Permitted Permitted Permitted Permitted - Transitional Housing Permitted Permitted Permitted Permitted - Source: City of Newark Zoning Ordinance, 2022
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Multifamily Housing
As shown in Table 4-3, multifamily housing is permitted throughout the City of Newark in all RL, RM, RH and CMU zones. Multifamily housing is also permitted in RC zones with a conditional use permit.

Manufactured Housing and Mobile Homes
State law limits the extent to which cities and counties can regulate the installation of manufactured homes, including mobile homes. Government Code Section 65852.3 requires that cities allow installation of certified manufactured homes on foundation systems on lots zoned for conventional single-family residences. This section and Government Code Section 65852.4 generally require that manufactured homes be subject to the same land use regulations as conventional homes. Government Code Section 65852.7 deems mobile home parks to be a permitted use in all areas planned and zoned for residential use. The City of Newark permits manufactured and factory-built housing in designated residential zoning districts. Because of the high cost of land, manufactured housing is not commonly placed on private property, except perhaps as caretaker residences within industrial districts. There are currently no mobile home parks or manufactured housing in Newark. Pursuant to State law, any site that can be developed for site-built residential development is also available for the development of factory-built (manufactured) housing or for mobile homes. There are no specific restrictions upon the development of manufactured housing or mobile home parks within the Newark Municipal Code or General Plan.

Housing for Farmworkers
The provisions of Section 17020 (et seq.) of the California Health and Safety Code relating to employee housing and labor camps supersede any ordinance or regulations enacted by local governments. Such housing is allowed in all jurisdictions in California pursuant to the regulations set forth in Section 17020. Section 17021.5(b) states, for example:
“Any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure with a residential land use designation for the purposes of this section. For the purpose of all local ordinances, employee housing shall not be included within the definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. No conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing that serves six or fewer employees that is not required of a family dwelling of the same type in the same zone.”
Section 17021.6, concerning farmworker housing, states that:
“No conditional use permit, zoning variance, or other zoning clearance shall be required of this employee housing [consisting of no more than 36 beds in a group quarters or 12 units] that is not required of any other agricultural activity in the same zone.” HOUSING CONSTRAINTS 162

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Emergency Shelters, Transitional Housing, and Supportive Housing Emergency Shelters
The California Health and Safety Code (Section 50801[e]) defines an emergency shelter as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.”
Pursuant to State housing law (California Government Code Sections 65582, 65583, and 65589.5), jurisdictions must identify at least one zone where emergency shelters are allowed as a permitted use without a conditional use permit or other discretionary permit. The identified zone must have sufficient capacity to accommodate the shelter need, and at a minimum provide capacity for at least one year-round shelter. Permit processing, development standards, and management standards for emergency shelters must be objective and facilitate the development of, or conversion to, emergency shelters. Emergency shelters “may only be subject to those development and management standards that apply to residential or commercial development within the same zone” along with a list of exceptions that may be made.

Assembly Bill 139, passed in 2019, revised State housing element law by requiring that emergency shelters only be required to provide sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.

Emergency shelters are permitted by right in the Residential High Density, Public Facility, Transit Station, and Park zones and with a Minor Use Permit in the Residential Medium Density zone.

In Newark emergency shelters are subject to the following development standards:
● Location. Emergency shelters shall be located at least three hundred feet from another emergency shelter.
● Number of Residents. No more than fifty clients may be present on the premises at any one time.
● Length of Occupancy. Occupancy by an individual or family may not exceed sixty days.

Extensions up to a total stay of one hundred eighty days may be provided if no alternative housing is available, upon determination by the director. ● Common Area. The shelter shall provide at least ten square feet per bed of public or communal gathering space, exclusive of hallways.
● Parking Reduction. The director may reduce the number of on-site parking spaces required by Section 17.23.040, Required Parking Spaces, where a shelter is located on a bus route, or other evidence is provided to indicate that less parking will be needed. The shelter shall, however, provide at least one space for each staff member who will be on duty when residents are present, and at least one space for residents. ● Lighting and Illumination. The shelter shall provide outdoor lighting sufficient to provide illumination and clear visibility to all outdoor areas, with minimal shadows or light leaving HOUSING CONSTRAINTS 163

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the property. The lighting shall be stationary, directed away from adjacent properties and public rights-of-way, and of intensity compatible with the neighborhood. ● Outdoor Activities. All functions associated with the shelter, except for children's play areas, outdoor recreation areas, and parking shall take place within the building proposed to house the shelter. There shall be no space for clients to congregate in front of the building, and there shall be no outdoor public telephones. ● Designated Smoking Area. The shelter shall provide a designated smoking area, preferably outside, that is not visible from public rights-of-way. ● Noise. The use shall be conducted in conformance with the noise standards set forth for multifamily housing in the noise element of the general plan. ● Supervision. On-site management shall be provided any time that clients are present at the shelter.
● Management and Security Plan. The operator of the shelter shall submit a management and security plan for approval by the director. The plan shall address issues identified by the director, including emergencies, transportation, client supervision, security, client services, staffing, and good neighbor issues.

Newark’s standards for emergency shelter facilities comply with the allowances made for standards set forth under Government Code Section 65583(a)(4)(A). The shelter size of 50 beds provides sufficient space for the identified need and flexibility for parking requirements show that the current zoning is not a constraint for development.

Zoning for Emergency Shelters
As described in Chapter 2, Needs Assessment, the 2022 point-in-time count identified 32 unsheltered homeless individuals in Newark, a reduction from the 2019 estimate of 89 people. As described above, emergency shelters are permitted by right in the Residential High Density, Public Facility, Transit Station, and Park zones. In Newark, there are many parcels owned by the City that are zoned as Public Facility and Park and one site that is zoned as Residential High Density.

Collectively, the sites in these zones could be developed with shelter beds needed to accommodate the 2022 demand and reported in the 2022 Point In Time count. Below are some of the sites that could be developed with an emergency shelter.

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Table 4-4: Potential Sites for Emergency Shelters in Newark, 2022 APN Description
Total
Acreage
Estimated
developable
Acreage
92A-1045-13-11 Civic Center Park 5 acres 3.1 acres
92A-1036-11-1 Civic Center, Old Library Site 5.1 acres 0.75 acres 92-150-12-3;
92-150-15-1
Ash Street Park, Senior Center and adjacent site 1.4 acres 1.1 acres 92-148-14-1 Ash Street Park, Former Head Start Site 0.69 acres 0.5 acres Total 12.19
acres

5.45 acres
Source: City of Newark, 2023
In 2023, Newark initiated a facilities master plan effort to assess all city-owned buildings, including the buildings listed in Table 4-4. The facilities master plan will provide an assessment of each building and the costs to either maintain, improve, or replace each building. Existing and new uses will be considered as part of this effort. The master plan is expected to be completed in 2024.

All of the sites identified in Table 4-4 are centrally located, close to bus routes, community centers and other services that support those experiencing homelessness with access to food and community organizations providing supportive resources.

None of these sites have existing structures intended to be used as shelters. Any shelters to be constructed on these sites will be appropriate for human habitability, consistent with the Minimum Habitability Standards for Shelter and Housing Policy published by HCD’s Emergency Solutions Grant Program.

Transitional and Supportive Housing
Transitional housing is designed to assist homeless individuals and families in moving beyond emergency shelter and into permanent housing by helping people develop independent living skills through the provision of supportive services. Permanent supportive housing is housing that is linked to services that assist residents in maintaining housing, improving health, and maximizing ability to live and work in the community.

Pursuant to Government Code Section 65583 and Section 65651, transitional and supportive housing types are required to be treated as residential uses and subject only to those restrictions that apply to other residential uses of the same type in the same zone. Furthermore, per recent changes in State law (AB 2162), the City must also allow 100 percent affordable projects by right where multi-family and mixed-use development is permitted if the project includes 25 percent, or 12 units of, supportive housing.

The Zoning Ordinance allows supportive and transitional housing in all residential districts and in HOUSING CONSTRAINTS 165

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all zones that allow multifamily and mixed-use development including nonresidential zones, per Government Code Sections 65583 and 65650. No additional parking is required beyond what is required for the residential housing type. While parking requirements can be a constraint, program H3.5 Parking Standards Update will address parking to encourage housing development.

Employee Housing
Consistent with Health and Safety Code Sections 17021.5 and 17021.6, employee housing is permitted by right in every residential zone, including single family zones.

Low Barrier Navigation Centers
Assembly Bill 101, passed in 2019, requires that a low barrier navigation center be a use permitted by right in mixed-use zones and nonresidential zones permitting multifamily uses if it meets specified requirements. AB 101 defines “low barrier navigation center” as a housing first, lowbarrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.

For a navigation center to be considered “low barrier”, its operation should incorporate best practices to reduce barriers to entry, which may include, but is not limited to, the following:
● Permitting the presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth ● Pets
● Ability to store possessions
● Providing privacy, such as private rooms or partitions around beds in a dormitory setting or in larger rooms with multiple beds
Accessory Dwelling Units
An accessory dwelling unit (ADU) is an additional self-contained living unit, either attached to or detached from the primary residential unit on a single lot, also referred to as a secondary dwelling unit. The unit is required to include cooking, sleeping, full sanitation facilities, and separate, exterior entrance. ADUs are an important source of affordable housing since they can be constructed relatively cheaply and have no associated land costs. They can also provide supplemental income to the homeowner, allowing them to remain in their homes or moderate-income families to afford houses.

Recognizing that ADUs are part of the solution for addressing the statewide affordable housing shortage, California lawmakers have passed several bills in recent years to facilitate the development of ADUs. To encourage establishment of ADUs, State law requires cities and counties to either adopt an ordinance based on standards set out in the law authorizing ADUs in residentially-zoned areas, or where no ordinance has been adopted, to allow ADUs on lots zoned for single family or multifamily use that contain an existing single-family unit subject to ministerial approval (“by right”) if they meet standards set out by law.

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In Newark, ADUs are permitted within all single family, multifamily, and mixed-use residential districts. JADUs are a specific type of ADU that is no more than 500 square feet and built entirely within an existing single-unit or duplex dwelling residence. ADUs and JADUs are subject to the following criteria:
● On lots with an existing or proposed single-family dwelling, one ADU and up to one JADU is allowed per parcel. An ADU can be either attached or detached to the primary residence but JADUs must be constructed entirely within the walls of an existing primary residence. ● ADUs may be allowed within existing portions of a multifamily or mixed-use development that are not used as livable space. At least one attached ADU or up to two detached ADUs may be provided per lot.
● ADUs must be between 150 and 1,000 square feet in floor area. Each unit shall, at minimum, include a full bathroom including shower and/or bathtub, a sleeping area, permanent cooking facilities, and a separate, exterior entrance. ● The total lot coverage for all buildings shall not exceed the allowable lot coverage for the zoning district except that such a ratio shall not prohibit an 800 square foot ADU meeting the maximum height and minimum setback requirements.
● ADUs and JADUs may not be sold separately from the primary residence but may be rented separately. ADUs and JADUs may not be used for short-term rentals (less than 30 days).
● For properties with JADUs, the primary residence must be owner-occupied, but the owner may reside in either the JADU or the primary residence. This owner-occupancy requirement does not apply to primary residences owned by a public agency, land trust, or non-profit housing organization.
● Studio ADUs shall not be required to provide parking. Any number of bedrooms require one parking space with limited exceptions such as within a half mile of public transit. When an existing garage, carport or covered parking structure is demolished in conjunction with the construction of an ADU or converted into an ADU, the parking spaces shall not be required to be replaced.
● The ADU must meet specified objective design standards related to building facades and materials, windows and glazing, roof form and detailing, and entryway features. ADUs are prohibited from having exterior stairways or balconies.

The City will comply with state law until the updated existing Accessory Dwelling unit ordinance is in compliance with state law. Newark will make further amendments to the ordinance, as necessary, to remain consistent with State law and reflect local needs. The parking requirement for an ADU with one bedroom or more, can be a constraint on development. Program H2.2 works to develop tools to support uptake of accessory dwelling units production in Newark and make changes in parking requirements, in collaboration with Alameda County.

Single-Room Occupancy Units
Extremely low-income households typically comprise persons with very low incomes and special HOUSING CONSTRAINTS 167

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housing needs, including, but not limited to, seniors, people with disabilities, and at risk of homelessness. AB 2634 (Lieber 2006) requires the quantification and analysis of existing and projected housing needs of extremely low-income households. Housing Elements must also identify zoning to encourage and facilitate supportive housing and single-room occupancy units.

Single-room occupancy (SRO) units can provide affordable private housing for lower-income individuals, seniors, low-income working people,and persons with disabilities. An SRO unit is usually small, between 200 to 350 square feet. These units can also serve as an entry point into the housing market for formerly homeless people. The current Zoning Code provisions for SROs limit the potential for SROs in Newark through the requirement of a conditional use permit. The required parking of 0.5 spaces per unit is not seen as a constraint and is comparable to neighboring jurisdictions. The Housing Element includes a program to define SROs as a separate use, expand the zones where SROs are permitted by right, and ensure development standards, including parking, facilitate the development of SROs. Through community engagement, we heard there is a housing need for housing for small households. Program H2.10 expands the zones where single room occupancy is permitted by right, and prioritizes development along transit routes to support access to employment and other services.

Senate Bill 9 Subdivisions
Senate Bill 9 (SB 9) became effective January 1, 2022. The bill mandates local jurisdictions to ministerially approved two unit developments and urban lot splits within a single-family residential zone, without discretionary review or hearing, if the proposed development meets certain requirements. For SB 9 developments, the City may apply objective zoning, subdivision, and design standards. Include reference to policy for bringing the city in compliance with SB (included in Plan below).

Constraints on Development for People with Disabilities Residential Care Facilities and Other Zoning Provisions for Persons with Disabilities Small Community Care Facilities
Health and Safety Code Sections 1267.8, 1566.3, and 1568.08 require local governments to treat licensed group homes and residential care facilities with six or fewer residents no differently than other by-right single-family housing uses. “Six or fewer persons” does not include the operator, the operator’s family, or persons employed as staff. Local agencies must allow these licensed residential care facilities in any area zoned for residential use and may not require licensed residential care facilities for six or fewer persons to obtain conditional use permits or variances that are not required of other family dwellings. In Newark, these facilities are permitted in all residential zoning districts and the CMU zone.

Large Community Care Facilities
Due to the unique characteristics of large community care facilities (serving more than six HOUSING CONSTRAINTS 168

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persons), most jurisdictions require a use permit to ensure neighborhood compatibility in the siting of these facilities. In Newark, large community care facilities are permitted with a minor use permit in all residential zoning districts.

Currently, unless specifically allowed pursuant to a Use Permit approval, residential care facilities serving seven or more persons shall be located on a lot with frontage on an arterial and at least 300 feet from any other residential care facility, day care center, or large family day care home serving seven or more persons. The Housing Element includes program H4.10, an implementation program to permit community care facilities for more than six persons as a permitted use in all zones where other residential uses are permitted subject to the same requirements of other residential uses of the same type in the same zone.

Reasonable Accommodation
State and Federal laws prohibit housing discrimination against persons with disabilities in land use practices and decisions, such as applying special requirements that limit the ability of disabled individuals to live in the residence of their choice. Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford persons with disabilities an equal opportunity to use and enjoy a dwelling. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Ordinance to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.

The City adopted an ordinance in 2016 establishing the process for allowing flexibility within the zoning code for reasonable accommodation of access for the disabled.

The ordinance includes:
● Clear rules, policies, and procedures to promote equal access to housing and comply with fair housing and disability laws including but not limited to identifying who may request a reasonable accommodation (i.e., persons with disabilities, family members, landlords, etc.) timeframes for decision-making, and provisions for flexibility in the various land-use, zoning, or building regulations that may otherwise constrain housing for persons with disabilities. Chapter 17.37 of the City’s Zoning Ordinance outlines the process for requesting a waiver to any zoning regulation to allow improvements to an existing building in order to provide reasonable accommodations for persons with disabilities. ● Regularly monitoring the implementation of the jurisdiction’s ordinances, codes, policies, and procedures to ensure they comply with the “reasonable accommodation” for disabled provisions and fair housing laws.
● Reduced parking requirements for projects serving seniors and persons with disabilities (The Zoning Ordinance was revised in 2018 reducing parking requirements to 0.5 spaces per unit, inclusive of guest parking).

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The applicable findings for reasonable accommodation requests are provided in NMC 17.37 (Waivers):

A. The waiver is necessary due to the physical characteristics of the property and the proposed use or structure or other circumstances, including, but not limited to, topography, noise exposure, irregular property boundaries, or other unusual circumstance.

B. There are no alternatives to the requested waiver that could provide an equivalent level of benefit to the applicant with less potential detriment to surrounding owners and occupants or to the general public.

C. The granting of the requested waiver would not be detrimental to the health or safety of the public or the occupants of the property or result in a change in land use or density that would be inconsistent with the requirements of this title.

D. If the waiver requested is to provide reasonable accommodation pursuant to state or federal law, in addition to any other findings that this chapter requires, the decision-maker must also make the following findings:
a. That the housing or other property which is the subject of the request for reasonable accommodation will be used by an individual or organization entitled to protection;
b. If the request for accommodation is to provide fair access to housing, that the request for accommodation is necessary to make specific housing available to an individual protected under state or federal law;
c. That the conditions imposed, if any, are necessary to further a compelling public interest and represent the least restrictive means of furthering that interest; and d. That denial of the requested minor exception or waiver would impose a substantial burden on religious exercise or would conflict with any state or federal statute requiring reasonable accommodation to provide access to housing.

Overall, the findings are not atypical for California jurisdictions that impose findings for reasonable accommodation projects and are generally consistent with State law.

Definition of Family
There are a number of State and Federal rules that govern the definition of family, including the Federal Fair Housing Amendments Act of 1988, the California Fair Housing and Employment Act, the California Supreme Court case City of Santa Barbara v. Adamson (1980), and the California Constitution privacy clauses. The laws for families have a few primary purposes: to protect people with disabilities, to protect non-traditional families, and to protect privacy. According to HCD and Mental Housing Advocacy Services there are three major points to consider when writing a definition of family:
● Jurisdictions may not distinguish between related and unrelated individuals. ● The definition may not impose a numerical limit on the number of persons in a family. ● Land use restrictions for licensed group homes for six or fewer individuals must be the same as those for single families.

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The Newark Municipal Code defines “Family” as follows:
“One or more persons living together in a single dwelling unit, with common access to, and common use of, all living and eating areas and all areas and facilities for the preparation and storage of food; who share living expenses, including rent or mortgage payments, food costs and utilities, and who maintain a single mortgage, lease, or rental agreement for all members of the household.”
This definition is consistent with the best practices for a definition of “Family” and does not add any new government constraints.

Site Development Review
Government policies and ordinances regulating development affect the availability and cost of new housing. Land use controls have the greatest direct impact, but development approval procedures, permit fees, building code requirements, and the permit processing time can affect housing costs as well. This section addresses the relationship of development fees, processes, and standards to the production of housing.

Figure 4-1: Development Review Process
The development review process illustrated above is generally consistent across the city’s zone districts and planning application types. The municipal code provides the “Level of Review Authority” for various application types:

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Table 4-5: Level of Review Authority, Selected Decision Types Type of Decision Advisory Body Decision Maker Appeal Body Minor Use Permit N/A Community
Development Director
Planning
Commission
Conditional Use Permit Community
Development Director
Planning Commission City Council
Variance Community
Development Director
Planning Commission City Council
Amendments Planning Commission City Council Superior Court Planned Development
Districts
Planning Commission City Council Superior Court
Design Review N/A Community
Development Director
or Planning Commission
Planning
Commission or City
Council
Discretionary Findings and Criteria
As provided in the municipal code, planning applications for city review and decisions that are not “ministerial” (such as building permits) include findings for approval that must be made in the affirmative in order for the Decision Maker to approve a project. The following are the applicable findings and criteria for discretionary applications in Newark:

Minor Use Permit for a Temporary Use (NMC 17.26.260):

A. The proposed use will not unreasonably affect adjacent properties, their owners and occupants, or the surrounding neighborhood, and will not in any other way constitute a nuisance or be detrimental to the health, safety, peace, comfort, or general welfare of persons residing or working in the area of such use or to the general welfare of the city; and
B. The proposed use will not unreasonably interfere with pedestrian or vehicular traffic or circulation in the area surrounding the proposed use, and will not create a demand for additional parking that cannot be safely and efficiently accommodated by existing parking areas.

Conditional Use Permit (NMC 17.35.060):

A. The proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of this title and all other titles of the Municipal Code; B. The proposed use is consistent with the general plan and any applicable specific plan; C. The proposed use will not be adverse to the public health, safety, or general welfare of the community, nor detrimental to surrounding properties or improvements; D. Tax revenue generated by the development will exceed the city's cost of the service HOUSING CONSTRAINTS 172

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demand as a result of the development or a compelling community benefit will be provided.

E. The proposed use complies with any design or development standards applicable to the zoning district or the use in question unless waived or modified pursuant to the provisions of this title;
F. The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and reasonably foreseeable future land uses in the vicinity; and
G. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints.

Variance (NMC 17.36.040):

A. There are exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the vicinity and identical zoning district, and that the granting of a variance will not constitute a granting of a special privilege inconsistent with the limitations on the property in the vicinity and identical zone district;
B. The granting of the application is necessary to prevent a physical hardship which is not of the applicant's own actions or the actions of a predecessor in interest; C. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare or convenience; and
D. The granting of the variance will be consistent with the general purposes and objectives of this title, any applicable specific plans, and of the general plan.

Amendments (Zoning Map and Text, NMC 17.39.080):

A. The amendment is consistent with the general plan;
B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district; and
C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.

Planned Development Districts (NMC 17.12.060):

A. The proposed development is consistent with the general plan and any applicable specific plan, including the density and intensity limitations that apply; B. Adequate transportation facilities and public services exist or will be provided in accord with the conditions of development plan approval, to serve the proposed development; and the approval of the proposed development will not result in a reduction of traffic levels of service or public services so as to be a detriment to public health, safety, or welfare; C. The proposed development will not have a substantial adverse effect on surrounding land uses and will be compatible with the existing and planned land use character of the surrounding area;
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D. The development generally complies with applicable adopted design guidelines; and E. The proposed development is demonstratively superior to the development that could occur under the standards applicable to the underlying base district, and will achieve superior community design, environmental preservation and/or substantial public benefit.

Design Review (NMC 17.34.060):

A. The overall design of the project including its scale, massing, site plan, exterior design, and landscaping will enhance the appearance and features of the project site and surrounding natural and built environment.

B. The project design is appropriate to the function of the project and will provide an attractive and comfortable environment for occupants, visitors, and the general community.

C. Project details, materials, signage and landscaping, are internally consistent, fully integrated with one another, and used in a manner that is visually consistent with the proposed architectural design.

D. The design of streetscapes, including street trees, lighting, and pedestrian furniture, is consistent with the intended character of the area.

E. Parking areas are designed and developed to buffer surrounding land uses; compliment pedestrian-oriented development; enhance the environmental quality of the site, including minimizing stormwater run-off and the heat-island effect; and achieve a safe, efficient, and harmonious development.

F. Lighting and lighting fixtures are designed to complement buildings, be of appropriate scale, provide adequate light over walkways and parking areas to create a sense of pedestrian safety, and avoid creating glare.

G. Landscaping is designed to be compatible with and enhance the architectural character and features of the buildings on site, and help relate the building to the surrounding landscape.

Overall, the findings provided above are not atypical for California jurisdictions that impose findings and criteria for discretionary projects and are generally consistent with State law.

Conditional Use Permit Finding D, “Tax revenue generated by the development will exceed the city's cost of the service demand as a result of the development or a compelling community benefit will be provided.” is somewhat unique in that the city seeks to offset city costs associated with new commercial uses with increased tax revenue. This finding is typically applicable to projects and new uses that are not subject to Development Impact Fees. This does not generally apply to new residential projects, in that Housing Impact Fees or construction of new affordable units offset the costs associated with this development.

As described below, the city is undertaking an effort to create objective design standards that provide certainty and clarity in terms of design review, and that would be consistent with State laws and requirements that limit a jurisdictions ability to enforce design standards that may be interpreted as discretionary.

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Objective Design Standards
The City currently relies on a combination of objective and subjective design standards and guidelines to review and regulate the design of most housing projects. However, the State of California continues to enact new laws that require streamlined housing approval by establishing a by-right, ministerial approval process for multifamily residential development. Key to ministerial approval is the replacement of subjective design guidelines with objective standards.

The intent of Objective Design Standards is to provide applicants and developers with a clear understanding of the City’s expectations for mixed-use and multi-family residential project design.

Objective design standards are written as requirements, rather than guidelines; therefore, all mixed- use and multi-family residential projects applying under Housing Accountability Act (HAA) protections shall comply with each standard. Importantly, objective design standards regulate site and structure design only. Projects must also comply with all applicable building permit requirements, zoning code requirements, and development standards such as height, setbacks, lot coverage, etc.

To accommodate the requirements of State law, the City is developing a thorough set of objective design standards to govern the development of multi-family housing, including certain mixed-use projects. The City anticipates adoption of the new Objective Design Standards in 2025 per Program H3.2.

The objective design review standards supplement the objective development standards (e.g. height limit, lot coverage, setback, etc.) defined in each zoning district. In combination, the two sets of standards (design and development) provide for a streamlined and efficient project review process by ensuring that applicants know and understand the city’s requirements and ensuring that the project review and approval process is objective, efficient, and consistent.

Permit Processing Times
The minimum amount of time for processing permits is established by requirements for environmental review, public notice, and by the meetings of the Planning Commission and City Council. While there is little room for processing permits any faster than the City already does, the current practice of automatic review of some Planning Commission permit decisions by the City Council does add several weeks to the total permit processing time. Ultimately, the maximum amount of time for processing residential development permits is set by State law (California Government Code 65920 et. seq.). Some of the average times have increased due to infill complexity and extra notification of State requirements.

Table 4-6 summarizes the average time required to process development permits. The processing time needed to obtain development permits and required approvals varies depending on the scope of the project. Smaller projects typically require less time than larger projects. The City strives to keep its permit procedures streamlined and processing times minimal.

The amount of time between the completion of the review and the issuance of a Building Permit is HOUSING CONSTRAINTS 175

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determined by the speed at which the applicant is able to make any necessary corrections to the Construction Drawings and resubmit for approval and Building Permit.

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Table 4-6: Average Permit Processing Time, Newark, 2022 Permit Process Decision Type Level of Review Permit Types Timeframe Accessory Dwelling
Unit Process
Ministerial
(by-right)
Discretionary
Staff
Staff
Building permits for projects that comply with applicable building, zoning, and development regulations
Single Family Design Review permits for projects involving a second story addition for an ADU that is taller than 16 feet
1 to 3 months
2 to 5 months
Ministerial By-Right Ministerial
(by-right)
Staff Building permits for projects that comply with applicable building, zoning, and development regulations; parcel maps; and lot line adjustments
2 to 5 months
Discretionary
By-Right
Discretionary Staff Includes design review permits, minor use permits, and sign permits 3 to 5 months Discretionary
(Hearing officer if
Applicable)
Discretionary Hearing officer Includes variances, certain site development permits, and certain conditional use permits. Site development permits are required when development is proposed on Environmentally Sensitive Lands and for large multifamily developments on consolidated lots. Conditional use permits are required when development is proposed that is subject to supplemental conditions identified in the Municipal Code 4 to 9 months
Discretionary
(Planning
Commission)
Discretionary Planning
Commission
Includes certain minor use permits, conditional use permits, variances, and certain design review permits
6 to 9 months
Discretionary (City
Council)
Discretionary Planning
Commission
Recommendation
and City Council
approval
Includes tentative maps, condominium conversion maps, easement vacations, public right-of-way vacations, rezoning, land use plan and specific plan amendments, and planned development permits. Planned development permits are not required for residential development but are an option for large residential developments to allow greater flexibility than standard zoning.
9 to 18
months
Source: City of Newark, 2022
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Senate Bill 35
Senate Bill (SB) 35, passed in 2017, requires jurisdictions that have not approved enough housing units to meet their RHNA to provide a streamlined, ministerial entitlement process for housing developments that incorporate affordable housing. In order for applicants to take advantage of SB 35, per Government Code Section 65913.4 (10)(b)(1)(a)(et seq.) they need to submit a Notice of Intent and jurisdictions need to give Native American tribes an opportunity for consultation.

The City processes SB 35 applications consistent with Senate Bill 35. The City will also establish a written policy or procedure and other guidance as appropriate to specify the Senate Bill (SB) 35 streamlining approval process and standards for eligible projects, as set forth under California Government Code Section 65913.4. The City has included Program H3.1 to prepare and publish administrative procedures for the processing of housing developments eligible for streamlined review pursuant to SB 35.

Senate Bill 330
Senate Bill 330 (SB 330), Housing Crisis Act of 2019, prohibits cities and counties from enacting a development policy, standard, or condition that would impose or enforce design standards that are not objective design standards on or after January 1, 2020 [Government Code Section 663300 (b)(C)]. The bill also established specific requirements and limitations on development application procedures.

The City of Newark permitting process is consistent with Senate Bill 330, the Housing Crisis Act of 2019. Consistent with SB 330, housing developments for which a preliminary application is submitted that complies with applicable General Plan and zoning standards are subject only to the development standards and fees that were applicable at the time of submittal. This applies to all projects unless the project square footage or unit count changes by more than 20 percent after the preliminary application is submitted.

Submittal of a SB 330 preliminary application allows a developer to provide a specific subset of information on the proposed housing development before providing the full amount of information required by the local government for a housing development application. Submittal of the preliminary application secures the applicable development standards and fees adopted at that time. The project is considered vested, and all fees and standards are frozen, unless the project changes substantially. The City has an SB 330 preliminary application form.

Permit Fees and Exactions
Housing construction imposes short- and long-term costs on communities. Short-term costs include the cost of providing planning services and inspections. New residential developments can also result in significant long-term costs relating to the maintenance and improvement of infrastructure, facilities, parks, and streets. To offset these community costs, jurisdictions collect various fees from developers.

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This model is comparable to surrounding jurisdictions, such as Fremont, Union City, Hayward. Fees depend on the complexity of the project. Example of fees. Table 4-7 shows planning fees commonly required for development based on level of review. Newark’s planning fees are comparable to surrounding jurisdictions and do not present a constraint to the construction of housing.

Table 4-7: Permit Fees, Newark, Fiscal Year 2022-2023
Planning Fee Schedule
Application Type Fee/ Cost
Preliminary Review
Preliminary Review $800 per review, first and second
reviews; $900 for subsequent reviews
Preliminary Review for new single-family unit or second story addition to single-family unit, and administrative use permits No fee.

Site Development Review
Administrative Site Development Review a. Small Residential Projects (e.g. single detached accessory structure or balcony) $100
Large Residential Projects (e.g. second-story additions, multiple accessory structures)
$1,500
Commercial/Industrial Projects $1,500
Use Permit
Minor Use Permit $100
Conditional Use Permit, Residential $2,600
Subdivision
Tentative Parcel Map $2,000 + $60 per lot
Tentative Tract Map (including condominiums) $3,500 + $75 per lot Variance
Variance, Residential $1,400
Amendments
Zoning Text Amendment $4,300
Zoning Map Amendment $4,300
General Plan Amendment $,300
Specific Plan Amendment $4,300
Extensions
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Planning Fee Schedule
Application Type Fee/ Cost
Discretionary Permits/Variances $800
Environmental Review
CEQA Exemption $400
Negative Declaration, (ND) $1,800
Negative Declaration, Mitigated (MND) $1,800
Environmental Impact Report (EIR) Deposit
Other
Planned Unit Development $3,200
Source: City of Newark, 2023
Development Impact Fees
The City also collects impact fees to cover the costs of providing the necessary services and infrastructure related to new development projects. Since the passage of Proposition 13 in 1978, local governments in California have come to rely increasingly on impact and connection fees to finance infrastructure. Newark charges several fees on residential development at the building permit stage, as shown in Table 4-7. The estimated City development impact fees for a single family four-bedroom, two-bathroom house of 2,600 square feet are approximately $77,629.

There are significant cost savings for multifamily residential development, as development impact fees are estimated at $36,724 per unit of a hypothetical 10-unit multi-family development (averaging 850 square feet per unit), and $35,052 per unit of a 100-unit multi-family development (averaging 750 square feet per unit).

Table 4-8: Residential Development Impact Fees, Newark, Fiscal Year 2022-2023 Fee Cost
Estimated Fees
Single Family
Unit
Small Multi-Family
(per unit)
Large Multi-Family
(per unit)
Citywide Development Fees (Community Development Department) Parks $28,185 $20,293 $20,293
Public Safety $3,891 $2,335 $2,335
Community
Service/Facilities
$2,606 $1,303 $1,303
Transportation $5,607 $3,476 $3,476
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Fee Cost
Estimated Fees
Single Family
Unit
Small Multi-Family
(per unit)
Large Multi-Family
(per unit)
Housing $37,070 $9,047 $7,375
Artin Public Spaces $270 $270 $270
Source: City of Newark, 2022
Total Estimated Fees
Newark recently prepared estimates of total fees of example projects to assess total estimated fees (Planning, Building, and Impact fees). The example projects include development of one single-family residence, a small multi-family project of 10-units on one building and a 100-unit project on two acres of land. The result of the estimates are:
● Single Family: $124,246
● Multi-family large: $4,344,915 for a 100-unit project on two acres, or $43,449 per unit ● Multi-family small: $604,453 for a 10-unit project in one building, or $60,445.35 per unit The estimate indicates that it is significantly less expensive in terms of city fees for multifamily development as compared to single-family development.

When the City implements Program H2.1, H2.8, H2.10 and H4.10, the City will ensure that fees for Missing Middle and SRO housing types will be set at levels in line with current permit and impact fees for multifamily.

City fees associated with development and described above are easily accessible on the city’s website: www.newark.org.

Available Infrastructure
With all sites identified for planned housing development already served by utilities, and requirements in place for infrastructure improvements for all new development, infrastructure does not pose a constraint on development of those sites within the eight-year planning period.

On- and Off-Site Improvements
The City requires certain public improvements for residential subdivisions. In 1977 the City adopted these standards to ensure that minimum levels of design and construction quality are maintained and adequate levels of street and facility improvements are provided.

Title 16.16 of the Municipal Code describes the public improvements that must be agreed to prior to acceptance and approval of the final subdivision map, as follows:
● Grading and surfacing of all streets, public ways and bicycle paths within the subdivision HOUSING CONSTRAINTS 181

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that lie between the boundary of the subdivision and the centerline of proposed or existing streets, public ways, and bicycle paths fronting, backing or siding to the subdivision; ● Providing such domestic water supply and fire hydrants as may be necessary for fire protection and protection of the public health;
● Providing such storm drain and flood control works as necessary for the public convenience and safety;
● Providing a sanitary sewer system and connection to an existing sewage disposal system; ● Constructing curb, gutter, sidewalk, tie-in paving, and replacement of inadequate existing pavement on streets where the subdivision adjoins existing streets; ● Constructing other structures necessary to the use of streets, highways, bicycle paths, public ways and the drainage thereof;
● Providing for street name signs and their installation; ● Providing for the cost of street trees and their planting and one-year maintenance on streets, bicycle paths and public ways;
● Providing underground utilities as follows:
○ All existing overhead utility distribution facilities (including but not limited to electric, communication, and cable television lines) within the subdivision that lie between the boundary of the subdivision and the centerline of proposed or existing streets fronting, backing or siding the subdivision shall be undergrounded, ○ All on-site and off-site utility distribution facilities (including but not limited to electric, communication, and cable television lines) to be installed shall be placed underground, except as follows: Equipment appurtenant to underground facilities such as surface-mounted transformers, pedestal-mounted terminal boxes and meter cabinets, and concealed ducts; Metal poles supporting street lights. ○ The city council may grant variances for the provision of underground utilities in certain circumstances.
● Providing street light facilities on all streets, paths, and other pedestrian or vehicular ways proposed for development. The subdivider shall make all necessary arrangements with the utility company and pay all costs for providing underground service; ● Construction of the improvement across any storm drain channel, Hetch-Hetchy right-of-way or other public facility adjacent to the subdivision.

The City’s on- and off-site development standards have been in place since 1977, and do not represent a constraint to the development of housing. In addition to public improvement standards, the Municipal Code has specific standards for residential streets and parking as described below.

Residential Streets
The City of Newark Subdivision Ordinance Chapter 12.04 requires standard improvements for streets. These requirements were originally adopted in 1963. Depending on the type of project, it enforces standard improvements including street paving, curbs, gutters, and sidewalks. All required improvements must be constructed and installed in accordance with City specifications and design. As a primarily built-out community, most new development in the city does not require HOUSING CONSTRAINTS 182

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building out new streets. These requirements are similar to other jurisdictions and do not represent a constraint to the development of housing.

The City has not received feedback to date that offsite requirements in Newark, whether imposed by the City or other agencies/utilities, are extraordinary or onerous. As an example, the off-site improvements for Site 7 (Timber Senior Housing) include approximately $2 million for paving, concrete work, signage, landscaping, irrigation, furnishings,and planters. Off-site dry and wet utility costs are approximately $1 million. These costs represent approximately 4% of the total project cost of almost $70 million (not including land acquisition).

Water and Wastewater
Housing Element housing opportunity sites listed in this Housing Element (see Appendix C) are already served by utilities, with existing infrastructure in place. The Alameda County Water District (ACWD) and the Union Sanitary District (USD) are the sole providers of potable and reclaimed water, and wastewater conveyance and treatment, in Newark. ACWD and USD has current and planned capacity to accommodate the RHNA for water and wastewater. ACWD and USD have provided water assessments for a number of the sites and has determined that adequate water supplies exist to accommodate Newark’s current and projected water needs, including the RHNA. Solid waste, recycling, and organics collection are managed through a franchise agreement with Republic Services.

To minimize infiltration of ground water into the sewer system and provide modern, efficient utilities and services, new development proposals in Newark typically replace or upgrade the on-site sewer, storm drain, and water lines following the guidance and requirements of ACWD and USD. Each project is evaluated on a case-by-case basis to determine the extent of replacements and upgrades. Therefore it is difficult to assess a water and wastewater replacement/upgrade cost factor across the city. However, as mentioned earlier, housing element sites are located in areas already served by water and wastewater utilities, so the installation of new service lines is typically not a cost factor.

Priority for Water and Sewer
Per Chapter 727, Statues of 2004 (SB 1087), upon completion of an amended or adopted Housing Element, a local government is responsible for immediately distributing a copy of the element to area water and sewer providers. In addition, water and sewer providers must grant priority for service allocations to proposed developments that include housing units affordable to lower-income households. Chapter 727 was enacted to improve the effectiveness of the law in facilitating housing development for lower-income families and workers.

To comply with SB 1087, upon adoption, the City of Newark will immediately forward its adopted Housing Element to ACWD and USD its water and wastewater providers to grant priority for service allocations to proposed developments that include units affordable to lower- income households.

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Available Dry Utilities
Dry utilities, including electricity and telephone service, are available to all areas within the City.

Pacific Gas & Electric (PG&E) serves Newark for electrical service. Newark customers may also consider East Bay Community Energy (EBCE) for electrical service. In 2018, the County of Alameda and 11 of its cities launched EBCE as a not-for-profit public agency that governs this Community Choice Energy service. The Joint Power Agency expanded in 2021. The cities currently served are: Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Oakland, Piedmont, Pleasanton, San Leandro, Tracy, and Union City. EBCE offers a competitive, reliable energy service provider alternative to the Newark community. Similar to the discussion above, new development proposals in Newark are generally required to typically replace or upgrade the electrical service following the guidance and requirements of PG&E. Each project is evaluated on a case-by-case basis to determine the extent of replacements and upgrades.

Newark City CouncilMay 14, 2026

Newark City Council
May 14, 2026