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Additionally, for the City Council's consideration is a resolution to override the Airport Land Use Commission's September 16, 2021, determination that the proposed draft Housing Element update is inconsistent with the 2008 John Wayne Airport Environs Land Use Plan, in accordance with the October 12, 2021, adopted Notice of Intent to Override.
RECOMMENDATION:
a) Conduct a public hearing;
b) Find these activities exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, because they have no potential to have a significant effect on the environment; RX
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
c) Adopt Resolution No. 2022-13, A Resolution of the City Council of the City of Newport Beach, California, Finding the Newport Beach General Plan 6th Cycle Housing Element Update for the 2021-2029 Period Consistent with the Purposes of the State Aeronautics Act and Overriding the Orange County Land Use Commission's Determination that it is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (PA2017-141); and
d) Adopt Resolution No. 2022-14, A Resolution of the City Council of the City of Newport Beach, California, Adopting the 6th Cycle Draft Housing Element for the 2021-2029 Period as General Plan Amendment No. GP2021-005 (PA2017-141).
DISCUSSION:
For over three years, City of Newport Beach (City) staff has worked alongside the initial General Plan Update Steering Committee (GPUSC) with the Listen and Learn community outreach program, the Housing Element Update Advisory Committee (HEUAC), the consultant team, the community, Planning Commission, and the City Council to prepare a draft General Plan Housing Element update.
It should be noted that the City's community outreach efforts shifted focus towards preparation of the 6t" Cycle Housing Element early on in Fall of 2019, with the City Council subsequently providing formal direction through the Housing Action Plan in early 2020. To provide ample opportunities for community participation, the City implemented an ongoing, robust outreach and engagement effort specifically related to housing. To ensure the involvement of as much of the community and interested parties as possible, and to comply with Government Code Section 65583(c)(9), City staff worked closely with an outreach consultant and advertised participation opportunities using: flyers, utility bill inserts, eNotifications, social media, Council announcements, City website updates, the Newport Together webpage, nongovernmental organization newsletter inserts such as The Kennedy Commission, as well as printed and online newspapers. These advertised participation opportunities included 13 community workshops, 12 GPUSC meetings, 14 HEUAC meetings, two Planning Commission meetings, and seven City Council meetings. A more complete summary of the outreach process is described in detail in Appendix C of the updated Housing Element and includes public comments received. During this time, staff collaborated with the State Department of Housing and Community Development (HCD) to draft a statutorily compliant and certifiable Housing Element.
A concise chronology of recent key dates related to the preparation of the draft Housing Element is included as Attachment C to this staff report.
Housing Element Update Advisory Committee (HEUAC)
To assist in the preparation of the Housing Element, the City Council formed the HEUAC comprised of nine expert real estate professionals. The HEUAC focused its efforts on reviewing and identifying parcels that may be feasible for near-term residential redevelopment in each of the six focus areas. Those focus areas where there is a potential for new housing opportunities are: Coyote Canyon Landfill, Airport Area, Newport Center, Dover -Westcliff, West Newport Mesa, and Banning Ranch.
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Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
Five different subcommittees were formed to review every parcel for feasibility. All parcels identified as "feasible" or "potentially feasible" are included in the housing opportunity sites inventory, unless correspondence was received from the property owner specifically asking for removal. Each subcommittee prepared a memorandum of findings that was placed on an agenda and reviewed with the entire HEAUC and members of the public. More information on the site selection process is included in Appendix B of the updated Housing Element.
Substantial Evidence
Government Code Section 65583.2(g)(2) requires that the Housing Element must demonstrate that existing uses are not an impediment to residential development and that they will likely discontinue during the planning period. To help demonstrate the likelihood of and willingness to pursue residential redevelopment, the City sent out mailers to every property owner of a parcel identified by the HEAUC and, if no response was received, an additional mailer was sent out. The tables throughout Appendix B in the updated Housing Element indicate whether a favorable response was received in the third -from -the -rightmost column.
Draft Housing Element Submittal to HCD
As part of a diligent effort towards compliance with State housing element law, the City submitted an initial draft on August 13, 2021, for HCD's statutory 60 -day preliminary review. On October 12, 2021 (the 60th day), HCD provided written comments to the City on the initial draft, finding it inadequate in several respects and requiring revisions for it to be found in compliance with the statutory requirements. City staff reached out to HCD staff and was able to get further guidance on how to best address some of the comments. On November 17, 2021, the City transmitted to HCD a revised draft including a matrix of HCD's comments and how the City has addressed them, including a page number for where each responsive revision can be found.
On January 14, 2022 (the 58th day), HCD provided additional written comments to the City on the revised draft, once again finding it inadequate in several respects and requiring further revisions. One important comment from HCD was regarding the planned housing opportunities on Banning Ranch. HCD would not accept those planned housing units on Banning Ranch to meet the City's RHNA requirements. On January 25, 2022, at the City Council study session, the City Council directed staff to leave the planned units on Banning Ranch, but to also over plan in the other housing opportunity areas to compensate for the loss of Banning Ranch as a housing opportunity site.
Those Banning Ranch units have been redistributed equally amongst the other planning areas based on their proportional share of RHNA units planned.
Staff and the City's consultant have incorporated additional revisions in response to every comment from both the October 12 and January 14 HCD letters. While the City does not have confirmation from HCD that the revisions will lead to a certified Housing Element, staff and the consultant believe the draft is adequate and meets applicable statues and recommends its adoption. Exhibit 2 of the resolution for adoption (Attachment B of this report) provides a detailed matrix of HCD's comments and how they were addressed in the Housing Element update.
FIN
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
Navigating the Housing Element
The Housing Element is divided into four major sections with four appendices, as outlined below. It includes all necessary information and analysis as required by State law. The complete document, including versions illustrating recent revisions with delved teXt chE)WR OR
strikeout text and added language underlined. The document is viewable online at http://www.newportbeachca.gov/DraftHEUpdate and hardcopies were made available at City Hall.
Section 1: Introduction
Section 2: Community Profile
Section 3: Housing Resources, Constraints and
Affirmatively Further Fair Housing
Section 4: Housing Plan
Appendix A: Review of Past Performance
Appendix B: Adequate Sites Analysis
Appendix C: Community Engagement Summary
Appendix D: Accessory Dwelling Unit Analysis
Policv Actions Summa
While there are many carryover policies from the current, 5t" Cycle Housing Element, there are also newly required updates and changes in policy for compliance with state law and new legal requirements. Most of the updates relate to demonstrating adequate sites to accommodate the 6t" Cycle RHNA allocation and to meet the State's housing goals expressed through Housing Element and related laws. Several of the key policy actions are summarized below and all the actions can be found in Section 4 of the draft.
Policy Actions 1A — 1 G
The draft provides several key focus areas for housing production and indicates those areas will be subject to rezoning for by -right housing development using housing opportunity overlays or similar rezoning strategies. Those focus areas include Airport Area Environs, West Newport Mesa, Dover/Westcliff, Newport Center, Banning Ranch, Coyote Canyon, and remaining 5t" Cycle Housing Element Sites. The unit targets included in each of these draft policy actions are subject to change based upon City Council and community input, but likely will not result in a material change to the policy actions.
Each of the focus areas, except for Banning Ranch, include sites that are not presently designated for housing. However, it should also be noted that units assigned to the Banning Ranch focus area are not being included as part of the City's housing strategy to satisfy the RHNA need. To the extent the City is successful in creating housing opportunities at Banning Ranch, the City would have the option to reduce housing opportunity sites in other areas, provided the unmet RHNA need is fulfilled within the city as a whole.
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
The Airport Area Environs focus area is noteworthy as the inventory includes sites that are within the 65 dBA CNEL noise contour from John Wayne Airport, where the City has not envisioned new housing previously. The proposed sites are not within the more restrictive safety zones established by the Airport Environs Land Use Plan (AELUP). Creating these opportunity sites will require an amendment of the Noise Element and an override of the Airport Land Use Commission (ALUC), since it found the change inconsistent with the AELUP. On October 12, 2021, the City Council voted unanimously to issue a Notice of Intent to Override related to ALUC's September 16, 2021, determination of inconsistency with the AELUP. The City transmitted the notice to the ALUC and the Caltrans Division of Aeronautics.
Policy Actions 1 H — 1 J
In addition, the draft provides policies to encourage the production of accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs). These policies aim to support and incentivize the construction of at least 240 ADUs or JADUs. The programs also include a monitoring program and an amnesty program for existing unpermitted units to become legal. If the community produces more ADUs or JADUs than anticipated over the planning cycle, the City will have the option to reduce housing opportunity sites in other areas, provided the unmet RHNA need is accommodated within the city as a whole.
Policy Action 1 K
An inclusionary housing program is also proposed to require the production of affordable housing for new residential development projects. This policy is seen as imperative to meeting the higher affordability levels based on the 6t" Cycle RHNA allocation assigned by Southern California Association of Governments (SCAG) and includes a base inclusionary requirement of 15 percent of units as affordable. With consultant assistance, City staff is presently evaluating an inclusionary affordable housing program that will be discussed at a future City Council study session, tentatively scheduled for March 8, 2022.
Policy Action IL
This new policy provides for the development of policies, programs and priorities for senior housing. The policy seeks to develop a comprehensive strategy to further opportunities for senior housing in the community through various policy and regulatory approaches to be determined.
Policy Actions 3A — 38, 30 — 3P
3A and 3B are required for compliance with State law. They discuss the creation of objective design standards for projects with affordable housing, as well as streamlining residential projects under Senate Bill SB 35, and limit the City's local review authority under certain conditions. In summary, the City will be creating objective design standards for housing developments and must limit discretionary review of residential projects.
FIN
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
30 and 3P were recently added to address HCD comments. They discuss single - room occupancy (SRO) units and housing for persons with disabilities. 30 was added for the City to encourage and facilitate the development of SRO units. 3P was added and commits the City to review, and amend if necessary, the permitting procedures, application requirements, and development standards applicable to residential care facilities for persons of seven or more.
Policy Action 4A
This new policy is required under Assembly Bill AB 686, which requires the City take steps to affirmatively further fair housing. Affirmatively furthering fair housing intends to combat discrimination by overcoming patterns of segregation and to foster inclusive communities that are free from barriers that restrict access to opportunity based on protected classes.
Policy Action 7A — 7D
In response to recent changes in State law, the City must address supportive housing and low -barrier navigation centers for people who are experiencing homelessness.
These policies include by -right zoning for centers meeting certain criteria, maintaining an inventory of adequate sites for supportive housing facilities, and providing regulatory incentives for housing for persons with developmental disabilities.
Airport Land Use Commission (ALUC) Override
Due to the proposed amendment to the General Plan, California Public Utilities Code (CPUC) Section 21676(b) required the City to refer the Housing Element update to the Orange County Airport Land Use Commission (ALUC) for a determination of consistency with the AELUP for John Wayne Airport. On September 16, 2021, the ALUC voted unanimously (6 ayes, 0 nays), finding the Draft inconsistent with the AELUP.
On October 12, 2021, consistent with CPUC Sections 21670 and 21676, the City Council held a public hearing, made the required findings, and unanimously voted to notify the ALUC and the State Division of Aeronautics of the City's intent to override ALUC's inconsistency finding.
The City received comments from the State Division of Aeronautics on November 24, 2021, and from the ALUC on December 1, 2021, in accordance with CPUC Section 21676. The comment letters are included as Attachment D to this staff report and are incorporated by reference in the resolution (Attachment A). The facts in support of the findings provided in Section 1 adequately address both comment letters.
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
Assembly Bill 1398
On September 28, 2021, very late in the preparation period for housing element updates within the Southern California Association of Governments (SCAG) region, Governor Gavin Newsom signed Assembly Bill 1398 (AB 1398), with an effective date of January 1, 2022. AB 1398 penalizes jurisdictions that are unable to adopt their housing element and have it found in substantial compliance by HCD on or before February 11, 2022, the deadline for the 120 -day grace period. Furthermore, if a jurisdiction is unable to have an adopted housing element found in compliance by HCD by February 11, 2022, and relies on rezoning to meet the RHNA through the sites inventory, that rezoning effort and all associated environmental review would need to be completed by October 15, 2022. If a jurisdiction is not able to complete the rezoning and associated environmental in this short period, HCD can decertify the jurisdiction's housing element and may pursue further penalization. Penalties associated with non-compliance include, but are not limited to:
• Increased exposure to litigation;
• Loss of permitting authority;
• Financial penalties, including monthly fines from $10k to $100k; • Loss of eligibility for state and regional funding sources; • Court receivership;
• Senate Bill 35 streamlined ministerial approval process; and • Increased exposure to monitoring by the newly formed Housing Accountability Unit.
The implications of AB 1398 were not immediately clear, with SCAG staff initially believing and advising that it would not be applied to the SCAG region based on assurances from the bill's author, Assembly Member Richard Bloom (Santa Monica). It has now become clear that AB 1398 does indeed apply to the SCAG region, and it requires HCD to determine the Housing Element certified as compliant with applicable statutes prior to its adoption.
As of the writing of this staff report, there are only two SCAG jurisdictions in compliance out of 197 agencies and none are in Orange County. Without a compliant status, the City will need to immediately begin implementation of the Housing Element rezone programs. It is unclear if the City will be allowed the 36 -month timeline provided in Policy Actions 1A — IG, should HCD certify the Housing Element at a later point in 2022, or expect the City to comply by October 15, 2022.
The October 15, 2022 deadline is impossible for the City to meet given the need to complete the environmental review process, the City's Charter Section 423 necessitating a vote of the electorate, and Coastal Commission oversight for those housing opportunity sites requiring a Local Coastal Program amendment. The City will proceed with all diligent speed to implement Policy Actions 1A — IG within the framework of applicable laws and sound planning principles if the City is subject to AB 1398.
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
HCD Enforcement
Included in the State's budget for 2021-2022 is funding for an entirely new enforcement wing: The Housing Accountability Unit. The Housing Accountability Unit, or "HAU", is granted authority to hold local jurisdictions accountable to their respective commitments made in Housing Elements. Included in the HAU's purview is oversight of housing element law compliance.
Should the City's Housing Element be determined not to comply with applicable statutes during the entire eight-year planning cycle, HCD has the authority to initiate enforcement proceedings, including fines and/or litigation. Staff will continue to work closely with all stakeholders and HCD to advise, reduce and otherwise avoid fiscal impacts should the need arise.
Summary
The 6t" Cycle RHNA allocation of 4,845 new housing units for Newport Beach is unprecedentedly high and presents unique challenges for demonstrating compliance.
Especially with recent changes in State legislation and a lack of guidance from the State.
The City has made every effort to work with the community to create a 2021-2029 6t" Cycle Housing Element that demonstrates capacity to accommodate the RHNA allocation and complies with State law. As evidenced by the resolution for adoption (Attachment B), the Housing Element is revised in response to HCD's comments and meets all statutory requirements. Once adopted, City staff will transmit the final document to HCD for a statutory 60 -day certification review.
FISCAL IMPACT:
While there is no direct fiscal impact related to approval of this item, the City has expended approximately $1,100,000 in consultant costs for outreach and technical preparation work related to the Listen and Learn efforts of the General Plan update and on updating the Housing Element. The City has received $610,000 in grant funding from HCD to offset the City's costs.
Implementation and monitoring of the identified housing programs will also require staff and consulting resources throughout the 2021-2029 planning cycle. It is also worth noting that implementation of the land use changes provided in Section 4 (Housing Plan) of the updated Housing Element, will require an amendment to the General Plan Land Use Element to increase allowable densities in several statistical areas. As such, a vote of the electorate will be required in accordance with City Charter Section 423.
The full cost of the vote will be the City's responsibility. -M
Resolution Nos. 2022-13 and 2022-14: Overriding ALUC's Determination of Inconsistency and Adopting the 2021-2029 6th Cycle Housing Element Update February 8, 2022
ENVIRONMENTAL REVIEW:
The adoption of this Housing Element and overriding ALUC's determination are not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (CEQA Guidelines), the common-sense exemption because it involves policies, programs, and actions to meet the City's RHNA allocation that would not cause a significant effect on the environment.
Moreover, the adoption of the Housing Element is statutorily exempt under Section 15262 of the California CEQA Guidelines, which exempts projects involving feasibility or planning studies for future actions which the City has not approved or funded. Section 423 of the Charter and Council Policy A-18 require any amendment to the General Plan be reviewed to determine if a vote of the electorate would be required. If a project includes a general plan amendment, and, separately or cumulatively with other projects over a 10 -year span, exceeds more than 100 additional peak hour trips (a.m. or p.m.), adds 40,000 square feet or more of non-residential floor area or adds more than 100 dwelling units in a statistical area, a vote of the electorate is required. The Housing Element's strategy for RHNA compliance adds at least 100 dwelling units in several statistical areas; therefore, voter approval of amendments to the Land Use Element of the General Plan and the Zoning Code is likely to be required for implementation. As a result, this is a policy document and does not provide development entitlements to any specific land use projects, nor does it make any changes to the General Plan land use map or modify land use designations, densities, or land use intensities. Other similarly situated cities with voter -adopted growth initiatives have not been alleviated, either through State legislation or judicial determination, of their obligations to comply with the voter initiative process.
Due to the nature and scope, the programs and policies would not result in physical environmental impacts. Future housing development pursuant to the Housing Element Update would be subject to compliance with the established regulatory framework, including federal, state, regional, and local regulations. Additional analysis to substantiate these exemptions is included as Attachment E to this report.
NOTICING:
Given the citywide nature of this activity, notice of this hearing was published in the Daily Pilot in a one -eighth -page format at least 10 days before the scheduled meeting, consistent with Section 20.62.020(B)(2)(c) of the NBMC. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website.
ATTACHMENTS:
Attachment A — Resolution Overriding ALUC's Determination Attachment B —Resolution Adopting 2021-2029 Housing Element (Housing Element Attached and Available Here: www.newportbeachca.gov/draftheupdate) Attachment C — Chronology of Recent Key Dates for Housing Element Preparation Attachment D — Agency Comment Letters Regarding Intent to Override Attachment E — Environmental Analysis
Attachment A
Resolution Overriding ALUC's Determination
0 RESOLUTION NO. 2022-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, FINDING THE
NEWPORT BEACH GENERAL PLAN 6T" CYCLE
HOUSING ELEMENT FOR THE 2021-2029 PERIOD
CONSISTENT WITH THE PURPOSES OF THE STATE
AERONAUTICS ACT AND OVERRIDING THE ORANGE
COUNTY LAND USE COMMISSION'S DETERMINATION
THAT IT IS INCONSISTENT WITH THE 2008 JOHN
WAYNE AIRPORT ENVIRONS LAND USE PLAN
(PA2017-141)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California;
WHEREAS, City staff has been working alongside its consultants, the Housing Element Update Advisory Committee ("HEUAC"), the Planning Commission, City Council, and the community over the past two years to draft the 6th Cycle Housing Element covering the 2021-2029 planning period ("Housing Element") thereby amending the City of Newport Beach General Plan ("General Plan") as required by California Government Code Section 65588;
WHEREAS, the unprecedently high 6th Cycle Regional Housing Needs Assessment ("RHNA") allocation for the City required the HEUAC to identify all available sites Citywide as potential housing opportunities, including some in proximity to John Wane Airport, which is subject to the Airport Environs Land Use Plan ("AELUP"); WHEREAS, due to the proposed amendments to the General Plan, California Public Utilities Code Section 21676(b) requires the City to refer the Housing Element to the Orange County Airport Land Use Commission ("ALUC") for a determination of consistency with the AELUP for the John Wayne Airport;
WHEREAS, on September 16, 2021, the ALUC voted unanimously (6 ayes, 0 nays) finding the Housing Element inconsistent with the AELUP; 8-11
Resolution No. 2022 -
WHEREAS, pursuant to California Public Utilities Code ("CPUC") Sections 21670 and 21676, the City Council may, after a public hearing, propose to overrule the ALUC by a two-thirds vote, if it makes specific findings that the Housing Element is consistent with CPUC Section 21670's purpose of protecting public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses, WHEREAS, on October 12, 2021, a public hearing was held by the City Council in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California.
A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b) and Government Code Section 54950 et seq. ("Ralph M. Brown Act").
Evidence both written and oral, was presented to, and considered by, the City Council at this hearing. The City Council adopted Resolution No. 2021-98 by a unanimous vote (7 ayes, 0 nays), to notify the ALUC and the State Division of Aeronautics of the City's intent to override ALUC's inconsistency finding. A Notice of Intent ("NOI"), along with Resolution No. 2021-98 was sent via certified mail and emailed to the ALUC and the State Division of Aeronautics on November 2, 2021;
WHEREAS, the City received comments in response to the NOI from the State Division of Aeronautics on November 24, 2021, and from the ALUC on December 1, 2021, in accordance with CPUC Section 21676. The comments are hereby incorporated by reference and the facts in support of the findings provided in Section 1 of this resolution adequately address both comment letters, and
WHEREAS, on February 8, 2022, a public hearing was held by the City Council in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California.
A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b) and the Ralph M. Brown Act. Evidence both written and oral, was presented to, and considered by, the City Council at this hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council finds the Housing Element is consistent with the legislative purpose set forth in CPUC Section 21670(a)(2) of protecting the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses.
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Resolution No. 2022 -
Facts in Support
1. The Project is consistent with the noise standards of the AELUP.
The AELUP guides development proposals to provide for the orderly development of John Wayne Airport and the surrounding area through implementation of the standards in AELUP Section 2 (Planning Guidelines) and Section 3 (Land Use Policies). Implementation of these standards are intended to protect the public from the adverse effects of aircraft noise, ensure that people and facilities are not concentrated in areas susceptible to aircraft accidents, and ensure that no structures or activities adversely affect navigable airspace.
AELUP Section 2.1.1 sets forth the Community Noise Equivalent Level ("CNEL") standards. The Project includes 23 new housing opportunity sites within the 60-65 dBA CNEL contour and 28 new housing opportunity sites within the 65-70 dBA CNEL contour.
The AELUP defines the noise exposure in the 60-65 dBA CNEL noise contour (Noise Impact Zone 2) as "Moderate Noise Impact" and in the 65-70 dBA CNEL noise contour (Noise Impact Zone 1) as "High Impact." (AELUP Sections 3.2.3,
3.2.4.) Residential use is identified as "conditionally consistent" for the 60-65 dBA CNEL noise contour and "normally inconsistent" for the 65-70 dBA CNEL noise contour. (AELUP Section 3, Table 1 (Limitations on Land Use Due to Noise).) However, residential uses are not outright prohibited. Instead, AELUP Section
3.2.3 requires the residential uses be developed with advanced insulation systems to bring the sound attenuation to no more than 45 dB inside. In addition, residential uses within the 65-70 dBA CNEL noise contour are required to be "indoor -oriented" to preclude noise impingement on outdoor living areas.
The City's General Plan Land Use and Noise Elements, as well as Newport Beach Municipal Code ("NBMC") Section 20.30.080 (Noise) currently require that residential development in the Airport Area be located outside of the 65 dBA CNEL noise contour (Policies LU 6.15.3 and N 3.2). However, as part of the City's comprehensive update to the General Plan and rezoning requirements, these policies and regulations will be updated to reflect and allow the additional housing opportunity sites in the higher impact noise zones. The City will also consider additional noise mitigation measures to ensure the design of residential development is compatible with the Airport Area in accordance with all AELUP requirements. These could include policies or design standards to specifically encourage noise -sensitive designs that include minimal private outdoor living areas, minimal outdoor recreational areas, and ample indoor amenities (e.g., game rooms, indoor pool or spa, and fitness facilities).
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Resolution No. 2022 -
The Newport Beach General Plan Noise Element requires residential developers to notify purchasers or tenants of aircraft overflight and noise. The Project, which is an update to the Housing Element, does not remove this requirement and future developments will be remain subject to review, which will include consideration of compliance with the applicable Noise Element policies of the General Plan. Section
20.30.080 (Noise) of the NBMC also includes safeguards to ensure proper notification is provided to residents and prospective residents. Furthermore, the City routinely requires notification of future purchasers or tenants of aircraft overflight and noise as conditions of development approval.
Compliance with these policies and regulations will ensure that future development within the JWA Airport Planning Area will follow the noise standards of the AELUP.
2. The proposed Project is consistent with the safety standards of the AELUP.
AELUP Section 2.1.2 (Safety Compatibility Zones) sets forth zones depicting which land uses are acceptable in various portions of JWA environs. Most of the housing opportunity sites, with exception of portions of three properties, are all within Safety Zone 6. Allowed uses in Safety Zone 6 include residential and most nonresidential uses, excepting outdoor stadiums and similar uses with very high intensities. Uses that should be avoided include children's schools, large day-care centers, hospitals, and nursing homes. Risk factors associated with Safety Zone 6 generally include a low likelihood of accident occurrence.
Property owners of the Newport Beach Golf Course and the Young Men's Christian Association properties requested to have their properties considered as housing opportunity sites in the Housing Element. Portions of those properties are within Safety Zone 4 with the remaining portions lying in Safety Zone 6. Safety Zone 4 limits residential uses to very low density (if not deemed unacceptable because of noise) and advises to avoid nonresidential uses having moderate or higher usage intensities.
The City's General Plan Safety Element Policy S8.6 demonstrates that the City acknowledges the importance of the JWA Safety Zones:
"S 8.6 John Wayne Airport Traffic Pattern Zone
Use the most currently available John Wayne Airport (JWA) Airport Environs Land Use Plan (AELUP) as a planning resource for evaluation of land use compatibility and land use intensity in areas affected by JWA operations. In particular, future land use decisions within the existing JWA Clear Zone/Runway Protection Zone (Figure S5) should be evaluated to minimize the risk to life and property associated with aircraft operations."
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Resolution No. 2022 -
In accordance with Policy S8.6, the Project does not include any housing opportunity sites in the JWA Clear Zone/Runway Protection Zone.
Compliance with these policies and regulations will ensure that future development within the JWA Airport Planning Area will follow the safety standards of the AELUP.
Furthermore, as discussed under the previous finding, the City will amend the Noise Element to reflect an allowance for residential development in the 65-70 dBA CNEL and can consider additional ambient noise studies when reviewing projects in the future.
3. The proposed Project is consistent with the purpose and intent of the AELUP and will not result in incompatible land uses adjacent to JWA The standards and policies set forth in AELUP Sections 2 and 3 were adopted to prevent the creation of new noise and safety problems. As set forth above, any development on the proposed housing opportunity sites will comply with the noise criteria and safety standards established in Sections 2 and 3. Additional considerations may be made by the City through the comprehensive General Plan update and rezoning requirements. These could include, but are not limited to, noise -sensitive design standards and policies for properly attenuated residential development. Compliance with the AELUP standards will be also evaluated and demonstrated at the time development projects are proposed in the future.
Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. - Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
WK
Resolution No. 2022 -
Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the California Code of Regulations, Title 14, Division 6, Chapter 3 ("CEQA Guidelines") because it has no potential for resulting in physical change to the environment, directly or indirectly. Additionally, approval of the Housing Element, for which adoption of this resolution is based, is exempt from CEQA. The adoption of Housing Element is not a project under Section 15061(b)(3) of the CEQA Guidelines, the common-sense exemption because it involves policies, programs, and actions to meet the City's RHNA allocation that would not cause a significant effect on the environment. Moreover, the Housing Element is statutorily exempt under Section 15262 of the CEQA Guidelines, which exempts projects involving feasibility or planning studies for future actions which the City has not approved or funded. Section 423 of the Charter and Council Policy A-18 require any amendment to the General Plan be reviewed to determine if a vote of the electorate would be required. If a project includes a general plan amendment, and, separately or cumulatively with other projects over a 10 -year span, exceeds more than 100 additional peak hour trips (a.m. or p.m.), adds 40,000 square feet or more of non- residential floor area or adds more than 100 dwelling units in a statistical area, a vote of the electorate is required. The Housing Element proposes to add at least 100 dwelling units in several statistical areas; therefore, voter approval of amendments to the Land Use and other elements of the General Plan along with the Zoning Code will be required to implement the Housing Element. As a result, the Housing Element is a policy document and does not provide development entitlements to any specific land use projects, nor does it make any changes to the General Plan land use map or modify land use designations, densities, or land use intensities. Other similarly situated cities with voter - adopted growth initiatives have not been alleviated, either through State Legislation or judicial determination, of their obligations to comply with the voter initiative process.
Given the nature and scope, this resolution and the resolution adopting the Housing Element programs and policies would not result in physical environmental impacts. Future housing development pursuant to the Housing Element would be subject to compliance with the established regulatory framework, including Federal, State, regional, and local regulations. To this end, the City Council adopted Resolution No. 2022-2 creating the General Plan Update Steering Committee to effectuate the updates to the General Plan required by adoption of the Housing Element.
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Resolution No. 2022-
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Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 8th day of February, 2022.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
C.
Aar n C. Harp
City Attorney
8-17
February 8, 2022
Agenda Item No. 8
Attachment B
Resolution Adopting 2021-2029 Housing Element (Housing Element Attached and Available Here: www. newportbeachca. qov/draftheupdate)
RESOLUTION NO. 2022-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE
6T" CYCLE HOUSING ELEMENT FOR THE 2021-2029
PERIOD AS GENERAL PLAN AMENDMENT NO.
GP2021-005 (PA2017-141)
WHEREAS, State Housing Element Law, Section 65580 et seq. of the California Government Code, requires each city and county adopt a housing element that identifies and analyzes existing and projected housing needs within their jurisdiction and prepare goals, policies, and programs, and quantified objectives to further the development, improvement, and preservation of housing;
WHEREAS, the Housing Element is one of the mandatory elements of the General Plan that must be periodically updated in accordance with State law; WHEREAS, the 6t" Cycle Housing Element covering the 2021-2029 period ("Housing Element") presents a framework for meeting the housing needs of existing and future resident populations within the City of Newport Beach ("City") based on the Regional Housing Needs Assessment ("RHNA") allocation of 4,845 new housing units; WHEREAS, the City conducted extensive public outreach activities starting in 2019 with the Newport Together, a Listen & Learn process, to guide and inform a future General Plan Update in order to hear from a broad spectrum of community members on community values, assess the current General Plan Vision, and provide recommendations for a future General Plan Update;
WHEREAS, Newport Together was guided by the General Plan Update Steering Committee, a body appointed by the City Council to oversee seven Listen & Learn community meetings, which provided information for the Housing Element update process;
WHEREAS, the City Council created a citizens advisory committee called the Housing Element Update Advisory Committee ("HEUAC") to assist in the preparation of an updated Housing Element in order to: (1) ensure sufficient public outreach and stakeholder input, (2) provide guidance to City staff, and consultants, on goals and policies, and (3) make recommendations to the City Council regarding the Housing Element update;
8-18(2)
Resolution No. 2022 -
WHEREAS, nine residents were appointed to the HEUAC based upon their professional expertise in housing development including affordable housing, general real estate development, construction, and law;
WHEREAS, the HEUAC formed five different subcommittees to thoroughly review and identify all feasible sites for potential residential redevelopment that are captured in Appendix B (Adequate Sites Analysis) to the Housing Element, which is attached hereto as Exhibit 'A" and incorporated herein by reference, that demonstrates the City's ability to meet the RHNA allocation;
WHEREAS, on August 13, 2021, the City submitted the Draft Housing Element to the State Department of Housing and Community Development ("HCD") for a 60 -day statutory review;
WHEREAS, on September 28, 2021, Governor Gavin Newsom signed into law Assembly Bill 1398 ("AB 1398") with an effective date of January 1, 2022, which, in pertinent part, changed the penalty for not adopting an HCD certified Housing Element within 120 days of the statutory deadline of October 15, 2021;
WHEREAS, on October 12, 2021, HCD provided written comments to the City on the Draft Housing Element which required revisions to the Draft Housing Element; WHEREAS, on November 16, 2021, the City Council held a study session in the Council Chambers at 100 Civic Center Drive, Newport Beach wherein City staff presented a revised Draft Housing Element that incorporated and addressed written comments provided by HCD, which are summarized in Exhibit "B," attached hereto and incorporated herein by reference. A notice of time, place and purpose of the hearing was given in accordance with Sections 54950 et seq. ("Ralph M. Brown Act") and 65353 of the Government Code, and City Council Policy K-1 (General Plan and Local Coastal Program) ("Council Policy K-1"). Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing;
WHEREAS, at the conclusion of the hearing, the City Council authorized the submittal of the revised Draft Housing Element to HCD for a second review; WHEREAS, on November 17, 2021, the HEUAC held a public meeting, in the Council Chambers at 100 Civic Center Drive, Newport Beach. Public comments were considered by the HEUAC during the meeting;
WHEREAS, at the conclusion of the hearing, the HEUAC voted to recommend City Council's approval of the revised Draft Housing Element and further recommended City Council authorize any other changes deemed necessary by HCD; 8-18(3)
Resolution No. 2022 -
WHEREAS, on November 17, 2021, the revised Draft Housing Element was submitted to HCD for a second 60 -day statutory review; WHEREAS, in consideration of the accelerated timing required by AB 1398, the Newport Beach Planning Commission held a public hearing on December 9, 2021, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, Section 65353 of the Government Code, and Council Policy K-1. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission recommended that the City Council approve the revised Draft Housing Element and further recommended the City Council authorize any other changes deemed necessary by HCD, by a vote of 5 ayes, 1 recusal, and 1 absent;
WHEREAS, on January 14, 2022, HCD provided written comments to the City on the revised Draft Housing Element that required further revisions to the Draft Housing Element;
WHEREAS, on January 25, 2022, the City Council held a study session in the Council Chambers at 100 Civic Center Drive, Newport Beach wherein City staff sought additional direction based upon additional comments provided by HCD. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, Section 65353 of the Government Code and Council Policy K-1. Evidence, both written and oral, was presented to, and considered by, the City Council at this study session; WHEREAS, at the conclusion of the hearing, the City Council provided direction to City staff to exclude the approximately 1,485 residential units from Banning Ranch to meet the City's RHNA allocation although Banning Ranch is being included in the opportunity sites inventory; and
8-18(4)
Resolution No. 2022 -
WHEREAS, on February 8, 2022, a public hearing was held in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, Section 65353 of the Government Code and Council Policy K-1. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council does hereby approve General Plan Amendment No. GP2021-005 adopting the 6t" Cycle Housing Element covering the period 2021-2029 which is attached hereto as Exhibit "A," and incorporated herein by reference. The City Council directs staff to transmit the adopted Housing Element to HCD for certification review.
Section 2: The City Council finds that, since October 2019, the City has engaged in a robust discussion with the public regarding the Draft Housing Element including, holding 13 community workshops, 14 publicly noticed HEUAC meetings, one Planning Commission study session and six City Council study sessions where the Draft Housing Element was publicly reviewed and discussed.
Section 3: In compliance with Government Code Section 65585(e), the City Council has considered the findings and recommendations set forth in HCD's letters dated October 12, 2021, and January 14, 2022, respectively, which determined, in part, that the Draft Housing Element required revision to substantially comply with State Housing Element Law. In accordance with Government Code Section 65585(f)(1), the Housing Element was revised to incorporate HCD's recommendations and comments as summarized in Exhibits "B" and "C", which are attached hereto and incorporated herein by reference in substantial compliance with the State Housing Element Law. 8-18(5)
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Section 4: The City Council finds that pursuant to Government Code Section 65583.2(g)(2), based on substantial evidence set forth in Section 4 (Housing Plan) and Appendix B (Sites Suitability Analysis) of the Housing Element, the existing uses identified to accommodate affordable housing are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the Housing Element. This finding is based, in part, upon the following, which sets forth the comprehensive review of all possible opportunities for additional residential development that can accommodate affordable housing during the planning period considered by the City including, but not limited to, work by the HEUAC, which was created by the City Council and was comprised of experts in housing development including affordable housing, general real estate development, construction, and law, and whose members credentials are set forth in Exhibit D. In reviewing these possible residential opportunities, the HEUAC used a set of guiding principles to determine if each of those areas and their individual traits support a likelihood for redevelopment, as noted below.
A. Determination of Focus Areas: Based upon the parameters set forth in the State Housing Element Law, the criteria developed during the Newport Together outreach process, feedback from stakeholders, utilization of the Sag's GIS -Based HELPR Tool and further refinement by the HEUAC, the following focus areas were identified to accommodate the City's RHNA allocation:
• Airport Area;
• West Newport;
• Dover -Westcliff;
• Newport Center;
• Coyote Canyon; and
• Banning Ranch.
B. HEUAC Methodology: Within each Focus Area, HEUAC subcommittees assigned each parcel within the Focus Area a feasibility rating ("Infeasible", "Potentially Feasible", or "Feasible") — analyzing the parcel's propensity for redevelopment during the planning period as follows:
• "Feasible Sites" are those that appear that they could feasibly be redeveloped for housing or have housing added to the Parcel while the current use remains in whole or in part.
8-18(6)
Resolution No. 2022 -
• "Potentially Feasible" sites are those that may work as housing, but due to the size and/or configuration of a Parcel, or the quality and functionality of existing improvements, a Parcel might be somewhat less likely to be a candidate for a housing use. Potentially Feasible sites may also include Parcels that would be infeasible standing alone, but if combined with adjacent the Parcel(s) could become part of a potential housing site.
• "Infeasible Sites" are those that the Subcommittee determined would not work as housing due to existing improvements on the site; insufficient size; inefficiencies due to the configuration of the Parcel; whether active construction was recently completed, in progress, received land use entitlements and/or pending completion of land use entitlements; and/or fully leased commercial developments.
All nonresidential sites that were deemed Feasible or Potentially Feasible were included in the Sites Inventory, except those sites whose owners expressly requested that their properties not be considered opportunity sites. Therefore, the City does not foresee the opportunity to potentially add additional sites to the Sites Inventory since all Feasible or Potentially Feasible sites have already been included.
In conjunction with existing site uses and activities, each site was also evaluated considering factors such as:
features; and
• Access to schools and jobs;
• Access to parks, services, health care facilities and grocery stores; • Proximity to infrastructure and utilities;
• Likelihood or redevelopment and reuse;
• Project feasibility based on existing site conditions and development • Funding/Financing and feasibility considerations.
C. Infeasible Sites: Parcels with existing uses that were not likely to be discontinued during the 6t" Cycle Housing Element covering the 2021-2029 planning period were generally removed include the following:
• Parcels in the Balboa Peninsula environs;
• Parcels in Corona del Mar environs;
• Parcels in Newport Coast environs;
• Parcels with known historic resources;
• Parcels that are under construction, or have recently completed projects, approved entitlements, or pending entitlements for commercial uses only; 8-18(7)
Resolution No. 2022 -
• Parcels that have unique land uses that will preclude future residential development, such educational institutions, infrastructure facilities, federal and state facilities, entertainment venues, hospitals, cemeteries, parks and open space, and other similar facilities and activities; and
• Parcels currently developed with affordable housing or special needs housing.
D. Final Determination of Sites Inventory: Final determination of housing sites were established utilizing the following criteria. The site inventory is directly supported by evidence that existing uses will not impose an impediment to the development of residential, in whole or part, on existing non-residential sites during the 2021-2029 planning period.
• Identification of sites with a Realistic Potential to Redevelop During the Planning Period — the Housing Element identified only sites that adhered to the criteria established at the beginning of the planning process. Supported by demonstrated features of recent development activity in the Focus Area and utilization of site selection criteria that provide sound analysis of site feasibility, the Housing Element identified only sites which can be realistically assumed to have the highest level of redevelopment potential during the 2021-2029 planning period.
• Identification of Sites That Would be Physically Able to Accommodate Housing in Place of or in Addition to Existing Uses — The Housing Element identifies sites that would physically be able to accommodate housing. Therefore, all sites identified have been evaluated for their ability to feasibly accommodate housing units based on site features, existing development, and other site constraints. • Sites Identification Vetted during the Public Process — The sites identified in Appendix B of the Housing Element are based upon collaboration with stakeholders throughout the planning process to ensure local concerns were addressed, sensitive sites were properly evaluated, and preliminary sites were made available to the public for review and discussion. Those candidate sites that could not meet all criteria were removed from the sites inventory.
• Site Inventory Feasibility Based on and Supported by Local Examples that Demonstrate Sites can be Developed at Proposed Densities and Affordability — The Housing Element bases project feasibility and capacity assumptions based on actual local projects constructed, under construction or in the entitlement process. The Housing Element compares actual development opportunities within each Focus Area to provide a realistic assessment of the opportunities and constraints of developing and proposed densities and affordability levels. The Housing Element sites inventory include sites that possess the ability to accommodate residential development. The local project examples ::
Resolution No. 2022 -
are provided in the discussion for each Focus Area in Appendix "B" of the Housing Element.
E. Focus Area Sites: The candidate sites inventory was based on the evidence that the sites have low assessors value ratio ("AVR") (less than 0.5), are developed with low -scale buildings more than 40 years of age, are developed below current maximum FAR allowed, are in proximity to many other recent housing projects in the areas, and have been previously identified as high potential for redevelopment. • Airport Area - Airport Area Environs candidate sites provide substantial evidence that existing development is not an impediment to accommodating housing during the 2021-2029 planning period. As identified by the HEUAC, there are many parcels with underutilized surface parking lots and others with aged office buildings that are not fully leased. The development of higher -density residential units within this focus area can be expected to accommodate lower-income units. Increasing density within the Airport Area was also a key strategy as part of the City's 4th and 5th Cycle Housing Element Updates. As a result, high-density developments such as Phase 1A of the Uptown Newport Apartments have been made possible. This development achieved a density of 56 du/acre and provided about 91 units of Low and Very Low -Income housing in the City.
The City received 39 interest letters from property owners in the area expressing a desire to pursue residential opportunities within the Airport Area. Additionally, the City has approved four residential projects with two additional residential projects pending within the Airport Area environs. Further evidence of residential development on existing non-residential sites is shown in Table B-9 of the 6t" Cycle Housing Element. • Newport Center - Newport Center candidate sites provide substantial evidence that existing development is not an impediment to accommodating housing during the 2021-2029 planning period. Second to the Airport Area, Newport Center has experienced substantial redevelopment in recent years and, thus, displays a likelihood of further redevelopment in the planning period. Most recently, the Villas Fashion Island project was completed resulting in 524 new apartment units, and the Residences at Newport Center along with the Vivante Senior Residential project have been approved.
The recent construction of these units adjacent to major employment opportunities and supportive retail further support the likelihood, feasibility, and transition of non-residential uses to residential uses in the planning period. The City has received 20 interest letters from property owners in this area expressing a desire to pursue residential redevelopment opportunities.
• West Newport Mesa - West Newport candidate sites provide substantial evidence that existing development is not an impediment to accommodating housing during the 2021-2029 planning period. The West Newport Mesa area has many older 8-18(9)
Resolution No. 2022 -
industrial and small-scale office properties in addition to one of the City's largest employers, Hoag Hospital. As a result, West Newport Mesa is identified as a reinvestment and redevelopment opportunity, where older industrial, smaller -scale development can transition to support future residential development. Supportive evidence that existing uses do not impose and impediment on the development of housing include recent development trends in this focus area. These include the development of condominiums on previously non-residential uses, and development of mobile home spaces on sites with non-residential uses. The City has received six interest letters from property owners in this area expressing a desire to pursue residential redevelopment opportunities. • Dover -Westcliff — Dover -Westcliff candidate sites provide substantial evidence that existing development in not in impediment to accommodating housing during the 2021-2029 planning period. This area includes Dover -Westcliff, portions of Mariner's Mile and the northwestern portion of the Balboa Peninsula. While the Dover - Westcliff area is generally characterized by smaller coastal lots, the City has seen development in recent years with completion of the Lido Villas Project, approval of the West Coast Highway Mixed -Use project, and applications for Newport Village Mixed -Use and Via Lido Plaza Redevelopment. The City has received 12 interest letters from property owners in this area expressing a desire to pursue residential redevelopment opportunities.
• Coyote Canyon - Coyote Canyon candidate sites provide substantial evidence that existing development is not an impediment to accommodating housing during the 2021-2029 planning period. The City received specific outreach for two parcels, both of which are reflected within the site inventory. Of primary note is the closed Coyote Canyon landfill and adjacent areas. The parcel is owned by the County of Orange who has entered into an agreement with Tait and Associates for the future development. Both Tait and the County have expressed interest in developing the site with affordable and market rate housing. Therefore, the City considers the expressed interest by both owner and developer as substantial evidence supporting the assumption that existing site conditions and activities are not an impediment of the accommodation of housing during the 2021-2029 planning period.
F. Banning Ranch - The Draft Housing Element initially proposed approximately 1,475 units within Banning Ranch. However, based upon HCD's comment letters, the Housing Element no longer includes any units within Banning Ranch to meet the City's RHNA allocation, therefore, needs no further justification. Banning Ranch is simply being included in the opportunity sites inventory.
Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 8-18(10)
Resolution No. 2022 -
Section 6: If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.
Section 7: The adoption of this Housing Element is not a project under the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 ("CEQA Guidelines"), the common-sense exemption because it involves policies, programs, and actions to meet the City's RHNA allocation that would not cause a significant effect on the environment.
Moreover, the Housing Element is statutorily exempt under Section 15262 of the CEQA Guidelines, which exempts projects involving feasibility or planning studies for future actions which the City has not approved or funded. Section 423 of the Charter and Council Policy A-18 require any amendment to the General Plan be reviewed to determine if a vote of the electorate would be required. If a project includes a general plan amendment, and, separately or cumulatively with other projects over a 10 -year span, exceeds more than 100 additional peak hour trips (a.m. or p.m.), adds 40,000 square feet or more of non-residential floor area or adds more than 100 dwelling units in a statistical area, a vote of the electorate is required. The Housing Element adds at least 100 dwelling units in several statistical areas; therefore, voter approval of amendments to the Land Use and other elements of the General Plan along with the Zoning Code will be required to implement the Housing Element. As a result, the Housing Element is a policy document and does not provide development entitlements to any specific land use projects, nor does it make any changes to the General Plan land use map or modify land use designations, densities, or land use intensities. Other similarly situated cities with voter - adopted growth initiatives have not been alleviated, either through State Legislation or judicial determination, of their obligations to comply with the voter initiative process.
Given the nature and scope, the Housing Element programs and policies would not result in physical environmental impacts. Future housing development pursuant to the Housing Element would be subject to compliance with the established regulatory framework, including Federal, State, regional, and local regulations. To this end, the City Council adopted Resolution No. 2022-2 creating the General Plan Update Steering Committee to effectuate the updates to the General Plan required by adoption of the Housing Element.
Section 8: The City Council hereby authorizes staff to make non -substantive changes to the Housing Element as necessary to make it internally consistent or address additional comments from HCD as part of its 60 -day post adoption review. Should HCD require substantive changes to the Housing Element adopted herein, staff shall bring such changes back to City Council for review and action.
8-18(11)
Resolution No. 2022 -
Section 9: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 8th day of February, 2022.
Kevin Muldoon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Z ,,— (. ff ,—,
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A – 6th Cycle Housing Element for the 2021-2029 Period Exhibit B – Summary of City's Revisions to the 6th Cycle Housing Element Following HCD's October 12, 2021, Letter
Exhibit C – Summary of City's Revisions to the 6th Cycle Housing Element Following HCD's January 14, 2022, Letter
Exhibit D – HEUAC Member Resumes
8-18(12)
EXHIBIT A
6th Cycle Housing Element for the 2021-2029 Period
Exhibit A is viewable here: www.newportbeachca.gov/HEUpdate 8-18(13)
FINAL DRAFT
January 2022
City of Newport Beach
2021-2029 HOUSING ELEMENT
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2021-2029 HOUSING ELEMENT
City of Newport Beach
DRAFT HOUSING ELEMENT
2021-2029
City of Newport Beach
City of Newport Beach
2021-2029 HOUSING ELEMENT
section 1: Introduction
A. Role of the Housing Element.......................................................................................................................................1-1 B. State Policy and Authorization....................................................................................................................................1-1
1. Background..........................................................................................................................................................1-2
2. State Requirements............................................................................................................................................1-2
3. Regional Housing Needs Assessment................................................................................................................ 1-4
4. Relationship to Other Community Plan Elements............................................................................................1-4
5. Public Participation.............................................................................................................................................1-5
6. Data Sources (To be updated in final draft)......................................................................................................1-5
7. Housing Element Organization...........................................................................................................................1-6 Section 2: Community Profile
A.
Population Characteristics.......................................................................................................................................2-1
1. Population Growth..............................................................................................................................................2-1
2. Age Characteristics..............................................................................................................................................2-2
3. Race/Ethnicity Characteristics............................................................................................................................2-3 B.
Economic Characteristics.........................................................................................................................................2-5
1. Employment and Wage Scale............................................................................................................................. 2-5
C.
Household Characteristics....................................................................................................................................... 2-9
1. Household Type and Size.................................................................................................................................... 2-9
2. Household Income............................................................................................................................................2-11 D.
Housing Problems...................................................................................................................................................2-14
1. Overcrowding.................................................................................................................................................... 2-15
2. Overpayment (Cost Burden) In Relationship to Income................................................................................2-16 E.
Special Needs Groups.............................................................................................................................................2-17
1. Seniors................................................................................................................................................................2-18
2. Persons with Physical and Developmental Disabilities..................................................................................2-20
3. Large Households..............................................................................................................................................2-24
4. Single -Parent Households.................................................................................................................................2-25
5. Farmworkers......................................................................................................................................................2-26
6. Extremely Low-income Households and Poverty Status................................................................................2-27
7. Persons Experiencing Homelessness...............................................................................................................2-31
8. Students.............................................................................................................................................................2-33 Table of Contents (DRAFTJANUARY 2022) ii
City of Newport Beach
2021-2029 HOUSING ELEMENT
F.
Housing Stock Characteristics................................................................................................................................2-33
1. Housing Growth................................................................................................................................................2-33
2. Housing Type.....................................................................................................................................................2-34
3. Housing Availability and Tenure.......................................................................................................................2-34
4. Housing Age and Condition..............................................................................................................................2-36
5. Housing Costs and Affordability.......................................................................................................................2-39 Section 3: Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing A.
Nongovernmental Constraints................................................................................................................................3-1
1. Land Costs and Construction Costs.................................................................................................................... 3-1
2. Availability Financing..........................................................................................................................................3-2
3. Economic Constraints.........................................................................................................................................3-3 B.
Governmental Constraints.......................................................................................................................................3-4
1. Land Use Controls...............................................................................................................................................3-4
2. Infrastructure Constraints................................................................................................................................3-39
3. Environmental Constraints...............................................................................................................................3-53 C.
Affirmatively Furthering Fair Housing(AFFH).......................................................................................................3-57
1. Affirmatively Furthering Fair Housing..............................................................................................................3-57
2. Summary of Local Data........................................................................................................................................3-51
3. Analysis of Federal, State, and Local Data and Local Knowledge..................................................................3-62
4. Analysis of Sites Pursuant to AB 686...............................................................................................................3-116
5. Analysis of Fair Housing Priorities and Goals..................................................................................................3-124 D.
Housing Resources.................................................................................................................................................3-125
1. Regional Housing Needs Allocation.................................................................................................................3-125
2. Financial Resources...........................................................................................................................................3-134
3. Opportunities for Energy Conservation...........................................................................................................3-136 Section 4. nuuwu ig Plai
A. Regional Housing Needs Assessment.........................................................................................................................4-1
1. Housing Goals......................................................................................................................................................4-1
2. Housing Policies and Program Actions..............................................................................................................4-2 Table of Contents (DRAFT AUGUST 202 1) iii
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City of Newport Beach
2021-2029 HOUSING ELEMENT
Acknowledgments
The Newport Beach Community
City Council
Mayor Kevin Muldoon
Mayor Pro Tem Noah Blom
Diane B. Dixon
Brad Avery
Duffy Duffield
Joy Brenner
Will O'Neill
Planning Commission
Lee Lowrey, Chair
Lauren Kleiman, Vice Chair
Curtis Ellmore, Secretary
Sarah Klaustermeier
Peter Koetting
Mark Rosene
Erik Weigand
General Plan Update Steering Committee
Nancy Gardner, Chair
James Carlson
Catherine O'Hara
Ed Selich
Debbie Stevens
Larry Tucker
Paul Watkins
Then -Mayor Diane Dixon, Ex -Officio Member
Housing Element Update Advisory
Committee
Larry Tucker, Chair
Jeff Bloom
Susan DeSantis
Paul Fruchbom
Beth Kiley
Geoffrey LePlastrier
Stephen Sandland
Debbie Stevens
Michelle Thrakulchavee
Councilmember Will O'Neill, Ex -Officio Member
City Staff
Grace Leung, City Manager
Seimone Jurjis, Community Development
Director
Jim Campbell, Deputy Community Development
Director
Jaime Murillo, Principal Planner
Benjamin Zdeba, Senior Planner
Dan Campagnolo, Systems Administrator
Aaron Harp, City Attorney
Yolanda Summerhill, Assistant City Attorney
Tony Brine, City Traffic Engineer
Consultants
Kimley-Horn and Associates, Inc.
Kearns & West, Inc.
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-1
City of Newport Beach
2021-2029 HOUSING ELEMENT
The Housing Element of the Newport Beach General Plan identifies and analyzes the City's existing and projected housing needs and contains a detailed outline and work program of the City's goals, policies, quantified objectives, and programs for the preservation, improvement, and development of housing for a sustainable future. It is one of the seven mandatory elements to be included in a city's General Plan. The policy program identifies ways in which housing needs of current and future residents can be met. It also ensures that the City establishes policies, procedures and incentives in its land use planning and development activities to address the maintenance and expansion of the housing supply to adequately accommodate households currently living and expected to live in Newport Beach. The policies identified will help guide future City decision-making and establishes an implementation program to achieve the City's housing goals for the 2021-2029 period.
1. Background
The Housing Element identifies and analyzes the City's existing and projected housing needs. The Housing Element contains a detailed outline and work program of the City's goals, policies, and quantified objectives for the preservation, improvement, and development of housing for a sustainable future. This includes timelines for the City to accomplish each identified action within the Housing Plan.
1. State Requirements
California State Housing Element Law (California Government Code Article 10.6) establishes the requirements for the Housing Element. California Government Code Section 65588 requires that local governments review and revise the Housing Element of their comprehensive General Plans not less than once every eight years.
The California Legislature has determined that a primary housing goal for the State is ensuring every resident has a decent home and suitable living environment. Section 655880 of the California Government Code states:
a. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.
b. The early attainment of this goal requires cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians in all economic levels.
c. The provisions of housing, affordable to low- and moderate -income households, requires the cooperation of all levels of the government.
d. Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for housing needs of Section 1: Introduction (DRAFT JANUARY 2022 ) 1-2
City of Newport Beach
2021-2029 HOUSING ELEMENT
all economic segments of the community. The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs.
Table 1-1 summarizes State requirements for Housing Element and identifies the applicable sections in the 2021-2029 Housing Element where these requirements are addressed.
Table 1-1: Housing Element Requirements
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-3
Reference in
Issues Requiring Analysis
Gov. Code Section
Housing Element
Analysis of employment trends.
Section 65583.a
Section 2
Projection and quantification of existing and projected housing Section 65583.a
Section 3
needs for all income groups.
Analysis and documentation of the City's housing
characteristics, including cost for housing compared to ability to Section 65583.a
Section 2
pay, overcrowding, and housing condition.
An inventory of land suitable for residential development Section 65583.a
Section 3
including vacant sites and sites having redevelopment potential.
Analysis of existing and potential governmental constraints upon the maintenance, improvement or development of
Section 65583.a
Section 3
housing for all income levels.
Analysis of existing and potential nongovernmental (private sector) constraints upon maintenance, improvement or
Section 65583.a
Section 3
development of housing for all income levels.
Analysis concerning the needs of the homeless.
Section 65583.a
Section 2.
Analysis of special housing needs: handicapped, elderly, large Section 65583.a
Section 2
families, farmworkers, and female -headed households.
Analysis of opportunities for energy conservation with respect Section 65583.a
Section 3
to residential development.
Identification of Publicly Assisted Housing Developments.
Section 65583.a
Section 3
Identification of Units at Risk of Conversion to Market Rate Section 65583.a
Section 3
Housing.
Identification of the City's goal relative to the maintenance, Section 65583.a
Section 4
improvement, and development of housing.
Analysis of quantified objectives and policies relative to the Section 65583.b
Section 4
maintenance, improvement, and development of housing.
Identification of adequate sites that will be made available through appropriate action with required public services and Section 65583.c(1)
Appendix B
facilities for a variety of housing types for all income levels.
Identification of strategies to assist in the development of adequate housing to meet the needs of low and moderate- Section 65583.c(2)
Section 4
income households.
Description of the Public Participation Program in the
Section 65583.d
Appendix C
formulation of Housing Element Goals, Policies, and Programs.
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-3
City of Newport Beach
2021-2029 HOUSING ELEMENT
The City's Housing Element was last updated in September 2013 for the 5t" cycle from years 2014 to 2021, as part of the new update cycle for jurisdictions within the SCAG (Southern California Association of Governments) region to allow for synchronization with the Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS). The Element sets forth an 8 -year strategy to address the City's identified housing needs, including implementing specific programs and activities.
Amendments have been made to Housing Element law since the adoption of the City's 5t" Cycle Housing Element; such amendments and subsequent housing laws change the required analysis, reporting and policies contained in the Housing Element. The contents of this updated Housing Element comply with these amendments to state housing law and all other federal, state and local requirements.
3. Regional Housing Needs Assessment
Section 65583 of the Government Code sets forth the specific content requirements of a jurisdiction's housing element. Included in these requirements are obligations on the part of local jurisdictions to provide their "fair share" of regional housing needs. Local governments and Councils of Governments (COGs) are required to determine existing and future housing need and the allocation of this need must be approved by the California Department of Housing and Community Development (HCD). Newport Beach is a member agency of the Southern California Association of Governments (SCAG). SCAG is responsible for preparing the Regional Housing Needs Assessment (RHNA) for all jurisdictions within the SCAG region.
HCD established the planning period for the current Regional Housing Needs Assessment (RHNA) from October 15, 2021 to October 15, 2029. For the 2021-2029 planning period the City was allocated a total of 4,845 units, including 1,456 for very low-income, 930 for low-income, 1,050 for moderate -income, and 1,409 for above -moderate income households.
4. Relationship to Other Community Plan Elements
The Housing Element is one element of the City of Newport Beach General Plan. The goals, policies, actions, and programs within the Housing Element relate directly to, and are consistent with, all other elements in the Newport Beach General Plan. The City's Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected needs of its population.
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-4
Reference in
Issues Requiring Analysis
Gov. Code Section
Housing Element
Description of the Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of
Section 65583.e
Section 1
Governments.
Analysis of Fair Housing, including Affirmatively Furthering Fair Section 8899.50
Section 3
Housing.
Review of the effectiveness of the past Element, including the Section 65583.f
Appendix A
City's accomplishments during the previous planning period.
Source: State of California, Department of Housing and Community Development.
The City's Housing Element was last updated in September 2013 for the 5t" cycle from years 2014 to 2021, as part of the new update cycle for jurisdictions within the SCAG (Southern California Association of Governments) region to allow for synchronization with the Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS). The Element sets forth an 8 -year strategy to address the City's identified housing needs, including implementing specific programs and activities.
Amendments have been made to Housing Element law since the adoption of the City's 5t" Cycle Housing Element; such amendments and subsequent housing laws change the required analysis, reporting and policies contained in the Housing Element. The contents of this updated Housing Element comply with these amendments to state housing law and all other federal, state and local requirements.
3. Regional Housing Needs Assessment
Section 65583 of the Government Code sets forth the specific content requirements of a jurisdiction's housing element. Included in these requirements are obligations on the part of local jurisdictions to provide their "fair share" of regional housing needs. Local governments and Councils of Governments (COGs) are required to determine existing and future housing need and the allocation of this need must be approved by the California Department of Housing and Community Development (HCD). Newport Beach is a member agency of the Southern California Association of Governments (SCAG). SCAG is responsible for preparing the Regional Housing Needs Assessment (RHNA) for all jurisdictions within the SCAG region.
HCD established the planning period for the current Regional Housing Needs Assessment (RHNA) from October 15, 2021 to October 15, 2029. For the 2021-2029 planning period the City was allocated a total of 4,845 units, including 1,456 for very low-income, 930 for low-income, 1,050 for moderate -income, and 1,409 for above -moderate income households.
4. Relationship to Other Community Plan Elements
The Housing Element is one element of the City of Newport Beach General Plan. The goals, policies, actions, and programs within the Housing Element relate directly to, and are consistent with, all other elements in the Newport Beach General Plan. The City's Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected needs of its population.
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-4
City of Newport Beach
2021-2029 HOUSING ELEMENT
The Housing Element works in tandem with development policies contained in the Land Use Element, most recently amended in 2013. The Land Use Element establishes the location, type, intensity and distribution of land uses throughout the City, and defines the land use build -out potential. By designating residential development, the Land Use Element places an upper limit on the densities and types of housing units constructed in the City. The Land Use Element also identifies lands designated for a range of other uses, including employment creating uses, open space, and public uses. The presence and potential for jobs affect the current and future demand for housing at the various income levels in the City.
The Circulation Element of the General Plan also affects the implementation of the Housing Element. The Circulation Element establishes policies for a balanced circulation system in the City. Consequently, the Housing Element must include policies and incentives that consider the types of infrastructure essential for residential housing units in addition to mitigating the effects of growth in the City.
The Housing Element has been reviewed for consistency with the City's other General Plan components, and the policies and programs in this Element are consistent with the policy direction contained in other parts of the General Plan. As portions of the General Plan are amended in the future, the Housing Element will be reviewed to ensure that internal consistency is maintained.
5. Public and Stakeholder Participation
Section 65583 of the Government Code states that, "The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." Meaningful community participation is also required in connection with the City's Assessment of Fair Housing (AFH). A discussion of citizen participation is provided below.
As part of the 6t" Cycle Housing Element Update process, the City of Newport Beach conducted extensive public outreach activities beginning in 2019.
Outreach for the 6th Cycle Housing Element to the community, includes the following actions:
• Community Workshop #1 (October 20, 2020) — Provided an overview of the Housing Element Update process, community and housing characteristics, and engagement activities. • Community Workshops #2 and #3 (November 16 and 17, 2020) — Engaged participants in a suitability analysis for housing types and densities for focus areas in Newport Beach.
Community Workshop #4 (February 24, 2021) — Discussion of opportunity sites and policy strategies.
• Community Workshop #5 (March 22, 2021) — Presented the initial draft of the Housing Element. • Community Workshop #6 (June 21, 2021) — Presented a revised draft of the Housing Element's sites analysis and discussed inclusionary housing, housing overlays, and accessory dwelling units. • Online Community Survey — Participants considered potential policies and programs to include in the Housing Element, as well as potential housing types and opportunities for housing. The Section 1: Introduction (DRAFT JANUARY 2022 ) 1-5
City of Newport Beach
2021-2029 HOUSING ELEMENT
survey also solicited feedback regarding potential barriers to housing access and constraints to the development of housing.
• Planning Commission Study Session - Provided a presentation with an overview of the Public Review Draft Housing Element and Housing Element update process to date. Community members had the opportunity to give public comments.
• City Council Study Sessions - Provided an overview of the Public Review Draft Housing Element and Housing Element update process to date. Follow up study sessions explored a variety of site identification options and policy modifications. Community members had the opportunity to give public comments.
• Housing Element Update Advisory Committee (HEUAC) Meetings — Tracked and provided feedback on outreach efforts, made recommendations and provided guidance on policies and programs, provided general comments and feedback.
• Housing Element Update Website ( www.NewportTogether.com) - Provided relevant information about the update process, key features of the housing element, project timeline and a calendar of events for outreach activities. The website also provided a link to the community survey tool, past recorded meetings and summaries, as well as the contact information of the City for residents and community members to send additional comments or request additional information.
• Listen & Learn — Series of community workshops in each Council District to guide and inform the General Plan Update in 2019.
As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element made by the public will be provided to each member of the City Council.
Appendix C will contain a summary of all public comments regarding the Housing Element received by the City during the update process.
6. Data Sources
The data used for the completion of this Housing Element comes from a variety of sources. These include, but are not limited to:
• 2010 Census
• American Community Survey
• Regional Analysis of Impediments to Fair Housing (AI) • Point -in -Time Homeless Census by the Regional Task Force on the Homeless, 2019 • Home Mortgage Disclosure Act (HMDA) lending data
• California Department of Economic Development
• California Employment Development Division Occupational Wage data, 2002 Section 1: Introduction (DRAFT JANUARY 2022 ) 1-6
City of Newport Beach
2021-2029 HOUSING ELEMENT
• Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy (CHAS), 2013-2017
• California Department of Finance
■ Southern California Association of Governments (SCAG) Local Housing Report The data sources represent the best data available at the time this Housing Element Update was prepared.
The original source documents contain the assumptions and methods used to compile the data.
7. Housing Element Organization
This Housing Element represents the City's policy program for the 2021-2029 6t" Cycle Planning Period.
The Housing Element is comprised of the following Chapters:
Section 1: Introduction contains a summary of the content, organization and statutory considerations of the Housing Element;
Section 2: Community Profile contains an analysis of the City's population, household and employment base, and the characteristics of the housing stock;
Section 3: Housing Constraints and Resources examines governmental and non-governmental constraints on production, maintenance, and affordability of housing and provides a summary of housing resources, including sites identification and funding and financial considerations; and Section 4: Housing Plan addresses the City's identified housing needs, including housing goals, policies and programs.
Appendices provides various appendices with supplementary background resources including:
• Appendix A — Review of Past Performance of 5t" Cycle Programs • Appendix B — Summary of Adequate Sites Analysis
• Appendix C — Summary of Community Outreach
• Appendix D — Accessory Dwelling Unit Analysis
Section 1: Introduction (DRAFT JANUARY 2022 ) 1-7
Section 2.0
COMMUNITY PROFILE
City of Newport Beach
2021-2029 HOUSING ELEMENT
The Community Profile for the City of Newport Beach provides an overview of the City's housing and population conditions. The community profile serves as the foundation for the Housing Elements policies by describing and assessing the factors and characteristics that contribute to the supply and demand for housing in Newport Beach. Specifically, the community profile describes the community's population, employment, economics, and household characteristics. Special Needs groups and housing stock characteristics are also described. The community profile develops context for the goals, programs, and policies, established in the Housing Element.
The data used for this community profile has been collected using the most current available data from the Southern California Association of Governments (SCAG), 2010 U.S. Census, 2010-2018 American Community Survey, the California Department of Finance, the California Employment Development Department, the California Department of Education and other currently available real estate market data. Data has also been collected from the SCAG Local Housing report for Newport Beach, which provides facts and Figures pre -certified by the California Department of Housing and Community Development (HCD) for use in the 6th Cycle Housing Elements.
Population characteristics affect current and future housing demands in a community. Population growth, age compositions and race/ethnicity influence the type and extent of housing needed and the ability of the local population to afford housing costs. The following section describes and analyzes the various population characteristics and local trends in Newport Beach.
Population Growth
Table 2-1 below displays the forecasted population growth for Newport Beach, as it compares to the County and other surrounding jurisdictions/cities. The U.S. Census reported a population of 85,186 individuals for the City in 2010. This is the second smallest population for this area after Laguna Beach, which has a population of 22,723. The 2010 population of Newport Beach represents about 3 percent of the Orange County total population.
The Southern California Association of Government (SCAG) Final Growth Reports calculates estimates for future population counts and economic and housing trends through 2045. The SCAG data shown in Table 2-1 estimates a population growth for Newport Beach of 7,100 individuals, or an 8.4 -percent increase, between 2016 and 2045. The growth calculation is consistent with that expected in Costa Mesa and is double that of Huntington Beach. In comparison, the City of Irvine anticipates a population surge of about 25 percent through 2045. Between 2016 and 2045, Newport Beach population is forecasted to grow by about 2 percent less than Orange County.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-1
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-1: Population Growth Forecast. 2016-2045
Jurisdictions
Population
Percent Change
2016
Actual
2045
Projected
2016-2045
Costa Mesa
113,900
123,700
8.6%
Newport Beach
84,900
92,000
8.4%
Huntington Beach
196,900
205,300
4.3%
Laguna Beach
23,400
23,500
0.4%
Irvine
261,600
327,700
25.3%
Orange County
3,180,000
3,535,000
11.2%
Represents an estimate from the SCAG Connect SoCal 2016-2045 Demographics and Growth Forecast.
Sources: SCAG 2020 Connect SoCal Demographics and Growth Forecast. 4ge Characteristic
The age composition of a community affects housing needs because housing demand within the market is often determined by the preferences of certain age groups. For example, young adults generally favor apartments, low to moderate -cost condominiums, and smaller or more affordable single -unit homes because they tend to live on smaller incomes and have smaller households. As population moves through different stages of life, housing is required to accommodate new or adjusted needs. To produce a well- balanced and healthy community, a community must provide appropriate housing to accommodate needs of all ages.
Figure 2-1: Age Distribution in Newport Beach, 2010-2018
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
won
Under 5
5 to 19
20 to 34
35 to 44
45 to 64
65 and Above
2010
4.5%
14.7%
20.8%
13.0%
28.6%
18.3%
2014
3.9%
15.6%
18.7%
12.3%
29.8%
19.7%
2018
3.9%
14.6%
17.8%
10.7%
30.2%
22.7%
Source: American Community Survey, 5 -Year Estimates, 2010, 2014, and 2018 Newport Beach population that falls within the ages of 45 to 64 represents the largest age group, as shown in Figure 2-1. In 2018, 30.2 percent of the population was between the ages of 45 and 64. Children under 5 years of age make up about 4 percent of the population, and 18.5 percent are 19 years or younger.
Adults in the 35 to 44 age group have the second lowest population representation at 10.7 percent.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-2
City of Newport Beach
2021-2029 HOUSING E" t=MENT
From 2010 to 2018, Newport Beach shows an aging population trend. All age groups under 45 years have consistently been decreasing. The 20 to 34 age group has experienced the greatest population loss at 3 percent between 2010 to 2018. In comparison, seniors over 65 years have increased by 4.4 percent during the same time. The middle-aged and senior populations both make up the largest age groups and can be expected to continue increasing given the decreasing distribution of young adults and children.
Table 2-2 compares the age distribution of Newport Beach to the rest of the county and surrounding cities. The City has a below-average age distribution for those ages 44 and under as compared to Orange County. The City of Laguna Beach and Newport Beach both exceed 22 percent of senior populations, while the surrounding cities and county range from 9 to 16 percent. All municipalities in Table 2-2 have lower distributions of individuals ages 15 to 17 and higher distributions of individuals 45 to 64 years of age.
Table 2-2: Age Distribution by Jurisdiction
Jurisdiction
Under S
S to 14
15 to 17
18 to 24
25 to 44
45 to 64
65+ years
Costa Mesa
5.7%
11.4%
3.2%
9.6%
35.2%
24.3%
10.7%
Newport Beach
3.9%
10.0%
3.5%
6.3%
23.4%
30.2%
22.7%
Huntington Beach
5.2%
10.9%
3.5%
7.6%
27.0%
29.0%
16.9%
Laguna Beach
3.4%
8.5%
4.1%
5.9%
16.3%
38.4%
23.3%
Irvine
6.4%
12.4%
3.6%
13.0%
30.8%
23.9%
9.9%
Orange County
6.0%
12.5%
4.0%
9.5%
27.4%
26.6%
13.9%
Source: American Community Survey, 5 -Year Estimates, 2018
3. Race/Ethnicity Characteristics
Racial and ethnic composition contribute to housing needs due to varying household characteristics, income levels, and cultural backgrounds which may affect their housing needs, housing choice and housing types. Cultural influences may reflect preference for a specific type of housing.
As summarized in Figure 2-2, Newport Beach is comprised mainly of White individuals at 85.3 percent of the population in 2018. American Indian/Alaska Natives and Native Hawaiian/other Pacific Islanders comprise the lowest percentage; both populations in Newport Beach and Orange County add up to less than 1 percent of the population. The White population in Newport Beach is 23.6 percent greater than the county and the Hispanic or Latino population is 25.1 percent less than that of the county. The Black population represents 0.8 percent of the Newport Beach population, which is half that of Orange County.
The Asian population of Newport Beach is 11.8 percent smaller than that of Orange County and there are
9.6 percent less individuals in the City who identify as some other race than in the County.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-3
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 2-2: Racial and Ethnic Composition, 2018
90%
80%
70%
60%
50%
40%
30%
20%
10% .
American Native
Black or Indian and Hawaiian Some Two or Hispanic
White African Alaska Asian and Other Other more or Latino American Native Pacific Race Race
Islander
■ Newport Beach 85.3% 0.8% 0.3% 8.3% 0.2% 2.1% 3.1% 9.0% Orange County 61.7% 1.7% 0.5% 20.1% 0.3% 11.7% 4.1% 34.1% Source: American Community Survey, 5 -Year Estimates, 2018.
Table 2-3 shows that all cities around Newport Beach and Orange County have a majority White population. The second largest population group in this area are those who identify as Hispanic or Latino.
The Black population in Newport Beach and Laguna Beach are both the smallest of the area at 0.8 percent and both cities are below the county percentage by just under 1 percent. Both American Indian/Alaska Native and Native Hawaiian/other Pacific Islanders represent the smallest population groups with neither exceeding 1 percent in any of the listed cities.
Table 2-3: Racial and Ethnic Composition, 2018
Section 2: Community Profile (DRAFT JANUARY 2022) 2-4
American
Native
Indian/
Hawaiian/
Some
Two or
Hispanic
P
Jurisdiction
White
Black
Asian
Other
More
Alaska
Other Pacific
or Latino
Native
Islander
Race
Races
Origin (l)
Costa Mesa
71.6%
1.9%
0.4%
8.4%
0.7%
13.0%
4.0%
36.1%
Newport
85.3%
0.8%
0.3%
8.3%
0.2%
2.1%
3.1%
9.0%
Beach
Huntington
72.4%
1.4%
0.6%
12.1%
0.4%
7.3%
5.4%
20.0%
Beach
Laguna
90.8%
0.8%
0.1%°
3.7/0
0.3/0
1.5/0
2.8/0
7.4/0
Beach
Irvine
47.6%
1.9%
0.2%
42.3%
0.2%
2.8%
5.2%
10.3%
Orange
61.7%
1.7%
0.5%°
20.1/0
0.3/0
11.7/0
4.1/0
34.1/0
County
Note: (1) Persons of Hispanic or Latino Origin is an ethnicity that may be included in other racial groups.
Source: American Community Survey, 5 -Year Estimates, 2018.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-4
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-4 identifies the change in composition of Newport Beach between 2010 to 2018. The population who reported White experienced the greatest population loss between 2010 and 2015 (4 percent), but then increased byjust under a percent point between 2015 and 2018. The City's population who identifies as Hispanic or Latino increased by a total of 1.6 percent; this was the greatest population increase between these three survey years. Overall, majority of the different racial and ethnic populations within Newport Beach remained stable in population from 2010 to 2018.
Table 2-4: Changes in Racial and Ethnic Composition, 2010-2018 Reporting and analyzing economic characteristics of a community provides valuable information on the community's abilityto access the housing market. Incomes associated with different types of employment and the number of workers in a household affect housing affordability and choice. Therefore, to consider a healthy balance between jobs and housing, the employment characteristics of a community must be considered. Local employment growth is linked to local housing demand, and the reverse is true with employment contracts.
1. Employment and Wage Scale
Employment directly affects housing needs, as employment and income informs a population's ability to purchase housing and the types of housing they would be inclined to purchase. Table 2-5 summarizes projected employment growth for Newport Beach and its surrounding cities and Orange County between 2012 to 2040. These projections are provided by the Southern California Association of Government's (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS). The report is a long- range plan that considers future mobility and housing needs with economic, environmental, and public health goals and was adopted on April 7, 2016.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-5
Percent
Percent
Race/Ethnicity
2010
2015
2018
Change 2010
Change 2015
to 2015
to 2018
White
88.4%
84.4%
85.3%
-4.0%
0.9%
Black
0.6%
0.4%
0.8%
-0.2%
0.4%
American Indian and
0.1%
0.2%
0.3%
0.1%
0.0%
Alaska Native
Asian
7.2%
8.2%
8.3%
1.0%
0.1%
Native Hawaiian or Other
0.0%
0.2%
0.2%
0.2%
0.0%
Pacific Islander
Some Other Race
1.9%
3.1%
2.1%
1.2%
-1.1%
Two or More Races
1.7%
3.40 3.1%
1.7%
-0.3%
Hispanic or Latino*
7.4%
8.3%
9.0%
0.9%
0.7%
*Of any race.
Source: American Community Survey, 5 -Year Estimates, 2010, 2015, and 2018.
Reporting and analyzing economic characteristics of a community provides valuable information on the community's abilityto access the housing market. Incomes associated with different types of employment and the number of workers in a household affect housing affordability and choice. Therefore, to consider a healthy balance between jobs and housing, the employment characteristics of a community must be considered. Local employment growth is linked to local housing demand, and the reverse is true with employment contracts.
1. Employment and Wage Scale
Employment directly affects housing needs, as employment and income informs a population's ability to purchase housing and the types of housing they would be inclined to purchase. Table 2-5 summarizes projected employment growth for Newport Beach and its surrounding cities and Orange County between 2012 to 2040. These projections are provided by the Southern California Association of Government's (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS). The report is a long- range plan that considers future mobility and housing needs with economic, environmental, and public health goals and was adopted on April 7, 2016.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-5
City of Newport Beach
2021-"^"Q HOUSING E" EMENT
Table 2-5 shows that Newport Beach is estimated to experience an employment growth of 1.8 percent between 2016 to 2045. The total employment growth in the City is significantly less in percentage than the forecast for the surrounding cities. City of Irvine is estimated to experience a 24.5 percent increase through 2045, which is about 10 percent more than the percentage projected for the whole county. While Newport Beach is projected to experience the least employment growth as a percent, the growth represents an increase in 1,500 new employees; this is a greater numeric change than Laguna Beach. The number of new employees projected for Newport Beach represent 0.5 percent of employment growth for the county.
Table 2-5: Employment Growth Trends, 2016-2045
Jurisdiction
2016
2045
% Change
2016-2045
Numeric Change
2016-2045
Costa Mesa
95,700
104,000
8.7%
8,300
Newport Beach
83,400
84,900
1.8%
1,500
Huntington Beach
83,400
90,800
8.9%
7,400
Laguna Beach
5,800
6,100
5.2%
300
Irvine
265,300
330,200
24.5%
64,900
Orange County
1,710,000
1,980,000
15.8%
270,000
Source: SC4G 2020 Connect SoCal Demographics and Growth Forecast.
Based on data from the United States Census Bureau American Community Survey (ACS) 5 -Year Estimates, the number of employed people in Newport Beach reached 43,892 in 2018. This value is less than the amount projected by the SCAG RTP/SCS. A contributing factor for this may be the increasing amount of the population over the retirement age, as shown in Figure 2-1.
Table 2-6 identifies employment sectors in Newport Beach and the changes in employment for each sector between 2010 and 2018. Most employed people in the City work in professional, scientific, management, and administrative services (19.4 percent). The sector with the least amount of residents employed was agriculture, forestry, fishing and hunting, and mining, with only 0.2 percent in 2018. Two other popular sectors in the City in 2018 were finance and insurance, and real estate and rental leasing at
18.7 percent as well as education services, health care, and social assistance at 17.1 percent. None of the employment sectors in Newport Beach have experienced changes in employment greater than 1 percent between the two survey years. This has resulted in a decrease of 0.5 percent in total employment, rather than an increase as forecasted in Table 2-5.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-6
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-6: Emolovment in Newport Beach by Sector. 2018
Table 2-6 shows that employment decreased slightly from 2010 to 2018 despite a projected growth and estimated employment amount much larger than that reached. Nonetheless, unemployment rates displayed in Table 2-7 show a drop by 1 percent during the same period. Unemployment factors into housing needs as the lack of income necessitates the availability of affordable housing. Newport Beach has maintained an unemployment rate of 3.4 percent in 2018 - the lowest unemployment rate for this area, and 1.7 percent below Orange County.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-7
2010
2018
Percent
# of people
% of City
# of people
% of City
Industry Sector
Change
employed
Employment
employed
Employment
2010-2018
Agriculture, forestry, fishing
1,324
o
0.3/
92 a
0.2/0
o
0.1/
and hunting, and mining
Construction
2,118
4.8%
1741
4.0%
0.8%
Manufacturing
3,529
8.0%
3929
9.0%
-1.0%
Wholesale trade
2,074
4.7%
2165
4.9%
-0.3%
Retail trade
4,411
10.0%
4149
9.5%
0.6%
Transportation and
839
1.9%
1020
2.3%
-0.4%
warehousing, and utilities
Information
1,059
2.4%
991
2.3%
0.2%
Finance and insurance, and
8,072
18.3%
8196
18.7%
-0.4%
real estate and rental leasing
Professional, scientific,
management, and
8,999
20.4%
8517
19.4%
1.0%
administrative services
Education services, health
7,234
16.4%
7507
17.1%
-0.7%
care, and social assistance
Arts, entertainment,
recreation, accommodation,
3,353
7.6%
3425
7.8%
-0.2%
and food services
Other services (except public
1,324
3.0%
1472
3.4%
°
-0.4/
administration)
Public Administration
971
2.2%
688
1.6%
0.7%
Total
44,109
100%
43,892
100%
-0.5%
Source: American Community Survey, 5 -Year Estimates, 2010 and 2018.
Table 2-6 shows that employment decreased slightly from 2010 to 2018 despite a projected growth and estimated employment amount much larger than that reached. Nonetheless, unemployment rates displayed in Table 2-7 show a drop by 1 percent during the same period. Unemployment factors into housing needs as the lack of income necessitates the availability of affordable housing. Newport Beach has maintained an unemployment rate of 3.4 percent in 2018 - the lowest unemployment rate for this area, and 1.7 percent below Orange County.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-7
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-7: Unemolovment Rate. 2018
Jurisdiction
Unemployment Rate*
percent Change
2010-2018
2010
2018
Costa Mesa
7.3%
4.8%
-2.5%
Newport Beach
4.4%
3.4%
-1%
Huntington Beach
7%
4.3%
-2.7%
Laguna Beach
4.4%
6.8%
2.4%
Irvine
5.5%
4.9%
-0.6%
Orange County
7.4%
5.1%
-2.3%
*Population 16 years and over
Source: American Community Survey, 5 -Year Estimates, 2010 and 2018.
Based on the data in Table 2-7, approximately 2,492 Newport Beach residents were without work in 2018 and would therefore be more likely to require more affordable housing options. For those that are employed, income level further identifies housing types that may need to be provided within the City.
According to the SCAG Draft Regional Housing Needs Assessment (RHNA) Methodology, housing needs by income are broken down into four income levels:
• Very Low -Income (50 percent or less of the county's median family income) • Low -Income (50-80 percent of the county median family income) • Moderate -Income (80-120 percent of the county median family income) • Above Moderate -Income (120 and above of the county median family income) Orange County's median family income is $85,398 according to the 2018 ACS estimates. The occupations that fall below 50 percent of this amount are Protective Services; Sales; Office and Administration Support; Production; Transportation and Material Moving; Healthcare Support; Building, Grounds Cleaning, and Maintenance; Personal Care and Service; Farming, Fishing and Forestry; and Food Preparation and Serving Related. Most occupations in Orange County have an average income that is either low or very low.
Table 2-8: Mean Salary by Occupation in Orange County, 2020 Occupation
Salary
Management
$120,871
Legal
$105,406
Healthcare Practitioners and Technical
$79,755
Architecture and Engineering
$87,635
Computer and Mathematical
$92,631
Life, Physical and Social Sciences
$67,488
Business and Financial Operations
$73,913
Education, Training and Library
$52,043
Arts, Design, Entertainment, Sports and Media
$47,351
Construction and Extraction
$52,684
Protective Services
$37,236
Section 2: Community Profile (DRAFT JANUARY 2022) 2-8
City of Newport Beach
2021-2029 HOUSING E" EMENT
Table 2-8: Mean Salary by Occupation in Orange County, 2020 Occupation
Salary
Community and Social Service
$48,834
Installation, Maintenance and Repair
$48,928
Sales
$32,262
Office and Administration Support
$38,845
Production
$31,669
Transportation and Material Moving
$29,254
Healthcare Support
$34,397
Building, Grounds Cleaning, and Maintenance
$27,824
Personal Care and Service
$24,666
Farming, Fishing and Forestry
$25,487
Food Preparation and Serving Related
$24,841
Source: California Employment Development Division, Occupational Wage data, 2020.
A household includes all persons who occupy a housing unit, as defined by the Census. This may include single persons living alone, families related through marriage, blood or adoption, domestic partnerships and unrelated individuals living together. Nursing facilities, residential care facilities, dormitories, and other group living, as well as the persons living with them are not considered a housing unit.
Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single parent households, or low and extremely low-income households.
For example, if a city has a prominent aging population who are homeowners but live on fixed incomes, it may consider implementing a home beautification assistance program. _ Household TUr^ and SizE
Newport Beach contains 37,870 total households, which is the second smallest household amount behind Laguna Beach with 10,542 total households. Female households with no spouse present represent the lowest amount at 4.9 percent and is 6.9 percent below the regional percentage. Orange County has
28.2 percent non -family households, but all cities in this area, including Newport Beach, have percentages that exceed 33 percent. Newport Beach non -family households account for the second largest percentage at 42.5 percent. When combined with senior households over the age of 65 and living alone, as shown in Figure 2-3, it amounts to 56 percent of households in the City. These two groups of people tend to occupy apartments or smaller age centric living areas and would also be considered in determining housing needs.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-9
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-9: Household Characteristics
Figure 2-3: Newport Beach Household Characteristics in Percent, 2018 bU '/o
50%
40%
30%
20%
10%
0% or -
Married-
Female
Married -Couple
Male
Female Non -Family
Householder
Family
couple
% of Total
Householder,
% of Total
Non -Family
% of Total
Total
Jurisdiction
2.5%
4.9% 42.5%
13.5%
Source: American
Community Survey, 5 -Year Estimates, 2018.
Family
Households
No Spouse
Households
Household
Households
Households
Households
Present
Costa Mesa
17,568
42.8%
4,191
10.2%
16,509
40.2%
41,019
Newport
18,965
50.1%
1,870
4.9%
16,088
42.5%
37,870
Beach
Huntington
37,588
48.9%
8,263
10.8%
26,961
35.1%
76,821
Beach
Laguna
5,116
48.5%
539
5.1%
4,537
43%
10,542
Beach
Irvine
51,682
54.2%
8,418
8.8%
31,636
33.2%
95,371
Orange
564,685
54.7%
121,753
11.8%
290,652
28.2%
1,032,373
County
Source: American Community Survey, 5 -Year Estimates, 2018 Figure 2-3: Newport Beach Household Characteristics in Percent, 2018 bU '/o
50%
40%
30%
20%
10%
0% or -
Married -Couple
Male
Female Non -Family
Householder
Family
Householder, No
Householder, No Household
Age 65 or Above
Household
Spouse Present
Spouse Present
Newport Beach 50.1%
2.5%
4.9% 42.5%
13.5%
Source: American
Community Survey, 5 -Year Estimates, 2018.
Table 2-10 below illustrates the changes in household types between 2010 and 2018. During these years, Newport Beach experienced a growth in population of married -couple family households (5.3 percent) and of householders 65 years and over who live alone (5.5 percent). Non -family households dropped by
4.2 percent in the same time period, with 3.8 percent occurring between 2010 and 2015. In 2010, non -family households were the largest household type in Newport Beach at 46.7 percent, but in 2018 the married -couple family households became the largest with 47.6 percent of the population.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-10
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-10: Chanees in Household Tvoes. 2010-2018
. A
Newport Beach represents 1 of the smallest average household sizes in the area, as shown in Table 2-11.
The average household size for the region is 3 persons and the average household size for the City is
2.2 persons per home. All the neighboring cities have comparable household sizes under the regional amount.
Table 2-11: Averaee Household Size
Jurisdiction
2010
Percent
2015
Percent
2018
Percent
Married -couple Family
Laguna Beach
2.1 Irvine
2.6 Orange County
3 urce: California Department of Finance —Population and Housing Fctimates, 2018.
16,936
44.8%
18,122
47.6%
18,965
50.1%
Households
Female Household,
2,155
5.7%
2,665
7.0%
1,870
4.9%
No Spouse Present
Male Household,
1,058
2.8%
990
2.6%
947
2.5%
No Spouse Present
Non -Family Household
17,654
46.7%
16,332
42.9%
16,088
42.5%
Householder 65 Years and Over
3,024
8.0%
4,797
12.6%
5,112
13.5%
Total Households
37,803
100%
38,071
100%
37,870
100%
Source: American Community Survey, 5 -Year Estimates, 2010, 2015 and 2018.
Newport Beach represents 1 of the smallest average household sizes in the area, as shown in Table 2-11.
The average household size for the region is 3 persons and the average household size for the City is
2.2 persons per home. All the neighboring cities have comparable household sizes under the regional amount.
Table 2-11: Averaee Household Size
Jurisdiction
Average Persons per Household
Costa Mesa
2.7 Newport Beach
2.2 Huntington Beach
2.6 Laguna Beach
2.1 Irvine
2.6 Orange County
3 urce: California Department of Finance —Population and Housing Fctimates, 2018.
?. Household Income
Household income is an indicator of housing needs in a community because household income is directly connected to affordability. As household income increases, it is more likely that the household can afford market rate housing units, larger units and/or pursue ownership opportunities. However, as household income decreases, households tend to pay a disproportionate amount of their income for housing. This may influence increased incidences of overcrowding and substandard living conditions.
The California State Department of Housing and Community Development (HCD) has identified the following income categories based on the Area Median Family Income (AMFI) of Orange County:
• Extremely Low-income: households earning up to 30 percent of the AMFI • Very Low-income: households earning between 31 and 50 percent of the AMFI • Low-income: households earning between 51 percent and 80 percent of the AMFI • Moderate -income: households earning between 81 percent and 120 percent of the AMFI • Above Moderate -income: households earning over 120 percent of the AMFI Section 2: Community Profile (DRAFT JANUARY 2022) 2-11
City of Newport Beach
2021-2029 HOUSING ELEMENT
Combined, the extremely low, very low, and low-income groups are referred to as lower-income.' Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2006-2017 American Community Survey (ACS) data is used below. Table 2-12 shows a greater percentage of homeowners (57 percent) than renters (43 percent) in Newport Beach. Just under 70 percent of households are estimated to have a moderate or above income and 21.6 percent earn a lower-income. A greater number of renters are estimated to earn a lower-income than of homeowners. About 60 percent of households in the extremely low-income category identified as renters, as for very low- and low-income households.
Homeownership was more likely for households in the moderate or above moderate -income groups.
Table 2-12: Households by Income Cateeorv. 2013-2017
Income Category
(% of County AMI)
Owner
Renter
Households
Total
Percent
Total
Percent
Total
Percent
Extremely Low
(30% AMFI o less)
1,575
40.8%
2,280
59.2%
3,855
10.15%
Very Low (31 to 50%AMFI)
1,310
40.1%
1,960
59.9%
3,270
8.61%
Low (51 to 80%AMFI)
1,920
42.9%
2,550
57.1%
4,470
11.77%
Moderate or Above
(over 80%AMFI)
16,840
63.8%
9,540
36.2%
26,380
69.5%
Total
21,645
57.0%
16,325
43.0%
37,970
100%
Source: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.
The ACS 2018 data shown in Figure 2-4 below depicts median household income for Newport Beach, surrounding jurisdictions, and the County of Orange. The figure shows a much higher median household income in the City that exceeds the regional median by $37,311 annually. At $122,709, Newport Beach has the highest median household income than any of the neighboring cities. Laguna Beach is in close second with an annual median household income of $121,474. Costa Mesa is the only nearby city with a median household income below the regional median and $43,502 below Newport Beach. Table 2-13 also compares median household incomes by percent points above or below the regional amount. All cities around Newport Beach, except for Costa Mesa, exceed the Orange County median household income of $85,398.
Federal housing and community development programs typically assist households with incomes up to 80 percent of the AMFI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent AMFI as moderate income (compared to low-income based on State definition).
Section 2: Community Profile (DRAFT JANUARY 2022) 2-12
City of Newport Beach Ph
2021-2029 HOUSING ELEMENT ,yam
Figure 2-4: Median Household Income by City, 2018
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$122,709
$91,318
$121,474
Costa Mesa Newport Beach Huntington Beach Laguna Beach Irvine Median Income Orange County Median Income
Source: American Community Survey, 5 -Year Estimates, 2018.
Table 2-13: Median Household Income
Jurisdiction
Median -income
Percent
Above/Below
Regional Median
Costa Mesa
$79,207
-7.2%
Newport Beach
$122,709
43.7%
Huntington Beach
$91,318
6.9%
Laguna Beach
$121,474
42.2%
Irvine
$95,371
11.7%
Orange County
$85,398
100%
Source: American Community Survey, 5 -Year Estimates, 2018.
E
$85,398
Further explaining the income gap between Orange County and Newport Beach is an income breakdown for the City in Figure 2-5. Most employed City residents fall in the high-income category as about 31 percent of residents earn $200,000 per year and 60 percent earn over $100,000. About 15 percent of the Newport Beach population earns under $35,000 annually.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-13
City of Newport Beach
2021-2029 HOUSING ELEMENT
35%
30%
25%
20%
15%
�;�
Figure 2-5: Newport Beach Income Breakdown by Income Category 10%
50%
0%
Less
00 $150
$10000
,,
$10,000 $15,000 $25,000 $35,000 $50,000 $75,000 $200,00 than
0 to 0 to 0 or
to to to to toto
$10,000
$149 99 $199,99
$14,999 $24,999 $34,999 $49,999 $74,999 $99,999 more
9 9
Newport Beach
4.0%
2.6% 4.2% 4.5% 6.0% 9.9% 9.3% 17.6% 11.1% 30.8%
Source: American Community Survey, 5 -Year Estimates, 2018.
The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census Bureau for the Department of Housing and Urban Development (HUD) provides detailed information on housing needs by income level for different types of households in Newport Beach. The most recent available CHAS data for the City was published in August 2020 and was based on 2006-2017 ACS data. Housing problems considered by CHAS included:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (housing units with more than one person per room); • Housing cost burdens, including utilities, exceeding 30 percent of gross income; or • Severe housing cost burdens, including utilities, exceeding 50 percent of gross income.
As is the case with many cities, there is strong variation between homeowners and renters who experience housing problems in the City, as shown in Table 2-14. Of all homeowners in the City,
35.3 percent experience at least one housing problem, while 45.1 percent of renters experience one these problems. Over half of all households in the City have at least one housing problem (58.5 percent).
Severe housing problems are comprised of incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and a cost burden greater than 50 percent. The CHAS reports that just under a quarter of Newport Beach households experience at least one of these problems (23 percent).
Similarly to general housing problems, renters here are also more likely to be affected; in the City,
27.2 percent of renter -occupied units are subject to at least one severe housing problem. A lower — yet substantial — percentage of homeowners live with at least one severe housing problem (19.8 percent).
Section 2: Community Profile (DRAFT JANUARY 2022) 2-14
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-14: Housing Problems Overview, 2013-2017
1. Overcrowding
"Overcrowding" is generally defined as a housing unit occupied by more than one person per room in house (including living room and dining rooms, but excluding hallways, kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing, which forces more than one household to live together, and/or a lack of available housing units of adequate size. Overcrowding can indicate that a community does not have an adequate supply of affordable housing, especially for large families. However, overcrowding can also be a result of different cultural or demographic housing preferences. For example, the option to live with an existing family member in a new country may be an opportunity for an immigrant family or person to transition from an old home to a new one securely and help maintain cultural values.
Overcrowded and severely overcrowded households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread Section 2: Community Profile (DRAFT JANUARY 2022) 2-15
Owner
Renter
Total
Housing Problem
Percent of
Percent of
Percent of
Overview*
Count
owner
Count
renter
Count
total
households
households
households
Household has at least 1 of
7,635
35.3%
7,355
45.1%
14,990
39.5%
4 Housing Problems
Household has none of 4
13,835
63.9%
8,365
51.2%
22,200
58.5%
Housing Problems
Cost Burden not available,
175
0.8%
610
3.7%
785
2.1%
no other problems
Total
21,645
57.0%
16,325
43.0%
37,970
100.0%
Owner
Renter
Total
Severe Housing Problem
Percent
Percent of
Percent of
Overview**
Count
owner
Count
renter
Count
total
households
households
households
Household has at least 1 of
4 Severe Housing
4,285
19.8%
4,435
27.2%
8,720
23.0%
Problems
Household has none of 4
17,180
79.4%
11,285
69.1%
28,465
75.0%
Severe Housing Problems
Cost Burden not available,
175
0.8%
610
3.7%
785
2.1%
no other problems
Total
21,645
57.0%
16,325
43.0%
37,970
100%
* The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
** The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017.
1. Overcrowding
"Overcrowding" is generally defined as a housing unit occupied by more than one person per room in house (including living room and dining rooms, but excluding hallways, kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing, which forces more than one household to live together, and/or a lack of available housing units of adequate size. Overcrowding can indicate that a community does not have an adequate supply of affordable housing, especially for large families. However, overcrowding can also be a result of different cultural or demographic housing preferences. For example, the option to live with an existing family member in a new country may be an opportunity for an immigrant family or person to transition from an old home to a new one securely and help maintain cultural values.
Overcrowded and severely overcrowded households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread Section 2: Community Profile (DRAFT JANUARY 2022) 2-15
City of Newport Beach
2021-2029 HOUSING ELEMENT
geographically and impact the quality of life and the economic value of property and the vitality of commerce within a city. The combination of lower -incomes and high housing costs result in many households living in overcrowded housing conditions.
Table 2-15: Overcrowding by Tenure, 2018
Table 2-15 breaks down the severity of overcrowding in Newport Beach by household tenure. As the table shows, there is a very low percentage of units that are overcrowded (1.5 percent). About 80 percent of those overcrowded units are renter -occupied, with 1.3 percent of households being overcrowded and severely overcrowded. Only 0.2 percent of owner -occupied units exceed 1 person per bedroom. In comparison to the surrounding cities, as outlined in Table 2-16, Newport Beach has kept the lowest percentages of overcrowding for both renters and homeowners. Costa Mesa reported the largest total percentage of overcrowded cities (9 percent), which is 7.5 percent over that of Newport Beach. Orange County reported 21,800 overcrowded units and 8.9 percent of total households.
Table 2-16: Overcrowded Housing Units by Tenure. 2018
Jurisdiction
Overcrowded Housing Units
Severely Overcrowded
Total Overcrowded Occupied
Percent of Total
Occupied Units
Number of Units
Housing Units (>1.51
Costa Mesa
435 units
(1.0 to 1.50 persons/room)
3,251 units
Housing Units
Newport Beach
65 units
persons/room)
505 units
Tenure
Huntington Beach
557 units
0.7%
2,291 units
3.0%
Laguna Beach
62 units
0.6%
Percent of
1.2%
Percent of Total
Number of
Percent of
4,921 units
Number of
Orange County
Number of
2.1%
69,713 units
6.8%
Source: American Community Survey, 5 -Year Estimates, 2018.
Total Occupied
Occupied
Units
Total Occupied
Units
Units
Housing Units
Housing Units
Housing Units
Owner
65 units
0.2%
0 units
°
0%
65 units
°
0.2/
Occupied
Renter
252 units
0.7%
253 units
0.7%
505 units
1.3%
Occupied
Total
317 units
0.8%
253 units
0.7%
570 units
1.5%
Source: American Community Survey, 5 -Year Estimates, 2018.
Table 2-15 breaks down the severity of overcrowding in Newport Beach by household tenure. As the table shows, there is a very low percentage of units that are overcrowded (1.5 percent). About 80 percent of those overcrowded units are renter -occupied, with 1.3 percent of households being overcrowded and severely overcrowded. Only 0.2 percent of owner -occupied units exceed 1 person per bedroom. In comparison to the surrounding cities, as outlined in Table 2-16, Newport Beach has kept the lowest percentages of overcrowding for both renters and homeowners. Costa Mesa reported the largest total percentage of overcrowded cities (9 percent), which is 7.5 percent over that of Newport Beach. Orange County reported 21,800 overcrowded units and 8.9 percent of total households.
Table 2-16: Overcrowded Housing Units by Tenure. 2018
Jurisdiction
Owner Occupied Overcrowded Units
(>1.0 persons/room)
Renter Occupied Overcrowded Units
(>1.0 persons/room)
Number of Units
Percent of Total
Occupied Units
Number of Units
Percent of Total
Occupied Units
Costa Mesa
435 units
1.1%
3,251 units
7.9%
Newport Beach
65 units
0.2%
505 units
1.3%
Huntington Beach
557 units
0.7%
2,291 units
3.0%
Laguna Beach
62 units
0.6%
127 units
1.2%
Irvine
958 units
1.0%
4,921 units
5.2%
Orange County
21,800 units
2.1%
69,713 units
6.8%
Source: American Community Survey, 5 -Year Estimates, 2018.
2. Overpayment (Cost Burden) In Relationship to Income
State and federal standards indicate that a household paying more than 30 percent of its income for housing is overpaying. Overpayment for housing can cause an imbalance on the remainder of a household's budget.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-16
City of Newport Beach
2021-2029 HOUSIMr—, FI F=MPNIT
As reported by the CHAS and presented in Table 2-1 , a large portion of households are subject to some form of overpayment in Newport Beach. Renters in the City represent a greater portion of the community that is overpaying for housing, but homeowners are 12 percent behind and exceed renters in total count –there are 11,810 homeowners overpaying and 10,880 renters overpaying for housing. Homeowners who earn over 100 percent of the HUD area median family income (AMFI), and are considered high-income, make up the largest group experiencing cost burdens greater than 30 percent and 50 percent. For renters, those who experience housing burdens are those who earn a moderate to low-income.
Table 2-17: Summary of Housing Overpayment, 2013-2017
State law recognizes that certain households may have more difficulty in finding adequate and affordable housing due to special circumstances. Special needs populations include seniors, persons with disabilities, female -headed households, large households, and farmworkers.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-17
Owner
Renter
Income by
Cost
% of
Cost
% of
Cost
%of
Cost
% of
Cost Burden*
Burden >
Owner
Burden >
Owner
Burden >
Renter
Burden >
Renter
30 %
HH
50%
HH
30%
HH
50%
HH
Household
Income is less-
1,335
6.2%
1,225
5.7%
1,485
9.1%
1,455
8.9%
than or = 30%
Household
Income >30%
1,010
4.7%
820
3.8%
1,696
10.4%
1,350
8.3%
to less -than or
= 50% AMFI
Household
Income >50%
1,210
°
5.6/
815
3.8%
1,980
12.1%
910
5.6%
to less -than or
= 80% AMFI
Household
Income >80%
615
2.8%
450
2.1%
815
5.0%
170
1.0%
to less -than or
= 100% AMFI
Household
Income
3,420
15.8%
910
4.2%
965
5.9%
55 0.3%
>100% AMFI
Total
7,590
35.1%
4,220
19.5%
6,940
42.5%
3,940
24.1%
* Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.
Note: AMFI = Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. AMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.
Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017.
State law recognizes that certain households may have more difficulty in finding adequate and affordable housing due to special circumstances. Special needs populations include seniors, persons with disabilities, female -headed households, large households, and farmworkers.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-17
City of Newport Beach
2021-2029 HOUSING ELEMENT
Special circumstances may be related to one's employment and income, family characteristics, disability and household characteristics, or other factors. Consequently, certain residents in Newport Beach may experience higher incidences of housing overpayment (cost burden), overcrowding, or other housing problems. The special needs groups analyzed in the Housing Element include the elderly, persons with disabilities (including persons with developmental disabilities), people experiencing homelessness, single parents, large households, and farmworkers (Table 2-18). These groups may overlap, for example elderly people may also have a disability of some type. The majority of these special needs groups could be assisted by an increase in affordable housing.
Table 2-18: Special Needs Groups in Newport Beach
1. Seniors
The senior population, which is generally defined as those over 65 years of age, has several concerns:
limited and fixed incomes, high healthcare costs, higher incidence of mobility and self-care limitations, transit dependency, and living alone. Specific housing needs of the senior population include affordable housing, supportive housing (such as intermediate care facilities), group homes, and other housing that includes a planned service component.
Newport Beach has the second largest population of seniors over the age of 65 at 22.7 percent, as shown in Table 2-19. This is 8.8 percent above the percentage for the County. Laguna Beach is reported to have the largest senior population of the area (23.3 percent) and Irvine has the lowest at 9.9 percent of its population.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-18
# of People or
Percent of Total
Percent of Total
Special Needs Groups
Households
Population
Households
Senior Headed Households (65 years and over)
12,187 households
-
32.2%
Seniors
19,574 persons
22.7%
-
Seniors Living Alone
5,119 households
-
13.5%
Persons with Disabilities
6,943 persons
8.1%
--
Large Households (5 or more persons
per household)
1,945 households
-
5.1%
Single -Parent Households
1,358 households
--
3.6%
Single -Parent, Female Headed Households
936 households
-
2.5%
with Children (under 18 years)
People Living in Poverty
5,670 persons
6.6%
--
Farmworkers*
92 persons
0.2%
--
Persons Experiencing Homelessness**
64 persons
0.09%
--
Student
5,273 persons
6.1%
--
*Farmworker data is taken of the population 16 years and over, not total population. **The Everyone Counts report is updated annually, therefore the most recent data is from 2019, and there is no percentage of total population available.
Source: American Community Survey, 5 -Year Estimates, 2018 and Orange County Point in Time Count, Everyone Counts Report 2019.
1. Seniors
The senior population, which is generally defined as those over 65 years of age, has several concerns:
limited and fixed incomes, high healthcare costs, higher incidence of mobility and self-care limitations, transit dependency, and living alone. Specific housing needs of the senior population include affordable housing, supportive housing (such as intermediate care facilities), group homes, and other housing that includes a planned service component.
Newport Beach has the second largest population of seniors over the age of 65 at 22.7 percent, as shown in Table 2-19. This is 8.8 percent above the percentage for the County. Laguna Beach is reported to have the largest senior population of the area (23.3 percent) and Irvine has the lowest at 9.9 percent of its population.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-18
City of Newport Beach ti
2021-2029 HOUSING ELEMENT w
Table 2-19: Persons Age 65 and Over, 2018
Jurisdiction
Population
Count
Percent
Costa Mesa
12,138
10.7%
Newport Beach
19,574
22.7%
Huntington Beach
34,002
16.9%
Laguna Beach
5,398
23.3%
Irvine
26,228
9.9%
Orange County
440,488
13.9%
Source: American Community Survey, 5 -Year Estimates, 2018.
In addition to overpayment problems faced by seniors due to their relatively fixed incomes, many seniors are faced with various disabilities. In 2018, the American Community Survey (ACS) reported 4,134 seniors with disabilities. Among these disabilities, the most common were ambulatory disabilities, independent living disabilities and hearing disabilities.
Key Challenges and Resources to Address Senior Housing Needs Seniors in Newport Beach generally have exhibited the following unique challenges to housing:
• Having Limited and fixed incomes,
• Disproportionately higher healthcare costs, adding monthly living costs • Higher incidence of mobility and self-care limitations requiring customized housing features • Transit dependency
• Limited in-home support, due to living alone.
To address these challenges, the City must consider a variety of solutions to address the above issues:
these may include:
• More affordable housing options for Seniors
• Supportive City programs to help sustain decent, safe and affordable housing for dependent Seniors.
• Housing with included supportive services
• Group Homes options for persons with self-care limitations Resources currently available at the City includes a robust Senior Services program.
Section 3.C.3 of this Housing Element includes an analysis on deed -restricted affordable housing units and affordable units at -risk of converting to market -rate. The City of Newport Beach currently has one affordable housing project for senior residents. Seaview Lutheran Plaza includes 100 deed -restricted affordable housing units reserved for extremely low and very low-income seniors through 2039; it is not considered at -risk of converting to market -rate over the next 10 years.
To address unique needs of senior residents living in the City, the following three programs have been included in Section 4:
Section 2: Community Profile (DRAFT JANUARY 2022) 2-19
City of Newport Beach
2021-2029 HOUSING ELEMENT
• Policy Action 613: Repair Loans and Grant Programs for Seniors, Persons with Physical and Developmental Disabilities and Lower -Income Households • Policy Action 6E: Housing Assistance for Seniors
• Policy Action 6G: Senior Housing Priority Program
The City will continue providing housing resources to its senior population through community partnerships and by facilitating the development of senior housing units.
Z. Persons with Physical and Developmental Disabilities Physical and developmental disabilities can hinder access to traditionally designed housing units, as well as potentially limit the ability to earn adequate income. Physical, mental, and/or developmental disabilities may deprive a person from earning income, restrict one's mobility, or make self-care difficult.
Thus, persons with disabilities often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher healthcare costs associated with a disability. Some residents suffer from disabilities that require living in a supportive or institutional setting.
Although no current comparisons of disabilitywith income, household size, or race/ethnicity are available, it is reasonable to assume that a substantial portion of persons with disabilities would have annual incomes within Federal and State income limits. Furthermore, many lower-income persons with disabilities are likely to require housing assistance and services. Housing needs for disabled persons are further compounded by design issues and location factors, which can often be costly. For example, special needs of households with wheelchair-bound or semi -ambulatory individuals may require ramps, holding bars, special bathroom designs, wider doorways, lower cabinets, elevators, and other interior and exterior design features.
Housing opportunities for persons with disabilities can be addressed through the provision of affordable, barrier -free housing. Rehabilitation assistance can be targeted toward renters and homeowners with disabilities for unit modification to improve accessibility.
As addressed in Table 2-20, the 2018 ACS identifies six disability types: hearing disability, vision disability, cognitive disability, ambulatory disability, self-care disability and independent living disability. The Census and the ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population.
Table 2-20: Disabilitv Status, 2018
Section 2: Community Profile (DRAFT JANUARY 2022) 2-20
Percent of
Under 18
18 to 64
65 years and
percent of
Disability Type
with a
with a
Over with a
Total
Population
Total
with
Disability
Disability
Disability
Population
Disability
Population with a
Hearing Difficulty
96 402
1,832
2,330
33.6%
°
2'7/0
Population with a
60 561
909
1,530
22%
°
1.8/0
Vision Difficulty
Population with a
398
962
1,155
2,515
36.2%
2.9%
Cognitive Difficulty
Section 2: Community Profile (DRAFT JANUARY 2022) 2-20
City of Newport Beach
2021-2029 HOUSING ELEMENT
Population with an
72 705
2,411
3,188
45.9%3.7/0
°
Ambulatory Difficulty
Population with a
112
406
894
1,412
20.3%
1.6%
Self-care Difficulty
Population with an
independent Living
--
714
1,885
2,599
37.4%
3%
Difficulty
Total
480
2,329
4,134
6,943
100%
86,015
*This number may double count as some persons report having one or more disabilities, therefore this total number differs from the total number of persons with a disability in Table 2-18.
Source: American Community Survey, 5 -Year Estimates, 2018.
The ACS defines a disability as a report of one of the six disabilities identified by the following questions:
• Hearing Disability: Is this person deaf or does he/she have serious difficulty hearing? • Visual Disability: Is this person blind or do they have serious difficulty seeing even when wearing glasses?
• Cognitive Difficulty: Because of a physical, mental, or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions? • Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs? • Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor's office or shopping? State law requires that the Housing Element discuss the housing needs of persons with developmental disabilities. As defined by federal law, "developmental disability' means a severe, chronic disability of an individual that:
• Is attributable to a mental or physical impairment or combination of mental and physical impairments;
• Is manifested before the individual attains age 22;
• Is likely to continue indefinitely;
• Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self-direction; f) capacity for independent living; or g) economic self-sufficiency; and • Reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated.
Per Section 4512 of the Welfare and Institutions Code a "developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disabilityfor that individual which includes intellectual disability, cerebral palsy, epilepsy, and autism. This term also includes disabling conditions found to be closely Section 2: Community Profile (DRAFT JANUARY 2022) 2-21
City of Newport Beach
2021-2029 HOUSING ELEMENT
related to intellectual disability or to require treatment like that required for individuals with intellectual disability but shall not include other handicapping conditions that are solely physical in nature.
According to the Regional Center of Orange County's (RCOC) Total Annual Expenditures and Authorized Services for Fiscal Year 2019-2020, a total of 25,163 individuals received services. RCOC represents the fifth-largest regional center in California and has over 300 service coordinators. Of those who received services, 31.6 percent reported their race as White, 16 percent reported Asian, 16.1 percent reported Other Ethnicity or Race/Multi-Cultural, and 2 percent reporter Black/African American. Approximately 34 percent of those who received services also reported their ethnicity as Hispanic or Latino. Ages of the 25,163 individuals includes 21.1 percent 2 years or younger, 39.9 percent 3 to 21 years, and 39 percent over the age of 22. The majority of those who received services lived at the home of a parent or guardian (82.3 percent), but 6.8 percent live in a Community Care Facility and 5.6 percent live in Independent Living or Supported Living. Diagnosis reported by the individuals who received services include the following:
• Intellectual Disability: 37.6%
• Autism: 31%
• Cerebral Palsy: 2.5.%
• Epilepsy: 1%
• Category 5: 3.9%
• Other:24.1%
For Newport Beach, the California Department of Developmental Services provides estimates of persons with developmental disabilities in Newport Beach. As of June 2019, 232 juvenile persons have been and 123 adults have been identified as have a developmental disability. The majority of these residents are juveniles who live at home with a parent or guardian.
Table 2-21 Developmental Disability Status, 2019
Disability Type
# of
Residents
BY RESIDENT
Home of Parent/Guardian
202
Independent/Supported Living
15 Community Care Facility
5 Intermediate Care Facility
0 Foster/Family Home
10 Other
0 BY AGE
0-17 Years Old
232
18* Years Old
123
CA DDS data by ZIP Code, June 2019.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-22
City of Newport Beach
2021-2029 HOUSING ELEMENT
Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with developmental disabilities is the transition from the person's living situation as a child to an appropriate level of independence as an adult.
There are several housing types appropriate for people living with a development disability: rent - subsidized homes, licensed and unlicensed single -unit homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, Department of Housing and Urban Development (HUD) housing, and SB 962 (veterans) homes. The design of housing -accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating 'barrier -free design in all, new multi- unit housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.
Key Challenges and Resources to Address Persons with Physical and Developmental Disabilities Persons with physical and developmental disabilities in Newport Beach have exhibited the following unique challenges to housing:
• Need for specialized housing to accommodate disabilities • Need for supportive services
• Higher incidence of dependent living needs
• High incidence of unemployment
To address these challenges, the City must consider a variety of solutions to address the above issues:
these may include:
• Regional coordination and support for services
• Permitting of housing for persons with disabilities
• Prioritization of services for disabled persons
• Local supportive services to supplement physical housing needs • Housing regulations/accommodation of unique housing needs • Group Homes options for persons with self-care limitations Resources to address the above needs include local General Fund revenue to fund Policy Actions described in Chapter 4, and partnership with the Orange County Regional Center, who provides and coordinates lifelong support and services to persons with disabilities. The City's existing permit procedures, regulations and policies further support physical and developmental disabilities through the granting of uses and facilities to accommodate the needs of persons disabilities. The City also has a reasonable Section 2: Community Profile (DRAFT JANUARY 2022) 2-23
City of Newport Beach
2021-2029 HOUSING ELEMENT
accommodation procedure that is intended to grant accommodations for persons with disabilities with the expressed intent not to cause additional cost to the requestee.
The City has included Policy Action 7C in Section 4 to address housing needs for persons with developmental disabilities. The City will review and prioritize housing and supportive services for persons with developmental disabilities, as well as explore regulatory incentives for projects that address the needs of persons with developmental disabilities.
3. Large Households
Large households are defined as those consisting of five or more members. These households comprise a special need group because many communities have a limited supply of adequately sized and affordable housing units. To save for other necessities such as food, clothing, and medical care, it is common for lower-income large households to reside in smaller units with inadequate number of bedrooms, which frequently results in overcrowding and can contribute to fast rates of deterioration.
Securing housing large enough to accommodate all members of a household is more challenging for renters because multi -unit rental units are typically physically smaller than single -unit ownership homes.
While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that large households will experience overcrowding in comparison to smaller households. Additionally, throughout the region, single -unit homes with higher bedroom counts, whether rental or ownership units, are rarely affordable to lower-income households.
Table 2-22 outlines the number of large households in the City by tenure and household size. As is shown, the vast majority of large households are owner -occupied rather than rented (71.3 percent and
28.7 percent respectively). There are very few households with 7 or more persons in owner -occupied homes and none in rentals. Amongst all rental homes, 2.5 percent are 5 -person households and amongst owned homes 4.4 percent are 5 -person households.
Table 2-22: Large Households by Tenure, 2017
Key Challenges and Resources to Address Large Person Households Large Person Households in Newport Beach have exhibited the following unique challenges to housing:
• Lack of available housing with sufficient bedroom counts Section 2: Community Profile (DRAFT JANUARY 2022) 2-24
Owner
Renter
Total
Household Size
Percent of Total
Percent of Total
Percent of
Count
Count
Count
Owner HHs
Renter HHs
Total HHs
5 -Person
933
4.4%
417
°
2.5/
1,350
°
3.6/°
Household
6 -person
398
1.9%
93 0.6%491
1.3/° °
Household
7+ person
56 0.3%
48 0.3%
104
0.3%
Households
Total
1,387
71.3%
558
28.7%
1,945
100%
Source: American Community Survey, 5 -Year Estimates, 2018.
Key Challenges and Resources to Address Large Person Households Large Person Households in Newport Beach have exhibited the following unique challenges to housing:
• Lack of available housing with sufficient bedroom counts Section 2: Community Profile (DRAFT JANUARY 2022) 2-24
City of Newport Beach P,
2021-2029 HOUSING ELEMENT
• Options for larger bedroom counts in rental units
• Higher monthly cost burdens
• Affordable options for large family households
• Childcare needs for working families
To address these challenges, the City must consider a variety of solutions to address the above issues:
these may include:
• Permitting of larger bedroom counts in ownership and rental units • Affordable housing options for large family households • Prioritization of family -sized units in affordable housing developments • Leveraging of Grant/Funding opportunities
Resources to address the above needs include Policy Actions that support the leveraging of LIHTC opportunities, State, Federal and private funds focused ids on multiple family development.
Regional resources include OCHFA, SCHFAfunding, Orange County Continuum of Care and Orange County Housing Authority Funding. The City has included Policy Actions 1A -1F, 4C, 4D and 6C,6D that will provide standards and provisions that will support the provision of larger sized family units.
4. Single -Parent Households
Single -parent households often require special consideration and assistance due to their greater need for affordable and accessible daycare, health care, and other supportive services. Many female -headed households with children are susceptible to having lower -incomes than similar two-parent households.
Single, female mothers often face social marginalization pressures that often limit their occupational choices and income earning potential, housing options and access to supportive services.
Table 2-232 shows there are few single parent households in Newport Beach (3.6 percent) as compared to 7.4 percent in Orange County. Most single -parent households in both the City and Orange County are headed by females without a spouse present — 68.9 percent in Newport Beach and 70.5 percent in Orange County. The percentage of single parents living in poverty in the City is half that of the regional percentage.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-25
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-23: Sinele Parent Households
Key Challenges and Resources to Address Single Parent Households Single Parent Households in Newport Beach have exhibited the following unique challenges to housing:
• Affordable Housing Options
• Rental and For Sale Housing Options
• Higher monthly cost burdens with one income families
• Childcare needs for working families
To address these challenges, the City must consider a variety of solutions to address the above issues:
these may include:
• Affordable housing options for single income families • Accessibility to childcare options
• Leveraging of Grant/Funding opportunities
With incidents of single parent households at half the rate compared to Orange County, the city believes the existing opportunities and policies related to affordable housing options, childcare access and leveraging of funding will provide the necessary resources to address the needs of this segment of the population.
z). rarmworkers
Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Permanent farm laborers work in the fields, processing plants, or support activities on a generally year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal workers, often supplied by a labor contractor. For some crops, farms may hire migrant workers, defined as those whose travel prevents them from returning to their primary residence every evening. Farmworkers have special housing needs because they earn lower -incomes than many other workers and move throughout the year from one harvest location to the next.
The United States Department of Agriculture, National Agriculture Statistics provides data on hired farm labor across the United States. The data is compiled at both a State and County level. Within Orange County, a total of 99 farms reportedly hired 1,772 workers in 2017. Permanent workers, those who work 150 days or more, represent the largest category of workers with 1,106 workers (62 percent). A total of 666 workers (38 percent) are considered seasonal and work less than 150 days. Orange County reported Section 2: Community Profile (DRAFT JANUARY 2022) 2-26
Single Parent-
Single Parent
Single Parent -Male,
Single Parent
Female, No Spouse
Households Living
No Spouse Present
Households
Jurisdiction
Present
in Poverty
of Single
% of Single
% of Single
% of Total
Count
Count
Count
Count
Parent HH
Parent HH
Parent HH
Households
Newport Beach
422 31.1%
936
68.9%
183
13.5%
1,358
3.6%
Orange County
22,456 29.5%
53,659
70.5%
22,999
30.2%
76,115
7.4%
Source: American Community Survey, 5 -Year Estimates, 2018.
Key Challenges and Resources to Address Single Parent Households Single Parent Households in Newport Beach have exhibited the following unique challenges to housing:
• Affordable Housing Options
• Rental and For Sale Housing Options
• Higher monthly cost burdens with one income families
• Childcare needs for working families
To address these challenges, the City must consider a variety of solutions to address the above issues:
these may include:
• Affordable housing options for single income families • Accessibility to childcare options
• Leveraging of Grant/Funding opportunities
With incidents of single parent households at half the rate compared to Orange County, the city believes the existing opportunities and policies related to affordable housing options, childcare access and leveraging of funding will provide the necessary resources to address the needs of this segment of the population.
z). rarmworkers
Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Permanent farm laborers work in the fields, processing plants, or support activities on a generally year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal workers, often supplied by a labor contractor. For some crops, farms may hire migrant workers, defined as those whose travel prevents them from returning to their primary residence every evening. Farmworkers have special housing needs because they earn lower -incomes than many other workers and move throughout the year from one harvest location to the next.
The United States Department of Agriculture, National Agriculture Statistics provides data on hired farm labor across the United States. The data is compiled at both a State and County level. Within Orange County, a total of 99 farms reportedly hired 1,772 workers in 2017. Permanent workers, those who work 150 days or more, represent the largest category of workers with 1,106 workers (62 percent). A total of 666 workers (38 percent) are considered seasonal and work less than 150 days. Orange County reported Section 2: Community Profile (DRAFT JANUARY 2022) 2-26
City of Newport Beach
2021-2029 HOUSING ELEMENT
340 migrant workers (19 percent) with full time hired labor in 2017. In addition, the County reported 176 unpaid workers.
2018 ACS 5 -Year Estimates data reports a total of 72 Newport Beach residents employed full time, year round in the agriculture, forestry, fishing, hunting, and mining industry. Fourteen (14) residential are employed full time in farmworkers jobs. These are most likely very small local operations and not large scale farming activities .The median annual wage for these industries is $27,472 and falls below 50 percent of the median income for Orange County (32 percent).
Key Challenges and Resources to Address Farmworker Housing Needs Farmworker Households in Newport Beach have exhibited the following unique challenges to housing:
• Affordable Housing Options
• Higher incidents of cost burden for housing
• Rental and For Sale Housing Options
• Childcare needs for working families
Similar to other special needs groups, Farmworkers needs are focused on affordability of housing and access to services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues: these may include:
• Affordable housing options for farmworkers
• Accessibility to childcare options
• Leveraging of Grant/Funding opportunities
With incidents of Farmworker households representing less than one half of one percent, the city believes the existing opportunities and policies related to affordable housing options, childcare access and leveraging of funding will provide the necessary resources to address the needs of this segment of the population will assist in the needs for farmworkers citywide. 'R. Extremely Low-income Households and Poverty Status
The 2013-2017 Comprehensive Housing Affordability Strategy (CHAS) indicates that there are 3,270 low- income households living in Newport Beach. Very low-income households earn 50 percent or less of the area median family income (AMFI) for Orange County. Extremely low-income households earn less than 30 percent of the AMFI. There are approximately 3,855 extremely low-income households in the City, including both renters and homeowners. Table 2-23 below shows a breakdown of housing problems for Newport Beach households by income category.
Table 2-24-3 shows that about 10 percent more renters live with at least one housing problem. More lower-income renters report a housing problem — 9.2 percent with extremely low-income, 10.6 percent with very low-income, and 12.5 percent with low-income. About 45 percent of renters experience one or more housing problems. Homeowners typically report less of a cost burden than renters. In Newport Beach, 35.3 percent of homeowners have at least one housing problem. The majority of those are in Section 2: Community Profile (DRAFT JANUARY 2022) 2-27
City of Newport Beach
2021-2029 HOUSING ELEMENT
above -moderate -income households (15.9 percent). In total, for both renters and homeowners, 39.5 percent of households have at least one housing problem.
While representing only 0.8 percent of the Newport Beach population, people who identify as Black have the highest rates of poverty in the City, as illustrated in Figure 2-6. Similarly, American Indian/Alaska Natives and Native Hawaiian/other Pacific Islanders make up the smallest population percentages (0.3 percent and 0.2 percent, respectively) and together account for over 20 percent of those living below the poverty line. Values in the bar graph below contrasted to racial and ethnic composition of the City illustrate critical differences in housing needs.
To calculate the projected housing needs, the City assumed 50 percent of its very low-income regional housing need are extremely low-income households. Calculating from the very low-income need of 1,456 units, the City has an estimated need of 728 housing units for extremely low-income households.
Extremely low-income household needs will likely be focused to_rental housing and more likely to experience overpayment, overcrowding or substandard housing conditions and more likely to include transitional and supportive housing.
Table 2-24: Housine Problems for All Households by Income Cateeorv. 2013-2017 Section 2: Community Profile (DRAFT JANUARY 2022) 2-28
Owner
Income Category
Household has at
% of
Household has
% of
Cost Burden not
% of
least 1 of 4
Owner
none of 4 Housing
Owner
available, no other
Owner
Housing Problems
HH
Problems
HH
Housing Problem
HH
Household Income is
1,335
6.2%
65 0.3%
175
0.8%
less -than or = 30%
Household Income
>30% to less -than or=
1,020
4.7%
290
1.3%
0 0.0%
50%AMFI
Household Income
>50% to less -than or=
1,215
5.6%
705
3.3%
0 0.0%
80% AMFI
Household Income
>80% to less -than or =
615
2.8%
370
1.7%
0 0.0%
100% AM F I
Household Income
3,450
15.9%°
12,405
57.3/°
0 0.0%
>100% AMFI
Total
7,635
35.3%
13,835
63.9%
175
0.8%
Renter
Household has at
% of
Household has
% of
Cost Burden not
% of
Income Category
least 1 of 4
Renter
none of 4 Housing
Renter
available, no other
Renter
Housing Problems
HH
Problems
HH
Housing Problem
HH
Household Income is
1,500
9.2%
170
1.0/ °
610
3.7/° °
less -than or = 30%
Household Income
>30% to less -than or
1,725
10.6%
235
1.4%
0 0.0%
50% AMFI
Section 2: Community Profile (DRAFT JANUARY 2022) 2-28
City of Newport Beach
2021-2029 HOUSING ELEMENT
Household Income
>50% to less -than or=
2,040
12.5%
510
3.1%
0 0.0%
80%AMFI
Household Income
>80% to less -than or=
885
5.4%
425
2.6%
0 0.0%
100% AMFI
Household Income
1,205
7.4%
7,025
43.0%
0 0.0%
>100% AMFI
Total
7,355
45.1%
8,365
51.2%
610
3.7%
Total Households
14,990
39.5%
22,200
58.5%
785
2.1%
(Owner and Renter)
* The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
** The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%.
Note: AMFI = Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. AMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.
Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013- 2017.
Figure 2-6: Percent below Poverty Level, by Race and Hispanic or Latino Origin 25%
20%
15%
10%
5%
0%
White Black American Asian Native Some Other Two or More Hispanic or Indian and Hawaiian Race Races Latino
Alaska and Other
Native Pacific
Islander
Source: American Community Survey, 5 -Year Estimates, 2018.
Note: The chart reports percentage of own population who are reported to have incomes below poverty level.
Housing Extremely Low Income households (those with incomes less than 30% of the County Median income) are generally challenging in Newport Beach, Extremely Low Income Housing Needs. Table 2-25 illustrates there are 3,984 persons in Newport Beach with incomes less than 30% of the Area Median Income. Persons of Hispanic origin experience the highest rates of extremely low income, represent Section 2: Community Profile (DRAFT JANUARY 2022) 2-29
City of Newport Beach
2021-' 111 HOUSING E" EMENT
14.3% of the total Extremely Low Income Population. This income category is generally distributed evenly amongst racial groups. Renters tend to have a higher incidents of Extremely Low Income in Newport Beach.
Table 2-25: Extremely Low Income Household Needs
Challenges and Resources to Address Farmworker Housing Needs Extremely Low Income Households in Newport Beach have exhibited the following unique challenges to housing:
• Need for increased affordable housing options
• Markedly Higher incidents of cost burden for housing
• Need for smaller housing unit options such as SRO's
• Rental Assistance
• Higher incidents of homelessness
• Higher likelihood for transitional and supportive housing Extremely Low income household needs are focused on affordability of housing and access to subsidies and services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues: these may include:
• Affordable housing options for Extremely Low Income households • Preservation of subsidized housing units
• Creation of additional subsidized housing units
• Inclusionary policies
• Housing with a service component
• Transitional, Supportive and Homeless housing options Resources to address the needs of Extremely Low Income households include a variety of federal, state and regional programs, such as Section 8, HUD, LIHTC USDA, CaIHFA and other public and private funding sources.
The City has included Policy Action 713 in Section 4 to address transitional and supportive housing needs for extremely low income persons. The City will continue to monitor the inventory of sites appropriate to accommodate extremely low income households, transitional and supportive housing and will work with Section 2: Community Profile (DRAFT JANUARY 2022) 2-30
# Households <30% MFI
% Share <30% MFI
White, Non -Hispanic
3185
10.1%
Black, Non -Hispanic
15 8.2%
Asian and Other Non -Hispanic
449
12.6%
Hispanic
335
14.3%
TOTAL
3984
10.6%
Renter Occupied
2385
14.4%
Owner Occupied
1600
7.6%
Source: HUYD CHAS, 2012-2016
Challenges and Resources to Address Farmworker Housing Needs Extremely Low Income Households in Newport Beach have exhibited the following unique challenges to housing:
• Need for increased affordable housing options
• Markedly Higher incidents of cost burden for housing
• Need for smaller housing unit options such as SRO's
• Rental Assistance
• Higher incidents of homelessness
• Higher likelihood for transitional and supportive housing Extremely Low income household needs are focused on affordability of housing and access to subsidies and services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues: these may include:
• Affordable housing options for Extremely Low Income households • Preservation of subsidized housing units
• Creation of additional subsidized housing units
• Inclusionary policies
• Housing with a service component
• Transitional, Supportive and Homeless housing options Resources to address the needs of Extremely Low Income households include a variety of federal, state and regional programs, such as Section 8, HUD, LIHTC USDA, CaIHFA and other public and private funding sources.
The City has included Policy Action 713 in Section 4 to address transitional and supportive housing needs for extremely low income persons. The City will continue to monitor the inventory of sites appropriate to accommodate extremely low income households, transitional and supportive housing and will work with Section 2: Community Profile (DRAFT JANUARY 2022) 2-30
City of Newport Beach
2021-2029 HOUSING ELEMENT
the appropriate organizations to ensure the needs of homeless and extremely low-income residents are met. The City is committed to prioritizing funding and other available incentives for projects that provide housing for homeless and extremely low-income residents whenever possible. /. Persons Experiencing Homelessness
Throughout the country and Orange County region, homelessness has become an increasingly important issue. Factors contributing to the rise in homelessness include, increased unemployment and underemployment, a lack of housing affordable to lower and moderate -income persons (especially extremely low-income households), reductions in public subsidies to the poor, and the de- institutionalization of the mentally ill.
State law mandates that cities address the special needs of persons experiencing homelessness within their jurisdictional boundaries. "Homelessness" as defined by the U.S. Department of Housing and Urban Development (HUD) has recently been updated, the following lists the updated descriptions and the changes in the definition from HUD:
• People who are living in a place not meant for human habitation, in emergency shelter, in transitional housing, or are exiting an institution where they temporarily resided. The only significant change from existing practice is that people will be considered homeless if they are exiting an institution where they resided for up to 90 days (it was previously 30 days) and were in shelter or a place not meant for human habitation immediately prior to entering that institution. • People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled -up situation, within 14 days and lack resources or support networks to remain in housing.
HUD had previously allowed people who were being displaced within 7 days to be considered homeless. The proposed regulation also describes specific documentation requirements for this category.
• Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This is a new category of homelessness, and it applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 or more days, have had 2 or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment. • People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing. This category is similar to the current practice regarding people who are fleeing domestic violence.
This definition does not include persons living in substandard housing (unless it has been officially condemned); persons living in overcrowded housing (for example, doubled up with others); persons being discharged from mental health facilities (unless the person was homeless when entering and is considered to be homeless at discharge); or persons who may be at risk of homelessness (for example, living temporarily with family or friends.)
The Point in Time Count is conducted by the County of Orange in accordance with the U.S. Department of Housing and Urban Development (HUD) guidelines to provide information on where individuals Section 2: Community Profile (DRAFT JANUARY 2022) 2-31
City of Newport Beach
2021-2029 HOUSING ELEMENT
experiencing homelessness are in the County. About 1,167 volunteers across the County counted 6,860 individuals experiencing homelessness. Of those, 2,899 were sheltered and 3,961 were unsheltered.
The 2020 Count is not yet available online, therefore this data is based on the Count conducted in January 2019 — the individual city results are shown in Table 2-26. Of the nearby cities, Newport Beach had the lowest count and percentage of people experiencing homelessness (64 individuals and 0.9 percent of the County). Huntington Beach recorded the greatest percentage at 5.1 percent. Of all those reported in Orange County, 5 percent were veterans, 4 percent were transitional youth ages 18 to 24, and 9 percent were seniors over the age of 65.
Table 2-26: Homeless Count by Jurisdiction, 2019
Jurisdiction
Unsheltered
Sheltered
Total
% of County
Costa Mesa
187
6 193
2.8%
Newport Beach
64 0
64 0.9%
Huntington Beach
289
60 349
5.1%
Laguna Beach
71 76
147
2.1%
Irvine
127
3 130
1.9%
Orange County
3,961
2,899
6,860
100%
Source: Orange County Point in Time Count, Everyone Counts Report 2019.
Key Challenges and Resources to Address Persons Experiencing Homelessness The City has taken steps to address the very complex issue of homelessness. City staff and City Net, a contractor that assists with community outreach and case management services, work in collaboration to engage these individuals and connect them with services such as emergency housing, mental and health care, benefits counseling and a variety of other community-based programs and services.
The City also has a dedicated, full-time police officer and a homeless coordinator who focus on the issue of homelessness. The Homeless Liaison Officer works closely with the County of Orange Health Care Agency's case management staff and City Net to provide homeless outreach services. The uniqueness of each homeless individual's situation requires an individual approach. Since everyone's needs are different, our staff works with our homeless individuals on a case-by-case basis.
It is important to understand that often, individuals are resistant to seeing case workers or our police officers assigned to work with those experiencing homelessness. Multiple visits may be required before we gain a person's trust in a way that opens a conversation about solutions. That is why, in addition to our full-time officer, the City has contracted with City Net to provide homeless outreach services. Street outreach services seeks to connect unsheltered homeless individuals with emergency shelter, housing, critical services, healthcare, or urgent, non -facility -based care.
Newport Beach has entered a partnership with the adjacent City of Costa Mesa for shelter beds at the Costa Mesa Bridge Shelter, which opened in Spring 2021. In addition to temporary housing, the Bridge Section 2: Community Profile (DRAFT JANUARY 2022) 2-32
City of Newport Beach
2021-2029 HOUSING ELEMENT
!",
Shelter provides case workers who assist homeless individuals with addiction and mental health counseling, job searches, and accessing permanent housing.
The City has included Policy Action 6A to address the needs of persons experiencing homelessness. The Policy Action continues the City's efforts to fund sub -recipients who provide shelter and services to persons experiencing homelessness. In addition, Policy Action 7A and 7B address supportive and transitional housing and low barrier navigation center needs for persons experiencing homelessness.
8. Students
Student housing often only produces a temporary housing need based on the duration of the educational institution enrolled in. The impact upon housing demand is critical in areas that surround universities and colleges. Located in Newport Beach is Coastline College, and colleges near the City include University of California, Irvine; Concordia University; Orange Coast College; Vanguard University; Laguna College of Art and Design; SOKA University; and Irvine Valley College. Students enrolled in undergraduate and graduate programs, make up about 6 percent of the total population of Newport Beach.
Key Challenges and Resources to Address Student Housing Needs Typically, students are low-income and are, therefore, affected by a lack of affordable housing, especially within easy commuting distance from campus, therefore it is important for the City to consider and accommodate the student population within the community. They often seek shared housing situations to decrease expenses and can be assisted through roommate referral services offered on and off campus.
A lack of affordable housing also influences choices students make after graduating.
The characteristics of the housing stock, including growth, type, availability and tenure, age and condition, housing costs, and affordability contribute to the housing needs for the community. This section details the housing characteristics of Newport Beach to identify how well the current housing stock meets the needs of its current and future residents.
1. Housing Growth
According to the American Community Survey (ACS), the City's housing stock grew by 1,298 units between 2010 and 2018 (Table 2-27). This 2.9 percent increase was the second largest in this area, behind the City of Irvine which had a dramatically larger gain of 31 percent. Orange County as a whole experienced a
4.6 percent housing stock increase during this same time period, which is 1.7 percent more than Newport Beach. The City of Costa Mesa had smaller percent change than Newport Beach by 2.3 percent.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-33
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-27: Housing Unit Growth Trends. 2010-2018
Jurisdiction
2010
2015
2018
Percent
Change 2010
to 2015
Percent
Change 2015
to 2018
Costa Mesa
42,867
43,030
43,100
0.4%
0.2%
Newport Beach
43,503
43,690
44,801
0.4%
2.5%
Huntington Beach
79,166
78,252
81,396
-1.2%
4.0%
Laguna Beach
13,243
13,433
13,487
1.4%
0.4%
Irvine
76,184
91,938
101,434
20.7%
10.3%
Orange County
1,042,254
1,064,642
1,091,376
2.1%
2.5%
Source: American Community Survey, 5 -Year Estimates, 2010, 2015, and 2018.
2. Housing Type
Table 2-28 is a breakdown of housing units by type in Newport Beach in contrast to Orange County. The table reflects data from the American Community Survey which is estimates based on the U.S. Census and surveys. A large percentage of housing units in the City come from single unit detached homes (47.8 percent). Single unit attached homes typically do not take up a large portion of the housing stock, but in Newport Beach they account for 16.1 percent of all units. Another 34.5 percent is multi -unit housing, which is the same for the County as well. Mobile homes are the smallest category of housing types with
1.5 percent of all units. It is important to provide a wide variety of housing types throughout the City in order to ensure all housing needs for the population are met.
Table 2-28: Total Housing Units by Type
3. Housing Availability and Tenure
Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure defines if a unit is owner -occupied or renter occupied. Tenure is an important market characteristic as it relates to the availability of housing product types and length of tenure. The tenure characteristics in a community can indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition, and age of the householder.
In 2018, owner -occupied units accounted for 56.5 percent of the Newport Beach housing stock and
43.5 percent were rentals (Table 2-29). Of the owner -occupied units, the large majority were single unit Section 2: Community Profile (DRAFT JANUARY 2022) 2-34
Single -Unit
Detached
Single -Unit Attached
Multi
-Unit
Mobile Homes
Jurisdiction
Count
Percent
Count
Percent
Count
Percent
Count
Percent
Newport Beach
21,399
47.8%
7,234
16.1%
15,437
34.5%
390
1.5%
Orange County
553,164
50.7%
133,326
12.2%
374,176
34.3%
30,227
2.8%
Source: American Community Survey, 5 -Year Estimates, 2018.
3. Housing Availability and Tenure
Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure defines if a unit is owner -occupied or renter occupied. Tenure is an important market characteristic as it relates to the availability of housing product types and length of tenure. The tenure characteristics in a community can indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition, and age of the householder.
In 2018, owner -occupied units accounted for 56.5 percent of the Newport Beach housing stock and
43.5 percent were rentals (Table 2-29). Of the owner -occupied units, the large majority were single unit Section 2: Community Profile (DRAFT JANUARY 2022) 2-34
City of Newport Beach
2021-2029 HOUSING ELEMENT
detached homes (71.6 percent) and the smallest percentage was of mobile homes (1.1 percent). As is often the case, multi -unit homes accounted for over half of all rentals (67.9 percent) and only 17 percent of rental units were single unit detached homes. Mobile homes are more likely to be occupied by renters, as the Table 2-27 shows.
Table 2-29: Occupied Housing Units by TVDe and Tenure
Table 2-30: Average Household Size by Tenure, 2018
Jurisdiction
Single- Unit
Single -Unit
Renter Occupied
Households (% of
Total Households)
Mobile
Total Occupied
Tenure
Detached
Attached
Multi -Unit
Homes
Units'
Owner
43.5%
2 Huntington Beach
57.8%
2.6 42.2%
71.6%
19.5%
7.8%
1.1%
56.5%
Occupied
Irvine
47.3%
2.8 52.7%
2.6 Renter
57.4%
3 42.6%
3.1 Source: American Community Survey, 5 -Year Estimates, 2018.
17.1%
12.7%
67.9%
2.2%
43.5%
Occupied
Total
47.9%
16.5%
34.1%
1.6%
100%
'Note: The data shows the percent of total occupied units.
Source: American Community Survey, 5 -Year Estimates, 2018.
Table 2-30: Average Household Size by Tenure, 2018
Jurisdiction
Owner Occupied
Households (% of
Total Households)
Average Owner
Household Size
Renter Occupied
Households (% of
Total Households)
Average Renter
Household Size
Costa Mesa
39.1%
2.8 60.9%
2.7 Newport Beach
56.5%
2.5 43.5%
2 Huntington Beach
57.8%
2.6 42.2%
2.6 Laguna Beach
60.7%
2.3 39.3%
2 Irvine
47.3%
2.8 52.7%
2.6 Orange County
57.4%
3 42.6%
3.1 Source: American Community Survey, 5 -Year Estimates, 2018.
To identify housing trends and potential population needs, Table 2-30 compares average household sizes and tenure amongst the cities surrounding Newport Beach. Renters in the City have one of the lowest average household sizes at just 2 people per home. Homeowners in Newport Beach also have the second smallest number of people per household after Laguna Beach with 2.3 people per home. The County average is 3.1 persons for rentals and 3 persons for owner -occupied homes. Figure 2-7 illustrates vacancy rates by jurisdiction and shows that Newport Beach has the second largest percentage of vacant homes at 15.5 percent. The City's vacancy rate is 3 times that of Orange County.
Vacancy rates indicate the degree of choice available. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. Too high of a vacancy rate can be difficult for owners trying to sell or rent. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low of a vacancy rate can force prices up making it more difficult for lower and moderate -income households to find housing. Vacancy rates of between 2 to 3 percent are usually considered healthy for single -unit or ownership housing, and rates of 5 to 6 percent are usually considered healthy for multi -unit or rental housing.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-35
City of Newport Beach
2021-2029 HOUSING ELEMENT
25.0%
20.0%
15.0%
10.0%
Figure 2-7: Vacancy Rate by Jurisdiction, 2018
5.0%
o
0.0 /o
Newport Huntington Laguna Orange
Costa Mesa Beach Beach Beach Irvine County
Vacancy Rate 4.8% 15.5% 5.6% 21.8% 6.0% 5.4%
Source: American Community Survey, 5 -Year Estimates, 2018.
The most common reason for vacancies in Newport Beach is due to homes being used seasonally, or for recreation or occasional use (48.3 percent), as shown in Table 2-31 These 3,350 homes are not permanent residences and remain empty for most of the year. Homes for rent are the second most common reason for vacancies in the City at 22.4 percent.
Table 2-31: Tvoe of Vacant Housing Units in Newoort Beach Type of Housing
Estimate
Percent
For rent
1,551
22.4%
Rented, not occupied
292
4.2%
For sale only
370
5.3%
Sold, not occupied
499
7.2%
For seasonal, recreational, or occasional use
3,350
48.3%
Other vacant
869
12.5%
Total
6,931
100%
Source: American Community Survey, 5 -Year Estimates, 2018.
4. Housing Age and Condition
Housing age can be an indicator of housing condition within a community. For example, housing that is over 30 years old is typically in need of some major rehabilitation, such as a new roof, foundation, plumbing, etc. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs.
In Newport Beach, most homes were built over 30 years ago (Figure 2-8). About 22.3 percent of the housing stock was built between 1970 and 1979, while only 2.7 percent was built after 2010. Another 8 percent of homes were also built prior to 1950. This reflects an aging housing stock that may need certain updates.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-36
City of Newport Beach
2021-2029 HOUSING ELEMENT
25%
20%
15%
10%
Figure 2-8: Age Distribution of Housing Stock
5%
1 1
o
0 /o
Built
Built
Built
Built
Built
Built
Built
Built
Built
Built
2014 or
2010 to
2000 to
1990 to
1980 to
1970 to
1960 to
1950 to
1940 to
1939 or
later
2013
2009
1999
1989
1979
1969
1959
1949
earlier
■ Newport Beach
1.1%
1.6%
10.8%
14.2%
11.2%
22.3%
19.0%
11.7%
3.7%
4.3%
Source: American Community Survey, 5 -Year Estimates, 2018.
Figure 2-9 below displays the 2018 ACS data for housing units by the year they were built sorted by tenure.
According to the data, Newport Beach has mostly had a majority of owner -occupied units. The majority of the City's housing stock was built before 1980 and is home to 32 percent of the City's current homeowners. The greatest number of renters reside in housing units built between 1970 and 1979.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-37
City of Newport Beach
2021-2029 HOUSING ELEMENT
25%
20%
15%
10%
Figure 2-9: Housing Stock by Age of Structure and Tenure 5%111111■■
0%
Built
Built
Built
Built
Built
Built
Built
Built
Built
Built
2014 or
2010 to
2000 to
1990 to
1980 to
1970 to
1960 to
1950 to
1940 to
1939 or
later
2013
2009
1999
1989
1979
1969
1959
1949
earlier
■ Renter
0.3%
0.9%
3.3%
5.1%
5.7%
12.3%
8.5%
4.5%
1.4%
1.7%
■ Owner
0.6%
0.7%
8.1%
9.4%
5.6%
11.1%
10.3%
6.7%
2.2%
1.7%
■ Owner ■ Renter
Source: American Community Survey, 5 -Year Estimates, 2018.
Figure 2-10 displays the 2018 ACS data for housing units by the year they were built for owners (left) and renters (right). That data shows that a greater concentration of renters reside in units built between 1970 and 1979 compared to other years and to homeowners. Less than 2 percent of renters and homeowners reside in units built after 2010. A greater number of homeowners live in units built between 1990 and 2009 than renters (9.1 percent more).
Section 2: Community Profile (DRAFT JANUARY 2022) 2-38
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 2-10: Housing Units by Year Built Owner (Left) and Renter (Right) Owner
Built 1939 or earlier 1.7%
Built 1940 to 1949 2.2%
Built 1950 to 1959 � 6.7%
Built 1960 to 1969
Built 1970 to 1979
Built 1980 to 1989 � 5.6%
Built 1990 to 1999
Built 2000 to 2009
Built 2010 to 2013 ■ 0.7%
Built 2014 or later 1 0.6%
8.1%
Renter
Built 1939 or earlier 1111110 1.7%
Built 1940 to 1949 M 1.4%
Built 1950 to 1959 4.5%
Built 1960 to 1969
Built 1970 to 1979
Built 1980 to 1989 5.7%
Built 1990 to 1999 5.1 %
Built 2000 to 2009 3.3%
Built 2010 to 2013 ■ 0.9%
Built 2014 or later 1 0.3%
8.5%
0% 4% 8% 12% 0% 4% 8% 12%
Source: American Community Survey, 5 -Year Estimates, 2018.
12.3%
5. Housing Costs and Affordability
Housing costs reflect the supply and demand of housing in a community. This section summarizes the cost and affordability of the housing stock to the City's residents.
Home values in Newport Beach are on median $1,787,300, as shown in Table 2-32. This total is 2.7 times the median home value of Orange County and significantly larger than the nearby cities. Laguna Beach is second behind Newport Beach in home value with a median amount of $1,700,400. Costa Mesa has the lowest median home value of $707,600.
Table 2-32: Median Home Value by Jurisdiction
Jurisdiction
Median Home Value
Costa Mesa
$707,600
Newport Beach
$1,787,300
Huntington Beach
$728,200
Laguna Beach
$1,700,400
Irvine
$797,100
Orange County
$652,900
Source: American Community Survey, 5 -Year Estimates, 2018.
Table 2-33 outlines the average monthly price of rent in Newport Beach and how it has changed between 2017 and 2020 depending on the number of bedrooms. This data is provided by the Zillow Rent Index Report for Newport Beach, and shows that all units experienced increases in rates in the last three years.
One -bedroom rentals rose by 5.1 percent and the most out of 1 -3 -bedroom units. Two-bedroom units Section 2: Community Profile (DRAFT JANUARY 2022) 2-39
City of Newport Beach
20211029 HOUSING E" EMENT
remained the most consistent with a slight increase of 1.4 percent. The price per square foot, however, saw a much greater increase for units with three or more bedrooms (9.8 percent). Zillow reports that one - bedroom units decreased from $3.01 per square foot in 2017 to $3 per square foot in 2020.
Table 2-33: Change in Average Monthly Rental Rates, 2017-2020 Unit Type
January 2017
January 2018
January 2019
January 2020
% Change
2017-2020
1 Bedroom
$2,383
$2,425
$2,408
$2,504
5.1%
2 bedrooms
$3,290
$3,291
$3,241
$3,337
1.4%
3 Bedrooms
$4,191
$4,218
$4,095
$4,355
3.9%
Price per Square Foot
Unit Type
January 2017
January 2018
January 2019
January 2020
% Change
2017-2020
1 Bedroom
$3.01
$2.83
$2.93
$3
-0.3%
2 bedrooms
$2.64
$2.65
$2.53
$2.87
8.7%
3+ Bedrooms
$2.65
$2.8
$2.81
$2.91
9.8%
Source: Zillow Rent Index Report January 2017-2020, accessed August 25, 2020.
Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment.
The Federal Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household's eligibility for federal housing assistance. Based on this survey, the California Department of Housing and Community Development (HCD) developed income limits, based on the Area Median Family Income (AMFI), which can be used to determine the maximum price that could be affordable to households in the upper range of their respective income category.
Households in the lower end of each category can afford less by comparison than those at the upper end.
The maximum affordable home and rental prices for residents in Orange County are shown in Table 2-34 and Table 2-35.
The data shows the maximum amount that a household can payfor housing each month without incurring a cost burden (overpayment). This amount can be compared to current housing asking prices (Table 2-32) and market rental rates (Table 2-33) to determine what types of housing opportunities a household can afford.
Extremely Low-income Households
Extremely low-income households earn less than 30 percent of the County AMFI — up to $26,950 for a one-person household and up to $41,550 for a five -person household in 2020. Extremely low-income households cannot afford market -rate rental or ownership housing in Newport Beach without assuming a substantial cost burden.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-40
City of Newport Beach
2021-2029 HOUSING ELEMENT
Very Low-income Households
Very low-income households earn between 31 percent and 50 percent of the County AM FI —up to $44,850 for a one-person household and up to $69,200 for a five -person household in 2020. A very low-income household cannot afford market -rate rental or ownership housing in Newport Beach without assuming a substantial cost burden. A very low-income household at the maximum income limit can afford to pay approximately $1,121 to $1,730 in monthly rent, depending on household size. Given the high cost of housing in the City, persons, or households of very low-income could not afford to rent or purchase a home in the City.
Low-income Households
Low-income households earn between 51 percent and 80 percent of the County's AMFI - up to $71,750 for a one-person household and up to $110,650 for a five -person household in 2020. The affordable home price for a low-income household at the maximum income limit ranges from $308,500 to $454,000. Based on the asking prices of homes for sale in 2020 (Table 2-30), ownership housing would not be affordable to low-income households. A one-person low-income household could afford to pay up to $1,794 in rent per month and a five -person low-income household could afford to pay as much as $2,766. Low-income households in Newport Beach would not be able to find adequately sized affordable apartment units (Table 2-31).
Moderate -income Households
Persons and households of moderate -income earn between 81 percent and 120 percent of the County's AM Fl — up to $133,500, depending on household size in 2020. The maximum affordable home price for a moderate -income household is $377,000 for a one-person household and $558,600 for a five -person family. Moderate -income households in Newport Beach would not be able to purchase a home in the City.
The maximum affordable rent payment for moderate -income households is between $2,163 and $3,338 per month. A one-person moderate -income household may be able to find some adequately sized affordable apartment units; larger households would not be able to afford to rent a unit in the City.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-41
City of Newport Beach
2021-2029 HOUSING ELEMENT
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Table 2-34: Affordable Housing Costs for Owners in Orange County, 2020 Annual Income
Mortgage
Utilities)
11 Tax and
Insurance
Total
Affordable
Monthly
Housing Cost
Affordable
Purchase
Price
Extremely Low-income (30% of AM FI)
1 -Person $26,950
$455
$118
$101
$674
$99,990
2 -Person $30,800
$504
$151
$116
$770
$110,500
3 -Person $34,650
$539
$197
$130
$866
$118,000
4 -Person $38,450
$574
$243
$144
$961
$125,800
5 -Person $41,550
$594
$289
$156
$1,039
$130,200
Very Low -Income (50% of AMFI)
1 -Person $44,850
$835
$118
$168
$1,121
$183,000
2 -Person $51,250
$938
$151
$192
$1,281
$205,500
3 -Person $57,650
$1,028
$197
$216
$1,441
$225,400
4 -Person $64,050
$1,118
$243
$240
$1,601
$245,000
5 -Person $69,200
$1,182
$289
$260
$1,730
$259,000
Low-income (80%AMFI)
1 -Person $71,750
$1,407
$118
$269
$1,794
$308,500
2 -Person $82,000
$1,592
$151
$308
$2,050
$349,100
3 -Person $92,250
$1,763
$197
$346
$2,306
$386,500
4 -Person $102,450
$1,934
$243
$384
$2,561
$424,000
5 -Person $110,650
$2,062
$289
$415
$2,766
$452,000
Moderate -income (120% AM FI)
1 -Person $86,500
$1,720
$118
$324
$2,163
$377,000
2 -Person $98,900
$1,951
$151
$371
$2,473
$427,800
3 -Person $111,250
$2,167
$197
$417
$2,781
$475,000
4 -Person $123,600
$2,384
$243
$464
$3,090
$522,700
5 -Person $133,500
$2,548
$289
$501
$3,338
$558,600
Source: Orange County Housing Authority, 2020 Utility Allowance Schedule and California Department of Housing and Community Development, 2020 Income Limits and Kimley Horn and Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost; 15% of monthly affordable cost for taxes and insurance; 10% down payment and 4.5% interest rate for a 30 -year fixed-rate mortgage loan. Utilities based on Orange County Utility Allowance.
1. Utilities includes basic electric, water, sewer/trash, refrigerator, and stove.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-42
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 2-35: Affordable Monthly Housing Cost for Renters in Orange County, 2020 Annual Income
Rent
Utilities'
Total Affordable
Monthly Housing Cost
Extremely Low-income (30% of AMFI)
1 -Person $26,950
$556
$ 118.00
$674
2 -Person $30,800
$619
$ 151.00
$770
3 -Person $34,650
$669
$ 197.00
$866
4 -Person $38,450
$718
$ 243.00
$961
5 -Person $41,550
$750
$ 289.00
$1,039
Very Low-income (50% of AM FI)
1 -Person $44,850
$1,003
$ 118.00
$1,121
2 -Person $51,250
$1,130
$ 151.00
$1,281
3 -Person $57,650
$1,244
$ 197.00
$1,441
4 -Person $64,050
$1,358
$ 243.00
$1,601
5 -Person $69,200
$1,441
$ 289.00
$1,730
Low-income (80%AMFI)
1 -Person $71,750
$1,676
$ 118.00
$1,794
2 -Person $82,000
$1,899
$ 151.00
$2,050
3 -Person $92,250
$2,109
$ 197.00
$2,306
4 -Person $102,450
$2,318
$ 243.00
$2,561
5 -Person $110,650
$2,477
$ 289.00
$2,766
Moderate -income (120%AMFI)
1 -Person $86,500
$2,045
$ 118.00
$2,163
2 -Person $98,900
$2,322
$ 151.00
$2,473
3 -Person $111,250
$2,584
$ 197.00
$2,781
4 -Person $123,600
$2,847
$ 243.00
$3,090
5 -Person $133,500
$3,049
$ 289.00
$3,338
Source: Orange County Housing Authority, 2020 Utility Allowance Schedule and California Department of Housing and Community Development 2020 Income Limits and Kimley Horn and Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost; Utilities based on Orange County Utility Allowance.
1. Utilities includes basic electric, water, sewer/trash, refrigerator, and stove.
Section 2: Community Profile (DRAFT JANUARY 2022) 2-43
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Section 3.0
HOUSING CONSTRAINTS, RESOURCES,
AND AFFIRMATIVELY FURTHERING FAIR
HOUSING
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-0 (DRAFT NQ-VEnnQro 2 Q-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
As is common in many communities, a variety of constraints affect the provisions and opportunities for adequate housing in the City of Newport Beach. Housing constraints consist of both governmental constraints, including but not limited to land use controls, development fees and permitting fees, development standards, building codes and permitting processes; as well as, nongovernmental or market constraints, including but not limited to land costs, construction costs, and availability of finances.
Combined, these factors create barriers to availability and affordability of new housing, especially for lower and moderate -income households.
Nongovernmental constraints affect the cost of housing in the City of Newport Beach and can produce barriers to housing production and affordability. These constraints include the availability and cost of land for residential development, the demand for housing, financing, and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing, and especially affordable housing. The following highlights the primary market factors that affect the production of housing in Newport Beach.
1. Land Costs and Construction Costs
Construction costs vary widely according to the type of development, with multi -unit housing generally less expensive to construct than single -unit homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I -Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood -frame housing. Estimates are based on "good -quality" construction, providing for materials and fixtures well above the minimum required by state and local building codes.
In August 2020, the ICC estimated that the average per square -foot cost for good -quality housing was approximately $118.57 for multi -unit housing, $131.24 for single -unit homes, and $148.44 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City's adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would costs about $123.68 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especially when considering land costs, are not considered a major constraint to housing production in Newport Beach.
Land costs can also pose a significant constraint to the development of affordable and middle-income housing and represents a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing use that must be removed. Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. There are approximately 6,000 acres of vacant and non -vacant Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-1 (DRAFT WO-VE2022)
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2021-2029 HOUSING ELEMENT
residential land (39.3 percent), out of approximately 15,238 acres of land in Newport Beach, which are not currently subject to land use constraints (airport restrictions, flood zone, fire high severity zone, NCCP conservation area, seismic hazard, and sea level rise). However, majority of the acres are developed and may require rezoning, reuse, and redevelopment due to a lack of vacant sites in the City. Additional costs may be associated with redeveloping and/or converting sites which may influence the cost of the rental units or home value.
A September 2020 web search using the Orange County Market report for lots for sale in the City of Newport Beach returned less than five vacant lots listed for sale. Of the lots listed, the costs ranged from $600,000 for 0.075 acres near Santa Ana Heights (about $183 per square foot), to $4,995,000 for
0.27 acres with an ocean view (about $430 per square foot). Larger vacant lots reached as high as $9,995,000 for 0.77 acres inland (about $295 per square foot) to $10,500,000 for 0.51 acres of land (about $474 per square foot) closer to the coast. According to the same report, in September coastal lots listed for sale in the City averaged $8,000,000 for 0.6 acres. The cost of land in Newport Beach is higher than neighboring cities, such as Laguna Beach, where the median cost of land is about $115 per square foot.
Therefore, land and redevelopment costs in Newport Beach create a significant constraint to the development of housing, specifically affordable housing. '. Availability Financing
The availability of financing in a community depends on several factors, including the type of lending institutions active in a community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person's ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to residents of a community. The data presented in this section include the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in Newport Beach.
Table 3-1 below displays the disposition of loan applications for the Anaheim -Santa Ana -Irvine Metropolitan Statistical Area/Metropolitan Division (MSA/MD), per the 2016 Home Mortgage Disclosure Act report. According to the data, applicants in the 120 percent median -income or more had the highest rates of loans approved. Of that income category, applicants who reported White had the highest percentage of approval and the number of applications. Applicants in the less than 50 percent of the MSA/MD median -income categories were showed higher percentages of denied loans than loans originated. According to the data, applicants who reported white were, on average, more likely to be approved for a loan than another race or ethnicity.
Given the relatively high rates of approval for home purchase, improvement, and refinance loans, home financing is generally available and not considered a significant constraint to the provision and maintenance of housing in Newport Beach.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-2 (DRAFT NOVEn RPR 20��JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 3-1: Disposition of Loan Aoolications by Race/Ethnicity-Anaheim-Santa Ana -Irvine MSA/MD Applications by Race/Ethnicity
Percent
Approved
Percent
Denied
Percent
Other
Total
(Count)
LESS THAN 50% OF MSA/MD MEDIAN
American Indian and Alaska Native 26.2% 52.3% 23.1%
65 Asian 33.9% 42.5% 26.7%
1,382
Black or African American 41.6% 33.7% 25.8%
89 Native Hawaiian or other Pacific Islander 25.0% 44.2% 30.8% 52 White 45.6% 31.2% 26.1%
5,240
Hispanic or Latino 37.9% 38.2% 26.8%
1,566
50-79% OF MSA/MD MEDIAN
American Indian and Alaska Native 38.1% 34.0% 29.9% 97
Asian 53.3% 25.3% 29.4% 3,153
Black or African American 43.4% 19.1% 41.4% 152
Native Hawaiian or other Pacific Islander 49.4% 39.8% 16.9% 83 White 54.5% 23.3% 27.6% 8,677
Hispanic or Latino 47.6% 27.7% 29.3% 3,245
80-99% OF MSA/MD MEDIAN
American Indian and Alaska Native 51.4%
25.7% 31.4% 35
Asian 59.5%
19.2% 29.3% 1,495
Black or African American 52.9%
22.1% 30.9% 68
Native Hawaiian or other Pacific Islander 43.5%
13.0% 43.5% 23
White 61.9%
17.2% 26.1% 3,873
Hispanic or Latino 54.0%
21.4% 29.1% 1,347
100-119% OF MSA/MD MEDIAN
American Indian and Alaska Native
48.9%
22.7%
29.5%
88 Asian
62.3%
15.6%
28.8%
4,820
Black or African American
55.6%
20.1%
28.6%
234
Native Hawaiian or other Pacific Islander
49.4%
27.6%
31.0%
87 White
66.2%
13.8%
25.1%
12,607
Hispanic or Latino
60.8%
16.4%
26.8%
3,398
120% OR MORE OF MSA/MD MEDIAN
American Indian and Alaska Native 59.2% 13.0% 32.0% 169 Asian 62.8% 12.9% 29.0% 17,800
Black or African American 57.7% 17.3% 27.2% 624
Native Hawaiian or other Pacific Islander 64.2% 11.4% 26.8% 254 White 68.3% 11.3% 24.9% 49,811
Hispanic or Latino 64.6% 13.3% 26.7% 6,095
Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2019.
3. Economic Constraints
Market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the City and the region for the foreseeable future. Moving into 2020, the economy was growing, California was seeing a 1.6 -percent growth in jobs from 2019 and experiencing all-time lows for unemployment rates. COVID-19 had stalled much of the economy in early 2020, however, Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-3 (DRAFT N'QVE nQro 20_24 JANUARY 2022)
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2021-2029 HOUSING ELEMENT
A
as the California economy regains momentum housing stock and prices in the Newport Beach community remain stable.
A 2020 California Association of Realtors (CAR) report found that homes on the market in Orange County experienced a nine percent year to year increase and cost an average of $880,000 in February 2020; almost $300,000 higher than the State median home price in the same month ($579,770). According to the CAR First Time Buyer Housing Affordability Index, from 2018 to 2019 the median value of a home in Orange County was $703,800 with monthly payments (including taxes and insurance) of $3,630, requiring an average qualifying income of $108,900.
Homes and cost of living in Newport Beach was reported higher than the State median housing and living costs. According to September 2020 data from Zillow, the median home value of single -unit homes and condos in Newport Beach is $2,407,454. According to Zillow's methodology, this value is seasonally adjusted to remove outliers and only includes the middle price -tier of homes. Newport Beach home values have gone up 0.7 percent over the past year and Zillow predicts they will rise 3.4 percent within the next year. Newport's home value index ($2,407,454) has been on a steep and steady rise since early 2012, and according to a September 2020 forecasts, they are expected to increase slightly (estimated $2,490,000) in 2021. Orange County by comparison has a median home value index of $777,000, according to the same September 2020 report, which is significantly lower than the City of Newport. Forecasted home prices in the County, through 2021 are set to see minor increases ($810,000). The cost of land and home prices in Newport are considered a major constraint to the development of and access to housing, particularly the development of and access to affordable housing.
In addition to market constraints, local policies and regulations also affect the price and availability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region. Regulations related to environmental protection, building codes, and other topics have significant, often adverse, impacts on housing cost and availability.
While the City of Newport Beach has no control over State and Federal Laws that affect housing, local laws including land use controls, site improvement requirements, fees and exactions, permit processing procedures, and other factors can constrain the maintenance, development, and improvement of housing create barriers to housing.
1. Land Use Control-,
In the State of California, cities are required to prepare a comprehensive, long term General Plan to guide future development. The Land Use Element of the General Plan establishes land uses of developments within the City of Newport Beach. The Land Use Element sets for policies and regulations for guiding local development. These policies, together with existing zoning regulations, establish the amount and distribution of land to be allocated for different uses within the City. The Land Use Element of the General Plan identifies the following residential and mixed-use categories:
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-4 (DRAFT NQ_Vr_nnQro 20-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
`� :. .fir � •�a�y
• Single Unit Residential Detached (RS -D): The RS -D category applies to a range of detached single - unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -D category permits a density range from 0.0 to 29.9 DU/AC. • Single Unit Residential Attached (RS -A): The RS -A category applies to a range of attached single - unit residential dwelling units on a single legal lot and does not include condominiums or cooperative housing. The RS -A category permits a density range from 0.0 to 29.9 DU/AC. • Two Unit Residential (RT): The RT category applies to a range of two -unit residential dwelling units such as duplexes and townhomes. The RT permits a density range from 0.0 to 39.9 DU/AC. • Multiple Residential (RM): The RM designation is intended to provide for multi -unit residential development containing attached dwelling units. The RM permits a density range from 0.0 to
52.0 DU/AC.
• Multiple Residential Detached (RM -D): The RM -D designation is intended to provide primarily for multi -unit residential development exclusively containing detached dwelling units. The RM -D allows a 1.5 FAR where a minimum FAR 0.35 and maximum FAR if .5 may be used for nonresidential.
• Mixed -Use Vertical (MU -V): The MU -V designation is intended to provide for the development of properties for mixed use structures that vertically integrate housing with retail uses including retail, office, restaurant, and similar nonresidential uses. For mixed-use structures, commercial uses characterized by noise, vibration, odors, or other activities that would adversely impact on- site residential units are prohibited. The MU -V allows a 1.5 FAR where a minimum FAR 0.35 and maximum FAR of .5 may be used for nonresidential.
• Mixed -Use Horizontal (MU -H): The MU -H designation is intended to provide for the development of areas for a horizontally distributed mix of uses, which may include general or neighborhood commercial, commercial office, multi -unit residential, visitor -serving and marine -related uses, and/or buildings that vertically integrate residential with commercial uses. The MU -H allows a maximum FAR of 1.0 for residential.
• Mixed -Use Water Related (MU -W): The MU -W designation is intended to provide for commercial development on or near the bay in a manner that will encourage the continuation of coastal - dependent and coastal -related uses in accordance with the Recreational and Marine Commercial (CM) designation, as well as allow for the integrated development of residential. The MU -W permits a density range from 0.0 to 29.9 DU/AC.
These categories accommodate development of a wide range of housing types in Newport Beach.
Furthermore, maintaining the existing residential categories is important for ensuring compatibility between the new and existing housing.
Local Coastal Program and Land Use Plan
The Local Coastal Program (LCP) is a coastal management plan that contains land use, development, public access, and resource protection policies and regulation to implement the California Coastal Act (Coastal Act). The LCP is comprised of a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP serves in Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-5 (DRAFT NOVEMBER 2-0-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
conjunction with, and is considered a legislative equivalent to, the City's General Plan Land Use Element to identify land uses in the Coastal Zone. The intent of this plan is to provide for land uses and residential density limits that protect coastal resources and public access. The LUP identifies the residential categories and densities provided in Table 3-2.
Table 3-2: Coastal Land Use Plan Densities
Land Use
Maximum Density Range
per Lot
Single -Unit Residential Detached — RSD
RSD -A
0-5.9 units per acre
RSD -13
6-9.9 units per acre
RSD -C
10 —19.9 units per acre
RSD -D
20-29.9 units per acre
Single -Unit Residential Attached — RSA
RSA -A
0-5.9 units per acre
RSA -B
6-9.9 units per acre
RSA -C
10 —19.9 units per acre
RSA -D
20-29.9 units per acre
Two Unit Residential - RT
RT -A
0-5.9 units per acre
RT -13
6-9.9 units per acre
RT -C
10 —19.9 units per acre
RT -D
20-29.9 units per acre
RT -E
30-39.9 units per acre
Multiple Unit Residential — RM
RM -A
0-5.9 units per acre
RM -13
6-9.9 units per acre
RM -C
10 —19.9 units per acre
RM -D
20-29.9 units per acre
RM -E
30-39.9 units per acre
RM -F
40-52 units per acre
Source: City of Newport Beach Municipal Code
The Coastal Act is administered by the California Coastal Commission. Over 63 percent of the City of Newport Beach is within the Coastal Zone and subject to oversight by the Coastal. Although the City retains permit authority in most of the Coastal Zone, development projects located near sensitive coastal resources, such as the bay, ocean, wetlands, and environmentally sensitive habitat areas, require the processing of coastal development permits and are subject to appeal by the California Coastal Commission. This additional level of review and approval process may extend the review period of development projects and increase the application and discretionary review costs. In addition, any request to increase residential densities or allow new residential housing opportunities requires the processing of a Local Coastal Program amendment through the California Coastal Commission. An illustrative example is the Master Development Plan for Banning Ranch, a housing development project that included 1,375 dwelling units, including an affordable housing component, that was adopted by the Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-6 (DRAFT WO -VE -A.4 -RE -14 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
City in 2012, but denied by the California Coastal Commission in 2016 components but due to potential impacts to environmentally sensitive habitats and coastal resources. The Coastal Land Use Plan and Coastal Commission's additional review may inhibit development due to the added review time and costs, and uncertainty of approvals.
Housing in the Coastal Zone
The City of Newport Beach uses Chapters 20.34 and 21.34 (Conversion or Demolition of Affordable Housing) of the Municipal Code to implement Government Code Section 65590 et seq. Between April 3, 2000, and June 30, 2020, 3,428 new residential units were permitted for construction within the California Coastal Zone. Of these new units, 120 were developed as housing affordable to low-income individuals and/or families (Bayview Landing project). During the same time period, the City issued demolition permits for a total of 1,857 residential units within the Coastal Zone, resulting in a net increase of 1,571 units. Of the units demolished, six units were known to be occupied by low-income persons and/or families and were required to be replaced. The replacement units were provided off-site and rent restricted for a term of 30 -year at rents affordable to very low and low-income households. Lastly, the City assisted with the acquisition, rehabilitation and conversion of an existing 12 -unit apartment building located at 6001 Coast Boulevard for affordable housing — 6 for low-income veterans and 6 with a priority for low-income seniors and veterans (The Cove, Project).
John Wayne Airport Environs Land Use Plan (AELUP)
The City's Airport Area may be considered as an opportunity zone to add residential neighborhoods.
However, land located within the Airport Planning Area for John Wayne Airport are subject to the development restrictions of the John Wayne Airport Environs Land Use Plan (AELUP), which limits the ability to develop residential units. Approximately 391 acres are subject to these residential restrictions.
An amendment to the City's General Plan or rezoning for residential use requires review and approval by the Airport Land Use Commission (ALUC) and extends the total review period of a proposed housing development and subsequently increases the cost of development. The added review time and additional costs may dissuade housing developers, and particularly affordable housing developers, from developing housing in this area.
Overlay Districts
An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City.
An overlay district may be added to a neighborhood or corridor on a map or it may apply to the City as whole and be applied under certain circumstances. An overlay district may be initiated as a Zoning Map amendment. All proposed developments within the overlay district must comply with the district's applicable development standards in addition to the Zoning Code standards. Overlay Districts, which affect housing in Newport Beach, include the Mobile Home Park (MHP) Overlay Zoning District, Bluff Overlay Zoning District, and the Height Overlay District. Overlay Districts may be a constraint to the development of housing when it sets standards which are more restrictive than the Zoning Code.
Overlay Coastal Districts
The purposes of the individual overlay coastal zoning districts and the way they are applied are detailed below. An overlay district may be initiated as a Coastal Zoning Map amendment in compliance with Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-7 (DRAFT NO-VEn RPR 20��JANUARY 2022)
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Chapter 21.14 of the City's Municipal Code. All development within these zones must comply with the applicable development standards (e.g., setbacks, height) of the underlying coastal zoning district in addition to the standards provided by the respective zone as outline in the Municipal Code, where applicable.
nn,ihilP 14nmP Park nvPrlav Cnacfal 7nninrr nisfrir-t
The MHP Overlay Coastal Zoning District is intended to establish a mobile home district on parcels of land developed with mobile home parks. The regulations of this district are designed to maintain and protect mobile home parks in a stable environment with a desirable residential character. However, such regulations may pose a constraint to the redevelopment of existing mobile home parks and increasing density. Uses allowed in the MHP Overlay include the following:
• Mobile Home Parks
• Accessory Structures incidental to the operation of Mobile Home Parks Bluff Overlay District
The Bluff (B) Overlay District is intended to establish special development standards for areas of the City where projects are proposed on identified bluff areas. The Bluff Overlay District intends to provide additional regulations and requirements in order to establish safety standards for developments in the overlay District. Specific permitted uses, development standards, and requirements are outlined in the City's Municipal Code, Chapter 21.28.040. Additional regulations and development standards may prevent increased density or intensity in areas within the Bluff Overlay District.
Canyon uveriay Districi*.
The Canyon (C) Overlay District is intended to establish development setbacks based on the predominant line of existing development for areas that contain a segment of the canyon edge of Buck Gully or Morning Canyon. In order to ensure safe development of housing within the Canyon Overlay Districts, development standards and requirements include the following:
• Development Stringline Setback: Development may not extend beyond the predominant line of existing development on canyon faces by establishing a development stringline where a line is drawn between nearest adjacent corners of existing structures on either side of the subject property.
• Swimming Pools require a double wall construction
• Coastal Hazards and Geologic Stability Report
• Erosion Control Plan
Additional specific development standards and requirements are outlined in the City's Municipal Code, Chapter 21.28.050. The Canyon Overlay District may inhibit added density or intensity of uses to residential properties within the overlay.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-8 (DRAFT NOVEnnQro�n��JANUARY 2022)
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Height Overlay
The Height (H) Overlay District is intended to establish standards for review of increased building height in conjunction with the provision of enhanced project design features and amenities. The Height Overlay District includes properties located in the Multiple Residential (RM) Zoning District within Statistical Area A2. The maximum height limit is 40 feet for a flat roof and 45 feet for a sloped roof with a three-story maximum. Additional standards, regulations, and eligibility requirements are outline in the City's Municipal Code, Chapter 21.28.060. The Height Overlay District is not considered a constraint to development as it provides for higher height limits.
State Density Bonus Law
Density bonuses are an additional way to increase the number of dwelling units otherwise allowed in a residentially zoned area. The City's Zoning Ordinance identifies the purpose of the Density Bonus Ordinance is to grant density bonuses and incentives for the development of housing that is affordable to very low-, low-, and moderate -income households and senior citizens. Under the Density Bonus Law, developers are entitled to a density bonus corresponding to specified percentages of units set aside for very low-income, low-income, or moderate -income households.
Effective January 1, 2021, California State Assembly Bill 2345 amends the Density Bonus Law to expand and enhance development incentives for projects with affordable and senior housing components.
AB 2345 amends the Density Bonus Law to increase the maximum density bonus from 35 percent to 50 percent. To be eligible for the maximum bonus, a project must set aside at least (i) 15 percent of total units for very low-income households, (ii) 24 percent of total units for low-income households, or (iii) 44 percent of for -sale units for moderate -income households. Levels of bonus density between 35 percent and 50 percent are granted on a sliding scale. The City's currently adopted Density Bonus Ordinance is no longer consistent with State law and must be amended to comply with new statutory requirement.
Implementing Action 3.1.2 of Section 4: Housing Plan outlines the City's plan to maintain compliance with State legislation.
Density Bonus Programs
The currently adopted density bonuses are eligible for developments which contain five or more dwelling units and meet the requirements outlined in Chapter 20.32 of the Newport Beach Municipal Code. Units that are not eligible for density bonus include developments where affordable housing is required under the provisions of Title 19.
When a development which meets the requirements, density bonuses are applicable as shown in Table 3-3 and Table 3-4 below for different income categories. Developments which meet the requirements for Senior housing will be entitled to a density bonus of twenty percent of the number of senior housing units.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-9 (DRAFT NQVE nQron24 JANUARY 2022)
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Table 3-3: Density Bonus Calculations
Very Low -Income
Percentage of Base Units Proposed
Density Bonus Percentage
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Low -Income
12 10
20 11
21.5 12
23 13
24.5 14
26 15
27.5 17
30.5 18
32 19
33.5 20
35 Source: City of Newport Beach Municipal Code Chapter 20.32 Table 3-4: Density Bonus Calculations
Moderate -Income
Percentage of Base Units Proposed
Density Bonus Percentage
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-10 (DRAFT NinVrnnQro 20_24 JANUARY 2022)
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Moderate -Income
Percentage of Base Units Proposed
Density Bonus Percentage
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
Source: City of Newport Beach Municipal Code Chapter 20.32 A
Additionally, when an applicant for a residential development agrees to donate land to the City for very low-income households, the applicant is then entitled to a density bonus for the entire market rate development, if the conditions specified in the City's Municipal Code Section 20 32 030 aFe20.32.030 are m et.
An applicant is entitled to an increase above the maximum allowed residential density as outline in Table 3-5.
Table 3-5: Densitv Bonus Calculations
Very Low -Income
Percentage of Base Units Proposed
Density Bonus Percentage
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-11 (DRAFT WO -VE -4.4 -RE -14 20-24 JANUARY 2022)
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2021-2029 HOUSING ELEMENT
Very Low -Income
Percentage of Base Units Proposed Density Bonus Percentage 28 33
29 34
30 35
Source: City of Newport Beach Municipal Code Chapter 20.32 Additional regulations for density Bonuses include the following:
A
• Fractional Units: The calculation of a density bonus, in compliance with any of the above requirements, that results in fractional units shall be rounded up to the next whole number. • Mixed Income Development: If the applicant desires to develop a density bonus project available to a mix of income levels, the Director determines the amount of density bonus to be granted up to a maximum of 35 percent.
rnnr-accinnc and Inr-AntivAc
When qualified for a density bonus, an applicant may request additional parking incentives beyond those provided above. When requested, the City may grant the following (inclusive of handicap and guest parking):
• Zero to one bedroom: one on-site parking space per unit; or • Two or more bedrooms: two on-site parking spaces per unit.
In addition to a request for parking incentives, an applicant who meets the density bonus requirements may also submit a proposal for a reduction in the site development standards or architectural design requirements; approval of mixed-use zoning in conjunction with the housing development; other regulatory incentive proposed by the client or the City that will result in identifiable, financially sufficient, and actual cost reductions; and/or a direct financial contribution granted by the Council at its sole discretion.
Additional Incentives may also apply for developments with a childcare component, requirements and applicable incentives are outlines in detailed in the City's Municipal Code Section 20.32.060. Incentives and density bonuses allow for increased opportunity and feasibility for the production of affordable housing in a community, the City of Newport Beach's Incentives and Density Bonus programs are comparable to similar Southern California communities and are a constraint to the development of housing for all income levels.
Residential Development Standards
Citywide, outside the specific plan areas, the City regulates the type, location, density, and scale of residential development primarily through the Zoning Code. The following summarizes the City's existing residential zoning districts:
• Residential -Agricultural (R -A) — Residential -Agricultural is intended to provide for single lots appropriate for detached single -unit residential dwelling units and light farming.
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• Single -Unit Residential (R-1) — Single -Unit Residential is intended to provide for a range of detached single -unit residential dwelling units on single lots. This land use designation does not include condominiums or cooperative housing.
• Two -Unit Residential, Balboa Island (R -BI) — Two -Unit Residential Balboa Island is intended to provide for a maximum of two residential dwelling units, or duplexes. This is designation is reserved to single lots on Balboa Island.
• Two -Unit Residential (R-2) — Two -Unit Residential is intended to provide for single lots appropriate for a maximum of two residential dwelling units, or duplexes. • Multiple Residential (RM) — Multiple Residential is intended to provide for area appropriate for multi -unit residential developments containing attached or detached dwelling units. • Medium Density Residential (RMD) — Medium Density Residential is intended to provide for areas appropriate for medium density residential developments containing attached or detached units. • Mixed -Use Vertical (MU -V) — Mixed -Use Vertical is intended to provide for area appropriate for the development of mixed-use structures that vertically include residential dwelling units.
Residential dwelling units are located above the ground floor, which includes office, restaurant, retail, and similar nonresidential uses.
• Mixed -Use Mariners' Mile (MU -MM)— Mixed -Use Mariners' Mile is intended to provide for areas appropriate for commercial and residential uses. Mariners' Mile is located on the inland side of Coast Highway in the Mariners' Mile Corridor. Properties that front Coast Highway may only be developed for nonresidential purposes. Properties to the rear of the commercial frontage may be developed for freestanding nonresidential uses, multi -unit residential dwelling units, or mixed- use structures that integrate residential above the ground floor with nonresidential uses on the ground floor.
• Mixed -Use Cannery Village and 151h Street (MU-CV/15th St.) — Mixed -Use Cannery Village and 15th Street is intended to establish a cohesive district or neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses include multi -unity dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonresidential uses along the street frontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed -Use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots.
• Mixed -Use Water (MU -W1) — Mixed -Use Water is intended to be applied to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. A minimum of 50 percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and victor -serving land uses are mixed. An approved site development review is required prior to any development to Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-13 (DRAFT NO-VEn RPR 20��JANUARY 2022)
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ensure uses are fully integrated and that potential impacts from their differing activities are fully mitigated. Design of nonresidential space to facilitate marine -related uses is encouraged. • Mixed -Use Water (MU -W2) —This second Mixed -Use Water designation is intended to apply to waterfront properties in which marine -related uses may be intermixed with general commercial, visitor -related commercial and residential dwelling units on the upper floors.
The City's Zoning Code also regulates the development on land through minimum and maximum standards on lot size, lot width and depth, setbacks, and on lot coverage and floor -area ratio (FAR).
Table 3-6 below provides the development standards for each residential zoning district in Newport Beach:
Table 3-6: Development Standards in Newport Beach — Dimensions Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-14 (DRAFT IN' QVEE nQro 20_24 JANUARY 2022)
Dimensions
Min. Yard Setbacks
Construction Standards
Zone
Min. Lot
Min. Lot
Min. Lot
Front
Side
Rear
Max.
Max. Site
Size (square
Width
Depth
(feet)
(feet)
(feet)
Height
Max. FAL
Coverage
feet)
(feet)
(feet)
(feet)'
Residential Districts
R -A
87,120
125
N/A
20 5
25 24,296
N/A
40%
2.0 (Citywide)
R-1
6000
60, 501
N/A
20 3, 41
10 24, 296
1.5 N/A
5,000 1
(Corona del
Mar)
R-1-6,000
6,000
60 80
20 6
6 24,296
N/A
60%
R-1-7,200
7,200
70 90
20 5
20 35,406
N/A
60%
R-1-10,000
10,000
90 100
15 10
10 24,296
N/A
60%
R -BI
2,375
60,501
N/A
20 See
10 ft.
24, 296
1.5 plus 200
N/A
Note 3.
sq.ft.
2.0 (Citywide)
R 2
6,000,
60, 501
N/A
20 See
10 ft.
24, 296
1.5 N/A
5,0001
Note 3.
(Corona del
Mar)
R-2-6,000
6,000
60 80 ft.
20 6 ft.
6 ft.
24,296
N/A
60%
RM
6,000,
60, 501
N/A
20 See
10 ft.
28,336
1.74 N/A
5 0001
Note 3.
RMD
6,000,
60, 501
N/A
20 See
25 ft.
28,336
N/A
N/A
5,0001
note 4.
RM -6,000
60 60
80 20
6 ft.
6 ft.
28,336
N/A
60%
Mixed -Use Zoning Districts
MU -V
2,500
25 0
0-55
0-55
26,316
1.0 (Mixed -
Use)
MU -MM
10,000
50 0
0-55
0-55
26,316
1.0 (Mixed -
Use)
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'a-4 Qeauirements
Yards allow for open space, landscaping and greenery, emergency access, and pedestrian and vehicular circulation on a site. Requirements are set in order to ensure there is adequate available space designated to these elements on a property when considering new development or improvements. Included in these requirements are setbacks areas that are located between a setback line and the property line and must remain unobstructed. Setbacks provide the following:
• Visibility and traffic safety
• Access to and around structures
• Access to natural light and ventilation
• Separation of incompatible land uses
• Space for privacy, landscaping, and recreation
• Protection of natural resources
• Safety from fire and geologic hazard
The City's yard requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements.
Site Coverage and lll�►oor Area Limit
Site coverage and Floor Area Limit (FAL) requirements maintain mass and intensity of a use for residential uses. The Newport Beach Zoning Code defines site coverage as the percentage of a site covered by Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-15 (DRAFT NOVEMBER 2-0-24 JANUARY 2022)
Dimensions
Min. Yard Setbacks
Construction Standards
Zone
Min. Lot
Min. Lot
Min. Lot
Front
Side
Rear
Max.
Max. Site
Size (square
Width
Depth
(feet)
(feet)
(feet)
Height
Max. FAL
Coverage
feet)
(feet)
(feet)
(feet)'
MU -DW
40,000
100
0 0-55
0-55
32,376
1.0 (Mixed -
Use)
MU-
CV/1511 St.
5,000
40 0
0-55
0-55
26,316
1.0, 1.5 7
MU -W1
20,000
200
0 0-55
0-55
26,316
1.0, 1.5'
MU -W2
2,500
25 0
0-55
0-55
26,316
0.75, 0.8'
Notes:
(1) Corner Lot, Interior Lot respectively
(2) lots 40 wide respectively
(3) 3 ft. for lots > 40ft. wide, 4 ft. for lots 40'1"
— 49'11" wide, and 8% of Average
Lot Width for lots > 50 ft. respectively,
(4) N/A for lots > 40ft. wide, 5 ft. for lots 40'1"
— 49'11" wide, and N/A for lots >
50 ft.
(5) Adjoining residential district
(6) Flat roof, Sloped roof respectively
(7) Mixed Use, Residential respectively
'a-4 Qeauirements
Yards allow for open space, landscaping and greenery, emergency access, and pedestrian and vehicular circulation on a site. Requirements are set in order to ensure there is adequate available space designated to these elements on a property when considering new development or improvements. Included in these requirements are setbacks areas that are located between a setback line and the property line and must remain unobstructed. Setbacks provide the following:
• Visibility and traffic safety
• Access to and around structures
• Access to natural light and ventilation
• Separation of incompatible land uses
• Space for privacy, landscaping, and recreation
• Protection of natural resources
• Safety from fire and geologic hazard
The City's yard requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements.
Site Coverage and lll�►oor Area Limit
Site coverage and Floor Area Limit (FAL) requirements maintain mass and intensity of a use for residential uses. The Newport Beach Zoning Code defines site coverage as the percentage of a site covered by Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-15 (DRAFT NOVEMBER 2-0-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
structures and accessory structures, as well as decks that exceed 30 inches in height. Maximum site coverage standards limit the footprint of a building and calculates it as a percentage between the ground floor area of a building and the net area of a lot.
The FAL refers to the gross floor area allowed on a residential lot and is determined by multiplying the allowed buildable area of the lot times the applicable multiplier for the lot. FAL requirements limit the total usable floor area to limit the bulk of a building to the land, other buildings, and public facilities.
Maximum Building Heigh,
Maximum building heights are set and defined in the City's Zoning Code to maintain symmetry and compatibility between existing and proposed developments. The height is measured as the vertical distance from the grade of the pad to the highest part of the structure, including protective guardrails and parapet walls. The height limit may be increased within specific areas through the adoption of a Planned Community Development, a specific plan, a planned development permit, a coastal development permit in the coastal zone, or a site development review. The deviation in maximum height limit requires approval of a discretionary action.
• R -A, R-1, R -BI, and R-2 Zoning Districts have height limits of 24 feet for structures with flat roofs (including guard rails and parapet walls) and 29 feet for sloped roofs. A discretionary approval may permit height up to 28 feet for flat roofs and 33 feet for sloped roofs. • RM and RMD Zoning Districts have height limits of 28 feet for structures with flat roofs and 33 feet for sloped roofs. The height of the structure may be increased to 32 feet for foot roof and 37 feet for sloped roofs through discretionary approval. Properties located in the Height (H) Overlay District may increase height limits to 40 feet for flat roofs and 45 feet for sloped roofs. • Planned Community Districts may also propose and regulate their own height limits.
The City's building height requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements.
Additionally, the City has identified sites in the RM and MU zones (listed in Appendix B) which can accommodate a portion of the City's RHNA allocation. The heights identified for the Multiple Residential (RM) and Mixed -Use (MU) Zones are considered base height limits and can be altered through a discretionary approval process.
• However, most of the denser residential development projects are within planned communities where the developer sets the identified height limitation. Examples of this include:
• Uptown Newport Planned Community Zoning District (PC -58), which allows for heights up to 150 feet
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2021-2029 HOUSING ELEMENT
• Residential Overlay within the Newport Place Planned Community Zoning District (PC -11), which has a base height limit of 55 feet that can be increased up to the maximum allowable under Federal Aviation Regulation (FAR) Part 77
• San Joaquin Plaza Planned Community Zoning District (PC -19) allows heights up to 69 feet The City will establish housing overlay zones that will apply to all opportunity sites in each focus area. Like the Residential Overlay within the Newport Place Planned Community Zoning District (PC -11) and other planned communities, the future housing overlay will establish increased height limits appropriate to accommodate the proposed densities. The details of the housing overlay zones are yet to be determined.
Usable Open Space
The City's Zoning Code defines Usable Open Space as an outdoor or enclosed area on the ground, roof, balcony, deck, porch, or terrace, used for outdoor living, active or passive recreation, pedestrian access, or landscaping. This does not include parking facilities, driveways, utility, or service areas, required setbacks, and sloped or submerged land. All residential districts in Newport Beach have a maximum site coverage to allow for open space. Mixed -Use districts require 75 square feet per dwelling unit of common open space and 5 percent of the gross floor area of private open space for each unit.
The City's usable open spaces requirements do not prohibit residential developments from reaching the maximum density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically housing affordable to low and very low-income households. Additionally, the City's Density Bonus programs provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements.
Adequate off-street parking shall be provided to avoid street overcrowding and maintain parking opportunities for the public to visit the coast. This is maintained through the City's parking requirements for each housing unit type, as shown in Table 3-7. Parking requirements may add to the development cost of a property and project as spaces and garage parking create additional costs and remove potentially livable space.
Table 3-7: Parking Reauirements for Residential Uses
Unit Type
Number of Spaces Required
Accessory Dwelling Unit
1 parking space, with exceptions 111
Junior Accessory Dwelling Unit
No additional parking required
Single -Unit Dwellings — Attached
2 per unit in a garage
Single -Unit Dwellings — Detached and less than
2 per unit in a garage
4,000 sq. ft. of floor area
Single -Unit Dwellings — Detached and 4,000 sq. ft.
of floor area
3 per unit in a garage
Single -Unit Dwellings— Balboa Island
2 per unit in a garage
2 per unit covered, plus guest parking
Multi -Unit Dwellings — 3 units
1-2 units, no guest parking required
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2021-2029 HOUSING ELEMENT
Unit Type
Number of Spaces Required
3 units, 1 guest parking space
Multi -Unit Dwellings — 4 units or more
2 per unit covered, plus 0.5 space per unit for guest parking Two -Unit Dwellings
2 per unit; 1 in a garage and 1 covered or in a garage
Live/Work Units
2 per unit in a garage, plus 2 for guest/customer parking Senior Housing— Market Rate
1.2 per unit
Senior Housing—Affordable
1 per unit
Note:
1. Parking is waived for ADUs if the property is within Yz mile walking distance to transit (including ferry); within an architecturally or historically significant district; on -street parking permits are required and not provided to the occupant of the ADU; or within one block of a car -share vehicle pick-up/drop-off location Source: City of Newport Beach Municipal Code
The City's parking requirements vary depending on type of unit. As shown in Table 3-7, the City's parking requirements are similar to those throughout the region and are based on generation rates by use type.
Multiple family parking requirements are not overly restrictive and the City may grant exceptions to these standards through state -required density bonus provisions and other provisions in the Municipal Code.
As part of the city's rezone program to accommodate future housing growth, development standards, such as parking requirements, will be evaluated to potentially provide additional incentives, concessions reductions or modifications, as appropriate The City's Density Bonus program also provides incentives for the development of affordable housing, including a reduction in the site development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking requirements.
Additionally, the City has not denied any residential projects based upon a lack of required parking.
Parking has also not been identified by prospective residential development proponents as a constraint.
If, however, parking is identified as an issue, then the City's Zoning Code offers alternative means of compliance through off-site parking, demonstrative a reduced -parking demand, or a shared -parking arrangement. This is accomplished through review and approval of a use permit (see NBMC Sections
20.40.100 (Off -Site Parking) and 20.40.110 (Adjustments to Off -Street Parking Requirements) or their successor sections.
Furthermore, parking standards can be modified through projects taking advantage of a density bonus, if deemed necessary.
Variety of Housing Types Permitted
Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards in order to facilitate development of a variety of housing types for all socioeconomic levels of the population. Housing types include single -unit dwellings, multi -unit housing, accessory dwelling units, factory -built housing, mobile homes, employee and agricultural work housing, transitional and supportive housing, single -room occupancy units (SROs), and housing for persons with disabilities. Table 3-8 below identifies the various housing types permitted within each residential and Table 3-9 identified housing types permitted in mixed-use zoning district in Newport Beach.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-18 (DRAFT NOVE-11.42022)
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Table 3-8: Various Housing Types Permitted in Residential Zones Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-19 (DRAFT 20-24 JANUARY 2022)
Residential Zones
Nonresidential Zones
Housing Type
R-1*
R -BI
R-2
RM
RMD
Os
PF
PR
PI
IG
OA
OG
OM
OR
CC
CG
CM
CN
CV
CV_
V
Single -Unit Dwellings—Attached
--
--
P
P
P
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Single -Unit Dwellings — Detached
P
P
P
P
P
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Multi -Unit Dwellings
--
--
--
--
P
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Two -Unit Dwellings
--
--
P
P
P
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Accessory Dwelling Unit(s)
P
P
P
P
P
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Junior Accessory Dwelling Unit(s)
P
P
P
P
P
P
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Live -Work Units
--
--
--
--
--
--
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Short -Term Lodging
--
--
P
P
P
P
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care Facilities — Limited
(6 or fewer) Licensed
P
P
P
P
P
P
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care Facilities — Limited
(6 or fewer) Unlicensed
_
_
_
_
CUP-
HO
CUP-
HO
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care Facilities — General
(7 or More) Licensed
CUP-
HO
CUP-
HO
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care Facilities — General
(7 or More) Unlicensed
_
_
_
_
CUP-
HO
CUP-
HO
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care Facilities — Integral
Facilities/Integral Uses
CUP-
HO
CUP-
HO
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Residential Care, Accessory Use Only
NA
NA
NA
NA
NA
NA
--
MUP
--
MUP
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Caretaker Residence
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
P
NA
NA
NA
NA
NA
NA
NA
NA
NA
Congregate Care Home
NA
NA
NA
NA
NA
NA
--
--
--
MUP
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Convalescent Facilities
NA
NA
NA
NA
NA
NA
--
--
--
MUP
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Parolee -Probationer Home
--
--
--
--
--
--
NA
NA
NA
--
NA
--
NA
NA
NA
NA
NA
NA
NA
NA
NA
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-19 (DRAFT 20-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-20 (DRAFT AUGUST 2021JANUARY 2022)
Residential Zones
Nonresidential Zones
Housing Type
V-
C V
R -A
R-1*
R -131M
I
R-2
RM
RD
Os
PF
PR
PI
IG
OA
OG
OM
OR
CC
CG
CM
CN
CV
LV
Farmworker Housing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Supportive Housing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Transitional Housing
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Emergency Shelters
--
--
--
--
--
--
--
--
--
P
NA
P
--
--
--
NA
NA
NA
NA
NA
NA
Low Barrier Navigation Centers
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
SRO Residential Hotel
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
CUP
CUP
CUP
CUP
CUP
CUP
CUP
CUP
CUP
--
Notes:
P — Permitted by Right
A — AI lowed
MUP — Minor Use Permit
CUP -HO — Conditional Use Permit in Residential
Zoning
Districts
(--) - Not Allowed
NA — Not Listed/Stated
*Located above 15Y floor
Source: City of Newport Beach Municipal Code
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-20 (DRAFT AUGUST 2021JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 3-9: Mixed -Use Housing Types Permitted in Mixed -Use Zones Sinale-Unit Dwellinr
A Single -Unit Dwelling is defined as a structure on a single lot containing one dwelling unit and one housekeeping unit. The structure shall be constructed in compliance with the California Building Code (CBC) and placed on a permanent foundation. Single -Unit Dwellings may be attached or detached. An attached dwelling is owned in fee, located on an individual lot, and shares a wall or roof with another structure. A detached dwelling is also owned in fee and located on an individual but is not connected to another structure in any way.
Multi -Unit Dwelling
A Multi -Unit Dwelling contains three or more dwellings units within the same structure occupied on a single lot. Each dwelling unit is occupied by separate housekeeping units. This housing type includes triplexes (3 dwelling units in one structure), fourplexes (four dwelling units in one structure), and apartments (5 or more dwelling units in one structure), where each structure is owned by one entity and each dwelling unit is rented out. Condominiums are also multi -unit dwellings, but each individual dwelling unit is owned by separate entities. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC). wo-Unit Dwelling
A Two -Unit Dwelling contains two dwelling units, each occupied by their own housekeeping unit, and located within the same structure. This may be referred to as a duplex. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC).
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-21 (DRAFT NO -VE -11.4 -SPR 20-24 JANUARY 2022)
Zones
Housing Type
MU -CV/
MU -V
MU -MM
MU -DW
15t' St.
MU -W1
MU -W2
Single -Unit Dwellings—
P. (1)
-
--
P (3)
P* (1)
P* (2)
Attached
Single -Unit Dwellings —
--
--
--
--
Detached
Multi -Unit Dwellings
P* (1)
P (1)(2)
P (1)
P (3)
--
--
Two -Unit Dwellings
P* (1)
--
--
P (3)
--
--
Accessory Dwelling Unit(s)
P
P
P
P
P
P
Junior Accessory Dwelling
Unit(s)
P
P
P
P
P
P
Live -Work Units
P
P (1)(2)
P
P (3)
--
--
Notes:
*Located above 151 floor
(1) Allowed only as part of a mixed-use development. Refer to Section 20.48.130 (Mixed -Use Projects) for additional development standards.
(2) Not allowed to front onto Coast Highway.
Not allowed on lots at street intersections unless part of a mixed-use or live -work structure.
Source: City of Newport Beach Municipal Code
Sinale-Unit Dwellinr
A Single -Unit Dwelling is defined as a structure on a single lot containing one dwelling unit and one housekeeping unit. The structure shall be constructed in compliance with the California Building Code (CBC) and placed on a permanent foundation. Single -Unit Dwellings may be attached or detached. An attached dwelling is owned in fee, located on an individual lot, and shares a wall or roof with another structure. A detached dwelling is also owned in fee and located on an individual but is not connected to another structure in any way.
Multi -Unit Dwelling
A Multi -Unit Dwelling contains three or more dwellings units within the same structure occupied on a single lot. Each dwelling unit is occupied by separate housekeeping units. This housing type includes triplexes (3 dwelling units in one structure), fourplexes (four dwelling units in one structure), and apartments (5 or more dwelling units in one structure), where each structure is owned by one entity and each dwelling unit is rented out. Condominiums are also multi -unit dwellings, but each individual dwelling unit is owned by separate entities. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC). wo-Unit Dwelling
A Two -Unit Dwelling contains two dwelling units, each occupied by their own housekeeping unit, and located within the same structure. This may be referred to as a duplex. The structure must be placed on a permanent foundation and constructed in compliance with the California Building Code (CBC).
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-21 (DRAFT NO -VE -11.4 -SPR 20-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Accessory Dwelling Unit (ADU)
An Accessory Dwelling Unit is a secondary dwelling unit, attached or detached, to the primary residence(s) on a single lot. This may be referred to as a "granny flat," "in-law unit," or "carriage house." An ADU must include a kitchen, a full bathroom, a living area, and a separate entrance. The Newport Beach Zoning Code includes efficiency units and manufactured homes as ADUs. Junior ADUs (JADUs) are defined by the City's Municipal Code as a dwelling unit accessory to and entirely contained within an existing or proposed single -unit dwelling. A JADU may not be greater than 500 square feet, and it must either include its own sanitation facilities or share facilities with the single -unit dwelling. A JADU must also include its own efficiency kitchen.
I Alm-Wnrk Ilnif
Live -Work Units refer to structures that include both a commercial and a single dwelling unit. Commercial uses are generally located on the ground floor, with the dwelling unit located one to two stories above.
Short -Term Lodging
Short -Term Lodging refers to a dwelling unit that is rented or leased as a single housekeeping unit for 30 days or less.
Single -Room Occupancy (SRO)
Within the Zoning Code. SROs fall under the classification of Visitor Accommodations and are defined as buildings with six or more guest rooms without kitchen facilities in individual rooms, or kitchen facilities for the exclusive use of guests, and which are also the primary residences of the hotel guests. SROs are permitted in all commercial (CC, CM, CN, CV) and office (OG, OM, OR) zoning districts with the approval of a conditional use Dermit. To facilitate the develoament of SROs within these districts. the Citv will not develop, nor impose, any special set of conditions or use restrictions on SROs; instead, each application would be evaluated individually and approved based upon its own merits and circumstances. Additionally, the Housing Element includes a Policy Action 30 to encourage and facilitate the development of at least one SRO develoament. or the Dreservation and rehabilitation of an SRO develoament. within the Planning Period.
Residential Care FacilitiesGeneral Licensed (7 or ore Oereenc) On January 22, 2008, the City Council approved Ordinance No. 2008-5 ("Ordinance") with the intent of maintaining zoning protections for residential districts, while benefiting disabled persons who wished to live in those districts. This Ordinance balances the protections granted under the federal Fair Housing Act, Fair Housing Act Amendments (42 U.S.C. Section 3601) and other state and federal laws (i.e.
Americans with Disabilities Act) to persons with disabilities, while also ensuring the residential character of the neighborhood is maintained.
As defined by the City, Residential Care Facilities provide housing for individuals with a disability and are commonly referred to as group homes, sober living homes, and state licensed alcoholism or drug abuse recovery or treatment facilities. Facilities that provide treatment services are required to be licensed by the State of California Department of Social Services or Department of Health Care Services ("DHCS").
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-22 (DRAFT JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Unlicensed facilities are not allowed to provide treatment services, but rather are meant to provide an interim environment between rehabilitation and stabilized living. Depending on the number of persons residing within the facility and treatment provided, residential care facilities are further classified as follows:
• General Licensed (Seven or More Persons)
• General Unlicensed (Seven or More Persons)
• Limited Licensed (Six or Fewer Persons)
• Small Unlicensed (Six or Fewer Persons)
The purpose of the Ordinance is to allow disabled persons to live in a residential setting while ensuring that the residential care facilities are operated in a manner consistent with the residential character of surrounding neighborhoods, do not recreate an institutional environment that would defeat the purpose of community-based care, and that residential care facilities serving the disabled are operating in compliance with City and state laws/regulations. To achieve these purposes and to provide disabled persons with an equal opportunity to use and enjoy a dwelling in the City's residential zoning districts, the City treats licensed residential care facilities for six or fewer persons as single -unit residence permitted by -right in all residential -zones (R -A, R-1, R -BI, R-2, RM, and RM D). Also, residential care facilities for seven or more persons and unlicensed residential care facilities are permitted in the following zoning districts, with a Conditional Use Permit:
• Residential Districts— RM and RMD zoning districts.
• Planned Community Districts—Property development regulations applicable to residential districts, related to residential care facilities, shall also apply to the corresponding portions of the PC Districts.
The location and permitting requirements applicable to larger and unlicensed residential care facilities are intended to avoid overconcentration so as to maintain the residential character of a neighborhood, which if lost would have an adverse effect on the welfare of the individuals' receiving services from the residential care facility and defeat the purpose of community-based recovery. The American Planning Association's Policy Guide on Community Residences, which supports residential care facilities, states that residential care facilities should be scattered throughout residential districts rather than being concentrated on any single block or in any single neighborhood. If several residential care facilities are located next to one another, or are placed on the same block, the ability of the residential care facilities to achieve normalization and community integration would be compromised.
Also, the Departments of Justice and Housing Urban Development have stated that a neighborhood composed largely of residential care facilities could adversely affect individuals with disabilities and would be inconsistent with the objective of integrating persons with disabilities into the community. The California Research Bureau similarly found that facilities should be scattered throughout residential districts, and facilities so densely clustered as to recreate an institutional environment would defeat the purpose of community-based care.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-23 (DRAFT JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Newport Beach has a significant number of residential care facilities compared to other communities.
According to DHCS and City records, there are currently 21 state -licensed residential treatment facilities and an additional 8 City -permitted unlicensed residential facilities in Newport Beach, a community which as of 2019 had a total resident population of 85,694. As a measure of comparison, there are currently only 8 state -licensed residential treatment facilities in Sacramento which had a total residential population of 500,930 people, as of 2019.
As set forth above, the City has a significant number of residential care facilities, when compared to other cities, and, under the current regulations, there are significant portions of the City that can accommodate additional facilities. In addition, the City's has a well-defined Reasonable Accommodation procedure, which further ensures individuals with disabilities are protected. Specifically, Section 20.52.070 of the Zoning Code provides procedures for obtaining reasonable accommodation from the City's zoning and land use regulations, policies, and practices when necessary to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. With a reasonable accommodation, a group of disabled individuals can reside in any district zoned for residential use within the City.
Section 20.52.070 ensures that reasonable accommodation requests are processed efficiently without imposing costs on the applicant. The City does not assess a fee for reasonable accommodation requests.
Although a public hearing is required, the matter is heard before a Hearing Officer ratherthan the Planning Commission, which helps establish an apolitical and more objective decision-making authority, and results in a more expedited processing. As described in more detail in the Reasonable Accommodation Section of the Housing Element, the findings are based on the objective need to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. To date, the City has approved three conditional use permits and six reasonable accommodations for general and unlicensed residential care facilities, which shows that these processes are not a significant constraint.
It is also important to note that these types of facilities are the only groups not living as a single housekeeping unit that may be established in a residential district. Other types of group residential uses occupied by two or more persons not living as a single housekeeping unit (e.g. dormitories, fraternities, sororities, and private residential clubs) are not permitted within residential districts. By providing an opportunity to establish residences with a conditional use permit or reasonable accommodation to disabled groups, the Municipal Code gives more favorable treatment to disabled groups not living as single housekeeping units than it gives to non -disabled groups that are not living as a single housekeeping unit.
Therefore, groups of disabled individuals are distinguished only to the extent they are treated preferentially.
While not explicitly reauired by State law. the conditional use Dermit reauirement for residential care facilities for 7 or more persons could be considered a fair housing issue. Policy Action 3P has been ink-uddincluded in Section 4 Policy Program to ensure the development standards for larger residential care facilities in the Zoning Code will be evaluated to ensure State fair housing laws are met for residential care facilities of 7 or more persons.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-24 (DRAFT JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
General Licensed Residential Care Facilities provide a single housekeeping unit for individuals with a disability who reside at the facility. There may be 7 or more individuals residing at the facility, but they each reside in separate dwelling units. The facility may include a place, site or building, orgroups of places, sites, or buildings, licensed by the State.
Residential Care Facilities — General Unlicensed (Seven or More Persons) General Unlicensed Residential Care Facilities include a place, site or building, or groups of places, sites, or buildings, which are not licensed by the State and provide housing to 7 or more individuals with disabilities in separate dwelling units. The facility is not required by law to be licenses by the State. "Iential ` ' imited +_icensed (6 or lersons)
Limited Licensed Residential Care Facilities provide care, services, and/or treatment in a community residential setting for six or fewer individuals. Individuals may include adults, children, or adults and children. The facility shall be considered a single housekeeping unit and must therefore be in compliance with all land use and property development regulations applicable to single housekeeping units.
Residential Care Facilities — Small Unlicensed (6 or Fewer Persons) Small Unlicensed Residential Care Facilities include a place, site or building, or groups or places, sites, or buildings in which 6 or fewer individuals with disabilities reside in separate dwelling units. The facility is not required by law to be licensed by the State.
Parolee -Probationer Home
Parolee -Probationer Home refers to a structure or dwelling unit which houses 2 or more parolees - probationers who are unrelated by blood, marriage, or legal adoption. The parolees -probationers reside here in exchange for monetary or nonmonetary consideration given and/or paid by the parolee - probationer and/or any public or private entity or person on behalf of the parolee -probationer. The residential structure may be operated by an individual, a for-profit entity, or a nonprofit entity.
Mobile Home nark
A Mobile Home refers to a transportable trailer that is certified under the National Manufactured Housing Construction and Safety Standards Act of 1974. The mobile home is over 8 feet in width and 40 feet in length and may or may not include a permanent foundation. A mobile home on a permanent foundation is considered a single -unit dwelling.
rnnvalecr_ent 14nmr
Convalescent Home refers to an establishment that provides 24-hour care for persons requiring regular medical attention. A convalescent home may be referred to as a "nursing home" or "hospice." This facility does not provide emergency medical services or surgical services.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-25 (DRAFT JANUARY 2022)
City of Newport Beach -
2021-2029 HOUSING ELEMENT
o
Common Interest Development
Common Interest Developments include community apartment projects, condominium projects, planned developments, and stock cooperative.
'armuinrkar Nni►cinr
Farmworkers are considered a special needs interest group by HCD. Farmworkers are traditionally defined as people whose primary incomes are earned through permanent or seasonal agricultural labor.
Farmworkers are generally considered to have special housing needs due to their limited income and the often -unstable nature of their employment. In addition, farmworker households tend to have high rates of poverty, live disproportionately in housing that is in the poorest condition, have extremely high rates of overcrowding, and have low homeownership rates. There is a total of 1,772 farmworkers in the County of Orange, though few may reside in Newport Beach the City must consider the housing needs of this community. The Newport Beach Municipal Code does not explicitly define Farmworker Housing or outline it as a permitted use in residential or nonresidential zones. Policy Action 30 of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation.
Supportive Housing
California State Assembly Bill 2162 amended Section 65583, Planning and zoning law to specify that supportive housing is a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. The City of Newport Beach's Municipal Code does not explicitly define Supportive Housing or identify zones where is it is a permitted use. Policy Action 7B of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation.
Transitional Housing
The City of Newport Beach defines Transitional Housing as rental housing operating under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient program at some predetermined future point in time, which shall be no less than six months. Transitional housing that is provided in single-, two- or multi -unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses shall be permitted, conditionally permitted or prohibited in the same manner as the other single-, two-, or multi -unit dwelling units, group residential, parolee -probationer home, residential care facilities, or boarding house uses under this code.
The City of Newport Beach's Municipal Code does not explicitly identify Transitional Housing as a permitted use within the appropriate zones as required by state law. Policy Action 713 of the Section 4:
Housing Plan outlines the City s strategy to update the Municipal Code in accordance with state legislation.
Emeraencv Shelters
State Law existing law authorizes a political subdivision to allow persons unable to obtain housing to occupy designated public facilities, as defined, during the period of a shelter crisis. Existing law provides that certain state and local laws, regulations, and ordinances are suspended during a shelter crisis, to the extent that strict compliance would in any way prevent, hinder, or delay the mitigation of the effects of Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-26 (DRAFT JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
the shelter crisis. The City of Newport beach permits Emergency shelters in the OA — Office Airport zoning district and the PI — Private Institutions Coastal zoning district.
Properties designated for PI are distributed throughout the City, but primarily located along major transportation corridors and offer easy access to public transportation. The PI zoning district is intended to provide for areas appropriate for privately owned facilities that serve the public, including places for assembly/meeting facilities (e.g., religious assembly), congregate care homes, cultural institutions, health care facilities, marinas, museums, private schools, yacht clubs, and comparable facilities. There are over 44 parcels totaling approximately 135 acres in the proposed PI zoning district. Several of the existing uses on these properties are religious assembly uses, many of which consist of large campuses. Given the high land costs in the City, these religious assembly facilities could provide the best means to facilitate the development and management of emergency shelters in the City.
Additionally, properties designated for OA are located within three large blocks east of John Wayne Airport, west of Birch Street, north of Bristol Street/73 Freeway, and south of MacArthur Boulevard. These properties are also located along major transportation corridors and offer easy access to public transportation. The AO zoning district is intended to provide for areas appropriate for the development of properties adjoining the John Wayne Airport for uses that support or benefit from airport operations.
These may include corporate and professional offices; automobile sales, rental and service; aviation sales and service; hotels; and accessory retail, restaurant, and service uses. There are over 56 parcels totaling approximately 54 acres in the AO zoning district. Several of the existing uses on these properties are low and medium density professional office buildings, many of which are aging and offer affordable rents compared to most other parts of the City. These properties should provide realistic opportunities for reuse of these structures for the development and management of emergency shelters in the City. Combined, the PI and AO zoning districts consist of over 98 parcels and 189 acres. By allowing emergency shelters as permitted uses within these districts, adequate sites are available for the potential development of emergency shelters in the City.
AB 101 states that "The Legislature finds and declares that Low Barrier Navigation Center developments are essential tools for alleviating the homelessness crisis -." Low Barrier Navigation Centers are defined as a Housing First, low -barrier, service -enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low Barrier Navigation Centers are required as a use by right in areas zoned for mixed uses and nonresidential zones permitting multi -unit uses if it meets specified requirements. The City of Newport Beach's Municipal Code does not address Low Barrier Navigations Centers by definition. A program will be adopted to ensure the City's development standards allow Low Barrier Navigation Centers By -Right in all zones that permit mixed -uses and non-residential uses. Policy Action 7A of the Section 4: Housing Plan outlines the City's strategy to update the Municipal Code in accordance with state legislation.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-27 (DRAFT JANUARY 2022)
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City of Newport Beach
2021-2029 HOUSING ELEMENT
Planned Community District
The Planned Community (PC) District is intended allow for a coordinated variety of uses and allows projects to benefit from large-scale community building. PC Districts allow for greater flexibility and less restrictive development regulations, while also maintaining compliance with the intent and provisions of the Zoning Code. The Newport Beach Municipal Code states that a PC District may include various types of uses given they are consistent with the General Plan through the adoption of a development plan and text materials that identify land use relationships and associated development standards.
PC Districts allow for large scale housing projects on land areas no less than 25 acres of unimproved land area or 10 acres of improved land area; however, the City Council may waive the minimum acreage requirements. Improved land area refers to parcels of land with existing permanent structures occupying at least 10 percent of the total PC District. The subject property must be reclassified as a PC District and a Development Plan must be filed with the City to initiate the development process. The Development Plans are reviewed by the Director, scheduled for a public hearing before the Planning Commission for a recommendation, and approved by the City Council. A Planned Community District must also go through an environmental review.
The Development Plan must contain:
• A land use map containing the distribution, location, and extent of uses proposed • Land use tables designating permitted uses
• Development standards
• Protection measures for landforms and public views
• Sustainable improvement standards
• Location and extent of essential facilities including circulation and transportation, drainage, energy, sewage and waste disposal, and water
• Development standards for conservation, development, and utilization of natural resources • A program of implementation measures, programs, regulations, and public works projects • A topographical map to illustrate the character of the terrain and condition of existing vegetation • A summary of the relationship between the proposed development plan and the goals, policies, and actions of the General Plan
Growth Management Measures
Growth management measures are techniques used by a government to regulate the rate, amount, and type of development. Growth management measures allow cities to grow responsibly and orderly, however, if overly restricted can produce constraints to the development of housing, including accessible and affordable housing.
On November 7, 2000, the Newport Beach electorate approved Measure S. Measure S amended the Newport Beach City Charter by adding Section 423, which requires voter approval of certain amendments Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-28 (DRAFT JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
of the Newport Beach General Plan. Therefore, an amendment shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it. Charter Section 423 encourages the City Council to adopt implementing guidelines that are consistent with its purpose and intent. In the case of Charter Section 423, an amendment to the General Plan is defined as any proposed amendment of the General Plan that is first considered and/ or approved by the City Council subsequent to December 15, 2000 and that increases the number of peak hour trips (traffic), floor area (intensity), or dwelling units (density) when compared to the General Plan prior to approval. ,.,,, –.4...
The City Council determines if an amendment requires voter approval pursuant to Section 423, based on the following conditions:
• The Amendment modifies the allowed use(s) of the property or area that is the subject of the Amendment such that the proposed use(s) generate(s) more than one hundred morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or • The Amendment authorizes an increase in floor area for the property or area that is the subject of the Amendment that exceeds forty thousand (40,000) square feet when compared to the General Plan before approval of the Amendment; or
• The Amendment authorizes an increase in the number of dwelling units for the property or area that is the subject of the Amendment that exceeds one hundred {-99(100) dwelling units when compared to the General Plan before approval of the Amendment; or • The increase in morning or evening peak hour trips, floor area or dwelling units resulting from the Amendment when added to eighty percent (80%) of the increases in morning or evening peak hour trips, floor area or dwelling units resulting from Prior Amendments (see definition in Section 2J exceeds one or more of the voter approval thresholds in Section 423 as specified in Subsection 1, 2 or 3.
If the City Council determines a General Plan Land Use Element Amendment requires voter approval after approving the Amendment, the City Council then adopts a resolution calling an election on the Amendment. The City Council schedules the election at the next regular municipal election, as specified by the City Charter. The City Attorney then prepares an impartial analysis of the Amendment, which contains information about the Amendment, any related project or land use approval, and the environmental analysis conducted that will help the electorate make an informed decision. In the absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code.
It is important to understand that Charter Section 423 only applies to General Plan amendments.
Individual housing development projects that do not require a General Plan amendment are already accommodated within the General Plan and zoning framework. They would not be subject to Charter Section 423 and would never require a vote of the electorate.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-29 (DRAFT JANUARY 2022)
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City of Newport Beach
2021-2029 HOUSING ELEMENT
If a housing development project requires a General Plan amendment, any unit and peak hour traffic increases added to the project through the Density Bonus process are not counted toward Charter Section 423 thresholds and a determination whether a vote is required. Ultimately projects that require a vote of the electorate pursuant to Charter Section 423 may require additional costs and be subject to delays due to the election process that may yield uncertain election results.
The City will implement Charter Section 423 when it amends the Land Use Element of its General Plan to implement Policy Actions 1A through 1F provided in Section 4 of this Housing Element. The increases in housing units and the peak hour traffic to accommodate the City's high RHNA allocation will exceed Charter Section 423 thresholds requiring a vote of the electorate. However, Charter Section 423 includes a statement that it shall not apply if State or Federal law precludes a vote of the electorate on the amendment. As of the adoption of this Housing Element, it is unclear if the State RHNA mandate to accommodate the City's RHNA allocation would preclude a vote pursuant to Charter Section 423.
It is the duty of the City Council to place the increases in housing and the traffic generated before the voters of Newport Beach consistent with Charter Section 423. The vote will be scheduled in accordance with the California Elections Code and the City Charter after the City Council carefully reviews and approves the Land Use Element amendment and Zoning Strategies that support Policy Actions 1A through 1G. The City will prepare an Environmental Impact Report (EIR) in accordance with the California Environmental Quality Act (CEQA) prior to acting on the Land Use Element amendment and Zoning Strategies.
In 2006, the City adopted its comprehensive General Plan Update adding 1,166 housing units within its Land Use Element. The update included the housing unit increases to accommodate the City's share of the 4th RNHA cycle. In accordance with Charter Section 423, the update was submitted to the voters and the measure passed. For the 6th cycle Housing Element, like the 2006 vote, the City will initiate an election and pay for all costs associated with the ballot measure. The discussion within Housing Goal #1 in Section 4 details the milestones involved in the Land Use Element amendment vote process. The City may choose to submit multiple ballot measures.
If the ballot measure passes, Charter Section 423 would not be an impediment in any way to housing development projects supported by the Land Use amendment and Zoning implementation strategies stemming from this Housing Element. The increases in housing units and their related peak hour traffic would also not count against future General Plan amendment applications thereby reducing the impediment that Charter Section 423 represents to future housing developments needing a subsequent General Plan Amendment in the future.
Making any changes to Charter Section 423 is complicated and uncertain. To attempt modifications that would exempt housing units from potentially requiring a vote is not a viable option. Placing a Charter amendment before the voters would require City Council action that would be contrary to the will of the people as expressed through Measure S in 2000 that resulted in Charter Section 423.
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Based upon public comments received during the preparation of this Housing Element, there is no public support to amend Charter Section 423 to accommodate the housing necessary to satisfy the State RHNA mandate. The City Council publicly debated the prospects of amending Charter Section 423 through its review of this Housing Element, and it is universally believed that placing such a Charter amendment before the voters would be a waste of resources. Additionally, any effort to potentially amend Charter Section 423 would potentially and unnecessarily delay the implementation of this Housing Element. It could create voter fatigue reducing the prospects for success of a vote for the required Land Use Element Amendment to implement this Housing Element pursuant to Charter Section 423.
Short -Term Lodging Ordinance
Short-term lodging refers to the rental and leasing of a dwelling unit to a single household for less than 30 consecutive days. Short-term lodging is predominantly used by tourists to the City and the homeowner may or may not reside on the property.
The City of Newport Beach adopted Ordinance 2020-15 on July 15, 2020, which set permitting regulations for short-term lodging throughout Newport Beach. The Ordinance allows short-term lodging in all residential districts in the City with the approval of a permit and related fees. Ordinance 2020-15 is not considered a constraint to housing in the City as the intent is to control short-term lodging and collect Transient Occupancy Tax. The City provides information online for interested homeowners, Frequently Asked Questions, and permit application processes.
Specific Plans
The purpose of a Specific Plan is to implement the goals and objectives of a city's General Plan in a more focused and detailed manner that is area and project specific. The Specific Plan promotes consistency and an enhanced aesthetic level throughout the project community. Specific Plans contain their own development standards and requirements that may be more restrictive than those defined for the city as a whole.
Santa Ana Heights
The Santa Ana Heights Community is located to the north of Newport Beach between East Side Costa Mesa and the Upper Newport Bay. The area was previously within County of Orange's permitting jurisdiction and the redevelopment project area was designated to eliminate blight. The land has since been annexed into Newport Beach.
The principal objectives of the Santa Ana Heights Specific Plan include:
• Encourage the upgrading of existing residential neighborhoods and business development areas • Ensure well-planned business park and commercial developments which are adequately buffered from adjacent residential neighborhoods
• Encourage the consolidation of smaller contiguous lots in the business park area • Ensure that business park and residential traffic are separated to the maximum extent possible, while minimizing impact upon existing parcels
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• Ensure adequate provision of public works facilities as development occurs • Enhance equestrian opportunities with the residential equestrian neighborhood • Enhance the overall aesthetic character of the community The Santa Ana Heights Specific Plan identifies design and landscaping guidelines in Section 20.90.030 of the Newport Beach Zoning Code; the development standards are provided in Table 3-64. Table 3-86 also identifies the housing types permitted in each zoning district. Zoning district designations within the project area include the following:
• Open Space and Recreational District: SP -7 (OS/R) - Open Space and Recreational District is intended to establish the long-term use and viability of the Newport Beach Golf Course. • Residential Equestrian District: SP -7 (REQ) Residential Equestrian District is intended to provide for the development and maintenance of a single -unit residential neighborhood in conjunction with limited equestrian uses. The zoning district is intended to maintain a rural character with an equestrian theme.
• Residential Kennel District: SP -7 (RK) - Residential Kennel District is intended to provide for the development of a single -unit residential neighborhood in conjunction with commercial kennel businesses.
• Residential Single -Family District: SP -7 (RSF) - Residential Single -Family District is intended to provide for the development of medium density single -unit detached residential neighborhoods.
Permitted uses should complement and be compatible with residential neighborhoods. • Residential Multiple -Family District: SP -7 (RMF) - Residential Multiple -Family District is intended to provide for the development of high-density multi -unit residential neighborhoods with a moderate amount of open space. Permitted uses should complement and be compatible with residential neighborhoods.
• Horticultural Nursery District: SP -7 (HN) - Horticultural Nursery District is intended to ensure the long-term use and viability of the horticultural nursery uses located along Orchard Drive in the western section of Santa Ana Heights.
• General Commercial District: SP -7 (GC) - General Commercial District is intended to provide regulations for the commercial areas along South Bristol Street and ensure the continuation of commercial uses which offer a wide range of goods and services to both the surrounding residential and business communities. This district is intended to promote the upgraded aesthetic image of the community and reduce conflicts between commercial and residential uses. • Business Park District: SP -7 (BP) - Business Park District is intended to provide for the development and maintenance of professional and administrative offices, commercial uses, specific uses related to product development, and limited light industrial uses. The district shall protect the adjacent residential uses through regulation of building mass and height, landscape buffers, and architectural design features.
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• Professional and Administrative Office District: SP -7 (PA) - Professional and Administrative Office District is intended to provide for the development of moderate intensity professional and administrative office uses and related uses on sites with large landscaped open spaces and off- street parking facilities. This district is intended to be located along heavily trafficked streets or adjacent to commercial or industrial districts. This district may also be used to buffer residential areas.
• Professional, Administrative, and Commercial Consolidation District: SP -7 (PACC) - Professional, Administrative, and Commercial Consolidation District is intended to provide for the development of professional and administrative office uses and commercial uses on lots located between South Bristol Street and Zenith Avenue in a manner which ensures lot consolidation and vehicular access to and from South Bristol Street.
• Planned Development Combining District (PD) - Planned Development Combining District is intended to provide a method for land to be developed using design features which take advantage of modern site planning techniques to produce an integrated development project amongst existing and potential development of the surrounding neighborhoods.
Housing for Persons with Disabilities
Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (that is, modifications or exceptions) to their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling.
The Housing Element Update must also include programs that remove constraints or provide reasonable accommodations for housing designed for persons with disabilities. The analysis of constraints must touch upon each of three general categories: 1) zoning/land use; 2) permit and processing procedures; and 3) building codes and other factors, including design, location and discrimination, which could limit the availability of housing for disabled persons.
Keasonable Accommodatiot
Reasonable accommodation in the land use and zoning context means providing individuals with disabilities or developers of housing for personsep4e with disabilities, flexibia+tydisabilities, flexibility in the application of land use and zoning and building regulations, policies, practices and procedures, or even waiving certain requirements, when it is necessary to eliminate barriers to housing opportunities. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.
Section 20.25.070 (Reasonable Accommodation) of the Citv's Municipal Code provides a procedure and sets standards for disabled persons seeking a reasonable accommodation in the provision of housing and is intended to comply with federal and state fair housing laws. A request for reasonable accommodation may be made by any person with a disability, their representative, or a developer or provider of housing for individuals with a disability, and a reasonable accommodation may Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-33 (DRAFT JANUARY 2022)
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be aaoroved only for the benefit of one or more individuals with a disabilitv. Section 20.52.070 ensures that reasonable accommodation requests are processed efficiently without imposing costs on the applicant. The City does not assess a fee for reasonable accommodation requests. Although a public hearing is required, the matter is heard before a Hearing Officer rather than the Planning Commission, which helps establish an apolitical and more objective decision-making authority, and results in a more expedited processing. Once an applicant requests reasonable accommodation via all appropriate forms and submittals (as outline in Section 20.25.070 of the Newoort Beach Municipal Code). the followine actions may be taken by the Hearing Office:
-- - - -- - - ---01 ----
-- -11 - - -- - - --- - - -- - - -- - -- -
- - -- - -- - -
------- -- -- -- -- - AM-
- -- - -- ---- - --- - --- -
. „
• The Hearing Officer shall issue a written determination to approve, conditionally approve, or deny a request for reasonable accommodation, and the associated modification or revocation. • The reasonable accommodation request shall be heard with, and subject to, the notice, review, approval, call for review, and appeal procedures identified for any other discretionary permit. • On review the Council may sustain, reverse, or modify the decision of the Hearing Officer or remand the matter for further consideration, which remand shall include specific issues to be considered or a direction for a de novo hearing.
The written decision to approve or deny a request for reasonable accommodation must be consistent with all the applicable Federal and State laws and is be based on consideration of the following findings, all of which are required for approval, the requested accommodation:
• Is requested by or on the behalf of one or more individuals with a disability protected under the Fair Housing Laws.
• Is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling.
• Will not impose an undue financial or administrative burden on the City as "undue financial or administrative burden" is defined in Fair Housing Laws and interpretive case law. • Will not result in a fundamental alteration in the nature of a City program, as "fundamental alteration" is defined in Fair Housing Laws and interpretive case law; and • Will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others.
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In making determinization for a request for reasonable accommodation, the hearing officer may consider a variety of factors; factors for consideration by the hearing officer are listed (but limited to) in Chap Section 20.52.070 of the Newport Beach Municipal Code. Reasonable accommodation generates practical opportunity and increased feasibility for the creation of accessible housing and the Newport Beach's City process is not considered a constraint to the development of housing for all persons. nPfinitinn of Family
A restrictive definition of "family" that limits the number of unrelated persons and differentiates between related and unrelated individuals living together is inconsistent with the right of privacy established by the California Constitution. The City's Municipal Code defines "family" as one or more persons living together as a single housekeeping unit in a dwelling unit. The Code also defines a single housekeeping unit as the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas, and sharing household activities and responsibilities (e.g., meals, chores, household maintenance, expenses, etc.) and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager. The City's definition of family does not limit the number of unrelated persons living together, however the definition for single housekeeping unit, as it relates to family, may require an update by the City as it considers a unit the equivalent to a traditional family.
Development Fees
Residential developers are subject to a variety of permitting, development, and impact fees in order to access services and facilities as allowed by State law. The additional cost to develop, maintain, and improve housing due to development fees result in increased housing unit cost, and therefore is generally considered a constraint to housing development. However, fees are necessary to provide planning and public services in Newport Beach.
The location of projects and housing type result in varying degrees of development fees. The presumed total cost of development is also contingent on the project meeting city policies and regulations and the circumstances involved in a particular development project application. Table 3-10 provides the planning and land use fees assessed by City of Newport Beach and Table 3-11 provides the engineering and development services fees required for development projects. All fees are available on the City's website in compliance with (GC 65940.1(a)(1)(A)).
Estimated total development and impact fees for a typical single -unit residential project, assuming it is not part of a subdivision and is consistent with existing city policies and regulations can range from $63,304 to $68,304. Estimated total development and Impact fees for a typical multi -unit residential project with ten units, assuming it is consistent with existing City policies and regulations range from $429,600 to $434,600.
These estimates are illustrative in nature and that actual costs are contingent upon unique circumstance inherent in individual development project applications. Considering the high cost of land in Newport, and Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-35 (DRAFT JANUARY 2022)
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the International Code Council (ICC) estimates for cost of labor and materials, the combined costs of permits and fees range from approximately 12.5 percentto 13.5 percent of the direct cost of development for a single -unit residential project and 9.6 percent to 9.3 percent for a multi -unit residential project.
Direct costs do not include, landscaping, connection fees, on/off-site improvements, shell construction or amenities, therefore the percentage of development and impact fees charged by the City may be smaller if all direct and indirect costs are included.
Table 3-10: Plannine and Land Use Fees
Type
Fee
Deposit Hourly Rate
Amateur Radio and Satellite Dish Antenna Permit
$1,379
Amendment—General Plan
--
$7,500 $266
Amendment — Local Coast Program
--
$3,300 $266
Amendment—Planned Community
--
$7,500 $266
Amendment—Zoning Code
--
$7,500 $266
Appeals to City Council
$1,715
-- --
Appeals to Planning Commission
$1,715
-- --
Approval in Concept Permit
$916
-- --
Certificate of compliance $358 + $12 County
$370
-- --
Coastal Development Permit/ Parcel Map Bundle
$3,380
-- --
Coastal Development Permit Waiver/ Initial Review
$1,195
-- --
Compliance Letters / Minor Records Research
$390
-- --
Comprehensive / Heritage / Innovative Sign Program
$1,906
-- --
Condominium Conversion Permit
$1,354
-- --
Development Agreement
--
$10,000 $266
Development Agreement Annual Review
$1,397
--
Director/ Staff Approval
$982
-- --
Extensions of Time (except Abatement Period)
$172
-- --
Environmental Documents
110% of Consultant Cost
--
Heritage Sign Review
--
-- $166
In -Lieu Parking
--
-- $150
Limited Term Permit — Less than 90 Days
$650
-- --
Limited Term Permit — More than 90 Days
$2,235
-- --
Limited Term Permit—Seasonal
$309
-- --
Lot Line Adjustment
$2,316
-- --
Lot Merger
$2,316
-- --
Modification Permit
$3,219
-- --
Nonconforming Abatement Period Extension
$698
-- --
Operator's License—Application
$974
-- --
Operator's License—Appeal
$946
-- --
Planned Community Development Plan
--
$10,000 $266
Planned Development Permit
$6,386
-- --
Preliminary Application for Residential Development
$776
-- --
Public Noticing Costs
$508
--
Site Development Review — Major
$5,776
-- --
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Type
Fee
Deposit
Hourly Rate
Site Development Review — Minor
$3,293
--
--
Subdivision Parcel Map
$2,301
--
--
Subdivision Tentative/Vesting Tract Map
$5,685
--
--
Temporary Banner Permit ($50 + $1 Recorded
Management Fee)
$59
Electrical Plan Review
87% of Total Permit Fee
Transfer of Development Rights
$4,490
--
87% of Total Permit Fee
Use Permit—Conditional
$5,838
--
--
UsePermit — Minor
$3,292
--
--
Variance
$5,380
--
--
Zoning Plan Check
--
--
$208
Sources: City of Newport Beach Planning Division Fee Schedule (Effective 07/01/2020 per Council Resolution 2021-21).
Table 3-11: Engineering and Development Services Fees
Type
Fee
Plan Check Hourly Rate
$261
Plan Review
87% of Building Permit Fee
Repetitive Plan Review
25% of Building Permit Fee
Energy Compliance Review
0.07% of Construction Cost
Disabled Access Compliance Review
0.1% of Construction Cost
Grading Plan Review by City Staff
87% of Grading Permit Fee
Grading Plan Review of Complex Projects by Consultant
133% of Consultant Fee
Determination of Unreasonable Hardship
$357
Electrical Plan Review
87% of Total Permit Fee
Mechanical Plan Review
87% of Total Permit Fee
Plumbing Plan Review
87% of Total Permit Fee
Drainage Plan Review for Alteration to Drainage
$199
Water Quality Management Plan Review (Commercial Projects) $275
Water Quality Management Inspections (Commercial Projects) $350
Water Quality Management Plan Review Fee (Residential Projects) $191
Water Quality Management Inspection Check Fee
(Residential Projects)
$284
Expedite Plan Review
1.75 X regular plan check fees ($453
minimum)
Plan Check Extension
$68
Harbor Construction Plan Review
$329
Waste Management Administration Fee
$27
Sources: City of Newport Beach Schedule of Rents, Fines, and Fees (Effective 07/01/2021 per City Resolution 2021-21). //Dart Fp_P_C
Impact fees are assessed on a case-by-case basis depending on the proposed use, location, and density.
Impact fees ensure adequate maintenance and provision of public facilities and services to the project and include transportation, school, park and open space, waste management, sewage, and water.
Table 3-12 provides the fees calculated based on land use in Newport Beach.
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Table 3-12: Development Impact fees
Use
Fee
Transportation (Fair Share)
Single -Unit Development
$2,579/unit
Residential -Medium Density
$2,016/unit
Apartment
$1,524/unit
Elderly Residential
$938/unit
Mobile Home
$1,407/unit
Nursing/ Convalescent Home
$633/unit
School Impact Fee
N-MUSD Residential Developer Fee
$1.84/sq.ft.(1)
Park Dedication
Park Dedication
$30,217/unit
San Joaquin Transportation Corridor Agency (TCA) — Zone kA (Z) Single Unit
$6,050/unit
Multi -Unit
$3,524/unit
San Joaquin Transportation Corridor Agency (TCA) — Zone W13 (Z) Single Unit
$4,689/unit
Multi -Unit
$2,735/unit
Sources: City of Newport Beach Schedule of Rents, Fines, and Fees (Effective 0710112021 per Council Resolution 2021-21).
Newport -Mesa Unified School District Developer Fees
Notes:
(1) Addition under 500 sq.ft. may be exempt
(2) Effective July 1, 2020 —June 30, 2021. The fee rate schedule increases by 2.667% each year on July 11t On -/Off -Site Improvements
Site improvements in the City consist of those typically associated with development for on-site improvements (street frontage improvements, curbs, gutters, sewer/water, and sidewalks), and off-site improvements caused by project impacts (drainage, parks, traffic, schools, and sewer/water). Thus, these are costs that may influence the sale or rental price of housing. Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of development of housing within the City. Majority of cost associated with on and off-site improvements is undertaken by the City and recovered in the City's development and impact fees.
Building Codes and Enforcement
The City's construction codes are based upon the California Code of Regulations, Title 24 that includes the California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code, Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building Standards Code, and California Referenced Standards Code. They are the minimum necessary to protect the public health, safety and welfare of the City's residents. In compliance with State law, the California Building Standards Code is revised and updated every three (3) years. The newest edition of the California Building Standards Code is the 2019 edition with an effective date of January 1, 2020. The City strives to provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits. The City has not made any building code or code enforcement Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-38 (DRAFT JANUARY 2022)
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amendments in the past 8 years which directly affect or potentially hider the development of housing in Newport Beach.
Code enforcement is conducted by the City and is based on systematic enforcement in areas of concern and on a complaint basis throughout the city. The Code Enforcement Division works with property owners and renters to assist in meeting state health and safety codes. The Code Compliance Department investigates complaints regarding violations of the Newport Beach Municipal Codes. The following are frequent enforcement items:
• Hazardous property conditions
• Overgrown vegetation
• Housing Code violations (broken windows, peeling paint) • Inoperable and abandoned vehicles on private property • Signs, including signs in public right-of-way and signs without permits • Solid Waste (early set -out of containers, inadequate containers, illegal dumping) • Water quality and conservation
• Zoning requirements, (i.e., illegal dwelling units and use requirements) Local Processing and Permit Procedures
The processing time needed to obtain development permits and required approvals is commonly cited by the development community as a prime contributor to the high cost of housing. Depending on the magnitude and complexity of the development proposal, the time that elapses from application submittal to project approval may vary considerably. Factors that can affect the length of development review on a proposed project include the completeness of the development application and the responsiveness of developers to staff comments and requests for information. Approval times are substantially lengthened for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendments, encounter community opposition, or are appealed to or require approval from the Coastal Commission. The City strives for a streamlined building permit plan check process, especially for single- and multi -family residential development. Internal targets for plan check review times for building permits are 10 business days for the first submittal, 5 business days for the second and subsequent submittals, if needed. It is worth noting that the timing of the overall process depends more heavily on the responsiveness of the design team after the first round of review.
For projects requiring a discretionary action, such as a coastal development permit, site development review, or parcel map, approximately three additional months should be added to processing timelines.
Although rare, if an EIR, Zone Change, General Plan Amendment, or Local Coastal Program Amendment is required, then approximately eight months should be added to processing timelines.
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Applicants for all permits or reviews are recommended to request a pre -application conference with the respective department to achieve the following:
• Inform the applicant of City requirements as they apply to the proposed project. • Review the City's review process, possible project alternatives or revisions; and • Identify information and materials the City will require with the application, and any necessary technical studies and information relating to the environmental review of the project All applicable fees related to permits and reviews are established by the City Council and can be found in the City's Master fee schedule (Tables 3-10 and 3-11). All applications are first reviewed for completeness, discretionary applications require the respective department to provides a written report and recommendation, applications are then subject to review by the appropriate authority. Table 3-13 below identifies the review authority responsible for reviewing and making decisions on each type of application required by the Newport Beach Zoning Code. Permit review procedures for residential developments in the City of Newport Beach are outlined below.
Table 3-13: Review Authority for Permit Application
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-40 (DRAFT JANUARY 2022)
Role of Review Authority'
Applicable Code
Type of Action
yp
Chapter/Section
Director
Zoning
Hearing
Commission
Council 2
Administrator
Officer
Administrative and Legislative
Interpretations
Section 20.12.020
Determination'
-
-
Appeal
Appeal
Planned
Chapter 20.56
-
-
-
Recommend
Decision
Communities
Specific Plans
Chapter 20.58
-
-
--
Recommend
Decision
Zoning Code
Chapter 20.66
-
-
-
Recommend
Decision
Amendments
Zoning Map
Chapter 20.66
-
-
-
Recommend
Decision
Amendments
Permits and Approvals
Conditional Use
Section 20.52.020
--
-
Decision
Appeal
Permits
Conditional Use
Permits—
Section 20.52.030
--
-
Decision
--
Appeal
Residential Zones
HO
Minor Use Permits
Section 20.52.020
--
Decision 3
--
Appeal
Appeal
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'7-
Time Between Receiving Approval and Submitting Building Permit Application
o.,.,., ss*ng inc ee The amount of time between when a prosect receives approval and submittal of an application for building permits varies, depending upon a variety of factors and- is controlled by a prosect applicant. While the City makes every effort to streamline permitting processes, this element of timed it is outside the control of the City. T4ese-#Factors for variability of time may include the size of a project, type of construction, funding and financing considerations, lease or contract considerations, litigation, seasonal factors, engineering, design and architectural considerations. The timeline can be a matter of a few days to a few weeks, if the project is small and uncomplicated (e.g.; ADU/JADU) to months for large- scale, modern construction. The City of Newport Beach views the longer time period is common and necessary for larger, more complicated projects and does not see this in any way as hindering the construction of housing or introducing unnecessary delays. In most all cases, the timeline from receiving approval to submitting for building permits is solely dictated by the project applicant and not constrained by any requirements placed upon the applicant by the City.
Conditional Use Permits in Residential Zoning
The purpose and intend of Conditional Use Permits in residential zoning districts, as identified by the Newport Beach Municipal Code Chapter 20.52.030, is to promote the public health, safety, and welfare and to implementthe goals and policies of the General Plan by ensuring that conditional uses in residential neighborhoods do not change the character of the neighborhoods as primarily residential communities.
As well as, to protect and implement the recovery and residential integration of the disabled, including Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-41 (DRAFT JANUARY 2022)
Role
Role of Review Authority'
Applicable Code
T e of Action
yp
Chapter/Section
Director
Zoning
Hearing
Commission
Council'
Administrator
Officer
Modification
Section 20.52.050
Decision'
-
Appeal
Appeal
Permits
Planned
Development
Section 20.52.060
--
-
-
Decision
Appeal
Permits
Reasonable
Section 20.52.070
--
-
Decision
--
Appeal
Accommodations
Site Development
Section 20.52.080
--
Decision 3
--
Decision
Appeal
Reviews
Variances
Section 20.52.090
--
-
--
Decision
Appeal
Zoning Clearances
Section 20.52.100
Determination
-
--
Appeal
Appeal
Notes:
(1) "Recommend" means that the Commission makes a recommendation to the Council; "Determination" and "Decision" mean that the review authority makes the final determination or decision on the matter; "Appeal" means that the review authority may consider and decide upon appeals to the decision of a previous decision-making body, in compliance with Chapter 20.64 (Appeals).
(2) The Council is the final review authority for all applications in the City. (3) The Director or Zoning Administrator may defer action and refer the request to the Commission for consideration and final action.
Source: City of Newport Beach Municipal Code, Chapter 20.50 Permit Application Filing and Processing Time Between Receiving Approval and Submitting Building Permit Application
o.,.,., ss*ng inc ee The amount of time between when a prosect receives approval and submittal of an application for building permits varies, depending upon a variety of factors and- is controlled by a prosect applicant. While the City makes every effort to streamline permitting processes, this element of timed it is outside the control of the City. T4ese-#Factors for variability of time may include the size of a project, type of construction, funding and financing considerations, lease or contract considerations, litigation, seasonal factors, engineering, design and architectural considerations. The timeline can be a matter of a few days to a few weeks, if the project is small and uncomplicated (e.g.; ADU/JADU) to months for large- scale, modern construction. The City of Newport Beach views the longer time period is common and necessary for larger, more complicated projects and does not see this in any way as hindering the construction of housing or introducing unnecessary delays. In most all cases, the timeline from receiving approval to submitting for building permits is solely dictated by the project applicant and not constrained by any requirements placed upon the applicant by the City.
Conditional Use Permits in Residential Zoning
The purpose and intend of Conditional Use Permits in residential zoning districts, as identified by the Newport Beach Municipal Code Chapter 20.52.030, is to promote the public health, safety, and welfare and to implementthe goals and policies of the General Plan by ensuring that conditional uses in residential neighborhoods do not change the character of the neighborhoods as primarily residential communities.
As well as, to protect and implement the recovery and residential integration of the disabled, including Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-41 (DRAFT JANUARY 2022)
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those receiving treatment and counseling in connection with dependency recovery. In doing so, the City seeks to avoid the over -concentration of residential care facilities so that these facilities are reasonably dispersed throughoutthe community and are not congregated or over -concentrated in any particular area to institutionalize that area.
A conditional use permit is required to authorize uses not previously permitted as allowable in the applicable residential zoning district or in an area where residential uses are provided for in Planned Community Districts or specific plan districts. An application for a conditional use permit, meeting all the requirements outline in Chapter 20.52.030 D, is then reviewed by the Director to ensure that the proposal complies with all applicable requirements. Additionally, all conditional use permit applications require a public hearing and a public notice of the hearing. The review authority identified in Table 3-139 above is designated to approve, conditionally approve, or deny applications for conditional use permits in residential zoning districts.
To promote certaintv in meetine the scone of the conditional use permit review. provide upfront feedback, and to expedite processing, the City offers, free -of -charge, Development Review Committee (DRC) meetings with prospective applicants. DRC meetings are informal meetings with representatives of the various City departments or divisions (i.e., Planning, Building, Public Works, Fire, etc.) that are held weekly and are scheduled with only one week lead time. A prospective applicant receives detailed feedback on their proposal so thev can address issues early to provide a more complete submission thereby avoiding unnecessary delays.
As described in more detail in the Reasonable Accommodation Section of the Housine Element. in the event that conditional use permit process proves to be a barrier or constraint to the development of housing for disabled, Section 20.52.070 of the Zoning Code provides procedures for obtaining reasonable accommodation from the permitting requirements. With a reasonable accommodation, a group of disabled individuals can reside in any district zoned for residential use without the need for a conditional use permit, but rather an alternative, no -cost, and objective reasonable accommodation process. 4Zifc licvc/nnmcnf I?cvic�ni^
The City of Newport Beach identifies the purpose of site development reviews as providing a process for the review of specific development projects in order to:
• Ensure consistency with General Plan policies related to the preservation of established community character, and expectations for high quality development. • Respect the physical and environmental characteristics of the site. • Ensure safe and convenient access and circulation for pedestrians and vehicles. • Allow for and encourage individual identity for specific uses and structures. • Encourage the maintenance of a distinct neighborhood and/or community identity. • Minimize or eliminate negative or undesirable visual impacts.
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• Ensure protection of significant views from public right(s)-of-way in compliance with Section
20.30.100 (Public View Protection); and
• Allow for different levels of review depending on the significance of the development project.
Site development review is required before the issuance of a building or grading permit for any new structure. Structures that do not require a site development review (but instead require a zoning clearance) include, accessory structures, fences and/or walls, reconstruction or exterior remodeling of existing structures, one to four dwelling units, without a tentative or parcel map, and non-residential up to a maximum of 9,999 square feet of gross floor area. Site development review and approval is determined by either the Zoning Administrator or the Planning Commission. The City provides the DRC review process for site development reviews as described in the previous section. Table 3-14 below identifies the applicable review authority for different development types.
Table 3-14: Review Authority and Action for Residential Construction A site development review is initiated when the Department receives a complete application package including the required information and materials specified by the Director and any additional information required by the applicable review authority in order to conduct a thorough review of the project. Upon receipt of a complete application the applicable review authority shall conduct a review of the location, design, site plan configuration, and effect of the proposed project on adjacent properties by comparing the project plans to established development standards and adopted criteria and policies applicable to the use or structure. All site development reviews require a public hearing and a notice of the hearing.
The review authority may approve or conditionally approve a site development review application. The following criteria shall be considered during the review of a site development review application:
• Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure.
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Role of Review Authority (1) (2)
Type of Construction Activity
Zoning Administrator
Planning Commission
(Minor Review)
(Major Review)
Residential construction: 5 to 20 dwelling units, without a Decision
Appeal
tentative or parcel map.
Residential construction: 5 or more dwelling units with a tentative or parcel map and 21 or more dwelling units, without a tentative or -
Decision
parcel map.
Residential construction: On a bluff, an increase in the boundaries of a development area in compliance with the findings in --
Decision
Section 20.28.040 (Bluff (B) Overlay District).
Mixed-use projects: 1 to 4 dwelling units and nonresidential construction of up to a maximum of 9,999 square feet of gross Decision
Appeal
floor area.
Mixed-use projects: 5 or more dwelling units and/or nonresidential construction of 10,000 square feet or more of gross floor area. -
Decision
Source: City of Newport Beach Municipal Code
A site development review is initiated when the Department receives a complete application package including the required information and materials specified by the Director and any additional information required by the applicable review authority in order to conduct a thorough review of the project. Upon receipt of a complete application the applicable review authority shall conduct a review of the location, design, site plan configuration, and effect of the proposed project on adjacent properties by comparing the project plans to established development standards and adopted criteria and policies applicable to the use or structure. All site development reviews require a public hearing and a notice of the hearing.
The review authority may approve or conditionally approve a site development review application. The following criteria shall be considered during the review of a site development review application:
• Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure.
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���� _.fin• ,� -
• The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design.
• The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas.
• The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces.
• The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and
• The protection of significant views from public right(s)-of-way and compliance with Section
20.30.100 (Public View Protection).
Section 4: Housing Plan establishes Policy Action 3A to establish objective design standards for the City.
Specifically, Policy Action 3A states —The City of Newport Beach will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards for projects with a minimum affordable housing component with objective standards that do not impede the type and density of housing it is intended to allow. The objective development standards are to be adopted within 24 months of the Housing Element adoption.
Zoning Clearance,
A Zoning clearance is the procedure used by the City to verify that a proposed use or structure complies with the activities allowed in the applicable zoning district and the development standards and other provisions of the City's Zoning Code. A zoning clearance is required as a prerequisite to establishing a structure or use for the following:
• Before the initiation or commencement of any use of land not requiring the construction of a structure.
• Whenever a use is proposed to be changed, whether or not the new use involves a new lessee, operator, or owner, a zoning clearance shall be obtained. • Before the City issues a new or modified building permit, grading permit, or other construction - related permit required for the alteration, construction, modification, moving, or reconstruction of any structure.
The Department may issue the zoning clearance after first determining that the request complies with all Zoning Code provisions and other adopted criteria and policies applicable to the proposed use or structure. An approval may be in the form of a stamp, signature, or other official notation on approved plans, a letter to the applicant, or other certification, at the discretion of the Director. Review authority for Zoning Clearances is stated in Table 3-13-1 above.
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senate Bill 3`
California Senate Bill 35 (SB 35), codified as Government Code Section 65913.41, was signed on September 29, 2017 and became effective January 1, 2018. SB 35 will automatically sunset on January 1, 2026 (Section 65913.4(m)). The intent of SB 35 is to expedite and facilitate construction of affordable housing. SB 35 applies to cities and counties that have not made sufficient progress toward meeting their affordable housing goals for above moderate- and lower-income levels as mandated by the State. In an effort to meet the affordable housing goals, SB 35 requires cities and counties to streamline the review and approval of certain qualifying affordable housing projects through a ministerial process.
When a jurisdiction has made insufficient progress toward their Above Moderate -income RHNA and/or has not submitted the latest Housing Element Annual Progress Report (2018) it is subject to the streamlined ministerial approval process (SB 35 (Chapter 366, Statutes of 2017) streamlining) for proposed developments with at least 50 percent affordability. All projects, which propose at least 50 percent affordable units within Newport Beach are eligible for ministerial approval under SB 35 as determined by the SB 35 Statewide Determination Summary. To be eligible for SB 35 approval, sites must meet a long list of criteria, including:
• A multifamily housing development (at least two residential units) in an urbanized area; • Located where 75% of the perimeter of the site is developed; • Zoned or designated by the general plan for residential or mixed use residential; • In a location where the locality's share of regional housing needs has not b-ebeen satisfied by building permits previously issued;
• One that includes affordable housing in accordance with SB 35 requirements; • Consistent with the local government's objective zoning and design review standards; and • Willing to pay construction workers the state -determined "prevailing wage." A project does not qualify for SB 35 streamline processing if in:
• A coastal zone, conservation lands, or habitat for protected species; • Prime farmland or farmland of statewide importance;
• Wetlands or lands under conservation easement;
• A very high fire hazard severity zone;
• Hazardous waste site;
• Earthquake fault zone;
• Flood plain or floodway;
• A site with existing multi -family housing that has been occupied by tenants in the last ten years or is subject to rent control; or
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• A site with existing affordable housing.'
2. Infrastructure Constraints
Another factor that could constrain new residential construction is the requirement and cost to provide adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to serve new residential development. In most cases, where new infrastructure is required, it is funded by the developer and then dedicated to the City, which is then responsible for its maintenance. The cost of these facilities is generally borne by developers, which increases the cost of new construction, with much of that increased cost often "passed on" in as part of home rental or sales rates.
The Utilities Department oversees, manages, and maintains the City's:
• Water • Street sweeping
• Wastewater (sewer) • Streetlights
• Storm drain and tidal valve system • Oil and gas operations The City has water, sewer and dry utilities that exist or are planned to accommodate residential development in the community. As the City is essentially built out, the infrastructure in place is designed and located to accommodate potential for additional housing identified for the 6th Cycle Housing Element.
Dry Utilities
Dry utilities are the installation of the electric, telephone, TV, internet, and gas in a community. Of the utilities, the City must plan to provide the necessary resources, such as electric and gas, to increased households from 2021-2029, as projected by the RHNA allocation.
Electricity
Southern California Edison (SCE) is the electrical service provider for the City of Newport Beach. SCE is regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and Southern California. The SCE reliability report identifies the reliability of electricity services to the City and identifies any dependability issues that exist in the City. There are 52 circuits that serve the City of Newport Beach, in total the 52 circuits serve 77,199 customers. SCE measure reliability by three categories:
• System Average Interruption Duration Index (SAIDI) — total minutes every SCE customer was without power due to sustained power outage (outage > 5 minutes) divided by total number of customers
• System Average Interruption Frequency Duration Index (SAIFI) — Number of sustained customer outages experienced by all SCE customers divided by total number of customers 1 JD Supra Knowledge Center, "How California's SB 35 Can Be Used to Streamline Real Estate Development Projects", Accessed March 26, 2021.
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• Customer Average Interruption Duration Index (MAIFI) - System average interruption duration index divided by system average interruption frequency index Overall, the City of Newport Beach experience relatively low interruptions compared to the overall service provided to all SCE customers, displayed in Figure 3-1.
Figure 3-1: Reliability History of Circuits Serving Newport Beach (No Exclusions) 2016 2017 2018 2019
200.0
150.0 134.5
SAIDI Lis M1
[aYLrage 100.0
minutes of
sustained
interruptions) 50.0
SAIR
(average
frequency of
sustained
interruptions)
INAPT
(average
frequency of
momentary
interruptions)
0.0 1.4
1.2 1.0
0.s
0.E
0.4 0.2
0.0 2.0
1.5 1.0
0.5 0.0
139.7
Source: Southern California Edison, Reliability Reports, Newport Beach 2020 ■ Newport Beach
■ SCE SYSTEMWIDE
""Exclusions" are days which
utilities are allowed to
remove from their metrics
because the outages an
those days were caused by
ads of natu re.
**Data is as of 0211412020, data
can be slightly different due to
outage data validation process
SCE will continue to provide adequate services to the City of Newport Beach including increased household growth as projected by the City's RHNA allocation. n►afll --,i r -
Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas is a gas -only utility and, in addition to serving the residential, commercial, and industrial markets, provides gas for enhanced oil recovery (EOR) and EG customers in Southern California. The SoCal Gas 2020 utility report projects total gas demand to decline at an annual rate of 1 percent from 2020-2035. From 2020-2035, residential demand is expected to decline from 230 Bcf to 198 Bcf. The decline is approximately 1 percent per year, on average. The decline is due to declining use per meter—primarily driven by very aggressive energy efficiency goals and associated programs— offsetting new meter growth.2
Z SoCal Gas 2020 California Gas report, Prepared in Compliance with California Public Utilities Commission Decision D .95-01-039 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-47 (DRAFT JANUARY 2022)
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SoCalGas engages in several energy efficiency and conservation programs designed to help customers identify and implement ways to benefit environmentally and financially from energy efficiency investments. Programs administered by SoCalGas include services that help customers evaluate their energy efficiency options and adopt recommended solutions, as well as simple equipment -retrofit improvements, such as rebates for new hot water heaters. Additionally, the City of Newport Beach employs programs for energy and utility conservation, outline below in Section 3: Housing Resources, Opportunities for Energy Conservation.
Water Supply
The City of Newport Beach Utilities Department currently serves a population of over 86,000 within a service area of approximately fifty square miles. The Department is responsible for providing a safe and reliable source of water to approximately 26,200 active connections and delivering approximately 13,500 -acre feet (AF) of water per year on average.3 The City's distribution system consists of approximately 300 miles of distribution pipelines and is divided into five main pressure zones: Zone 1 through Zone 5 with 16 minor zones. Zones 1 and 2 are the largest and cover most of the system demands.
Zones 3, 4 and 5 are smaller pumped zones. The system infrastructure consists of four wells, three storage reservoirs, five pump stations and 43 pressure reducing stations (PRS) that manage pressure across the system.4
The City of Newport Beach water division is separated into four sections: water maintenance and repair, water production, water quality, and water system services, each department's duties are outlined below.
Together the division is responsible for providing a safe and reliable source of water.
Newport Beach Water Source
The City receives its water from several sources, local groundwater from the Lower Santa Ana River Groundwater Basin, imported water purchased from the Municipal Water District of Orange County (MWDOC), and recycled water purchased from Orange County Water District (OCWD). Most of the City's water supply is groundwater, pumped from four wells within the City of Fountain Valley. Imported water is treated at the Diemer Filtration Plant operated by the Metropolitan Water District of Southern California (Metropolitan). The City is not capable of treating water to produce reclaimed water but purchases water from OCWD through the Green Acres Project. s
Water Mainrenance aria ..Nair
Water Maintenance & Repair is responsible for the maintenance and operation of the City's water mains and valves that are located underground.
Water Prnductinn
Water Production operates, maintains, and disinfects the City of Newport Beach's water supply. The division operates two well sites which produce groundwater from the Orange County Basin as well as three water reservoirs to receive, store and distribute the City's water. Other water facilities that assist in the distribution and treatment process include: five water pump stations, five Metropolitan Water District s City of Newport Beach, Water rate Study, 2019
° City of Newport Beach, Water Master Plan, 2019
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interconnections, and 42 water pressure regulating stations. Water Production also manages SCADA (Supervisory Control and Data Acquisition) which monitors and controls the pumps in the City's water wastewater and gas systems.
Big Canyon Reservoirs
Located at 3300 Pacific View Drive in Corona Del Mar. The Big Canyon Reservoir is the largest City owned reservoir with a capacity of 600 -acre foot or 195 million gallons. Built in 1958 this reservoir was the primary water supply for Newport for many years. Although the reservoir does have the ability to supply water to the entire service area the reservoir is primarily used as a storage reservoir and supply to the City's higher -pressure zones.
Spyglass Hill Reservoir
Located under the Spyglass Reservoir park at the end of Muir Beach Circle in Spyglass is the 1.5 -million - gallon concrete reservoir. Built in the 1970s to supply the surrounding community this 101 -foot diameter and 27 -foot -deep reservoir is under the playground park. Large concrete support columns and thick concrete roof and walls support this reservoir.
16th Street Reservoir
Located at the Utilities Yard at 949 West 16th Street in Newport Beach the newest of our reservoirs is a 3 -million -gallon underground concrete reservoir. Built in 1996 as part of the City's ground water project, this reservoir receives well water from our four City owned wells in Fountain Valley. This reservoir supplies water to the 16th Street pump station that can pump up to 12,000 gallons per minute into our distribution system. Excess water not used in the system is stored in the Big Canyon Reservoir in Corona Del Mar.
Water QualitL
The City of Newport Beach Utilities Department is responsible for providing residents with a reliable, safe, clean, potable, and domestic water supply. Newport Beach's drinking water is safe for drinking. It meets or exceeds all Federal and California water quality standards, which are the most stringent standards of any state in the nation. The City's staff continuously monitors the City's water supply and conducts more than 1,500 tests each year on potable water drawn from different sampling points along our distribution system.
Water System Services
Water System Services assists City of Newport Beach customers with any questions regarding water quality, water pressure, consumption usage, any concern with water meters, leak detection, utilities inspections and underground utility locating. The City's Water Systems Services webpage provides tips and information for proper water systems care for property owners as well as additional resources.
Wasirewarer
Wastewater is responsible for the collection of residential and commercial wastewater. This Division has three sub -sections: Pump Station Operation, Cleaning Operation and Construction Operation. These three sub -sections provide service relating to pump station repair and maintenance, sewer main, lateral and manhole cleaning, sewer blockage and odor, and sewer main and lateral breaks and repairs.
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The City's Wastewater department is responsible for 203 miles of sewer pipe, 120 miles of sewer laterals, approximately 5,000 manholes, 21 pump stations, and five miles of force mains. The City's 2019 Sewer System Management Plan states the department's main goals to include the following:
• Maintain uninterrupted sewage flow without health hazard, effluent leakage, or water infiltration and inflow.
• Operate a sanitary sewer system that meets all regulatory requirements. • Avoid sanitary sewer overflows and respond to sanitary sewer overflows quickly and mitigate any impact of the overflow.
• Maintain standards and specifications for the installation of new wastewater systems. • Verify the wastewater collection system has adequate capacity to convey sewage during peak flows.
• Provide training for Wastewater Collection staff.
• Maintain the Fats, Oil, and Grease program (FOG program) to limit fats, oils, grease, and other debris that may cause blockages in the wastewater collection system. • Identify and prioritize structural deficiencies and implement short-term and long-term maintenance and rehabilitation actions to address each deficiency. • Meet all applicable regulatory notification and reporting requirements. • Provide excellent customer service through efficient system operation and effective communication strategies.
Sewe,
The Orange County Sanitation District (OCSD)provides sanitation services to the City of Newport Beach.
In 2013, the sanitation district began a construction program to rehabilitate the OCSD's regional sewers in the City. The program ran through 2018 and consisted of five construction projects, including:
• Dover Drive Trunk Sewer Relief (5-63): The Dover Drive Trunk sewer runs between Irvine Blvd. and Coast Highway and is in poor condition. The existing sewer pipeline also does not have efficient hydraulic capacity to handle the wastewater flow and must therefore be replaced with a larger pipeline. OCSD will also relocate a city waterline to reduce the level of impact for the community by eliminating the need for a secondary project in the area. • Balboa Trunk Sewer Rehabilitation (5-47): This project will rehabilitate the existing Balboa Trunk sewer along Newport Blvd. and Balboa Blvd. between A Street and Finley Ave. (See map: between A Street Pump Station and Lido Pump Station.) The project includes installation of a new protective lining in approximately 12,600 feet of sewer pipeline. • Newport Force Main Rehabilitation (5-60): The Newport Force Main is a critical component of our sewer system and needs to be rehabilitated. It carries the wastewater flow from various pump stations to our treatment plant in Huntington Beach. The pipelines are located on Coast Highway stretching past Dover Dr. to the Bitter Point Pump Station, approximately 1/4 mile north of Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-50 (DRAFT JANUARY 2022)
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Superior Ave., which is a heavily traveled thoroughfare. There are two sewer lines, one on the north side of Coast Highway and one on the south side which make the rehabilitation more complex.
• District 6 Trunk Sewer Relief (6-17): The District 6 Trunk sewer runs from Pomona Ave. in the City of Costa Mesa to Newport Blvd. near Coast Highway in the City of Newport Beach. This project will increase the capacity of the existing sewer pipeline to reduce the potential for sewer spills and to properly handle flows.
• Southwest Costa Mesa Trunk (6-19): In an effort to improve efficiency in our service area, this project is looking into the design and construction of a new gravity trunk sewer. This project may lead to the abandonment of eight Costa Mesa and Newport Beach pump stations to provide more reliable service to the community
The infrastructure improvements initiated by OCSD from 2013 to 2018 increased overall capacity and efficiency in the Newport Beach sewer system. The City can accommodate the increase in households as projected by the City's RHNA allocation.
Water uemana
In fiscal year 2014-15, the City's total water demand was approximately 16,033 acre-feet. The City's potable demand was met through 11,200 acre-feet of groundwater and 4,338 acre-feet of imported water; the remaining non -potable demand was met through recycled water. The City is projecting over five percent increase in total potable and non -potable demand in the next 25 years accompanied by a projected 13 percent population growth.6
The 2015 UWMP found that Metropolitan is able to meet full service demands of its member agencies with existing supplies outto 2040 during a normal, single -dry, and multiple -dry year scenario. Additionally, the 2019 Water Master Plan found that though population continues to increase over the past ten years, total water demand has decreased. The 10 -year average annual demand for 2007-2016 (15,991 AF) is 14 percent less than the 1986-1996 average annual demand (18,626 AF). The City's water infrastructure and service provider is capable of meeting the water demands of its customers under the same hydrological conditions out to 2040, this includes all household growth estimated by the City's RHNA allocation.
Fire and Emergency Services
The City of Newport Beach's Fire Department aims to Protect life, property, and the environment with innovative professionalism and organizational effectiveness using highly trained professionals committed to unparalleled service excellence. The department has 144 full-time employees and over 200 part-time/seasonal employees provide 24-hour protection and response to the community's residents, businesses, and visitors.
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The department's primary goals are identified as follows:
• Identify and reduce fire and environmental hazards that may threaten life and property. • Provide a safe, effective, and expeditious response to requests for assistance. • Develop an adequately trained workforce to effectively perform their duties. • Participate in the community development planning process to improve fire and life safety. • Encourage department personnel to assume leadership roles in the organization. • Plan for response to natural and man-made disasters that affect the community. • Educate and train employees and the community to assist them in maintaining a safe environment.
The department's different divisions and respective duties are outlined below.
Fire Operations Division
The Fire Operations Division is the largest of four divisions within the Newport Beach Fire Department.
The primary responsibilities of its personnel are life safety, incident stabilization, and the preservation of property and the environment. The Newport Beach Fire Department operates as an "all risk" emergency responsible organization responding to the following:
• Fires
• Pre -hospital Medical Emergencies
• Technical Rescues
• Traffic Accidents
• Vehicle Extrications
• Major Flooding
• Beach Rescues
• High Rise Incidents
• Wildland Fires
• Disaster Operations
• Hazardous Materials Incidents
The Fire Department staffs eight fire stations 24/7. The stations are strategically located throughout the city to provide the quickest and most effective response to the area served, with an average response time of five minutes. Considering the department's expansive and well-connected nature, as well as the compactness of the City of Newport, additional housing or new developments would not pose a burden on the existing Fire Department's fire operations. Therefore, fire operations are not considered a constraint to the development of housing for all income levels.
The City requires Development Agreements for certain development types within the Airport area to ensure adequate safety services and ambulance units. Development Agreements include additional fees for safety service operations in the airport area due to current lack of ambulance units. The imposition of additional fees may pose a constraint to the development of housing, and particularly affordable housing.
This may result in greater development fees which may subsequently influence the final rental cost of units or home value.
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o
-mergency Medical Services
The goal of the Emergency Medical Services (EMS) Division is to deliver the highest quality of medical care to members of the community, regardless of their ability to pay. In total, the City has eight fire stations that are strategically located to provide the best services the community. Each day there are eight fire engines, two fire trucks and the three paramedic ambulances in service. The average response time is four minutes and 22 seconds. The system's design accounts for fewer paramedic ambulances and expects a nearby fire engine or truck company to arrive on scene first to initiate basic medical care, which at times can include lifesaving cardio -pulmonary resuscitation or delivering rapid electrical shocks using automated external defibrillators (AEDs), prior to the arrival of the paramedic team.
Lifcro—M tincrnfinnc nivicinr
The City of Newport Beach's Lifeguard Division protects up to 10 million beach visitors on Newport Beach's 6.2 miles of ocean and 2.5 miles of bay beaches, with preventative actions and medical assistance. Every day of the year, lifeguards ensure safety and provide customer service to the visitors on the beach, boardwalk, piers, and in the ocean.
Police Services
The City of Newport Beach's Police Department intends to:
• Respond positively to the Community's needs, desires, and values and in so doing be recognized as an extension and reflection of those we serve.
• Strive to provide a safe and healthy environment for all, free from violence and property loss resulting from criminal acts, and injuries caused by traffic violators. • Manage inevitable change and welcome the challenge of future problems with creative solutions, which are financially prudent and consistent with Community values.
The Department's is headed by Chief of Police Jon T. Lewis, who is the 10th Chief of Police in the department's history, assuming office on March 22, 2016. The City of Newport Beach's Police Department handles a wide array of services and permitting, all services are outlined in detail on the City's Police Department webpage.
3. Environmental Constraints
Newport Beach is bound by the Pacific Ocean to the West and contains many different natural landscapes within the City's boundaries. Newport Beach has a variety of coastal features ranging from replenished beach sands in West Newport, to steep bluffs comprised of sandstone and siltstone to the south of Corona del Mar. The community, as most of California is, sits along some major fault traces. The City is susceptible to several potential environmental constraints to the development of housing, including geologic hazards, flood hazards, and fire hazards, all are detailed below.
Coastal Hazards
A goal of the California Coastal Act and the City's adopted Local Coastal Program is to assure the priority for coastal -dependent and coastal -related development over other development in the Coastal Zone. The Coastal Act is an umbrella legislation designed to encourage local governments to create Local Coastal Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-53 (DRAFT JANUARY 2022)
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Programs (LCPs) to govern decisions that determine the short- and long-term conservation and use of coastal resources. The City of Newport Beach's LCP is considered the legislative equivalent of the City's General Plan for areas within the Coastal Zone. Local Coastal Programs are obligated by statute to be consistent with the policies of the Coastal Act and protect public access and coastal resources. Over 63 percent of Newport Beach is within the Coastal Zone and subject to the oversight by the California Coastal Commission.
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Newport Beach is exposed to a variety of coastal hazards including beach erosion, bluff erosion, and coastal flooding due to sea level rise (SLR) and storm inundation. The City has a significant amount of land directly adjacent to surface water that is directly affected by sea level rise and storm inundation. The effects of SLR on coastal processes, such as shoreline erosion, storm -related flooding and bluff erosion, have been evaluated using a Coastal Storm Modeling System (CoSMoS), a software tool and multi -agency effort led by the United States Geological Survey (USGS), to make detailed predictions of coastal flooding and erosion based on existing and future climate scenarios for Southern California. The mapping results from CoSMoS provide predictions of shoreline erosion (storm and non -storm), coastal flooding during extreme events, and bluff erosion for the City in community -level coastal planning and decision-making.
A large portion of the City's coastal adjacent land appropriate for development is at risk of tidal flooding.
Land along the coast is vulnerable to shoreline retreat, which is predicted to accelerate with Sea Level Rise. Long-term shoreline retreat coupled with storm -induced beach erosion has the potential to cause permanent damage to buildings and infrastructure in these hazard zones. As a result, the City did not utilize land within the coastal
The Coastal Commission provides direct guidance on how the City of Newport Beach addresses future land use in consideration of sea level rise. According to the California Coastal Commission Sea Level Rise Policy Guidance' , local jurisdictions can "Minimize Coastal Hazards through Planning and Development Standards" through the following measures applicable to Newport Beach:
• Design adaptation strategies according to local conditions and existing development patterns, in accordance with the Coastal Act.
• Avoid significant coastal hazard risks to new development where feasible. • Minimize hazard risk to new development over the life of the authorized development. • Minimize coastal hazard risks and resource impacts when making redevelopment decisions. • Account for the social and economic needs of the people of the state include environmental justice, assure priority for coastal -dependent and coastal -related develop over other development
The Coastal Commission has also prepared a Draft Coastal Adaptation Planning Guidance: Residential Development (dated March 2018), which will serve as the Coastal Commission's policy guidance on sea ' California Coastal Commission Sea Level Rise Policy Guidance, 2018 Science Update Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-54 (DRAFT JANUARY 2022)
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level rise adaptation for residential development to help facilitate planning for resilient shorelines while protecting coastal resources in LCPs
Geologic Hazards
According to the Newport Beach Safety Element, the geologic diversity of Newport Beach is strongly related to tectonic movement along the San Andreas Fault and its broad zone of subsidiary faults. This, along with sea level fluctuations related to changes in climate, has resulted in a landscape that is also diverse in geologic hazards. Geologic hazards are generally defined as surficial earth processes that have the potential to cause loss or harm to the community or the environment. Specific geologic hazards that may affect the development of housing in the City are detailed below.
Slope Failures
Slope failures often occur as elements of interrelated natural hazards in which one event triggers a secondary event such as a storm -induced mudflow. Slope failure can occur on natural and man-made slopes. The City's remaining natural hillsides and coastal bluff areas are generally vulnerable to slope failures that include: San Joaquin Hills; and bluffs along Upper Newport Bay, Newport Harbor, and the Pacific Ocean. Despite the abundance of landslides and new development in the San Joaquin Hills, damage from slope failures in Newport Beach has been small which may be attributed to the development of strict hillside grading ordinances, sound project design that avoid severely hazardous areas, soil engineering practices, and effective agency review of hillside grading projects.
Seismic Hazards
The City of Newport Beach is located in the northern part of the Peninsular Ranges Province, an area that is exposed to risk from multiple earthquake fault zones. The City of Newport Beach Safety Element determines that the highest risks originate from the Newport -Inglewood fault zone, the Whittier fault zone, the San Joaquin Hills fault zone, and the Elysian Park fault zone. Each of the aforementioned zones have the potential to cause moderate to large earthquakes that would cause ground shaking in Newport Beach and nearby communities. Earthquake -triggered geologic effects also include surface fault rupture, landslides, liquefaction, subsidence, and seiches. Specific hazards associated with seismic hazards, which can potentially be determined as a constraint to development are detailed below.
Liquefaction
Strong ground shaking can result in liquefaction. Liquefaction, a geologic process that causes ground failure, typically occurs in loose, saturated sediments primarily of sandy composition. According to the Newport Beach Safety Element, the areas of Newport Beach susceptible to liquefaction and related ground failure (i.e., seismically induced settlement) include the following areas along the coastline:
• Balboa Peninsula,
• In and around the Newport Bay and Upper Newport Bay,
• in the lower reaches of major streams in Newport Beach, and • In the floodplain of the Santa Ana River.
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It is likely that residential or commercial development will never occur in many of the other liquefiable areas, such as Upper Newport Bay, the Newport Coast beaches, and the bottoms of stream channels.
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Strong ground motions can also worsen existing unstable slope conditions, particularly if coupled with saturated ground conditions. Seismically induced landslides can overrun structures, people or property, sever utility lines, and block roads, thereby hindering rescue operations after an earthquake. Much of the area in eastern Newport Beach has been identified as vulnerable to seismically induced slope failure.
Approximately 90 percent of the land from Los Trancos Canyon to State Park boundary is mapped as susceptible to land sliding by the California Geologic Survey. Additionally, the sedimentary bedrock that crops out in the San Joaquin Hills is locally highly weathered. In steep areas, strong ground shaking can cause slides or rockfalls in this material. Rupture along the Newport Inglewood Fault Zone and other faults in Southern California could reactivate existing landslides and cause new slope failures throughout the San Joaquin Hills. Slope failures can also be expected to occur along stream banks and coastal bluffs, such as Big Canyon, around San Joaquin Reservoir, Newport and Upper Newport Bays, and Corona del Mar.
Flood Hazards
The City of Newport Beach and surrounding areas are, like most of Southern California, subject to unpredictable seasonal rainfall, and every few years the region is subjected to periods of intense and sustained precipitation that result in flooding. Flooding can be a destructive natural hazard and is a recurring event. A flood is any relatively high streamflow overtopping the natural or artificial banks in any reach of a stream. Flood hazards in Newport Beach can be classified into two general categories: flash flooding from small, natural channels; and more moderate and sustained flooding from the Santa Ana River and San Diego Creek. The City of Newport Beach's Safety Element Identifies 100 -year and 500 -year flood zones in the City. Federal Emergency Management Agency (FEMA) flood zones are geographic areas that the FEMA has defined according to varying levels of flood risk. Each zone reflects the severity or type of flooding in the area .8 The 100 -year flood zone are areas with a one percent annual chance of flooding, the 500 -year flood zones are areas with a 0.2 percent annual chance of flooding.
The 100- and 500 -year flood zones include the low-lying areas in West Newport at the base of the bluffs, the coastal areas which surround Newport Bay and all low-lying areas adjacent to Upper Newport Bay. 100- and 500- year flooding is also anticipated to occur along the lower reaches of Coyote Canyon, in the lower reaches of San Diego Creek and the Santa Ana Delhi Channel, and in a portion of Buck Gully. The City also recently worked with FEMA to revise proposed flood hazards maps, in which FEMA removed over 2,700 properties from flood zones. Most flooding along these second- and third -order streams is not expected to impact significant development. However, flooding in the coastal areas of the City will impact residential and commercial zones along West Newport, the Balboa Peninsula and Balboa Island and the seaward side of Pacific Coast Highway.9
With increased development, there is also an increase in impervious surfaces, such as asphalt. Water that used to be absorbed into the ground becomes runoff to downstream areas. However, various flood $ FEMA Flood Zone Designations, Natural resources Conservation Service — Field Office Technical Guides e City of Newport Beach Safety Element
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control measures help mitigate flood damage in the City, including reservoirs in the San Joaquin Hills and Santa Ana Mountain foothills, and channel alterations for the Santa Ana River. These structures help regulate flow in the Santa Ana River, San Diego Creek, and smaller streams and hold back some of the flow during intense rainfall period that could otherwise overwhelm the storm drain system in Newport Beach.
Fire Hazards
The Newport Beach Safety Element defines a wildland fire hazard area as any geographic area that contains thetype and condition of vegetation, topography, weather, and structuredensitythat potentially increases the possibility of wildland fires. The eastern portion of the City and portions of the Newport Beach region and surrounding areas to the north, east, and southeast include grass- and brush -covered hillsides with significant topographic relief that facilitate the rapid spread of fire, especially if fanned by coastal breezes or Santa Ana winds.
In those areas identified as susceptible to wildland fire, the Fire Department enforces locally developed regulations which reduce the amount and continuity of fuel (vegetation) available, firewood storage, debris clearing, proximity of vegetation to structures and other measures aimed at "Hazard Reduction." New construction and development are further protected by local amendments to the Uniform Building Code. These amendments, which are designed to increase the fire resistance of a building, include:
protection of exposed eaves, noncombustible construction of exterior walls, protection of openings, and the requirement for Class "A" fireproof roofing throughout the City. Additionally, a "Fuel Modification" plan aimed at reducing fire encroachment into structures from adjacent vegetation must be developed and maintained.
1. Affirmatively Furthering Fair Housing
All Housing Elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Further Fair Housing Final Rule of July 16, 2015.
Under State law, affirmatively further fair housing means "taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. These characteristics can include, but are not limited to race, religion, sex, marital status, ancestry, national origin, color, familiar status, or disability.
The Orange County Analysis of Impediments (AI) to Fair Housing Choice for FY 2015-19 was approved by the City of Newport Beach City Council in October 2016 as one of the fifteen urban county program participants in partnership with the Fair Housing Council of Orange County. The Draft Regional Analysis of Impediments (AI) to Fair Housing Choice for FY 2020-25 was made available for public review in 2020. The Fair Housing Council of Orange County works under the direction of a volunteer board of directors and staff to fulfill a mission of protecting the quality of life in Orange County by ensuring equal access to Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-57 (DRAFT JANUARY 2022)
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housing opportunities, fostering diversity and preserving dignity and human rights. The agency is a HUD Approved Housing Counseling Agency and provides one-on-one education, mediation, and counseling for individuals and families throughout the Orange County region.
The Al identifies impediments that may prevent equal housing access and develops solutions to mitigate or remove such impediments. Newport Beach's 6th Cycle Housing Element references analysis from the FY 2020-2025 Al in order to identify potential impediments to housing that are specific to Newport Beach.
The City also completed its FY 2020-24 Consolidated Plan, adopted by City Council on May 12, 2020, as an entitlement city for Community Development Block Grant (CDBG) funding, which identifies housing problems within the community, specifically among low and very -low-income households. Fair housing is identified as a priority within the Consolidated Plan.
?. Summary of Local Data
The Al contains a Countywide analysis of demographic, housing, and specifically fair housing issues for all the cities in Orange County, including Newport Beach. The City's demographic and income profile, household and housing characteristics, housing cost and availability, and special needs populations were discussed in the previous Section 2: Community Profile.
In an ongoing effort to promote and encourage fair housing, the City contracts with the Fair Housing Foundation (FHF). FHF provides public outreach, educational workshops, and distributes educational materials related to fair housing. Inquiries regarding fair housing matters are generally referred to the FHF. As of July 30, 2021, a total of 116 Newport Beach low-income residents relied on Section 8 rental assistance vouchers. In 2020, the Fair Housing Foundation held virtual fair housing workshops (February 3, 2020, and November 17, 2020), held virtual walk-in clinics (May 13, 2020, May 20, 2020, July 15, 2020, September 2, 2020, and November 18, 2020), produced a public service announcement for Newport Beach Television (NBTV), and distributed 2,250 pieces of literature.
Fair Housina Issues
Within the legal framework of federal and state laws and based on the guidance provided by the HUD Fair Housing Planning Guide, impediments to fair housing choice can be defined as:
• Any actions, omissions, or decisions taken because of age, race, color, ancestry, national origin, age, religion, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor which restrict housing choices or the availability of housing choices; or
• Any actions, omissions, or decisions which have the effect of restricting housing choices or the availability of housing choices on the basis of age, race, color, ancestry, national origin, age, religion, sex, disability, marital status, familial status, source of income, sexual orientation or any other arbitrary factor.
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Regional Fair Housing Issues
• Availability, Type, Frequency, and Reliability of Public Transportation - The availability, type, frequency, and reliability of public transportation may be significant local contributing factors to fair housing issues in Newport Beach. Public transportation in Orange County primarily consists of bus service operated by the Orange County Transportation Authority (OCTA) and Metrolink light rail service. However, Metrolink does not provide service to Newport. The lack of public transportation may deter members of protected classes who do not have cars and are reliant on public transportation from choosing to live there, thus reinforcing patterns of segregation. • Impediments to Mobility - Impediments to mobility may be a significant local contributing factor to fair housing issues in Newport Beach. Specifically, Housing Choice Voucher payment standards that make it difficult to secure housing in many, disproportionately White areas contribute to segregation and disparities in access to opportunity. The Orange County Housing Authority, which provides Section 8 resources to Newport Beach, has three tiers based on city rather than zip code, but the highest tier - $2,280 for two-bedroom units in selected cities — falls far short of Small Area Fair Market Rents and leaves some cities targeted for that payment standard out of reach. For example, in zip code 92660, located in Newport Beach, the Small Area Fair Market Rent for two-bedroom units would be $3,120. A Zillow search for that zip code revealed advertised two-bedroom units in only two complexes available for under $2,280 but many more available between $2,280 and $3,120.
• Location of Accessible Housing - The location of accessible housing may be a significant local contributing factor to fair housing issues in Newport Beach. With a few exceptions the location of accessible housing tends to track areas where there are concentrations of publicly supported housing. In Orange County, publicly supported housing tends to be concentrated in areas that are disproportionately Hispanic and/or Vietnamese and that have relatively limited access to educational opportunity and environmental health. While this Is not a predominate issue in Newport Beach, comments by advocacy groups during the outreach process indicated that the location and availability of affordable housing throughout the community contributes to challenges to fair housing opportunity. Multi -unit housing tends to be concentrated in communities of color, but there are some predominantly White communities that have significant amounts of market -rate multi -unit housing that may be accessible and affordable to middle- income and high-income persons with disabilities, including Newport Beach. Overall, permitting more multi -unit housing and assisting more publicly supported housing in predominantly White communities with proficient schools would help ensure that persons with disabilities who need accessibility features in their homes have a full range of neighborhood choices available to them.
Occupancy Codes and Restrictions - Occupancy codes and restrictions may be a significant local contributing factor to fair housing issues in Newport Beach. Specifically, there is a substantial recent history of municipal ordinances targeting group homes, in general, and community residences for people in recovery from alcohol or substance abuse disorders, in particular. In 2015, the City of Newport Beach entered into a $5.25 million settlement of a challenge to its ordinance, but that settlement did not include injunctive relief calling for a repeal of that Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-59 (DRAFT JANUARY 2022)
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ordinance.10 Although municipalities have an interest in protecting the health and safety of group home residents, these types of restrictions may be burdensome for ethical, high-quality group home operators. Occupancy codes and restrictions are not as high priority of a barrier as the factors that hinder the development of permanent supportive housing, as group homes are generally less integrated than independent living settings.
Local Contributing Factors
Locally -derived contributing factors were developed in response to community participation in outreach events and through analysis conducted in Affirmatively Furthering Fair Housing development and analysis of sites inventory and feedback and comment on the draft Housing Elements data, analysis and policy program. The following local contributing factors have been identified. explicitly includes the following fair housing issues in the City of Newport Beach:
• Aging Housing Stock - Older housing stock areas in Newport Beach and whether there is a correlation between older units and lower-income households. We can touch on the Senior Home Assistance Repairs Program (SHARP) to assist with necessary home repairs. • Housing Conditions- Several areas of Newport Beach were developed prior to 1970, which means a large part of the City's housing stock is aging and may need repairs or upgrades to alleviate substandard living conditions. In the areas, there are also aging populations with individuals who are on fixed incomes and may be considered lower-income households. • Senior Housing — Seniors are predominately on fixed incomes and represent the largest group of residents in need of support to address high housing costs and unique housing needs. City's Senior Home Assistance Repair Program (SHARP) works to assist senior citizens with home repairs.
Eligible applicants must be 60 or older and must have an income at or below the 50th -percentile of median income of Orange County with net assets not to exceed gross household income for 18 months.
• High Cost of Housing - The cost of housing in Newport Beach is very high; however, the City has aimed to encourage and preserve a number of affordable housing units through existing agreements. As part of this Housing Element update, Policy Action 1K is included to adopt an inclusionary housing program that would require affordable units to be developed as part of a residential project meeting the applicability criteria. This will help to boost affordable housing production, which will in turn boost affordable housing stock to help offset higher housing costs. • Lower Income Access to Opportunity— High local employment in service industry at resort, hotel and other tourist -serving businesses contributes to the need for housing affordable to lower income households. To address this, Policy 4E grants exceptions for affordable housing projects, and supportive Policies for Housing Goal #5 provides for the preservation of lower income housing opportunities.
io 41 Hannah Fry, Newport Will Pay Group Homes $5.25 Million Settlement, L.A. TIMES (July 16, 2015), https://www.latimes.com/socal/daily- pilot/news/tn-dpt-me-0716-newport-group-home-settlement-20150716- story.html.
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The City recognizes the fair housing issues that exist within the community and is committed to reduces barriers to housing affordable to all persons. The City has outline programs to address fair housing issues in Newport Beach in the Section 4: Housing Plan.
Fair Housing Enforcement and Outreach Capacity
Currently, the Fair Housing Foundation provides fair housing services to the City of Newport Beach. This includes providing fair housing enforcement and landlord/tenant mediation services which are available for tenants, realtors, apartment owners and managers, lending institutions and other interested parties.
For FY 2020-21, the City of Newport Beach has allocated $12,000 in Community Development Block Grant (CDBG) funds for the Fair Housing Foundation to perform the following, at no cost:
• Fair housing services such as, responding to discrimination inquiries and complaints, documenting, and investigating discrimination complaints, and resolving or mediating discrimination complaints
• A comprehensive, extensive, and viable education and outreach program, including:
o Fair Housing Workshop
o Certificate Management Training
o Walk -In Clinics
o Rental Housing Counseling Workshop
o Community presentations, staff training, and workshops o Community events, booths, networking, etc.
• Landlord and tenant counseling on responsibilities and rights • Rental counseling
• Since the City contracts with an outside firm for these services, lack of monitoring and lack of direct access through City resources may be identified as contributing factors.
The Fair Housing Foundations offers regular walk-in counseling sessions, in addition to resources fairs, informational workshops (accessible in multiple languages), landlord and tenant workshops, and other outreach efforts. Additionally, the FHF provided virtual workshops available online to Newport Beach residents.
From 2015 to 2020, the City provided 408 residents with fair housing services using CDBG funding. As part of the FY 2020-25 Consolidated Plan for the Newport Beach, the City has set a goal of assisting 625 people with fair housing issues within the five-year period using $60,000 of CDBG funding. Newport Beach has also set a goal of retaining a Fair Housing provider to promote fair housing education and outreach within the community. The U.S. Department of Housing and Urban Development (HUD) maintains a record of all housing discrimination complaints filed in local jurisdictions. These grievances can be filed on the basis of race, color, national origin, sex, disability, religion, familial status, and retaliation. As reported by the 2020- 2025 Al, one fair housing case is unresolved (as one 2020) in Newport Beach.
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Housing Element 2021-2029 Outreach
Outreach and materials used in the 6th Cycle Housing Element are provided in Appendix C: Summary of Communitv Outreach.
3. Analysis of Federal, State, and Local Data and Local Knowledge Local Data and Knowledge
Newport Beach officiallv became an incorporated Citv in Orange Countv in September of 1906 and the current City Charter was adopted in 1954. The City began establishing itself in the 1920s around the development of the harbor; however it wasn't until the 1950s that the City became a vacation destination and Dermanent residents began to settle in the area.11 Between 1960 and 1980 the Citv experienced a boom in construction, which resulted in the population increasing from 26,564 residents to 62,549 residents over the 20 -year period. Today, about 85,694 persons live in the City of Newport Beach (ACS 2019). Of the residents in the City, 85.8 percent identify as White, 1.0 percent identify as Black, 8.0 percent identify as Asian, and 8.8 percent of all persons identify as Hispanic or Latino. The City's demographics display a large contrast between the population that is White and Non -White. Similarly, about 61.0 percent of the County of Orange population is White compared to 1.8 percent who identify as Black, 20.5 percent who identify as Asian and 34.1 percent who Identify as Hispanic or Latino of any race. E2 The Citv of NewDort Beach's DoDulation reauires a diverse arrav of housing options. Specifically. NewDort Beach has an aging population. About 23.1 percent of the population is over the age of 65 compared to
14.4 percent in the County. About 8.0 percent of all persons in Newport Beach reported at least one disability in 2019, majority of which were seniors (over the age of 65). Senior housing and housing accessibility were key priorities identified by the community during the Housing Element Outreach.
Additionally, the median income for non -family households is significantly lower than that of married couple households and family households. The ACS 2019 5 -year data reports that nonfamily households earned a median income of $86,656 annually, compared to family households that earned $171,699 annually and married couple households that earned $192,542 annually. The City does not do fair housing testing. however additional information regarding fair housing concerns and issues was identified through the County of Orange Al.
Additional housing needs, concerns, and disparities are analyzed below in the Fair Housing Analysis.
Findings from the analysis are reported below under "Local Contributing Factors." Integration and Segregation Patterns and Trends
The dissimilarity index is the most used measure of segregation between two groups, reflecting their relative distributions across neighborhoods (as defined by census tracts). The index represents the percentage of the minority group that would have to move to new neighborhoods to achieve perfect integration of that group. An index score can range in value from 0 percent, indicating complete 11 The Chamber Newport Beach, About Newport Beach, https://www.newportbeach.com/about-newport beach /#:—:text=The%20City%20of%20Newport%20Beach, brokering%20foIlowed%20in%201ater%20decades., accessed January 24, 2022. "American Community Survey, DP05 5 -year estimates. 2019.
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integration, to 100 percent, indicating complete segregation. An index number above 60 is considered to show high similarity and a segregated community.
It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrants often depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country. 13 Alternatively, when white residents leave neighborhoods that become more diverse, those neighborhoods can become segregated.
Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can also cause residential segregation.
The Longitudinal Tract Data Base (LTDB) from the Diversity and Disparities protect shows that from 1980 to 2010 the City of Newport became increasingly diverse. In 1980, the Non -Hispanic White population totaled 91.6 percent of the overall population and decreased to about 73.6 percent in 2010. During the same timeframe, the Hispanic population increased from 5.0 percent to 10.9 percent. Additionally, the total populations for those who identified as Asian increased from 1980 to 2010, 2.0 percent to 13.6 percent, and the total population of those who are Non -Hispanic Black increased from 0.5 percent to 1.2 percent. However, in 2018, the Black or African American population totaled about 0.8 percent of the population. The decrease in the Black population and increase in the Hispanic population is consistent with demographics trends for the greater metropolitan area. In 1980, the Non -Hispanic Black population equaled 10.1 percent of the overall population for the Los Angeles -Long Beach -Santa Ana metropolitan area, and the Hispanic population totaled 25.0 percent. By 2010, the Black population totaled 6.7 percent whereas the Hispanic population increased to 44.4 percent. According to 2018 ACS data, the total Non - Hispanic Black population in Orange County was 1.7 percent and the total Hispanic population was 34.1 percent.
Figure 3-2 shows the dissimilarity between each of the identified race and ethnic groups and the jurisdictions White population, in both the County of Orange and Newport Beach. The higher scores indicate higher levels of segregation among those racial and ethnic group. The White (non -Hispanic or Latino) population makes up most of the City's population at approximately 79.5 percent according to the 2018 ACS estimates, as well as most of the County's population at 61.7 percent of the total population.
The race and ethnic groups with the highest scores were the Native Hawaiian population (44.5) and people who reported as Other (51.3). Additionally. those who reported Black and the American Indian population had dissimilarity indices of 37.8 and 37.4 respectively. The figure displays the following r ultsi is Allen, James P. and Turner, Eugene. "Changing Faces, Changing Places: Mapping Southern California". California State University, Northridge, (2002).
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The scores above directly correlate with the percentage of people within that racial or ethnic group that would need to move into a predominately White census tract in order to achieve a more integrated community. For instance, in Newport Beach, 44.5 percent of the Native Hawaiian population would need to move into predominately white census tract areas to achieve "perfect" integration. Whereas in Orange County, 55.9 percent of the percent of the Native Hawaiian population would need to move into predominately white census tract areas to achieve "perfect" integration.
Overall, there are higher rates of segregation across the County of Orange compared to the City of Newport Beach. The Department of Housing and Community Development (HCD) considers dissimilarity index scores above 30, but below 60 as moderate segregation. Scores above 60 are considered to be high segregation. According to Figure 3-2 below, while the City of Newport Beach has no racial or ethnic populations with a dissimilarity index above 60, all populations (with the exception of the Hispanic/Latino population) have a score above 30, meaning all groups experience moderate segregation from the White population. Similarly, all populations in the County have a score above 30.
While segregation may be a result of ethnic enclaves or persons of similar cultures living in community, there is often increased likelihood segregated populations will have fewer access to essential resources.
As a part of Newport Beach's efforts to further fair housing, the City will consider increased targeted outreach to the City's minority residents.
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Figure 3-2a: Dissimilarity Index with Whites — Newport Beach and Orange County Hispanic
Two or More Races*
Other*
Native Hawaiian*
Asian*
American Indian*
Black*
0 10 20 30 40 50 60 70
American Native Two or More
Black* Indian* Hawaiian Races Asian* * Other* * Hispanic Orange County 43.8 40.3 44.1 55.9 44.7 58.9 58.9
Newport Beach 37.8 37.4 31.2 44.5 51.3 16.6 22.4
Source: Census Scope, Social Science Data Analysis Network, *Not Hispanic or Latino Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) To assist communities in identifying racially/ethnically concentrated areas of poverty (R/ECAPs), HUD has developed a census tract -based definition of R/ECAPs. The definition involves a racial/ethnic concentration threshold and a poverty test. The racial/ethnic concentration threshold is straightforward:
R/ECAPs must have a non-white population of 50 percent or more. Regarding the poverty threshold, Wilson (1980) defines neighborhoods of extreme poverty as census tracts with 40 percent or more of individuals living at or below the poverty line. Because overall poverty levels are substantially lower in many parts of the country, HUD supplements this with an alternate criterion. Thus, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.
Location of residence can have a substantial effect on mental and physical health, education opportunities, and economic opportunities. Urban areas that are more residentially segregated by race and income tend to have lower levels of upward economic mobility than other areas. Research has found that racial inequality is thus amplified by residential segregation. 14 However, these areas may also provide different opportunities, such as ethnic enclaves providing proximity to centers of cultural significance, or business, social networks and communities to help immigrants preserve cultural identify and establish 14 Orange County, Analysis of Impediments to Fair Housing Choice, April 2020 DRAFT.
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themselves in new places. Overall, it is important to study and identify these areas in order to understand patterns of segregation and poverty in a City.
The 2020 Al performed an analysis of R/ECAPs within Orange County and found four R/ECAPs, none of which were found in Newport Beach. However, two of the four were found in the neighboring City of Irvine, adjacent to one another and near the University of California; these both bordered the City of Newport Beach. According to the Al, it is likely that they qualify as R/ECAPs due to the high proportions of students. These R/ECAPs have a much more diverse group of residents, with some White, Asian or Pacific Islander, Hispanic and Black residents. These R/ECAPs primarily contain Asian or Pacific Islander or Hispanic residents. 23.49% of residents are White, 1.63% are Black, 48.50% are Hispanic, 23.70% are Asian or Pacific Islander, and 0.14% are Native American.
Figure 3-3 below identifies low poverty index with race/ethnicity and R/ECAPs in Newport Beach, and the overall Orange County region. The low poverty index captures the depth and intensity of poverty in a given neighborhood. The index uses both family poverty rates and public assistance receipt, in the form of cash -welfare, such as Temporary Assistance for Needy Families (TANF). The poverty rate and public assistance for neighborhoods are determined at the census tract level, and the higher the score, the less exposure to poverty in a neighborhood. The map identifies the R/ECAP and a few surrounding neighborhoods, to the south and southeast, The figure identifies R/ECAP areas (outlined in red) bordering the City of Newport Beach, near the University of California, Irvine.
The map also shows that there are few R/ECAPs in the County as a whole, with a few pockets in the City of Santa Ana. Overall, the City of Newport Beach is a high income areas, with majority of the population identifying as white. The City should consider the impact of high cost of housing and higher annual incomes on lower income households. The current financial circumtance combined with the recent housing boom can create displacement through economic pressures, where lower income households need to look for affordable housing outside of the City.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-66 (DRAFT JANUARY 2022)
L
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-3: Low Poverty Index with Race/Ethnicity and R/ECAPs, Newport Beach Source: HUD Affirmitaevly Furthering Fair Housing Data and Mapping Tool, Data Versions: AFFHT0006, July 10, 2020 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-67 (DRAFTN1^VrnnrZro 20-24 JANUARY 2022)
I
17 �
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' Q 28!2021, 4:56-59 PM
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L_J Cityfrc n Boundaries
0 2 4 $ nl
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(P,) Racially or Ethnically Concentrated Areas of Poverty' P,'ECAP'S" (HUD, 2009- 2413) - Tract 4 3.2b 6.b 13 km
0 - Nct a RfECA P
Cay of i,i... C.—ty of Las A gdc. B—. d Land hlanaga m t. E— Source: HUD Affirmitaevly Furthering Fair Housing Data and Mapping Tool, Data Versions: AFFHT0006, July 10, 2020 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-67 (DRAFTN1^VrnnrZro 20-24 JANUARY 2022)
L-.kry
City of Newport Beach
2021-2029 HOUSING ELEMENT
x�7e•�
Racially Concentrated Areas of Affluence (RCAA)
Racially or Ethnically Concentrated Areas of Poverty have long been analyzed and reviewed as a contributing factor to segregation. However, patterns of segregation in the United States show that of all racial groups, people who identify as White are the most severely segregated.15 Research also identifies segregation of affluence to be -greater than the segregation of poverty. Racial and economic segregation can have significant effects on respective communities, including but not limited to, socioeconomic disparities, educational experiences and benefits, exposure to environmental conditions and crime, and access to public goods and services.
Data used in the analysis of RCAA is from the 2012-2016 American Community Survey and are measured at the census track level. The definition for an RCAA is a census tract in which 80 percent or more of the population is White and has a median income of at least $125,000. The nationwide RCAA analysis identifies the following:
• RCAA tracts have more than twice the median household income of the average tract in their metro area.
• Poverty rates in RCAAs are significantly lower and are, on average about 20 percent of a typical tract.
• RCAAs tracts are more income homogenous than RECAPS.
• The average RCAA is about 57 percent affluent, whereas the average RECAP had a poverty rate of 48 percent.
• The typical RCAA tract has a rate of affluence 3.2 times that of a typical tract, whereas RECAPS on average had a poverty rate 3.2 times that of a typical tract Overall, RCCAs may represent a public policy issue to the extent that they have been created and maintained through exclusionary and discriminatory land use and development practices. Postwar patterns of suburbanization in many metropolitan areas were characterized by White communities erecting barriers to affordable housing and engaging in racially exclusionary practices. 16 Currently (October 2020), there is no consolidated database to identify RCAAs, therefore, to identify these areas in Newport Beach, this analysis examines census tracts with a population gap that is greater than 50% between the nonwhite and white population and a median income over $100,000. Table 3-152-X below displays the RCAA data for the County of Orange and Newport Beach. Additionally, Table 3-162-X below shows local (Newport Beach) and regional (Orange County) context for the median household incomes of white residents.
Table 3-15XX: Median Household Income by Race, Newport Beach Census Tract Percent Population White Median Income
Census Tract 630.09 82.7% $130,089
Census Tract 634 88.84% $4107,321
15 Racially Concentrated Areas of Affluence: A Preliminary Investigation. University of Minnesota. Edwards Goets, Damiano, Williams. 2019.
16 Ibid.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-68 (DRAFT NOVE-K41Qro 20-24 JANUARY 2022)
City of Newport Beach
202 �-2029 HOUSING ELEMENT
Census Tract 635
84.6%
$112,000
Census Tract 629
92.1%
$140,833
Census Tract 630.05
86.5%
$171,406
Census Tract 627.01
89.3%
$145,313
Census Tract 627.02
88.4%
$107,829
Census Tract 626.43
71.6%
$199,219
Census Tract 626.42
89.4%
$134,444
Census Tract 626.44
82.4%
$113,779
Census Tract 626.45
76.1%
$167,530
Census Tract 630.07
79.6%
$125,918
Source: HCD, AFFH Data
Viewer, Predominant White Population and Median Income (SCA 2010-2014), Accessed October 2021.
Table 3-16W.I: Median Household Income by Race
Race
Newport Beach County of Orange
Median Income
Population Median Income
Population
White (Not Hispanic or Latino)
$129,797
85% $94,082
61%
All Households
$127,223
-- $90,234
--
Source: American Community Survey, 5 -Year estimates, 2019.
Table 51903 Median Income In The Past 12 Months (In 2019 Inflation -Adjusted Dollars) 5 -Year Estimate 2015-2019 (for all households and for White Alone)
The majority of the City is predominately Wvuhite. Additionally, the City reports a large percentage of households who earn a median annual income of at least $125,000. Almost the entire City has an overlap of high racial concentrations (those who identify as White) and high incomes resulting in RCAAs. Many lower income housing sites have been identified throughout the Citv and within areas considered RCAAs.
Figure 3-4 and 3-5 below display the White majority tracts and median incomes throughout Newport Beach.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-69 (DRAFT NinVrnnQro 2 Q-24 JANUARY 2022)
City of Newport Beach
202�-2029 HOUSING ELEMENT
Figure 3-4: Racially Concentrated Areas of Affluence (RCAA) —White Majority Tract Z
"1J..J_bc3'�!
oA"
1125f2422, 8:14:15 AM 1:72,224
0 CAYffown Boundaries i D.5 1 2 mi
(R) Predominant Population -White Maj" Tracts 0 2 4 k7r, Slim (gap 50%)
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-70 (DRAFT N Q_ VE.R.4 BEIR 20_24 JANUARY 2022)
City of Newport Beach
202 �-2029 HOUSING ELEMENT
Source: California Department of Housing and Community Development —AFFH Data Viewer Figure 3-5: Racially Concentrated Areas of Affluence (RCAA) — Median Income 1l2V2022. 7:56:32 AM 1:722M
a o.5 1 2m
0 Cityrfawn Boundaries 1 +
(R) Median In€arne (ACS, 2015-2019) -Block Group 0 1 2 Urn 0 r $30,0oo
siz,000
- < $87.100 (HCD 2020 Slate Median Income)
- < $125.000
- Greater than $1266,000
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-71 (DRAFT NOVEnnQro 2 Q-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Source: California Department of Housing and CommunitV Development —AFFH Data Viewer Disparities in Access to Opportunity
Access to Opportunities
The UC Davis Center for Regional Change and Rabobank partnered to develop the Regional Opportunity Index (ROI) intended to help communities understand local social and economic opportunities. The goal of the ROI is to help target resources and policies toward people and places with the greatest need to foster thriving communities. The R01 incorporates both "people" and "place components, integrating economic, infrastructure, environmental, and social indicators into a comprehensive assessment of the factors driving opportunity."
As shown in Figures 3-64 and Figure 3-7-5 below, the majority of the City of Newport Beach is classified as a high opportunity zone. This indicates a high level of relative opportunities that people can achieve as well as a high level of relative opportunities that Newport Beach provides. While most of the census tracts within the City are areas of high opportunity, there are two census tracts within the ROI People Index shown as yellow, identifying a low opportunity area. Together these areas contain 86 sites which accommodate 1,941 potential units designated to meet the City's RHNA for lower-income units (shown in Section 3: Housing Resources and outlined in Appendix B). The Data for both regions with lower opportunity show high civic life, health, transportation, economic and education access, however, both show very low housing access. Therefore, the consideration and identification of these areas for housing, affordable to low and very low-income households, will provide increased housing opportunity in high opportunity and high resources areas.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-72 (DRAFT NOVEMBER 220-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Description
The Regional Opportunity IndeK (ROI): People is a
relative measure of people's assets in education,
the economy, housing, mobility/transportation,
health/environment, and civic life.
Legend
Regional Opportunity Index: People
❑ Some data not available
0 Lowest Opportunity
Highest Opportunity
❑ City Boundary
Date: 11/19/2620
https:/fintoract.regfonalchange.ucdavis.edu/roi/
Figure 3-64: Regional Opportunity Index: People, 2014
Regional Opportunity Index: People, 2014
mi
0 1.5 3 6
Source: UC Davis Center for Regional Change and Rabobank, 2014.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-73 (DRAFT NOVEMBER 20-24 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-7-5: Regional Opportunity Index: Place, 2014
Regional Opportunity Index: Place, 2014
Description
The Regional opportunity Index (i Place is a
relative measure of an area's assets in education,
the economy, housing, mobility/transportation,
health/environment, and civic life.
�arh
Legend
Regional Opportunity Index: Place
❑ Some data not available
Lowest Opportunity
❑ N
Highest Opportunity
❑ City Boundary
Date: 11/19/2020 mi
0 1.5 3 6
https://interaa.regional chiange.ucdavi&.edu/roi/
Source: UC Davis Center for Regional Change and Rabobank, 2014.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-74 (DRAFT NOVEMBER 2924 JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Additionally, Table 3 -17Y -y and Figure 3- below display the data for Regional Opportunity index in Newport Beach overall compared to the State of California. The data shows the following key findings:
• The City has higher rates of college educated adults, high school graduation rates and higher levels of UC and CSU eligibility. Additionally, the City has higher levels of Math and English proficiency.
However, the City has higher levels of truancy and discipline rates. • Newport Beach residents experience significantly higher basic income levels and higher employment rates. While the City has a higher job availability rate and job quality, overall, both City and State job growth are similar. Newport Beach residents have higher rates of bank accessibility (nearly double the state's accessibility rates). • Newport Beach and the State have the same rate of home ownership, but residents of Newport Beach experience higher rates of cost burden. Housing adequacy and affordability are similar in both the City and State, where California has a slightly higher rate of affordability. • Mobility and transportation access are moderate in both Newport Beach and the State. Newport Beach residents have a significantly higher commute times than the State's median, this could be due in part to a lack of public transit or the development patterns of coastal communities. • Overall health and environmental opportunities are comparable to the State, the City's air quality is slightly lower than the States. Newport Beach has a slightly lower average of supermarket availability, however a much higher rate of healthcare availability. • Newport Beach has higher rates of US citizenship and English speakers, as well as a higher percentage of voters compared to the State. However, Newport Beach has a slightly lower rate of neighborhood stability
In summary, Newport Beach is a high opportunity area with quality education opportunities, high rates of resident achievement, access to local and regional economic and employment opportunities, and high rates of home ownership. However, the data shows that there are high rates of cost burden in the City and slightly lower access to supermarkets and healthy foods. The City should focus on increasing access to affordable housing options to reduce cost burden and aim to increase affordable healthy food access.
Table 3-_ : Opportunity Indicators, Newport Beach and California ROI Indicator Newport Beach California
People
College Educated Adults
70% 38%
Math Proficiency
87% 70%
c
English Proficiency
87% 65%
Im
Elementary Truancy
34% 24%
U
-'a
Place
uJ
High School Graduation Rate 93% 83%
UC/CSU Eligibility 52% 41%
Teacher Experience 60% 36%
High School Discipline Rate 8% 6%
People
£
Employment Rate
93%
89%
c
Minimum Basic Income
85%
64%
0 Place
Job Availability 1302.07 701.75
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-75 (DRAFT JANUARY 2022NIGAIU -RUR 2-0-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
ROI Indicator Newport Beach
California
Job Quality 52%
40%
Job Growth 4%
3%
Bank Accessibility 0.44
0.24 People
Home Ownership
55%
55%
Housing Cost Burden
54%
52%
Place
c
Housing Adequacy
99%
91%
=
Housing Affordability
0.13 0.19
r
People
Vehicle Availability
96%
86%
0 Commute Time
74%
60%
Internet Access
4.96 4
Place
Infant Health 96% 95%
E
E
Birth to Teens 1% 7%
C
L
Years of Life Lost 18.27 29.84
Place
r
Air Quality
8.82 10.01
Prenatal Care
94%
83%
=
Access to Supermarket
47%
53%
Health Care Availability
4.61 1.76
People
a)
Voting Rates
41%
31%
J
English Speakers
92%
88%
Place
US Citizenship
92/
83%
Neighborhood Stability
82%
85%
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-76 (DRAFT JANUARY 2022NOVEEn11Qro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
120
100
80 60
40 20
0 Figure 3-8X: Regional Opportunity Index Newport Beach and California \e \z ��e ��e �e a°e a°e
Qeo .Qe°�'81.Qeo ,Qe° ,Qe°"
A*
�`°� oda 90ta�y � eke Ga��°� °ccaS���O r�F�j \`\>
a
0 Statewide Average Newport Beach
Opportunity Areas
Additionally, the Department of Housing and Community Development (HCD) together with the California Tax Credit Allocation Committee (TCAC) established the California Fair Housing Task Force to provide research, evidence -based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further the fair housing goals (as defined by HCD). The Task Fforce developed the TCAC/HCD opportunity Area Maps to understand how public and private resources are spatially distributed. The Task force defines opportunities as pathways to better lives, including health, education, and employment. Overall, opportunity maps are intended to display which areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health.
According to the Task Force's methodology, the tool allocates the 20 percent of the tracts in each region with the highest relative index scores to the "Highest Resource" designation and the next 20 percent to the "High Resource" designation. Each region then ends up with 40 percent of its total tracts as "Highest" or "High" resource. These two categories are intended to help State decision -makers identify tracts within each region that the research suggests low-income families are most likely to thrive, and where they typically do not have the option to live—but might, if given the choice. As shown in Figure 3-96 below, nearly all of Newport Beach is classified as moderate, high, and highest resource. There is one census tract in the Northwest Portion of Newport Beach classifies as low resource, the tracts scores identify high economic resources and low educational resources.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-77 (DRAFT JANUARY 2022NOVEMBER 2924)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-96: TCAC/HCD Opportunity Area Maps, Newport Beach (2020) Source: California Tax Credit Allocation Committee and Department of Housing and Community Development, 2020.
Access to neighborhoods with higher levels of opportunity can be more difficult due to discrimination and when there may not be a sufficient range and supply of housing in such neighborhoods. In addition, the continuing legacy of discrimination and segregation can impact the availability of quality infrastructure, educational resources, environmental protections, and economic drivers, all of which can create disparities in access to opportunity.
The Department of Housing and Urban Development (HUD) developed the opportunity indicators to help inform communities about disparities in access to opportunity, the scores are based on nationally available data sources and assess resident's access to key opportunity assets in the City. Table 3-184-5 provides the index scores (ranging from zero to 100) for the following opportunity indicator indices:
• Low Poverty Index: The low poverty index captures poverty in a given neighborhood. The poverty rate is determined at the census tract level. The higher the score, the less exposure to poverty in a neighborhood.
• School Proficiency Index: The school proficiency index uses school -level data on the performance of 4th grade students on state exams to describe which neighborhoods have high -performing elementary schools nearby and which are near lower performing elementary schools. The higher the score, the higher the school system quality is in a neighborhood. • Labor Market Engagement Index: The labor market engagement index provides a summary description of the relative intensity of labor market engagement and human capital in a neighborhood. This is based upon the level of employment, labor force participation, and Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-78 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
J� 7
City of Newport Beach
2021-2029 HOUSING ELEMENT
educational attainment in a census tract. The higher the score, the higher the labor force participation and human capital in a neighborhood.
• Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets the following description: a three-person single -parent family with income at 50% of the median - income for renters for the region (i.e. the Core -Based Statistical Area (CBSA)). The higher the transit trips index, the more likely residents in that neighborhood utilize public transit. • Low Transportation Cost Index: This index is based on estimates of transportation costs for a family that meets the following description: a three-person single -parent family with income at 50 percent of the median -income for renters for the region/CBSA. The higher the index, the lower the cost of transportation in that neighborhood.
• Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region/CBSA, with larger employment centers weighted more heavily. The higher the index value, the better the access to employment opportunities for residents in a neighborhood. • Environmental Health Index: The environmental health index summarizes potential exposure to harmful toxins at a neighborhood level. The higher the index value, the less exposure to toxins harmful to human health. Therefore, the higher the value, the better the environmental quality of a neighborhood, where a neighborhood is a census block -group.
Table 3-185 below displays the opportunity indices by race and ethnicity for persons in Newport Beach.
The table displays the following results:
• According to the data, there is low poverty among the population of Newport, across all racial/ethnic groups.
• Additionally, the access to quality education system is high among all racial/ethnic groups (each group has an opportunity index score above 80).
• The data shows the City offers high labor and economic opportunity as well as sufficient access to transportation.
• While the data shows a high access to transportation, however it also shows that the transportation is less affordable, specifically to non -Hispanic Asian or Pacific Islander and Native American populations.
• The data also shows low environmental health index scores across all racial/ethnic groups, below
50. • Households who earn below the poverty rate in Newport Beach have lower levels of opportunity access across all indicators as well as race and ethnicities.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-79 (DRAFT JANUARY 2022NOVEMBER 2924)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 3-18-5: Opportunity Indices by Race/Ethnicity, Newport Beach Access to Education, Economic and Transit Opportunities School Proficienaf, Labor Market and}Job Proximity
Table 3-19X below displays opportunity indicators based on school proficiency, labor market, and job proximity. The City of Newport Beach has no Title I schools. Title I schools help low -achieving children meet state standards in core academic subjects. These schools coordinate and integrate resources and services from federal, state, and local sources. To be considered for Title 1 school funds, at least 40 percent of the students must be considered low-income. Additionally, the data shows that the City has an annual unemployment rate of 3.1%. Additionally, over 69.4 percent of residents has commute that is 30 -minutes or less. T eThe City of Newport Beach provides a variety of economic opportunities for current and future residents; however, the data shows there is little educational opportunities for lower achieving students.
Table 3-19XX: Opportunity Indicator -School Proficiency, Labor Market, Job Proximity Opportunity Indicator
Low
School
Labor
0 Low
Jobs
(Newport Beach, CA
Transit
Environmental
Poverty
Proficiency
Market
Transportation
Proximity
CDBG) Jurisdiction
Index
Health Index
Index
Index
Index
Cost Index
Index
Total Population
White, Non -Hispanic
81.31 90.17
82.88 86.59
75.16 90.40
41.36 Black, Non -Hispanic
78.86 89.72
81.85 86.92
76.61 90.54
40.65 Hispanic
79.04 88.93
81.76 86.93
76.81 89.82
40.55 Asian or Pacific
Islander, Non-
84.48 91.60
85.94 83.05
68.64 89.19
38.80 Hispanic
Native American,
79.22 88.29
81.86 88.35
78.06 91.17
40.73 Non -Hispanic
Population below federal poverty line
White, Non -Hispanic
78.99 89.20
83.30 87.76
78.81 90.38
43.27 Black, Non -Hispanic
78.71 86.38
78.21 89.58
85.43 87.99
48.46 Hispanic
82.46 87.75
81.41 88.28
77.88 89.87
41.76 Asian or Pacific
Islander, Non-
84.34 88.97
82.79 88.43
76.05 92.09
39.15 Hispanic
Native American,
77.00 89.17
88.00 93.00
85.00 95.55
40.00 Non -Hispanic
Source: Department of Housing and Urban Development, Affirmatively Furthering Fair Housing Online Mapping tool, Decennial Census, ACS; Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA Access to Education, Economic and Transit Opportunities School Proficienaf, Labor Market and}Job Proximity
Table 3-19X below displays opportunity indicators based on school proficiency, labor market, and job proximity. The City of Newport Beach has no Title I schools. Title I schools help low -achieving children meet state standards in core academic subjects. These schools coordinate and integrate resources and services from federal, state, and local sources. To be considered for Title 1 school funds, at least 40 percent of the students must be considered low-income. Additionally, the data shows that the City has an annual unemployment rate of 3.1%. Additionally, over 69.4 percent of residents has commute that is 30 -minutes or less. T eThe City of Newport Beach provides a variety of economic opportunities for current and future residents; however, the data shows there is little educational opportunities for lower achieving students.
Table 3-19XX: Opportunity Indicator -School Proficiency, Labor Market, Job Proximity Opportunity Indicator
Newport Beach
School Proficiency
Total Title I Schools
0 Total Schools
12 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-80 (DRAFT JANUARY 2022NOVEMBER 292 4)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Opportunity Indicator
Newport Beach
of Schools
0%
Unemployment Rate
Total Unemployed
1,408
Annual Rate
3.1%
Job Proximity
<29 mins.
69.4%
30-59 mins.
22.6%
60 mins. or more
8.1%
Source:
National Center for Education Statistics, public Schools Directory. Accessed October 29, 2021.
American Community Survey 2013-2017, 51701.
American Community Survey 2013-2017, 50801
Opportunity Indicators
The TCAC/HCD Opportunity Area Maps include education data, as illustrated in Figure 3-10X. This data represents opportunity levels based on the following four factors:
• Math proficiency — Percentage of 4th graders who meet or exceed math proficiency standards. • Reading Droficiencv— Percentage of 4th graders who meet or exceed literacv standards. • High school graduation rates — Percentage of high school cohort that graduated on time. • Student poverty rate — Percentage of students not receiving free or reduced -price lunch.
Additionally, The TCAC/HCD Opportunity Area Maps include economic data, as illustrated in Figure 3- 11X. This data represents opportunity levels based on the following five factors:
• Poverty — Percent of population with income above 200% of federal poverty line. • Adult Education — Percent of adults with a bachelor's degree or above. • Emalovment — Percent of adults aged 20-64 who are emoloved in the civilian labor force or in the armed forces.
• Job Proximity — Number of jobs filled by workers with less than a BA that fall within a given radius (determined by the typical commute distance of low-wage workers in each region) of each census tract population -weighted centroid.
Median Home Value - Value of owner -occupied units.
Figures 3- ) and 3-k11 below display the geographic data for education and economic opportunity in Newport Beach using the TCAC data detailed above..- The data shows that nearly all of Newport Beach census tracts show high positive education outcomes. High positive outcomes mean there are high testing scores amongst elementary schoolers, high graduation rates and low poverty rates. Compared to the region, coastal cities with higher median incomes show higher positive outcomes for education.
Additionally, the data shows that all census tracts in Newport Beach are high positive outcome. Similar to the education data, positive outcomes are consistent in costal and high-income cities in Orange County.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-81 (DRAFT JANUARY 2022NIG-VEnnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-10X: TCAC — Education Score
1012912021. 10.21:36 AM 128B,895
4 2 4 B mi
0 Cit,frawn Boundaries I 4 i
(R) ICAC Opportunity Areas (27021)- Education Scare -Tract = � 0.25 (Less P,.itive Education Outcomes)
17 0.25 - 0.50
0.54 - 4.75
> 0.75 (More PasitNe Education Outcomes)
0 No Data
3.25 6.5 13 km
GY o' CCI +Ia Ma a. CI.y G Newm aeac h. CdriSr c! Los Aii9oleS. Bu!6u:
.i V nn .kixiagr.morn Esn Hf73 Girmn.:ISGS. EPA, 71AS Esn. HE4- G— Qo[en9:ree�Aial: mnribnc.s. and fir Gls uzer---iy
Source: HCD AFFH Data Viewer, Accessed September 10, 2021 vironmental Justice Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-82 (DRAFT JANUARY 2022n1nVE-IMBro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-11X: TCAC — Economic Score
1 012 91202 1, 10.31:01 AM 1.288,895
0 2 4 Bmi
IM Cftp7o" Bounaanes
(R) TCAC Opportunity Areas (2021)- Economic Score - Truck Wa 0.25 (Less Positive Economic Outcome)
0.25 -0.50
9.50 - 9.75
> 0.75 (More P.itrve Economic Ouroome)
0 No Data
3.25 6.5 13 km
Grr m Cosi Mese. ctv as ae"eea ,rrniniiy
Source: HCDAFFH Data Viewer, Accessed September 10, 2021vironmental Justice Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-83 (DRAFT JANUARY 2022ninVE-IMBro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Access to Transit
Access to transportation, specifically public transit provides households with affordable and environmentally friendly commuting options. It can also increase accessibility to essential retail such as grocers and markets as well as recreational activities and safe transit options for young adults and children.
AIITransit explores metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service. According to the data shown in Table 3- , Newport Beach scored a 3.9 AIITransit performance score, illustrating a low combination of trips per week and number of jobs accessible that enable a moderate number of people to take transit to work. In total, 138,164 jobs are accessible within a 30 -minute trip from Newport Beach, however just 0.55 percent of commuters use transit. Additionally, AIITransit identified the following transit related statistics for Newport Beach:
• 95.4 percent of all jobs in Newport Beach are located within % mile of transit • There are 53,761 customer households within a 30 -minute transit commute of local businesses • 1.86 percent of workers in Newport Beach walk to work • 1.02 percent of workers in Newport Beach bike to work • 0 percent of low-income households live near transit
By comparison, Newport Beach scored lower than neighboring jurisdictions of Costa Mesa (5.4), Huntington Beach (4.4), and Irvine (3.6), however slightly higher than Laguna Beach (3.8). Overall, the City of Newport Beach has a lower AIITransit score than the County of Orange (3.9 in Newport B ach and 4.2 in the County).
Table 3-20XX: Opportunity Indicator —Transit
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-84 (DRAFT JANUARY 2022^'OVEMQE-o 2-0-24)
All Transit
Transit Trips
Jobs Accessible
Commuters Who
Transit Routes
Jurisdiction
Performance
Per Week
in 30 -min trip
Use Transit
within 1/2 Mile
Score
within 1/2 Mile
Newport
3.9 410
138,164
0.55%
4 Beach
County of
4.2 528
172,595
2.28 4
Orange
Source: AIITransit, Transit Scores. Accessed October 29, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-84 (DRAFT JANUARY 2022^'OVEMQE-o 2-0-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-124: AIITransit Score, Newport Beach
rsio E
A MESA
Cth'cP -1 Joaquin
Wills
PE f PORT
COAST
CR
IAIITransitT`'1 Performance Scorel■ < 1 ■ 1-2 ■ 2-4 ■ 4-5 ■ 5-6 6-7 7-9 9+1 ROCK
Loqwv.
Environmental Justice
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a heightened vulnerability of people of certain ethnicities and lower socioeconomic status to environmental pollutants.
The CalEnviro Model Is made up of a suite of 20 statewide indicators of pollution burden and population characteristics associated with increased vulnerability to pollution's health effects. The model uses the follow analysis and calculation to identify areas which may create health risk:
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-85 (DRAFT JANUARY 20221NOVE-nnQro 20-24)
x 0"ST
r�rrria r sn��+
METH 4
T,,�
AIITransit Performance Score
3.09 Lowcombination of trips per week and number
ofjobsaccessible enablingfewpeople totakeUSt15a
transit to work
fiant A a
rsio E
A MESA
Cth'cP -1 Joaquin
Wills
PE f PORT
COAST
CR
IAIITransitT`'1 Performance Scorel■ < 1 ■ 1-2 ■ 2-4 ■ 4-5 ■ 5-6 6-7 7-9 9+1 ROCK
Loqwv.
Environmental Justice
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a heightened vulnerability of people of certain ethnicities and lower socioeconomic status to environmental pollutants.
The CalEnviro Model Is made up of a suite of 20 statewide indicators of pollution burden and population characteristics associated with increased vulnerability to pollution's health effects. The model uses the follow analysis and calculation to identify areas which may create health risk:
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-85 (DRAFT JANUARY 20221NOVE-nnQro 20-24)
City of Newport Beachk.� z
2021-2029 HOUSING ELEMENT
• Uses a weighted scoring system to derive average pollution burden and population characteristics scores for each census tract.
• Calculates a final CalEnviro-Screen score for a given census tract relative to the other tracts in the state by multiplying the pollution burden and population characteristics components together. • The score measures the relative pollution burdens and vulnerabilities in one census tract compared to others and is not a measure of health risk.
Figure 3-13XX below displays the results for the CalEnviro-Screen in Newport Beach. The data shows that all of Newport Beach is low to lowest scoring (light to dark green), meaning that throughout the City there is low proximity or exposure to harmful pollutants. Compared to the region, majority of the coastal cities are identified as low oollutant burdens. Cities to the east of Newoort beach. such as Santa. Ana. Anaheim.
Orange, and Garden Grove experience higher rates of pollution burdens and exposure to harmful pollutants. The discrepancy in pollution exposure could be related to cost of land. Land in Newport Beach is significantly more expensive than land in Anaheim, Santa Ana and Garden Grove, therefore, warehouse and industrial developers can buy larger lots of land for less money to accommodate manufacturing, trucking, industrial parks and other uses which produces higher traffic and pollution.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-86 (DRAFT JANUARY 2022NOVEEnnQro 20-24)
City of Newport Beachk�
2021-2029 HOUSING ELEMENT,
Figure 3-13X: CalEnviro-Screen 4.0, Newport Beach
•�wj- tom_
CLtu
G�BG(3
10/2W2021,11:0448 AM 1:288;895
4 2 4 S mi
City/Town Boundaries 41-50% r I s iT4 5 i
(A) Ca]EnviroScreen 4.0, 2021 -Tract 51 -.60%
4 3.25 5.5 t'3 k'n
- '1 - 10% (Lowest Scores} 61-70%
-11 -20% 71 - 80% aN ar lune. ciy or NewPon Beads. Garth of Loa A% Ides, Buv u v L -d IYU-g—rd. Ern. MFRF. C—n. USG9. EPA, Wa Fm
21 - 30% 81 -90% Garnn.SA un9veeAlac aonr haors. and fie GlBusQc -hu _ 31 -40% 91 - 100°r6 (Highest Scores)
Source: HCD AFFH Database, Accessed October 29,2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-87 (DRAFT JANUARY 2022NOVEEnnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Discussion of Disproportionate Housing Needs
The analysis of disproportionate housing needs within Newport Beach evaluated existing housing need, need of the future housing population, and units within the community at -risk of converting to market - rate.
7ilf►►r,m rZrnmffh Aloprl
The City's future growth need is based on the RHNA production of 1,456 very low and 930 low-income units within the 2021-2029 planning period. Appendix B of this Housing Element shows the City's ability to meet its 2021-2029 RHNA need at all income levels. This demonstrates the City's ability to accommodate the anticipated future affordable housing needs of the community.
Existing Need
As described in Section 3.F.1 of this Housing Element, the Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors.
Additionally, a variety of affordable housing opportunities currently exist in the City. In Orange County, each category of publicly supported housing (public housing, Project Based Section 8, Other Multi -unit Housing, Housing Choice Vouchers, and Low -Income Housing Tax Credit [LIHTC] units) is represented, although that representation varies greatly depending on the individual municipality. Table 3-2116 below identifies the variety of publicly supported housing, by percent, in the City of Newport Beach.
Table 3-2116 below displays the demographics of all publicly supported housing in Newport Beach. The data shows that majority of persons who utilize and receive public housing support identify as White, with a small percentage Hispanic or Asian/Pacific Islander.
Table 3-21-16: Publicly Supported Housing Demographics. Newport Beach Housin_q Needs in Newport Beach
A variety of factors affect housing needs for different households. Most commonly, disability, household income and households' characteristics shape the type and size of housing units needed, as well as accessibility based on existing units in a City. Tables 3-224-7 through 3-272 displayed data for demographic characteristics of Newport Beach, as compared to the County of Orange and the State of California.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-88 (DRAFT JANUARY 2022NOVEMBER 29;4)
Asian or Pacific
White
Black
Hispanic
Housing Type
Islander
Project -Based
85 o
87.63/
0 0
0.00%
3 0
3.09/
9 0
9.28/0
Section 8
HCV Program
99 70.21%
14 9.93%
15 10.654%
13 9.22%
LIHTC
238
85.9%
8 1.99%
147
35.57%
12 2.99%
Total Households
32,490
84.94%
135
0.35%
2,485
6.6%
2,477
6.45%
Source: County of Orange, Analysis of Impediments
Notes: HVC = Housing Choice Voucher
LIHTC = Low -Income Housing Tax Credit
Housin_q Needs in Newport Beach
A variety of factors affect housing needs for different households. Most commonly, disability, household income and households' characteristics shape the type and size of housing units needed, as well as accessibility based on existing units in a City. Tables 3-224-7 through 3-272 displayed data for demographic characteristics of Newport Beach, as compared to the County of Orange and the State of California.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-88 (DRAFT JANUARY 2022NOVEMBER 29;4)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Additional detailed analysis of the Newport Beach- community demographics is outlined in Chapter 2:
Community Profile of this Housing Element.
Homelessness
People experiencing homelessness are those who do not have a fixed, regular, and adequate overnight residence, or whose overnight residence is a shelter, street, vehicle, or enclosure or structure unfit for habitation. Factors contributing to increases of homelessness may include the following:
• Lack available resources to support stable housing access • Spikes in rent increase and lack of tenant protections • Housing discrimination
• Evictions
• Lack of housing affordable to low- and moderate -income persons • Increases in the number of persons whose incomes fall below the poverty level • Reductions in public subsidies to the poor
• The deinstitutionalization of the mentallv ill
According to the Orange County Point in Time report, in 2019 there were an estimate 64 unhoused persons in Newport Beach. Overall, the 64 unhouse persons in Newport Beach- in 2019 account for about
1.6 Dercent of the overall Oranee Countv count of 3.961 Dersons. When contextualized with the total number of people residing in Newport Beach, the 64 homeless individuals represent approximately .07 percent of the population. In neighboring jurisdictions, the point in time count of homeless persons in 2021 was:
• Huntington Beach: 349 persons
• Laguna Beach: 147 persons
• Irvine: 130 persons
• Costa Mesa: 193 Dersons
Data for 2020 and 2021 is not broken down by individual jurisdiction. However, in 2020 there were a total of 3,017 persons experiencing homelessness in Orange County and 2,441 persons in 2021. The racial and ethnic demographic data for unhoused persons in 2021 is not broken down by jurisdictions, however for the 2,441 unhoused persons in the County, 10 percent experienced chronic homelessness. Additionally, 77 percent identified as White, 12 percent identified as Black, three (3) percent identified as American Indian, less than one (1) persons identified as Native Hawaiian and 45 percent identified as Hispanic or Latino. About 295 persons were seniors (60 years+) and about 102 persons were youth, 288 persons were experiencing domestic violence and 162 persons were veterans. Of the persons living in shelters, 334 experience mental health conditions, 308 persons experience a physical disability, and 297 persons recorded substance abuse. 17
Disabili
Table 3-2244 displays the data for persons with disabilities in the City, County, and State. Overall, about 10 percent of the California population reported having at least one disability. In the City, about 8 percent 17 Orange County Homeless Point -in -Time Count, Orange County Homeless Management Information Systems. 2019, 2020 and 2021. Accessed online: January 24, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-89 (DRAFT JANUARY 2022ninVE-IMBro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
of persons reported at least one disability. The County reported a higher percentage than the City at 8.5 percent. Of the 8 percent of Newport Beach residents who reported a disability, the majority were independent living and ambulatory difficulties, which could be tied to the City's senior population. Ease of reasonable accommodation procedures and opportunity for accessible housing can provide increased housing security for the population with disabilities.
Table 3-2237: Population by Disability Type, Compared by Geography, 2019 Disability City of Newport Beach
County of Orange
California
Total with a Disability 8%
8.5%
10.6%
Hearing Difficulty 2.7%
2.5%
2.9%
Vision Difficulty 1.5%
1.5%
2%
Cognitive Difficulty 3.0%
3.4%
4.3%
Ambulatory Difficulty 3.7%
4.5%
5.8%
Self-care Difficulty 1.7%
2.2%
2.6%
Independent Living 3.6%
4.3%
5.5%
Source: American Community Survey, 5 -Year Estimates, 2019.
The data in Figure 3-144 below displays data for disability status in Newport Beach by census tract. The data shows that in Newport Beach most of the census tracts resort under ten percent of the copulation to have at least one disabilitv. Some census tracts to the northwest show that between 10 and 20 percent of the population report at least one disability. Overall, majority of the surrounding areas shows less than 10 percent of the population has reported at least one disability with some pockets of the region which have a population between 10 and 20 that reports a disability.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-90 (DRAFT JANUARY 2022NOVEEnnQro 20-24)
�^5
City of Newport Beachk�
2021-2029 HOUSING ELEMENT,
J. 7.
Figure 3-14X: Persons with Disabilities
11)412D21, 7:33:02 PM
0 City/Town Boundaries
(R) Population with a Disability (ACS, 2015 - 2019) - Tract 10% - 2.0111.,
20% - 30%
1:14,4,448
D 1 2 4 mi
1 .' T , •T
0 1.5 3 s km
u+ Neny]or Beach. CWNV or Loa ft4uas, Buaeu or Land
. �—r E— +IERG. Cvnnn. USG—R' EPA. NPS. Esn, HERE, Cin. ::!!rrSereelMop xxrtuwm. and lha GIS usarmmr pity
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-91 (DRAFT JANUARY 2022NOVE-nnrZro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Income and Familial Status
Table 3-2142 displays household type and income data for the State, County and City. Overall, the City has a smaller percentage of family households than the County and State; this includes family households, married -couple family households, and those with children. Of the three jurisdictions, the City has the largest percentage of non -family households (42.2 percent, compared to 28.3 at approximately 2 percent more than Orange County and about 6 percent more than the City. The City has a higher percentage of households with at least one senior over the age of 60 as compared to the state (29.2 percent) but a lower percentage than the County (39.9 percent).
Table 3- : Population by Familial Status, Compared by Geography, 2019 Familial Status
City of Newport Beach
County of Orange
California
Total Households
37,605
1,037,492
13,044,266
Family Households
57.7%
71.7%
68.7%
Married -Couple Family Households
49.6%
54.9%
49.8%
With Children
21.1%
30.9%
34%
Non -Family Households
42.2%
28.3%
31.3%
Households with one or more people 60 years+
35.5%
39.9%
29.2%
Female Headed Households, No Spouse Present
with Children
Source: American Community Survey, 5 -Year Estimates. 2019 The data in Fieure 3-15 and Fieure 3-16 below shows livine arraneements of children by census tract in Newport. Figure 3-15 shows the percent of children in married couple households by census tract in Newport Beach. The data shows that most census tracts have children living in married couple households (above 80 percent per tract). There are few pockets adjacent to Costa Mesa and along the coast that show children living in married couple households where the census tract is between 60 and 80 percent. Figure 3-16 shows the percent of children in female headed households with no spouse/partner by census tract in Newport. The data shows that most children are not in female headed households with no spouse and children present where the census tract shows less than 20 percent. There is one census tract where there is between 60 and 80 percent of children living in female headed households with no spouse/partner.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-92 (DRAFT JANUARY 2022NOVEnnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-15X: Married Couple Households with Children
11W2021, 1:35:08 PM 1:144,448
0 1 2 4 m
0 CitylTown RGundaries I . II . I �T
(R) Percent of Children in Married - Couple Households (ACS. 2015-2019) - Tract 0 20%-4;DV.
40%-60%
60% - so%
} 60%
0 1.5 3 6 km
Cry oFCoa+le -Mese. Ciy A 4eMW Beach. C tyd Log Angeles. 6umeu of Lard M—g—1 Esn, OGRE. Gp—. USG$ EPA, HPS Esn, HM=.
Gamin. G 0pen5?—Map-1rihu1a ,and Wi GISueQowrmunilyr
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-93 (DRAFT JANUARY 2022NOVEEnnQro 20-24)
�^5
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-16x: Female Headed Households, No Spouse/Partner Present with Children 111412 02 1. 1.43:04 PM
0 Civrcwn Boundaries
Fercen of Children in Female Householder, No
SpcuselP n—Pre—Households
n no%
hl 6n% -nn%
4n%-bn%
20%-4U%
szo%
1:144,448
2 4 mi
1.5 3 6 k
Gln 0 Cwi M669. Cry U `kh WH BeaCA. Coot n W LAB Angeles. Bureau n+. �,n M—gnrnoni Esn, HEf1E, Garmn, �E+GS EPA. NPS, Ezn HERE, Garmn. Fj open&'—Wap—TiLvnrns. and m Gig usm oomrnuniiy Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-94 (DRAFT JANUARY 2022n1nVEEIRA EEIR 20-24)
o
City of Newport Beach
2021-2029 HOUSING ELEMENT
Regarding household income, the City had a significantly higher median household income than the County and State in 2019 ($127,223 in the City compared to $90,234 in the County and $75,235 in the State). As Table 3-2413 shows, majority of the City's households are higher earning; in total 70.4 percent of households in Newport Beach earn more than the State median -income. Additionally, over 30 percent of households in Newport Beach earn $200,000 or more annually. In the state, nearly 38 percent of households earn $100,000 or more and 45.2 percent in the County of Orange. Just under 20 percent of City residents earn less than $50,000 annually, compared to 27 percent and 34 percent for the County and State, respectively.
Table 3-2413: Households by Income, Compared by Geography, 2019 Households Income City of Newport Beach
County of Orange
California
Less than $10,000 3.8%
4.2%
4.8%
$10,000-$14,999 2.5%
2.7%
4.1 $15,000-$24,999 4.3%
5.6%
7.5 $25,000-$34,999 3.6%
6.0%
7.5%
$35,000-$49,999 5.7%
8.8%
10.5 $50,000-$74,999 9.8%
14.6%
15.5 $75,000-$99,999 10.1%
12.8%
12.4 $100,000-$149,999 16.7%
18.6%
16.6%
$150,000-$199,999 10.8%
11.1%
8.9 $200,000 or More 32.8%
15.5%
12.2%
Median -Income $127,223
$90,234
$75,235
Source: American Community Survey, 5 -Year Estimates, 2019 Figure 3-17 shows median household income by block eroup in Newport Beach. The data shows that Newport Beach range at different median income levels. There is a large number of block groups in the southern portion and along the coast of Newport Beach whose median income for households is greater than $125.000. There are block eroups in the northern areas of Newport Beach raneine from less than 55,000 and less than $125,000.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-95 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3- :Median Income for Households in Newport Beach 1114/2021. 1:47:36 PM
Ciryaawn Boundaries
(R) Median Income (ACS, 201 E�-2019) - 3tock Group
c $30,006
- { $87,140 (Hr -0 2029 State Median Income)
< $12b044
Greater than $125,464
1:144A48
4 1 2 d mi
TI1 I ITi - I I IT
4 1.5 3 fi km
o:,l 0 CwA Mdse. Cay M 616 -Na ern. U -ay,' L— AnsXIl S. EW68 , n' Land kianagnmml. r—. H&R£. Cyano, uSGS. SPA, HAS Esn. HGRZ.. .`I: YrgiaP—%ib.1—.and 3� 615 uzar m—ily
Source: HCDAFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-96 (DRAFT JANUARY 2022n1nVrnnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Overpayment
Table 3-254 displays data for households experiencing overpayment or cost burden in the State, County and City. Housing Cost burden has a number of consequences for a household, mainly displacement from their existing living situation creating limited access essential goods and often employment by potentially increasing commute times. Overall, the percentage of households that experience a cost burden greater than 30 percent is similar amongst the City, County, and State with all three reporting about 75 to 80 percent. The City has a slightly higher percentage of households that have a high-cost burden over 50 percent (21.4 percent in the City, compared to about 19 percent in the County and State). Increased opportunity for affordable housing and housing assistance funds help to prevent cost burden on households.
Table 3-259: Households by Overpayment, Compared by Geographv Overpayment/Cost Burden
City of Newport Beach
County of Orange California
Cost Burden > 30%
76.3%
79.3% 79.2%
Cost Burden > 50%
21.4%
19.3% 19.4%
Cost Burden Not Available
2.1%
1.4% 1.4%
Source: Consolidated Planning/CHAS Data, 2013- 2017.
Figure 3-18 and disalays Figure 3-19 the housing costs as a aercentaee of household income. saecificall overpayment by homeowners and overpayment by renters, by census tract in Newport Beach. The data shows that most homeowners and renters in Newport Beach overpay for housing. Figure 3-18 shows most areas are between 20 percent and 60 percent of homeowners with mortgages whose monthly costs are 30 percent or more of their household income. There is a census tract where the overpayment of homeowners is shown at above 80 percent. Figure 3-19 shows most areas are between 20 and 60 percent of renter households whom gross rent is 30 percent or more of their household income.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-97 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-18x: Overpayment by Homeowners
11;4;2021, 2:06:28 PM
0 CityTnwn Boundaries
(R) Overpayment by Home Owners OCS, 2015 - 2019) - 7raCt 0 a 20%
-20%-40%
40% -60%
sa% - Bo%
-]80%
1:14-4A48
0 1 2 4 mi
rT
4 1.5 3 6 k
Utw d C Xft 41939. C9y d WE -W Sesee. Ct&RVne L,)S Ang919a. 13.wmLi of Lard Mara wncrn. Fs . HEIRS. C—n. USCG FPA, NP9. Fan. HERE.
G—in. E5flpen:ir *Aap mntrihLd— and trre 615 user —roily Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-98 (DRAFT JANUARY 2022ninVEEIRA zro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
_7 Ask
Figure 3-19X: Overpayment by Renters
j�,rrli�.YCr
r-ff';•
- I
. • r.
•`7I l'
11!412021, 2:DS: 19 Ph1
IM C4ffawn 8aundanes
(Ry Overpayment by renters (ACS, 2015 - 2019) - Tract
L J < 20%
20% - 4-046
- 40°1 - 60°I
5446 - 80%
- s 604-0
,A,xa;'..Cw3
1:144,448
4 1 2
[ .T.
0 1.5 3
4 mi
6 km
uNcdCme, Mem. cayaM 6eacn.C4.Y[p41boaAn991eS.e„eaj
^d band MMaq—o . E-, 14EAF, 4—, %JW9 EPA, N -S r- HERE
Gw. ,.Qoaan� anoonribLfl . and �cisu-m y
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-99 (DRAFT JANUARY 2022NOVE BER 292 4)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Overcrowding and Tenure
Table 3-26-1 displays data for household tenure (owner vs. renter) for the State, County and City.
Homeownership is a crucial foundation for helping families with low-income to build strength, stability and independence. The opportunity for transition into the homebuyer's market is important for persons and households in different communities, homeownership allows for increased stability and opportunity to age in place. Table 3-2 shows that the City has a comparable rate of homeownership to the County and a slightly lower ownership rate that the State.
Table 3-2 _.�k: Households by Tenure, Compared by Geography, 2019 Household Tenure
City of Newport Beach
County of Orange
California
Owner Households
56.7%
57.4%
66.0%
Renter Households
43.3%
42.6%
34.0%
Total Occupied Housing Units
37,605
1,037,492
13,044,266
Source: American Community Survey, 5 -Year Estimates, 2019.
Additionally, Table 3-2 displays data for overcrowding in the State, County and City. Overcrowding is defined as between 1.01 and 1.5 persons per room in a household, and severe overcrowding is defined as more than 1.51 persons per room. Overcrowding often occurs when nonfamily members combine incomes to live in one household, such as college students and roommates, it also occurs when there not enough size appropriate housing options for large or multigenerational families. The City experiences very low rates of overcrowding in comparison to the County and the State. According to the data, overcrowding occurs more frequently in renter households rather than owner households. In Newport Beach, owner households that are severely overcrowded represent 0 percent of all households, while severely overcrowded renter households represent 0.3 percent. In the County and state a trend similar in the County and State.
Table 3-272: Households by Overcrowding, Compared by Geography Overcrowding and Tenure
City of Newport Beach
County of Orange
California
Owner Households
Overcrowded
0.5%
2.6%
1.6%
Severely Overcrowded
0%
1.0%
0.6%
Renter Households
Overcrowded
3.1%
9.8%
3.6%
Severely Overcrowded
0.3%
6.0%
2.4%
Source: American Community Survey, 5 -Year Estimates, 2019.
Figure 3-20 and Figure 3-21show overcrowded households and severely overcrowded households, respectively. The data from these figures shows that overcrowded households is not a precedent issue for Newport Beach. Figure 3-20 shows that all the census tracts in Newport Beach is less than the statewide average for overcrowded households.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-100 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-20X: Households Experiencing Overcrowding
111412021, 3.2D:15 PM 1 _144,_448
11 1 2 4 mi
City Fawn Boundaries 12.01% - 15% T
/ 5km
(R) Overcrowded Households (CHHS) - Tract 15.01 °A - 201% = s 8.2% (Statewide Average} - > 20%
$_ 3 % - 12 °}o UTW m COM Mase. cilv d N&.oan 68&'A. 0"I?voe -0s nngalea. Baeaw qi L—d M—n Kr—d d Ern. VERS. C—, V&GS. EPA. NPS. E—. fiERf=.
Gann. 6i Open9re Wap mn4ibul—and he613 —mi mi I
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-101 (DRAFT JANUARY 2022n1nVrn11Qro 20-24)
City of Newport Beachk�
2021-2029 HOUSING ELEMENT,
Figure 3-21X: Households Experiencing Severe Overcrowding 11W2021, 3:21:38 PM
= City/Town Boundaries
(R) Severely Overcrowded Households (CH HS) - Tract
No Data
1:1414.448
8 1 2 4mi
Vii' iTi I
0 1.5 3 5 km
Gsy d Cw� ilase. Cau d N�wpo.i B[�ech. Courcy of Las Angeles. 6u�eeu c! Kann M-1-1. r-. +19RE. G —n. USGS EPA, NPS Esn. 44W
Guinn. t;) OP -S Idap —Tibul—and Tw GIS —wp roily
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-102 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beachk�
2021-2029 HOUSING ELEMENT,
"lousing Stock in Newport Beach
Table 3-2Q3 displays comparative housing stock data for the State, County and City. Table 3-2 below shows data for occupied housing units by type. A variety of housing stock provides increased opportunity in communities for different size and households types. The majority of housing stock in Newport Beach is classified as one -unit -detached housing, or single-family housing. Just under 18 percent of Newport Beach homes include 20 or more units, referred to as multi -family housing. In comparison to the County Orange has a greater amount of single-family homes, and an overall smaller number multi -family housing (2 or more units).
Table 3 -2u -s: Occupied Housing Units by Tvoe. Compared by Geograohv Housing Unit Type
City of Newport Beach
County of Orange
California
1, detached
48.4%
50.6%
57.7%
1, attached
15.1%
12.3%
7.0%
2 units
4.8%
1.6%
2.40 0
3 or 4 units
4.5%
6.9%
/
o
5.5 0
5 to 9 units
4.4%
6.7%
6.00 0
10 to 19 units
3.5%
5.4%
5.2%
20 or more units
17.9%
13.7%
12.3%
Mobile home or other type of housing
1.3%
2.7%
3.7%
Source: American Community Survey, 5 -Year Estimates, 2019.
Table 3-2_ . below displays housing stock by year built or the City, County, and State. A factor used to determine housing condition is the age and state of the hom, Older housing generally requires more upkeep, regular maintenance and can cause a cost burden on both renters and homeowners. Majority of Newport Beach's housing stock was built between 1960 and 1999. Development shows to have slowed significantly in the City after 2010, which could be indicative of the Great Recession. Majority of the County's and State's housing units were built between 1980 and 2009 whereas the distribution of development was more dispersed from 1950 to 1990 in the State. -Majority of Newport Beach's homes are E)veF betwee over between 40 and 70 vears old. built between 1950 and 1979 (53.4 percent). Homes over 50 years old have an increased likelihood of needing more major repairs to key systems and building components. Therefore, these homes are at a higher risk of needing repair or replacement. Overall, increased numbers of older housing which is not maintained can lead to cost burden and substandard living conditions.
Table 3-294: Housing Unit by Tvpe. Compared by Geographv Year Built
City of Newport Beach
County of Orange
California
Built 2014 or later
1.6%
2.7%
1.7%
Built 2010 to 2013
1.7%
2.0%
1.7%
Built 2000 to 2009
10.4%
8.3%
11.2%
Built 1990 to 1999
14.3%
11.7%
10.9%
Built 1980 to 1989
10.9%
14.9%
15.0%
Built 1970 to 1979
22.7%
23.3%
17.6%
Built 1960 to 1969
19.8%
19.5%
13.4%
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-103 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Year Built
City of Newport Beach
County of Orange
California
Built 1950 to 1959
10.9%
13.0%
13.4%
Built 1940 to 1949
3.6%
2.1%
5.9%
Built 1939 or earlier
4.1%
2.5%
9.1%
Source: American Community Survey, 5 -Year Estimates, 2019.
Substandard units are those in need of repair or replacement. Based on 2019 ACS data. one (1) Dercent of housing units in Newport Beach display substandard conditions. Approximately .03 percent of housing units lack complete plumbing facilities and .08 percent lack complete kitchen facilities. Based on this data, at a minimum 377 units (1 percent) within Newport Beach are substandard and in need of rehabilitation.
In the Orange County Area, 1.5 percent of homes are considered substandard, lacking complete kitchen or plumbing facilities. The current distribution of the age of homes in Newport Beach also indicates that a majority of homes in the City were built prior to the 1990 Americans with Disabilities Act (ADA), which may result in a lack of accessible homes for those residents experiencing a disability. The City's older housing stock also reflects a rapidly gaining need to rehabilitate housing to meet minimum livability and quality requirements, which is a barrier to many homeowners and residents in Newport who have a lower income or a fixed income. However. the Citv of Newport Beach is moderate and above moderate income, therefore. substandard housing and units in need of rehabilitation may be Dassed on to renters with moderate to lower incomes.
Displacement Risk
The potential for economic displacement risk can result from a variety of factors, including large-scale development activity, neighborhood reinvestment, infrastructure investments, and changes in local and regional employment opportunity. Economic displacement can be an inadvertent result of public and private investment, where individuals and families may not be able to keep pace with increased property values and market rental rates.
Urban Displacement
The Urban Displacement Proiect developed a neighborhood change database to map neighborhood transformations and identify areas vulnerable to gentrification and displacement. This data was developed to assist local decision makers and stakeholders better plan for existing communities and provide additional resources to areas in need or at -risk of displacement and gentrification. Table 3-30X provides the criteria used to identify each displacement typology and the total number of Newport Beach Census Tracts that currently fall within each category.
Table 3-308-1 : Displacement Typology Criteria and Newport Beach Census Tracts Modified Types and Criteria
Newport Beach Census
Tracts
Low-Income/Susceptible to Displacement
None
• Low or mixed low-income tract in 2018.
Ongoing Displacement of Low -Income Households
• Low or mixed low-income tract in 2018.
None
• Absolute loss of low-income households, 2000-2018.
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City of Newport Beach
2021-2029 HOUSING ELEMENT
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-105 (DRAFT JANUARY 2022ninVE-IMBro 20-24)
Newport Beach Census
Modified Types and Criteria
Tracts
At Risk of Gentrification
• Low or mixed low-income tract in 2018.
• Housing affordable to low or mixed low-income households in 2018. • Didn't gentrify 1990-2000 OR 2000-2018.
• Marginal change in housing costs OR Zillow home or rental value None
increases in the 90th percentile between 2012-2018.
• Local and nearby increases in rent were greater than the regional median between 2012-2018 OR the 2018 rent gap is greater than the regional median rent gap.
Early/Ongoing Gentrification
• Low or mixed low-income tract in 2018.
• Housing affordable to moderate or mixed moderate -income None
households in 2018.
• Increase or rapid increase in housing costs OR above regional median change in Zillow home or rental values between 2-12-2018. • Gentrified in 1990-2000 or 2000-2018.
Advanced Gentrification
• Moderate, mixed moderate, mixed high, or high-income tract in 2018.
• Housing affordable to middle, high, mixed moderate, and mixed None
high-income households in 2018.
• Marginal change, increase, or rapid increase in housing costs. • Gentrified in 1990-2000 or 2000-2018.
Stable Moderate/Mixed Income
• Moderate, mixed moderate, mixed high, or high-income traact in None
2018.
At Risk of Becoming Exclusive
• Moderate, mixed moderate, mixed high, or high-income traact in None
2018.
• Housing affordable to middle, high, mixed moderate, and mixed high- income households in 2018.
• Marginal change or increase in housing costs.
Becoming Exclusive
• Moderate, mixed moderate, mixed high, or high-income traact in 2018.
• Housing affordable to middle, high, mixed moderate, and mixed high- None
income households in 2018.
• Rapid increase in housing costs.
• Absolute loss of low-income households, 2000-2018.
• Declining low-income in -migration rate, 2012-2018.
• Median income higher in 2018 than in 2000.
Stable/Advanced Exclusive
6059062604
6059063500
6059062643
6059062900
• High-income tract in 2000 and 2018
• Affordable to high or mixed high-income households in 2018. 6059062702
6059063400
• Marginal change, increase, or rapid increase in housing costs. 6059062800
6059063302
6059062645
6059063009
6059062642
6059062612
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-105 (DRAFT JANUARY 2022ninVE-IMBro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Modified Types and Criteria
Newport Beach Census
Tracts
6059062644
6059062630
6059063008
6059062631
6059063007
6059062629
6059063004
6059063103
6059063006
High Student Population
None
Source: Urban Displacement Project, University of California Berkeley (2021).
Table 3-30X and Figure 3-22X show that all of Newport Beach is considered stable/advanced exclusive.
Stable advanced exlusive means the households in the census tracts have high and above moderate incomes and that there is either little change in the cost of housing or rapid increases. Stable exclusive areas also means that it is very difficult for lower and moderate income hosueholds to partake in the housing market through ownership, and there is little mobility and fewer options in terms of rentership.
The City of Newport Beach is one of the highest income cities in the County, consistent with income data for manv coastal cities in Southern California. aarticularly Orange Countv. Paired with high costs of land and increasing costs of contruction materials and labor, the housing market and cost of housing in Newport Beah will likely contiue to increase. Affordable 4ue&i=Rghousing through density bonus and partnerhsip with affordable developers is the key way to increase 4%uinghousing equity in Newport Beach. Additionally, the creation of accessory dwelling units can provide less costly housing opportunities within the City that would be available to a broader demographic.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-106 (DRAFT JANUARY 2022ninVE-IMBro 20-24)
City of Newport Beachk�
2021-2029 HOUSING ELEMENT,
Figure 3-22X: Urban Displacement Typologies, Newport Beach Westrininster
:NTINC
kB EAC
WVVI—
SANTA AIT
Tustin
Ital\i'naIley �
)N
COSTA MESA
Ne wport,B h _
Displacement lypology
Low-Income(Susceptible to Displacement
Ongoing Displacement
At Risk of Gentrification
EarlylOngoing Gentrification
Advanced Gentrification
Stable Moderate/Mixed Income
At Risk of Becoming Exclusive
Becoming Exclusive
StablelAdvanced Exclusive
High Student Population
Unavailable or Unreliable Data
f
IPVINE
LACUNA C
Source: Urban Displacement Project, University of California Berkeley (2021).
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-107 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Table 3-3125 below identifies the assisted and affordable housing units within the City of Newport Beach and identifies the end date of each covenant. According to the table, 4 locations (with a total of 112 units) were up for renewal in the previous planning period (2014-2021). Additionally, 3 locations, with a total of 45 units are set to expire and be addressed for renewal over the next planning period (2021-2029).
The City of Newport Beach is committed to working with property owners and utilizing appropriate funds, as available, to review covenants set to expire for renewal.
Table 3-3125: City of Newport Beach Assisted (and Affordable) Housing Summary Project Name/ Location
Type of Assistance Received
Earliest Possible
Number of
Date of Change
Units/Type
Section 8 (rental assistance vouchers)
Newport Harbor Apartments
Density Bonus
1538 Placentia Avenue
Community Development Block
2020
26 Low -Income
Grant (CDBG)
Newport Harbor II Apartments
Section 8 Density Bonus CDBG
10 Low -Income
1530 Placentia Avenue
In -Lieu Fee Funds
2023
4 Very Low -Income
Newport Seacrest Apartments
Section 8 CDBG
20 Very Low -Income
843 15th Street
Fee Waivers Tax Credit Financing
2016
45 Low -Income
Pacific Heights Apartments 881-
887 W. 15th Street
Section 8 Density Bonus
2019
7Low-Income
Newport Seashore Apartments
849 West 15th Street
Section 8 Fee Waivers
2018
15 Low -Income
Newport Seaside Apartment
Section 8 CDBG
1544 Placentia
Fee Waivers
2017
25 Very Low -Income
100 Extremely Low
Seaview Lutheran Plaza (Seniors)
Section 202 (federal grant)
2039
and Very Low—
2800 Pacific View Drive
Section 8
Income Senior
Villa del Este
2 Moderate -Income
401 Seaward Road
—
2026
(ownership)
3 Moderate -Income
Villa Siena 2101 15th Street
Density Bonus
2021
(ownership)
Bayview Landing (Seniors) 1121
In -lieu Fee Funds Fee Waivers
24 Very Low
Back Bay Drive
Tax Credit Financing
2056
95 Low -Income
Cost of Replacement Analysis
In general, the cost for new land in the City cost about $115/square foot, per market research (noted in Section 3.A.1). The actual construction cost for residential development ranges from $118/square foot up to $131/square foot. The total replacement cost for the at -risk units identified in Table 3-3114 are summarized below
• The cost for replacing the 65 -unit Newport Seacrest Apartments would total more than $12,499,600. This cost assumes that 1.5 acres of land will be required, and each unit will have a total floor area of 650 square feet (1 -bedroom units). The land cost will be approximately $7,514,100 (assuming $115/square foot) while the construction cost will be approximately $4,985,500 (assuming $118/square foot for a 650 -square foot unit= $76,700/unit).
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-108 (DRAFT JANUARY 2022
City of Newport Beach
2021-2029 HOUSING ELEMENT
• The cost of replacing the 7 -units in the Pacific Heights Apartments would total more than $1,789,550. This cost assumes that 0.25 acres of land will be required, and each unit will have a total floor area of 650 square feet (1- bedroom). The land cost will be approximately $1,252,350 (assuming $115/square foot) while the construction cost will be approximately $536,900 (assuming $118/square foot for aoa 650 -square foot unit=$76,700/unit). • The cost of replacing the 15 units in Newport Seashore Apartments would total more than $3,655,200. This cost assumes that 0.5 acres of land (average 650 square feet per dwelling unit) will be required and each unit will have a total floor area of 650 square feet (1 -bedroom units).
The land cost will be approximately $2,504,700 (assuming $115/square foot) while the construction cost will be approximately $1,150,500 (assuming $118/square foot for a 650 -square foot unit= $76,700/unit).
• The cost of replacing the 25 units in Newport Seaside Apartments would total more than $4,422,200. This cost assumes that .5 acres of land (average 650 square feet per dwelling unit) will be required and each unit will have a total floor area of 650 square feet (1 -bedroom units).
The land cost will be approximately $2,504,700 (assuming $115/square foot) while the construction cost will be approximately $1,917,500 (assuming $118/square foot for a 650 -square foot unit= $76,700/unit).
• The cost of replacing the 5 units for ownership in Villa del Este and Villa Siena developments would total more than $1,809,100. This cost assumes that 0.25 acres of land (average 850 square feet per dwelling unit) will be required and each unit will have a total floor area of 850 square feet (2 -bedroom units). The land cost will be approximately $1,252,350 (assuming $115/square foot) while the construction cost will be approximately $556,750 (assuming $131/square foot for an 850 -square foot unit= $111,350/unit).
To address the risk of affordable units converting to market rate housing, the City has identified Programs 5A and 5C to monitor these units. The City will actively work to create programs and seek additional funding in which the focus is to preserve these units beyond the expiration of the covenant so that the owners are able to have affordable housing options.
Resources to Preserve At -Risk Units
A variety of programs exist to help cities acquire, replace, or subsidize at -risk affordable housing units.
The following summarizes financial resources available:
• Community Development Block Grant (CDBG) — CDBG funds are awarded to cities on a formula basis for housing activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment and economic opportunity for principally low- and moderate -income persons. Eligible activities include administration, fair housing, energy conservation and renewable energy sources, assistance for economic development, public facilities and improvements and public services. • HOME Investment Partnership — Local jurisdiction can receive funds by formula from the Department of Housing and Urban Development (HUD) to increase the supply of decent, safe, Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-109 (DRAFT JANUARY 2022
City of Newport Beach
2021-2029 HOUSING ELEMENT
sanitary, and affordable housing to lower income households. Eligible activities include housing acquisition, rehabilitation, and development, homebuyer assistance, and rental assistance. • Section 8 Rental Assistance Program — The Section 8 Rental Assistance Program provides rental assistance payments to owners of private, market rate units on behalf of very low-income tenants, senior citizens, disabled and/or handicapped persons, and other individuals for securing affordable housing.
• Section 202/811 Program — Non-profit and consumer cooperatives can receive no -interest capital advances from HUD under the Section 202 program for the construction of very low-income rental housing with the availability of supportive services for seniors and persons with disabilities. These funds can be used in conjunction with Section 811, which can be used to develop group homes, independent living facilities and immediate care facilities. The capital advance funding can also provide project rental assistance for the properties developed using the funds. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. • California Housing Finance Agency (CaIHFA) Multifamily Programs — CaIHFA's Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation or new construction of rental housing that includes affordable rents for low- and moderate -income families and individuals. One of the programs is the Preservation Loan program which provides acquisition/rehabilitation and permanent loan financing designed to preserve or increase the affordability status of existing multifamily housing projects. • Low -Income Housing Tax Credit (LIHTC) — This program provides tax credits to individuals and corporations that invest in low-income rental housing. Tax credits are sold to those with high tax liability and proceeds are used to create housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
• California Community Reinvestment Corporation (CCRC) — The California Community Reinvestment Corporation is a multifamily affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
Qualified Entities to Preserve At -Risk Units
The following organizations may potentially assist in preserving future at -risk units:
• Jamboree Housing Corporation
• Irvine Housing Opportunities, Inc.
• Bridge Housing Corporation
• The Irvine Company
• Orange County Housing Authority
• Housing Corporation of America
• Southern California Housing Development Corporation
• Century Housing
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-110 (DRAFT JANUARY 2022NOVEMBER 2924)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Quantified Objectives
Housing Element law requires that cities establish the maximum number of units that can be preserved over the planning period. The City's objective it to preserve the 52 affordable housing units "at -risk" of converting to market rate through policy programs provided in Section 4.
Urban nisplacemer* Analysi-
The UC Berkeley Urban Displacement projects provides a database for Los Angeles, Orange and San Diego Counties displaying gentrifications and socioeconomic indicators based on 2015 ACS data. The final (2018) version of the database shows whether each Census tract comprising these three Southern California counties gentrified between 1990 and 2000; gentrified between 2000 and 2015; gentrified during both of these periods; or exhibited characteristics of a "disadvantaged" tract that did not gentrify between 1990 and 2015. The outcome of the data is a map which displays displacement typology by census tract (outlined below).
Low Income/Susceptible to
• Low or mixed low-income tract in 2018
Displacement:
Ongoing Displacement of
• Low or mixed low-income tract in 2018
Low -Income Households:
• Absolute loss of low-income households, 2000-2018
• Low-income or mixed low-income tract in 2018
• Housing affordable to low or mixed low-income households in 2018
• Didn't gentrify 1990-2000 OR 2000-2018
At Risk of Gentrification:
• Marginal change in housing costs OR Zillow home or rental value increases in the 90th percentile between 2012-2018 • Local and nearby increases in rent were greater than the regional median between 2012-2018 OR the 2018 rent gap is greater than the regional median rent gap
• Low-income or mixed low-income tract in 2018
• Housing affordable to moderate or mixed moderate -income households in 2018
Early/Ongoing Gentrification:
• Increase or rapid increase in housing costs OR above regional median change in Zillow home or rental values between 2012- 2018
• Gentrified in 1990-2000 or 2000-2018
• Moderate, mixed moderate, mixed high, or high-income tract in 2018
• Housing affordable to middle, high, mixed moderate, and mixed Advanced Gentrification
high* income households in 2018
• Marginal change, increase, or rapid increase in housing costs • Gentrified in 1990-2000 or 2000-2018
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-111 (DRAFT JANUARY 2022NOVEn4QUo 2-024)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Stable Moderate/Mixed
• Moderate, mixed moderate, mixed high, or high-income tract in Income:
2018
• Moderate, mixed moderate, mixed high, or high-income tract in 2018
Risk of Becoming Exclusive:
• Housing affordable to middle, high, mixed moderate, and mixed high• income households in 2018
• Marginal change or increase in housing costs
• Moderate, mixed moderate, mixed high, or high-income tract in 2018
• Housing affordable to middle, high, mixed moderate, and mixed high* income households in 2018
Becoming Exclusive:
. Rapid increase in housing costs
• Absolute loss of low-income households, 2000-2018
• Declining low-income in -migration rate, 2012-2018
• Median income higher in 2018 than in 2000
• High-income tract in 2000 and 2018
Stable/Advanced Exclusive:
• Affordable to high or mixed high-income households in 2018 • Marginal change, increase, or rapid increase in housing costs Figure 3-23XX below displays the mapped displacement typology for Newport Beach. The data shows that nearly all of Newport Beach is considered Stable/Advanced Exclusive, furthering previous conclusions that the City is an overall high income and high-cost City to live in.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-112 (DRAFT JANUARY 2022NOVEMBER 2924)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-23XX: Displacement Risk, Newport Beach
HawtFiorne N€)RWALK _
Compton YR, Linda
*Y t ■ FillLLEA 1 DN r ,' — CORONA
_1 f
Lak o_ el
TORRANCE G4R d ! A AHEIM
r LONG' B EACH
y TernescaI Valley
` Westminster 7 , SANTA ANA
Fount IntUalley CM1r r
HUNTINGT€3N IRVINE? ,
6EACH
COSTA MESA
/41�)
Lake Fore tl1
f
MISSION 'VIE O
.i`
LA, UINA [31F 1UH
t_: q�i7a ^di��-irl I
Displacement Typology
.w-lncameiSusceptibiG
Ongoing Displacement
At Risk of Gentrification
Earlyl4ngoing Gentrification
Advanced Gentrification
Stable Moderate/Mixed Income
At Risk of Becoming Exclusive
Becoming Exclusive
StablelAdvanced Exclusive
High Student Population
Unavailable or Unreliable Data
Source: UC Berkeley, Urban Displacement Project, "Mapping Neighborhood Change in Southern California." Accessed November 4, 2021 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-113 (DRAFT JANUARY 2022NOVEMBER 202 4)
City of Newport Beach
2021-2029 HOUSING ELEMENT
SB 330
�F` .•-:-''�-� �� mat,
Effective January 1, 2020, Senate Bill 330 (SB 330) aims to increase residential unit development, protect existing housing inventory, and expedite permit processing. Under this legislation, municipal and county agencies are restricted in ordinances and policies that can be applied to residential development. The revised definition of "Housing Development" now contains residential projects of two or more units, mixed-use projects (with two-thirds of the floor area designated for residential use), transitional, supportive, and emergency housing projects. SB330 sets a temporary 5 -year prohibition of residential density reduction associated with a "housing development project," from January 1, 2020, to January 1, 2025. For example, during this temporary prohibition, a residential triplex cannot be demolished and replaced with a duplex as this would be a net loss of one unit.
None of the housing strategy sites contain significant existing housing with low-income tenants who will be displaced if the sites redevelop. To the extent that there is existing housing, all housing must be replaced (Government Code Section 66300).
The City of Newport Beach has developed an informative webpage on SB 330 available for the public. The State has also adopted just cause eviction provisions and statewide rent control to protect tenants from displacement. The City is committed to making diligent efforts to engage underrepresented and disadvantaged communities in studying displacement.
Assessment of Contributing Factors to Fair Housing Issues in Newport Beach
The Al identifies the following regional goals for mitigating impediments to fair housing within jurisdictions in Orange County:
• Goal 1: Increase the supply of affordable housing in high opportunity areas.1 • Goal 2: Prevent displacement of low- and moderate -income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities
• Goal 3: Increase community integration for persons with disabilities. • Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness. • Goal 5: Expand access to opportunity for protected classes.
Summary of Fair Housing Analysis
The Housing Element programs incorporate these recommended goals as they relate to Newport Beach.
The analysis above regarding other fair housing issues within Newport Beach yields the following results:
• The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index. However, those who identify as Native Hawaiian, Asian, American Indian, Black and Some Other Race experience moderate levels of segregation (a dissimilarity index of greater than 30).
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-114 (DRAFT JANUARY 2022NOVEn4Qro 2024 )
City of Newport Beach
2021-2029 HOUSING ELEMENT
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While there are no groups experience high segregation, the City should focus on the needs and targeted outreach to the populations experiencing moderate segregation. • The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non-white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40% or is three or more times the average tract poverty rate for the metropolitan/micropolitan area.
However, one R/ECAP was identified in the neighboring city of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach.
• The UC Davis Regional Opportunity Index shows that the majority of residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing a moderate level of access to opportunity. No census tracts were shown as having the lowest level of access to opportunity. The City should focus on increasing resources, housing opportunity and encourage economic development in these areas. • The analysis of the TCAC/HCD opportunity Area Maps show that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top forty percent in the region in terms of areas that lower-income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity.
The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally, the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic).
Key Findings from Fair Housing Analysis
As a Dart of the Housing Element. the Citv considers protected class (such as race. ethnicitv. income. etc. and opportunity indicators as key factors in fair housing. Federal, state, and local data provide regional context, background information and supportive data which helps the City to understand fair housing issues and to identify key fair housing factors for Newport Beach. The section below uses available data to identifv kev trends and local contributing factors for fair housing. kev themes identified through this analvsis are stated below:
• Persons who identifv as Native Hawaiian or Other experience the moderate levels of segregation with persons who identify as White in the City of Newport Beach. • The City has twelve census tracts characterized as Racially Concentrated Areas of Affluence (RCCA) and no R/ECAPs.
• Residents of Newport Beach are more likelv to experience high housing cost burden as homeowners.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-115 (DRAFT JANUARY 2022NOVE-nnQro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
• Persons who earn incomes below the poverty rate are more likely to have lower access to opportunities as indicated by the Opportunity Indices analysis.
Local Contributing Factors to Fair Housing
There are a number of factors and elements that contribute to and cause fair housing issues. The following lists a number of contributing factors within the Citv of Newport Beach:
• Opportunities for Persons with Disabilities — The analysis shows disability and access as possible fair housing issues in Newport Beach. In comparison to Figure D-14, the City shows a moderate portion of residents report at least one disability (10 percent) as well as some census tracts reporting 10-20 percent having a disability. While the City is considered a high opportunity area, residents with disabilities may have lower access to resources and information. Housing Goals #3:
Increase communitv integration for persons with disabilities. Housing Goal #4: Ensure eaual access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness, and Housing Goal #5: Expand access to opportunity for protected classes.
• Expansion of Opportunities in Lower Resource Areas — While the Citv of Newport Beach is considered a moderate to high resource region, some parts of the City are characterized as lower opportunity zones as depicted in Figure 3-6. When compared to the CalEnviroScreen map in Figure 3-13, the low resource areas align with regions identified at the highest degree of pollution burdens. Various Housing Programs have been adopted to ensure opportunities for residents in low opportunity areas. Housing Goal #5: Expand access to opportunity for protected classes. ' Ana/vsis of Sites Pursuant to AB 686
AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing. The site identification requirement involves not only an analysis of site capacity to accommodate the RHNA (provided in Appendix B), but also whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity.
Figures 3-24-7 through 3- below identify the sites to accommodate future housing, as identified in the adequate sites analysis, overlaid on demographic data using the 2018 American Community Survey 5 -year Estimates.
• Figure 3-c4f — Newport Beach Proposed RHNA Sites, Hispanic/Latino, 2019 • Figure 3-259— Newport Beach Proposed RHNA Sites, Non -White Population 2019 • Figure 3-265— Newport Beach Proposed RHNA Sites, Low and Moderate -Income, 2019 Figure 3-24-7 shows the proposed candidate sites to meet the RHNA for Newport Beach in relation to the location of residents of Hispanic origin. These sites take into consideration access to vital goods, services, and public transportation and are therefore ideal areas for the City to focus much of its future housing growth. It is anticipated that accessory dwelling unit (ADU) growth, including growth for affordable ADUs, will occur in the less dense areas of the community. Figure 3-24' shows the following findings:
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City of Newport Beach
2021-2029 HOUSING ELEMENT
• 291 proposed sites to accommodate the RHNA allocation (totaling 20,999 potential units, or 94% of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic below 20 percent. • 3 proposed sites to accommodate the RHNA allocation (totaling 153 potential units, or 1% of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic between 20 and 40 percent.
• 17 proposed sites to accommodate the RHNA allocation (totaling 920 potential units, or 4% of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic between 40 and 60 percent.
• 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic between 60 and 80 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation are evenly dispersed throughout the community with an emphasis on locating units where there is a high level of access to important public services and transit. The distribution of potential units does not disproportionately impact areas with larger concentrations of the Hispanic population.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-117 (DRAFT JANUARY 2022WQ_V n4Qro2024)
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Figure 3-24-7: Newport Beach Proposed RHNA Sites, Hispanic/Latino, 2018 �o
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-118 (DRAFT JANUARY 20221NinAirnnQro 2-0-24)
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2021-2029 HOUSING ELEMENT
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Figure 3-258 shows the proposed candidate sites to meet the RHNA for Newport Beach in relation with census data showing the percentage of the population within each block group that is Non-white.
Figure 3-259 shows the following findings:
• 156 proposed sites to accommodate the RHNA allocation (totaling 9,867 potential units, or 44% of the total potential units) are located within block groups that have a percentage of the population that identifies as Non -White less than 20 percent. • 46 proposed sites to accommodate the RHNA allocation (totaling 3,166 potential units, or 14% of the total potential units) are located within block groups that have a percentage of the population that identifies as Non -White between 20 and 40 percent. • 109 proposed sites to accommodate the RHNA allocation (totaling 9,039 potential units, or 41% of the total potential units) are located within block groups that have a percentage of the population that identifies as Non -White between 40 and 60 percent. • 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the total potential units) are located within block groups that have a percentage of the population that identifies as Non -White between 60 and 80 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation are evenly dispersed throughout the community with an emphasis on locating units where there is a high level of access to important public services and transit. The distribution of potential units does not disproportionately impact areas with larger concentrations of Non-white populations.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-119 (DRAFT JANUARY 2022NQ_V n4Qro2024)
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2021-2029 HOUSING ELEMENT
Figure 3- : Candidate Sites — Non -White Analysis
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Newport AFFH
* Site Candidates (Low/Very Low)
* Site Candidates (Moderate/Above Moderate)
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Percent Non -White Population
2018 ACS (5 -Year)
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing (DRAFT JANUARY 2022NOVEn11Qro 20-24)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-269 shows location of proposed candidate sites to meet the RHNA for Newport Beach in comparison with census data showing the percentage of the population within each block group who is categorized as low-income or moderate by the American Community Survey. Figure 3-269 shows the following findings:
• 1 proposed site to accommodate the RHNA allocation (totaling 1,046 potential units, or 5% of the total potential units) are located within block groups that have a percentage of the population that identifies as low -and -moderate -income less than 10. • 54 proposed sites to accommodate the RHNA allocation (totaling 922 potential units, or 4% of the total potential units) are located within block groups that have a percentage of the population that identifies as low -and moderate -income between 10 and 25 percent. • 212 proposed sites to accommodate the RHNA allocation (totaling 16,784 potential units, or 76% of the total potential units) are located within block groups that have a percentage of the population that identifies as low -and moderate -income between 25 and 50 percent. • 44 proposed sites to accommodate the RHNA allocation (totaling 3,320 potential units, or 15% of the total potential units) are located within block groups that have a percentage of the population that identifies as low -and moderate -income between 50 and 75 percent. • 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the total potential units) are located within block groups that have a percentage of the population that identifies as low -and moderate -income greater than 75 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation are evenly dispersed throughout the community with an emphasis on locating units where there is a high level of access to important public services and transit. The distribution of potential units provides increased opportunities for low-income housing in areas with higher rates of low-income persons.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-121 (DRAFT JANUARY 2022WQ_V n4Qro2024)
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2021-2029 HOUSING ELEMENT
Figure 3- : Candidate Sites — Low/Moderate-Income Block Group Analysis P �x
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it Site Candidates (Low/Very Low)
Site Candidates (Moderate/Above Moderate)
Q City Boundary
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2015 ACS (5 -Year
75%
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-122 (DRAFT JANUARY 2022NOVEnnQER 2-0-24)
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2021-2029 HOUSING ELEMENT
The concentration of low- and very low-income sites located in the northern, western, and central areas of the City as depicted in Figures 3-24 through 3-26 above, are designated to include units at mixed income levels that would provide housing opportunity for both lower income households and moderate to above moderate -income households. Thus, the concentrations of low- and very low-income sites located in the northern, western, and central areas of the City would not exacerbate the current conditions in these areas.
Racially and Ethnically Concentrated Areas of Poverty and Affluence The HUD R/ECAP maps do not identify any racially or ethnically concentrated areas of poverty in Newport Beach. The analysis conducted for this housing element concluded that there are approximately 12 census tracts that are considered racially concentrated areas of affluence (RCAA) in the City. The RCAA areas are clustered throughout the City predominately in the east and along the southern and western boundaries of the City. The concentrations of lower income siteshouseholds located in the northern, western, and central areas of the City are in high income areas surrounded by RCAAs. Theplaeen+entlocation of these sitesarea provides affordable housing opportunities within areas with high access to resources.
Access to Opportunity
The majority of the City is considered highest resource according to the TCAC Opportunity Map composite score. The majority of the sites identified in the sites inventory are located in the highest resource areas which will give households access to more opportunities and resources.
Transit
According to AIITransit the City of Newport Beach has a low transit performance score overall. The City has identified a significant number of low- and very low-income housing opportunity sites in the Airport Area Environs in the north, the West Newport Mesa Area in the west, and the Newport Center Area in the central area of the City. These three areas of the City have high connectivity scores compared to other areas throughout the City. Households within these areas have better access to jobs and key destinations through transit than those located elsewhere in the City. The majority of the low- and very low-income sites were strategically located within the Airport Area Environs, West Newport Mesa Area, and the Newport Center Area to take advantage of the increased transportation assets within these areas.
Environmental
OEHHA's California Communities Environmental Health Screening Tool considers the City of Newport Beach as having a primarily low pollution burden through the entire City. There are concentrations of low - and very low-income sites located in the northern, western, and central areas of the City which have low to moderate pollution burdens. The Northern area, identified as Airport Area Environs, has the highest pollution burden scoring in the 43rd percentile due to high exposure scores from traffic related pollutants.
The northern area was selected to accommodate a number of housing opportunity sites due to its higher access to transit amenities and reduced, but high land values.
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2021-2029 HOUSING ELEMENT
Disproportionate Housin_-g Needs
Disability
The City of Newport Beach has a fairly low disabled population. With a higher representation of persons with disabilities located throughout the greater central area of the City. The sites inventory has identified a concentration of low- and very low-income sites located in the Newport Center Area. The placement of these sites was strategically located to increase affordable housing opportunities where persons with disabilities are already present as well as where there are nearby service amenities which can provide increased housing security for the City's disabled population.
Income
The maioritv of the Citv has low rates of 000ulations categorized as low- to moderate -income. The northern, western, and central areas of the City have higher rates of residents considered to be low- to moderate -income. The sites inventory predominately concentrates low- and very low-income sites within the Airport Area Environs. West Newoort Mesa Area. and Newoort Center Area as thev have the highest opportunities ratings, moderate or highest resource ratings, and higher transit connectivity. The low- and very low-income site within these areas will provide increased affordable housing options where there are higher rates of lower-income residents. Additionally, the majority of the selected sites throughout the Citv are Dlanned to accommodate mixed -income housing units which will Drevent exacerbating the concentrations of lower income households.
Overpayment
The City of Newport Beach experiences low to moderate rates of overpayment generally with only one census tract in the central area of the City experiencing high rates of overpayment. Site selection emphasized the development of multifamily and mixed-use housing within six focus areas that will be rezoned to allow for high-density housing. Housing located throughout the City's six focus areas will facilitate additional affordable units through multifamily development. The low- and very low-income sites associated with the residential development in the central area of the City will provide access to supportive services such as lob opportunity and transit amenities and will ensure that there are affordable housing options in geographical areas that are experiencing moderate to high rates of overpayment.
Overcrowding
The entirety of the City experiences low rates of overcrowding. The placement of lower and moderate- to above moderate -income sites throughout the six focus areas within the City will not exacerbate any instances of overcrowding as additional housing develoament at all income levels would alleviate impacts of overcrowdi
5. Analysis of Fair Housing Priorities and Goals
To enhance mobility and promote inclusion for protected classes, the chief strategy included in this housing element is to provide sites suitable for affordable housing in high -resource, high opportunity Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-124 (DRAFT NP./AnrQro'n"JANUARY 2022)
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areas, as demonstrated by the analysis of the housing resource sites contained in this section. Other programs that affirmatively further fair housing include:
• Policy Action 4A: Affirmatively Furthering Fair Housing • Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers • Policy Action 713: Transitional and Supportive Housing • Policy Action 7C: Housing for Persons with Developmental Disabilities • Policy Action 71): Fair Housing Services
1. Re nal Needs Allocation
This section of the Housing Element provides an overview of the resources available to the City to meet their Regional Housing Needs Allocation (RHNA).
Residential Sites Inventory
Appendix B of the Housing Element includes the required site analysis tables and site information for the vacant and non -vacant properties to meet the City's RHNA need through the 2021-2029 planning period.
The following discussions summarize the City's site inventory and rezone plan.
Above Moderate- and Moderate -Income Sites
For the 2021-2029 planning period, the City's RHNA allocation is 1,050 for moderate -income site and 1,409 for above moderate -income sites. The City anticipates current planned growth, projects already in the approval process, to entirely meet the above moderate -income need within the planning period. The City will meet the moderate -income need through a combination of existing capacity on residentially zoned land, through the redevelopment of parcels rezoned within the focus areas, and through the development of accessory dwelling units (ADUs).
A total of 287 moderate -income and 40 above moderate -income units can be accommodated through existing zoning capacity on parcels. By subtracting existing units from maximum potential unit yield per parcel, the City projected additional capacity on several parcels. Each parcel included in the inventory was then vetted for likelihood of redevelopment and to ensure all HCD criteria were met. The required descriptive information for these sites can be found within Appendix B.
An additional 72 moderate and 5 above moderate -income units can be accommodated through the development of ADUs throughout the community. This is based on the methodology described within Appendix D: Accessory Dwelling Units and incorporates guidance from HCD's Housing Element Site Inventory Guidebook.
A supplemental 5,540-613 moderate and above moderate -income units can be accommodated through the rezone strategies proposed for six focus areas throughout the City. Originally identified by the Housing Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-125 (DRAFT NOVINerQro'n"JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Element Update Advisory Committee (HEAUC), the focus areas guided the development of area -specific rezone policies and City actions to ensure that Newport Beach has sufficient capacity to meet the RHNA Allocation for the 6th Cycle.
analysis of The City's Existing Capacity and Zoning
Table 3-3226: Residential Capacitv for Moderate and Above Moderate -Income Sites Significant Zone
Max Density
Reasonable
Density*
Number of
Parcels
Acreage
Potential
Units
Moderate -Income Sites
MU -MM
26 du/ac
26 du/ac
24 9 acres 180 units
MU -W2
26 du/ac
23 du/ac
13 4 acres 51 units
MU -V
25 du/ac
20 du/ac
6 1 acre 13 units
MU-CV/15th Street
18 du/ac
15 du/ac
24 3 acres 43 units
Subtotal
67 17 acres 287 units
Above Moderate -Income Sites
MU -W1
5 du/ac
5 du/ac
7 9 acres
40 units
Subtotal
7 9 acres
40 units
TOTAL CAPACITY
74 26 acres
327 units
*Note — Specific densities vary within these zoning designations and potential unit projections are based on the parcel - specific requirements and existing conditions on parcels.
Reasonable Capacity Assumptions
This section describes the methodology developed to determine the site capacity for the moderate and above moderate -income sites. The City assumes that above moderate -income units will develop at a maximum up eight dwelling units per acre, and that moderate -income units will develop at a maximum of 26 dwelling units per acre. Reasonable capacity for sites identified to meet the City's moderate and above moderate need was calculated based on a number of factors, including site size, existing zoning requirements, vacancy and total number of units entitled, and the maximum density achievable for projects within the following zones:
• MU -MM — Mixed -Use Mariners' Mile: The MU -MM Zoning District is intended to provide areas for the development of mixed-use structures that vertically integrate residential dwelling units above the ground floor with retail uses including office, restaurant, and retail. The zone permits a density range of 20.1— 26.7 dwelling units per acre.
• MU -W1 — Mixed -Use Water: This zoning district applies to waterfront properties along the Mariners' Mile Corridor in which nonresidential uses and residential dwelling units may be intermixed. A minimum of fifty (50) percent of the allowed square footage in a mixed-use development shall be used for nonresidential uses in which marine -related and visitor -serving land uses are mixed. This zone permits a density range of up to 15 dwelling units per acre. • MU -W2 — Mixed -Use Water: This zoning district applies to waterfront properties in which marine - related uses may be intermixed with general commercial, visitor -serving commercial and Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-126 (DRAFT NOVAerQro'n"JANUARY 2022)
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2021-2029 HOUSING ELEMENT_ g
residential dwelling units on the upper floors. This zone permits a density range of up to 15 dwelling units per acre.
• MU -V — Mixed -Use Vertical: This zoning district is intended to provide for areas appropriate for the development of mixed-use structures that vertically integrate residential dwelling units above the ground floor with retail uses including office, restaurant, retail, and similar nonresidential uses located on the ground floor or above.
• MU-CV/15th Street — Mixed -Use Cannery Village and 15`h Street: This zoning district applies to areas where it is the intent to establish a cohesively developed district or neighborhood containing multi -unit residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses may include multi -unit dwelling units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to nonresidential uses along the street frontage. Residential uses and overnight accommodations are allowed above the ground floor and to the rear of uses along the street frontage. Mixed-use or nonresidential structures are required on lots at street intersections and are allowed, but not required, on other lots. This zone permits a density range of 20.1— 26.7 dwelling units per acre.
Potential constraints, to the extent they are known, such as environmentally sensitive areas and steep slopes were considered, and deductions made where those factors decreased the net buildable area of a parcel. Additionally, existing units' non -vacant parcels were analyzed to determine the number of existing units currently on the parcel. Replacement of existing units was included as a factor to prevent no net loss of existing housing stock.
Kezones to Accommodate the Moderate and Above Moderate RHNA In additional to residential use on specific plans and ADUs, the City of Newport Beach has identified 212-7 sites to be rezoned from commercial use to residential use or to be rezoned to a higher residential density.
The sites for rezone are further detailed in Appendix B and a rezone program is identified in Section 4:
Housing Plan. Figure 3-274.9 displays the focus areas for rezone, accompanied by a corresponding table of strategy information shown below as Table 3-33-17. The specific development assumptions (both on affordability and overall development potential) that produce the Potential Units are described, area -by - area, in the Sites Inventory of Appendix B.
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Table 3-332-7: Moderate/Above Moderate -Income Rezone Strateev by Focus Area Focus Area
Feasible Acreage
Rezone Density
Potential
Moderate -Income
Units
Potential Above
Moderate -Income
Units
Airport Area Environs
162 acres
50 du/ac
244
1,464
West Newport Mesa Area
49 acres
50 du/ac
111
664
Dover -Westcliff Area
18 acres
50 du/ac
46 275
Newport Center Area
153 acres
50 du/ac
237
1,425
Coyote Canyon Area
3444 acres
60 du/ac
153
995
Total
419 acres
-
791 units
4,822 units
Banning Ranch Area
30 acres
50 du/ac
148
884
Total
449 acres
--
778 units
4,732 units
Development of Non -Vacant Sites and Converting to Residential Uses To analyze the potential for redevelopment of non -vacant sites, the City sent out more than 500 letters to property owners. Responses to the letters were recorded and are included within the inventory of sites within Appendix B. Although a positive response to the redevelopment interest letters does not guaranty the redevelopment of a parcel to residential as a primary use within the planning period, it is a strong indicator of likelihood of redevelopment and is used as sufficient evidence for inclusion within the Adequate Sites Inventory.
Accessory uwelling Unit Production
The City of Newport Beach believes that ADUs present a viable option as part of the overall strategy to develop housing at all income levels during the 2021-2029 6th Cycle Housing Element planning period.
Appendix D describes:
• Recent ADU legislation and regional actions,
• Local factors that may increase ADU development over the next eight years, and • Actions Newport Beach will take through housing programs to incentivizing ADU development The City assumes a total development 240 ADUs from 2021-2029. Utilizing the Southern California Association of Governments (SCAG) approved ADU affordability assumptions, 163 ADUs will be allocated to the low and very low-income RHNA, 72 will be allocated to the City's moderate -income RHNA and 5 will be allocated to the above moderate. This is based on the methodology described within Appendix D:
Accessory Dwelling Units and incorporates guidance from HCD's Housing Element Site Inventory Guidebook.
Sites Suitable for Lower -Income Housing
This section contains a description and listing of the candidate sites identified to meet the Newport Beach's very low and low-income RHNA need. A full list of these sites is presented in Appendix B.
Prniects in th4 Pinalinn and 4ccessQry Dwellina Units
The City has identified a number of projects currently in the entitlements process which are likely to be developed during the planning period and count as credit towards the 2021-2029 RHNA allocation.
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Projects with planned affordable components include:
• Newport Airport Village
• Residences at 4400 Von Karman
• Newport Village Mixed -Use
• West Coast Highway Mixed -Use
• Newport Crossings
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The total anticipated development of Projects in the Pipeline and Accessory Dwelling Units is summarized in Table 3-342-8 below to calculate the Remaining Need.
Table 3-3428: Low and Very Low -Income Remaining Need
Sites Identified for Rezone to Accnmmndate Low and Very low After the identification of projects in the pipeline and ADUs to accommodate the City's low and very low RHNA, a remaining 2,048 units must be accommodated to meet the City's RHNA. To account for this remaining need, the City conducted a community -driven process to identify several parcels for inclusion in the Adequate Sites Inventory. This process was led by the Housing Element Update Advisory Committee (HEUAC). To guide the identification of adequate sites, the committee created focus areas Sitesareas Sites identified by the committee and the public to meet the City's very low and low-income RHNA were selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres.
The 221 parcels are currently zoned as the following:
• 157 parcels are zoned non-residential
• 64 parcels are zoned residentially at a lower density.
All parcels are non -vacant and will be rezoned to higher densities (densities are specific to each focus area) able to accommodate the development of lower-income housing. Figure 3-2834 below displays the sites identified to accommodate the City's low and very low-income RHNA allocation. The Housing Plan section outlines actions the City will take to promote the development of affordable units within the following focus areas:
• Airport Vicinity Area • Newport Center Area
• West Newport Mesa Area • Coyote Canyon Area
• Dover -Westcliff Area • Banning Ranch Area
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-129 (DRAFT NQ_VAnrQro'n"JANUARY 2022)
Very Low -Income
Low -Income
RHNA Allocation
1,456
930
Pipeline Projects
97 78
5th Cycle Sites
0 0
Accessory Dwelling Units
60 103
Remaining Low/Very Low -Income Need
1,299
749
Sites Identified for Rezone to Accnmmndate Low and Very low After the identification of projects in the pipeline and ADUs to accommodate the City's low and very low RHNA, a remaining 2,048 units must be accommodated to meet the City's RHNA. To account for this remaining need, the City conducted a community -driven process to identify several parcels for inclusion in the Adequate Sites Inventory. This process was led by the Housing Element Update Advisory Committee (HEUAC). To guide the identification of adequate sites, the committee created focus areas Sitesareas Sites identified by the committee and the public to meet the City's very low and low-income RHNA were selected based on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres.
The 221 parcels are currently zoned as the following:
• 157 parcels are zoned non-residential
• 64 parcels are zoned residentially at a lower density.
All parcels are non -vacant and will be rezoned to higher densities (densities are specific to each focus area) able to accommodate the development of lower-income housing. Figure 3-2834 below displays the sites identified to accommodate the City's low and very low-income RHNA allocation. The Housing Plan section outlines actions the City will take to promote the development of affordable units within the following focus areas:
• Airport Vicinity Area • Newport Center Area
• West Newport Mesa Area • Coyote Canyon Area
• Dover -Westcliff Area • Banning Ranch Area
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-129 (DRAFT NQ_VAnrQro'n"JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
The key assumptions and unit projections related to each focus area are shown below in Table 3 - and the focus areas are shown geographically below in Figure 3-274-^. The specific development assumptions (both on affordability and overall development potential) that produce the Potential Units are described, area -by -area, in the Sites Inventory of Appendix B.
Table 3- : Low/Very Low -Income Rezone Strateev by Focus Area Focus Area
Feasible Acreage (AC)
Rezone
Density
Potential Low/Very Low -
Income Units
Airport Area Environs
163 acres
50 du/ac
732
West Newport Mesa Area
47 acres
50 du/ac
332
Dover -Westcliff Area
18 acres
50 du/ac
137
Newport Center Area
158 acres
50 du/ac
712
Coyote Canyon Area
34 acres
60 du/ac
383
Total
419 acres
-
2,296 units
Banning Ranch Area
30 acres
50 du/ac
443
Total
449 acres
--
3,077 units
Figure 3 -z_. -*w: Focus Areas for Rezones
Banning Ranch
West
Development of Nonvacant Sites to Accommodate Low and Very Low -Income 74 non -vacant sites were also identified in the 5th cycle. In accordance with AB 1397 the City will establish a program that permits By -Right development for projects that propose 20 percent of all units to be affordable to low and very low-income units. The program is outlined in detail in Section 4: Housing Plan.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-130 (DRAFT ^"r= IST i1ANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Regional Housing Needs Allocation
Future Housing Needs
Future housing need refers to the share of the regional housing need that has been allocated to the City.
The State Department of Housing and Community Development (HCD) supplies a regional housing goal number to the Southern California Association of Governments (SCAG). SCAG is then mandated to allocate the housing goal to city and county jurisdictions in the region through a RHNA Plan. In allocating the region's future housing needs to jurisdictions, SCAG is required to take the following factors into consideration pursuant to Section 65584 of the State Government Code:
• Market demand for housing.
• Employment opportunities.
• Availability of suitable sites and public facilities. • Commuting patterns.
• Type and tenure of housing.
• Loss of units in assisted housing developments.
• Over -concentration of lower-income households.
• Geological and topographical constraints.
HCD, through a determination process, allocates units to each region across California. It is then up to each region to determine a methodology and process for allocating units to each jurisdiction within that region. SCAG adopted its final Regional Housing Needs Allocation (RHNA Plan) in February 2021. This RHNA covers an 8 -year planning period (starting in 2021) and addresses housing issues that are related to future growth in the region. The RHNA allocates to each city and county a "fair share" of the region's projected housing needs by household income group. The major goal of the RHNA is to assure a fair distribution of housing among cities and counties within the Southern California region, so that every community provides an opportunity for a mix of housing for all economic segments.
Newport Beach's share of the SCAG regional growth allocation is 4,845 new units for the current planning period (2021-2029). Table 3-360, Housing Needs for 2021-2029, indicates the City's RHNA need for the stated planning period.
Table 3-369: Housing Needs for 2021-2029
Income Category (% of County AMI)
Number of Units
Percent
Extremely Low (30% or less)
728 units
15%
Very Low (31 to 50%)1
728 units
15%
Low (51 to 80%)
930 units
19%
Moderate (81% to 120%)
1,050 units
22%
Above Moderate (Over 120%)
1,409 units
29%
Total
4,845 units
100%
Note 1: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low- income households (0-30%AMI). In estimating the number of extremely low-income households, a jurisdiction can use 50% of the very low-income allocation or apportion the very low-income figure based on Census data.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-131 (DRAFT AUGUST 2021JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Adequacy of Sites For RHNA
The City of Newport Beach has a total 2021-2029 RHNA allocation of 4,845 units. The City is able to take credit for 1,662 units currently within the planning process (Projects in the Pipeline), 327 units of 5th Cycle Sites being projected at existing buildout capacity, and 240 units of ADU's (addressed in Appendix B and in Appendix D). These three categories of existing capacity lower the total RHNA planning need to a "Remaining Need" of 2,707 units as shown in Table 3-37-1. The Housing Element update lists sites that would be able to accommodate an additional 7,7-84909 total units, well in excess of the remaining 2-,707 e2,707 -unit RHNA need.
Newport Beach has identified sites with a capacity to accommodate 2,2-69-296 lower-income dwelling units, which is in excess of its 2,386 -unit lower-income housing need. The identified sites for lower-income dwelling units are on parcels that will permit residential development as a primary use at a base density of between 30 and 60 dwelling units per acre and at an assumed density of between 50 and 60 dwelling units per acre.
The Bannine Ranch Focus area is included in the sites inventorv. but not assumed to accommodate the City's 2021-2029 RHNA growth need. Banning Ranch is considered as additional dwelling unit opportunity s in addition to those that accommodates ;gid -the RHNA. When including4h Banning Ranch 4w6de4, the Housing Element would e- " amenable the City to increase its site surplus a Fplus of 6,768 tetal units. This would result in a surplus of 691 low and very low income units tl4acompared to e a 248 unit surplus without Banning Ranch.
As described in Appendix B, the City believes that due to recent State legislation and local efforts to promote accessory dwelling unit (ADU) production, the City can realistically anticipate the development of 240 ADUs within the 8 -year planning period. As outlined in the Sites Inventory within Appendix B, the City has compiled an inventory of sites for rezone that, combined, have development potential to wholly exceed and maintain the capacity to accommodate the RHNA Allocation throughout the 8 -year planning period. Overall, the City has adequate capacity to accommodate its 2021-2029 RHNA.
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2021-2029 HOUSING ELEMENT
Table 3-3if: Summary of RHNA Status and Sites Inventory Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-133 (DRAFT AUGUST 2021JANUARY 2022)
Extremely
Low/ Very
Low Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
2021-2029 RHNA
1,456
930
1,050
1,409
4,845
RHNA Credit (Units Built)
TBD
TBD
TBD
TBD
TBD
Total RHNA Obligations
1,456
930
1,050
1,409
4,845
Sites Available
Projects in the Pipeline
175
32 1,455
1,662
Accessory Dwelling Units
163
72 5
240
5th Cycle Sites
0 287
40 327
Remaining RHNA
2,048
659
--
2,707
Airport Area Environs Rezone
732
244
1,464
2,440
West Newport Mesa Rezone
332
111
664
1,107
Dover -Westcliff Rezone
137
46 275
458
Newport Center Rezone
712
237
1,425
2,374
Coyote Canyon Rezone
383
153
995
1,530
Total Rezone
2,296
791
4,822
7,909
TOTAL POTENTIAL
DEVELOPMENT CAPACITY
E
2,634
1,182
b,:SZZ
10,138
Sites Surplus/Shortfall (+/-)
+248 1
+132
+4,913
+5,293
Percentage Buffer
10%
13%
349
109%
Banning Ranch Rezone
443
148
884
1,475
Total Rezone with Banning Ranch
2,739
939
5,706
9,384
TOTAL POTENTIAL DEVELOPMENT
CAPACITY
3,077'
1,330 1,169
7,2066723C
11,6114 0,443
Sites Surplus/Shortfall (+/-)
+691
+280
+5,797
+6,768
Percentage Buffer
29%
27%
411%
140%
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-133 (DRAFT AUGUST 2021JANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Figure 3-2844: Sites Inventory and RHNA Obligations
Summary of Sites Inventory and RHNA Obligations
The data and map detailed in Figure 3-28-14 above shows the City of Newport Beach's ability to meet the 4,845 RHNA allocation in full capacity with a 5,2933 -6 -2 -unit buffer. Along with the identifying appropriate sites to meet the current and future housing needs, the City has established a Housing Plan to support its efforts in providing housing opportunities for all income levels in Newport Beach.
2. Financia/ Resources
Providing an adequate supply of decent and affordable housing requires funding from various sources, the City has access to the following finding sources.
Section 8 Housing Choice Voucher
The Section 8 Housing Choice Voucher program is a Federal government program to assist very low- income families, the elderly, and the disabled with rent subsidy payments in privately owned rental housing units. Section 8 participants can choose any housing that meets the requirements of the program and are not limited to units located within subsidized housing projects. They typically pay 30 to 40 percent of their income for rent and utilities. The Orange County Housing Authority administers Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-134 (DRAFT ^"r= IST i1ANUARY 2022)
City of Newport Beach
2021-2029 HOUSING ELEMENT
Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and 62 for seniors.
Community Development Block Grants (CDBG)
The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to cities to develop viable urban communities by providing a suitable living environment and by expanding economic opportunities, principally for low- and moderate -income persons (up to 80 percent AMI).
CDBG funds can be used for a wide array of activities, including:
• Housing rehabilitation.
• Lead-based paint screening and abatement.
• Acquisition of buildings and land.
• Construction or rehabilitation of public facilities and infrastructure, and:
• Public services for low-income households and those with special needs.
According to the Federal regulations, the City of Newport Beach is allowed to spend no more than of 20% of CDBG funding on program administration, and 15% on community services such as senior meal delivery or homeless prevention programs. The remaining amount must be used other eligible projects that meet national objectives that principally benefit low- and moderate -income households or the disabled.
HUD requires Newport Beach to complete a Five -Year Consolidated Plan (Con Plan) to receive HUD's formula grant programs. The Con Plan identifies the City's 5 -year strategies related to priority needs in housing, homelessness, community development, and economic development. It also identifies short - and long-term goals and objectives, strategies, and timetables for achieving its goals. Developed with the input of citizens and community groups, the Con Plan serves four basic functions:
• It is a planning document for the community built upon public participation and input. • It is the application for funds under the CDBG Program. • It articulates local priorities.
• It is a five-year strategy the City will follow in implementing HUD programs.
Additionally, HUD requires the City to prepare a One -Year Action Plan for each of the five years covered by the Con Plan. The City of Newport Beach reports a total of $372,831 CDBG funds from HUD in the 2020-2021 Action Plan. In same report, the City reports an anticipated $2.07 million of CDBG resources during the five-year period from July 1, 2020, through June 30, 2025.
HOME Investment Partnership Program (HOME)
The HOME program provides federal funds for the development and rehabilitation of affordable rental and ownership housing for households with incomes not exceeding 80 percent of area median -income.
The program gives local governments the flexibility to fund a wide range of affordable housing activities through housing partnerships with private industry and non-profit organizations. HOME funds can be used Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-135 (DRAFT ^"r= IST i1ANUARY 2022)
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2021-2029 HOUSING ELEMENT
for activities that promote affordable rental housing and homeownership by low-income households. The City of Newport Beach does not currently receive HOME funds.
3. Opportunities for Energy Conservation
Energy Use and Providers
The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating and cooling. The high cost of energy demands that efforts be taken to reduce or minimize the overall level of urban energy consumption. Energy conservation is important in preserving non-renewable fuels to ensure that these resources are available for use by future generations. There are also a number of benefits associated with energy conservation including improved air quality and lower energy costs.
Southern California Gas Company (SCG) provides natural gas service for the City. Natural gas is a "fossil fuel" and is a non-renewable resource. Most of the major natural gas transmission pipelines within the City are owned and operated by SCG. SCG has the capacity and resources to deliver gas except in certain situations that are noted in state law. As development occurs, SCG will continue to extend its service to accommodate development and supply the necessary gas lines. Electricity is provided on an as -needed basis to customers within existing structures in the City. Southern California Edison Company (SCE) is the distribution provider for electricity in Newport Beach. Currently, SCE has no immediate plans for expansion of infrastructure, as most of the City is built out. However, every year SCE expands and improves existing facilities according to demand
-nPrnv Cnn,zPrvatin-
The City's energy goals, stated in the Natural Resources Element of the General Plan, make every effort to conserve energy in the City thus reducing dependence on fossil fuels. The City's policies relating to energy include increasing energy efficiency in City facilities and operations and in private developments and reducing the City's reliance on fossil fuels. In order to reach the City's goals, objectives include the following:
• Develop incentives that encourage the use of energy conservation strategies by private and public developments,
• Promote energy-efficient design features,
• Promote or provide incentives for "Green Building" programs that go beyond the requirements of Title 24 of the California Administrative Code and encourage energy efficient design elements as appropriate to achieve "green building" status; and, • Provide incentives for implementing Leadership in Environmental and Energy Design (LEED) certified building such as fee waivers, bonus densities, and/or awards recognition programs.18 The City of Newport Beach's Energy Action Plan (EAP) is identified as a roadmap for the City of Newport Beach to reduce GHG through reductions in energy used in facility buildings and operations. According to the City's EAP, the City's long-term vision for energy efficiency focuses on the following objectives:
18 City of Newport Beach Natural Resource Element, 2006.
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2021-2029 HOUSING ELEMENT
• Reduce the City's carbon footprint and its adverse effect on the environment • Conserve energy at the local government facilities
• Raise energy conservation awareness in local community and improve the quality of life Currently, the City of Newport Beach has developed the "Building Green" construction manual, created by the City's Task Force on Green Development. The City has also enacted a City-wide streetlight LED replacement program, replacing 400 units to date, and is continuing marketing. Education, and outreach to the community regarding every efficiency and conservation.
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-137 (DRAFT AUGUST 2021JANUARY 2022)
i
K
1 '
*1471
T -
:TA iTiTiL'
City of Newport Beach
2021-2029 HOUSING ELEMENT
The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies, and programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goal to encourage a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The City will make every effort to budget, clan for and comply with the timelines for imalementation set forth in this Section. but may be contineent upon funding and staffing resources.
The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City's share of the affordable housing needs for the Orange County region. The RHNA quantifies Newport Beach's local share housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The current 2021 MFI (for an assumed family of 4 persons) for Orange County is $106,700. The MFI may change periodically, as it is updated on an annual basis. The City's 2021-2029 RHNA growth need of 4,845 housing units is allocated into the following income categories:
• 1,456 units -Very low-income (0-50% County MFI)
• 930 units - Low-income (51-80% of County MFI)
• 1,050 units - Moderate -income (81-120% of County MFI) • 1,409 units - Above moderate -income (120% or more of County MFI) Housing Goals
The City of Newport Beach has identified the following housing goals as part of this Housing Element Update:
Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA.
Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock.
Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments.
Housing Goal #4: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligations for housing in the City.
Section 4: Housing Plan (DRAFT JANUARY 2022) 4-1
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2021-2029 HOUSING ELEMENT
Housing Goal #5: Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households.
Housing Goal #6: Housing opportunities for special needs populations.
Housing Goal #7: Equal housing opportunities in the City for all people.
Housing Goal #8: Effective and responsive housing programs and policies The goals listed above are described below and on the following pages with accompanying policies and programs to achieve them.
Housing Policies and Program Actions
This Housing Element expresses the Newport Beach community's overall housing goals and supporting policies and program actions to achieve them. The stated Housing Program Actions are based on a review of past performance of the 5th Cycle Housing Element, analysis of current constraints and resources, and input from Newport Beach residents and stakeholders.
Housing Goal #1
Provision of adequate sites to accommodate projected housing unit growth needs.
Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories to serve the needs of the entire community.
Implementation Actions
Adequate Sites to Accommodate 2021-2029 RHNA
The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the community and stakeholder through Newport Together's "Listen and Learn" process, multiple meetings of the City's Housing Element Update Advisory Committee (Committee), participation by interested residents at a variety of public meetings, workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that was determined by the Committee as "Feasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period.
As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide and have identify eight primary areas of opportunity:
• Airport Area Environs • Dover/Westcliff
• West Newport Mesa • Newport Center
Section 4: Housing Plan (DRAFT JANUARY 2022) 4-2
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2021-2029 HOUSING ELEMENT�$'i
• Banning Ranch • 5th t4 -Cycle Housing Element Sites
• Coyote Canyon • Accessory Dwelling Units
Since the City has identified several opportunity sites in the 5th Cycle that will be utilized in the 6th Cycle Housing Element, additional policy considerations are stated in this Policy Program.
These opportunities sites are described in map and tabular format in Appendix B of this Housing Element.
Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage, and a targeted number of new housing units (see following implementing Policy Action statements).
Collectively, these targets must meet the unmet RHNA need as required by State law. It is expected there may be deviations from the targets with future implementing zoning actions. New opportunity sites may be identified, and other sites may be deemed unsuitable or densities may be modified, all based on new information received over time. The City may adopt future zoning strategies that are more or less than the identified targets in this Housing Element provided the total unmet RHNA need by income category is accommodated within state -defined deadlines. If future zoning strategies deviate from the targets expressed in this Housing Element but still meet the requirement to identify adequate sites to accommodate unmet RHNA need, no amendment to the Housing Element would be required and deviations of any magnitude may be considered subject to the City Council's review and approval in consultation with the Community.
All sites proposed for rezoning through implementation of Policy Actions 1A through IF provided in Section 4 of this Housing Element will require a companion Land Use Element amendment that will be subject to a vote of the electorate pursuant to Charter Section 423. The City will initiate an election and conduct community outreach to educate the public on the benefits of higher density housing and pay for all costs associated with the ballot measure(s). The table below presents a timeline for the process including the vote. If the vote fails, the City will propose alternative Policy Actions and call for a second election. If the second vote fails to pass, the City Council will seek a legal opinion from the State Attorney General's Office as to how to proceed.
Milestones for Housing Element Adootion. Imalementation and Charter Section 423 Election Anticipated Date
Action
Requirements
February 2022
Housing Element Adoption
Public Hearing
February 2022-
Preparation of Land Use Element amendment(s),
Community meetings
September 2023
Zoning to implement Policy Actions 1A —1F, and completion and Public Hearings
of Environmental Impact Report
September 2023
Initiate ballot measure for Charter Section 423 vote
133 days prior to election
date
March 2024
Charter Section 423 election date for voter approval on proposed Land Use Element Amendment
If Charter 423 vote fails:
Amend Housing Element for HCD review and amend Land
Community meetings
Use Element and adopt corresponding zoning strategies after and Public Hearings
conducting environmental review
Section 4: Housing Plan (DRAFT JANUARY 2022) 4-3
City of Newport Beach
2021-2029 HOUSING ELEMENT
Conduct second Charter Section 423 election on revised
amendments
If second Charter 423 fails:
Request opinion from State Attorney General's Office as to City's options For all Rezone Policy Actions 1A to 1F, Pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to the following:
• permit owner -occupied and rental multifamily uses by -right for developments in which 20 percent or more of the units are affordable to lower-income households. By -right means local government review must not require a CUP, planned unit development permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-useproject.
Policy Action 1A: Airport Environs Sub Area
The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport Environs area for 1632- acres of land to provide for the accommodation of at least 4-,8662,440 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre.
Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Lew ineemes.1-ow incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 1A, 9uf&ua-Rtpursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to the following:
• permit owner -occupied and rental multifamily uses by -right for developments in which 20 percent or more of the units are affordable to lower-income households. By -right means local government review must not require a CUP, planned unit development Section 4: Housing Plan (DRAFT JANUARY 2022) 4-4
City of Newport Beach
2021-2029 HOUSING ELEMENT
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-useproject.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund
Policy Action IB: West Newport Mesa
The City will establish a housing opportunity overlay, or similar rezoning strategy, in the West Newport Mesa area for 4749 acres of land to provide for the accommodation of at least 1,,6951,107 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre.
Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incemes.1-ow incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 113,- pufsydim4pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to the following:
ermit owner -occupied and rental multifamilv uses by-riizht for developments in which 20 percent or more of the units are affordable to lower-income households. By -right means local government review must not require a CUP, planned unit development permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need. if those sites:
o allow 100 percent residential use, and
o reauire residential use occupv 50 percent of the total floor area of a mixed-useproject.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Section 4: Housing Plan (DRAFT JANUARY 2022) 4-5
City of Newport Beach
2021-2029 HOUSING ELEMENT
Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund
Policy Action IC: Newport Center
The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 1583 acres of land to provide for the accommodation of at least 3542,374 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre.
Implementation of this program will also include but not be limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Lew ineemes.Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 1C, puf&uaitpursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to the following:
• Dermit owner -occupied and rental multifamilv uses by -right for developments in which 20 percent or more of the units are affordable to lower-income households. By -right means local government review must not require a CUP, planned unit development permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-useproject.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund
Policy Action ID: Dover/ Westcliff
The City will establish an overlay, or similar rezoning strategy, in the Dover/ Westcliff area for 19acres of land to provide for the accommodation of at least 458 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will permit development of a variety of residential product types at a permitted average density of 50 dwelling units per acre.
Section 4: Housing Plan (DRAFT JANUARY 2022) 4-6
City of Newport Beach
2021-2029 HOUSING ELEMENT
Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and emes1-ow incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.