A
ttachment A
Draft Consolidated Annual Performance and Evaluation Report (CAPER) for the 2024-25 Program Year
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City of Newport Beach
Pr
ogram Year 2024-2025
Consolidated Annual Performance
and Evaluation Report
(CAPER)
September 6, 2025
DRAFT
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21-6
Table of Contents
CR-05 - Goals and Outcomes ....................................................................................................... 4 CR-10 - Racial and Ethnic composition of families assisted ........................................................ 8 CR-15 - Resources and Investments 91.520(a) ............................................................................ 9 CR-20 - Affordable Housing 91.520(b) ....................................................................................... 12 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................... 19 CR-30 - Public Housing 91.220(h); 91.320(j) .............................................................................. 24 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ...................................................................... 26 CR-45 - CDBG 91.520(c) ............................................................................................................. 33 PUBLIC NOTICE .............................................................................................................................. 35 SUMMARY OF CITIZEN PARTICIPATION ......................................................................................... 36 IDIS REPORTS ................................................................................................................................. 38
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1 CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.
91.520(a)
The City of Newport Beach has prepared the 20 24-2025 Consolidated Annual Performance and Evaluation Report (CAPER) as required by the U.S. Department of Housing and Urban Development (HUD) which describes the use of federal Community Development Block Grant (CDBG) funds during the fifth and final program year of the 20 20-2024 Consolidated Plan period. This CAPER encompasses July 1, 2024, to June 30, 2025, also referred to as Fiscal Year 2024 -2025 (FY2024-25) or Program Year 2024-2025 (PY2024-25).
As an entitlement jurisdiction, the City receives CDBG funds from HUD on a formula basis each year. In turn, the City implements projects and awards grants to nonprofit, for-profit, and/or public organizations for activities in furtherance of the adopted Consolidated Plan. The City of Newport Beach’s CDBG program generally includes a range of eligible activities that benefit low - and moderate-income residents.
The City’s 2020-2024 Consolidated Plan goals include:
• Ensure equal access to housing opportunities
• Provide public services for low- and moderate-income residents • Improve public facilities and infrastructure
• Address material barriers to accessibility
• Economic development
• Prevent and eliminate homelessness
For the PY2024 -25, the City received $ 375,580 in annual CDBG funds from HUD, $318,141.70 in program income, and $384,818 in unallocated prior year CDBG funds, for a total of $1,078,539.70.
Investment of CDBG funds was a catalyst for positive change in the community. Together with other federal, state, and local investments, the 2024-2025 CDBG allocation allowed the City to:
• Provide fair housing services for 135 residents
• Provide homelessness prevention and assistance services to 16 residents through the Motel Voucher Program
• Provide homelessness prevention and assistance services to 27 residents through the Families Forward Program
• Provide home delivered meals to 44 senior residents
Table 1 provides a summary of the five-year and one-year accomplishments for the period ending June 30, 2025, arranged by each of the Strategic Plan Goals included in the 20 20-2024 Strategic 21-8
1 Plan of the Consolidated Plan.
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City of Newport Beach 2023-2024
2 Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.
Table 1 - Accomplishments – Program Year & Strategic Plan through June 30, 2025 Goal Category
2024-2025
Amount Indicator
Unit of
Measure
5-Year Strategic Plan 2024-2025 Program Year No. 5
Expected Actual
Percent
Complete Expected Actual
Percent
Complete
Fair Housing
Services
Affordable
Housing
CDBG:
$12,000 Other Other 625 760 121.60% 125 135 108%
Homelessness
Prevention Homeless CDBG: $0 Homelessness
Prevention
Persons
Assisted 120 120 100% 0 0 -
Public Facilities
and
Infrastructure
Improvements
Non-Housing
Community
Development
CDBG:
$672,648
Public Facility or
Infrastructure
Activities other
than
Low/Moderate
Income Housing
Benefit
Project 1 0 0% 16 0 0%
Other Other 3 3 100% 0 0 -
Public Services
Non-Housing
Community
Development
CDBG:
$102,203
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
500 631 126% 178 87 48.88%
CDBG-CV:
$0 1000 1987 198% 0 0 -
Economic
Development
Economic
Development
CDBG: $0 Non-Housing
Community
Development
Business
Assisted
15 2 13% 0 0 -
CDBG-CV:
$0 20 30 150% 0 0 -
Planning Planning and
Administration
CDBG:
$124,210
Other Other 5 5 100% 1 1 100%
CDBG-CV:
$0
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City of Newport Beach
2024-2025 CAPER
7 Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.
During the program year, the City and local nonprofit organizations made progress on several FY2024-25 activities. All CDBG funded activities address specific high priority objectives identified in the 2020-2024 Consolidated Plan.
CDBG funds available through the 2024-2025 Annual Action Plan were allocated to delivering services to LMI and special needs Newport Beach residents. These included fair housing services and public services for seniors, homeless persons, and those at risk of homelessness.
In addition, the City allocated funds to public facilities and infrastructure projects.
Projects funded during PY2024 included the following:
• Meals on Wheels provided home delivered meals to 44 LMI homebound senior residents
• Fair Housing Foundation provided fair housing services, including compliant investigation, resources, and landlord/tenant mediation, to 135 LMI residents • Families Forward assisted 27 homeless and at -risk residents with homelessness prevention and assistance services
• The Newport Beach Police Department assisted 16 residents through the Motel Voucher Program, providing a safe place to sleep and other resources • Work on the San Miguel Park project continued through FY2024-25, and will be closed out in the upcoming program year
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8 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
Table 2 – Assistance to Racial and Ethnic Population by Source of Funds Race/Ethnicity CDBG
White 143
Black or African American 3
Asian 10
American Indian/Alaskan Native/Black or African American 0 Native Hawaiian or Other Pacific Islander 0
Total 156
Hispanic 30
Non-Hispanic 126
*Note: The data in this table is supplied by HUD’s database and reports . The figures in this table represent the sum of the reported number of people, families, households, or housing units reported during the fiscal year, without regard to the number of people in each family, household or housing unit. In addition, the data in this table reflects 100 percent completed activities only.
Narrative
Table 2 above provides race and ethnicity data for persons assisted with CDBG funds. During PY2024- 25, the City of Newport Beach was successful in collecting race and ethnicity data for 186 persons, 156 of whom are represented in Table 2 above. Table 2 does not include data on persons who identified as “other” or “multi -race” which included an additional 30 persons. Of these 186 persons assisted with CDBG funds, approximately 16 percent were Hispanic.
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City of Newport Beach 2024-2025 CAPER 9
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Table 3 - Resources Made Available
0BSource of Funds 1BSource
2BResources Made
Available
3BAmount Expended
During Program Year
4BCDBG 5Bpublic - federal 6B1,078,539.70* 269,433.79
8BOther 9Bpublic - federal 10B0 11B
*This includes $375,580 in 2024-2025 formula grant, $318,141.70 in program income, and $384,818 in unallocated prior year CDBG funds.
Narrative
For the PY2024- 25, the City received $375,580 in annual CDBG funds from HUD, $318,141.70 in program income, and $384,818 in prior year unallocated CDBG funds for a total of $1,078,539.70.
Identify the geographic distribution and location of investments Table 4 - Geographic Distribution and Location of Investments Target Area Planned Percentage of
Allocation
Actual Percentage of
Allocation
Narrative
Description
Citywide 100% 100% Citywide Area
Narrative
During PY2024-25, the City allocated CDBG funds in a manner consistent with the National Objectives of the CDBG program. One hundred percent of the CDBG funds expended were for activities that benefit low- t o moderate -income persons citywide. The percentage includes Administration and Planning activities.
The City’s investments in Fair Housing Services, Public Services, and Homelessness Prevention Services projects are based on a citywide geography because individuals in need of these services may live anywhere within the jurisdiction, particularly services for special needs populations such as individuals recovering from substance abuse.
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City of Newport Beach 2024-2025 CAPER 10
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.
During PY2024 -25, t he City used CDBG funds to leverage appropriate state, local, and private resources secured by each nonprofit organization providing public services. In addition, the City consistently explored and sought to leverage other sources of funding including but not limited to those listed below and as outlined in the 2020-2024 Consolidated Plan.
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
Local Resources
• Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program
• Orange County Housing Authority (OCHA) Programs
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
During PY2024-25, the City’s nonprofit public service partners used CDBG funds in conjunction with several million dollars of other federal, state, and local funds to implement their programs.
Matching Requirements
The City of Newport Beach does not receive HOME funds and therefore is not required to meet match requirements. As an entitlement jurisdiction, Newport Beach receives CDBG funds and the CDBG 21-14
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2024-2025 CAPER
11 program does not require matching funds.
Publicly Owned Land or Property
The City does not own any publicly owned land or property that used CDBG funds to address needs identified in the 5-year 2020-2024 Consolidated Plan or the 2024-2025 Annual Action Plan. 21-15
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12 CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low -income, low -income, moderate- income, and middle-income persons served.
During PY2024-25, the City of Newport Beach used its CDBG allocation to provide vouchers through the Motel Voucher Program. In addition, the City continued to use non-CDBG funds to accomplish other affordable housing goals. Information about these accomplishments can be found in the narratives below.
Table 5 - Number of Households
One-Year
Goal Actual
Number of homeless households to be provided
affordable housing units
0 0
Number of non-homeless households to be provided
affordable housing units
0 0
Number of special- needs households to be provided
affordable housing units
0 0
Total 0 0
Table 6 - Number of Households Supported
One-Year
Goal Actual
Number of households supported through rental
assistance
0 0
Number of households supported through the
production of new units
0 0
Number of households supported through the rehab of
existing units
15 0
Number of households supported through the
acquisition of existing units
0 0
Total 15 0
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City of Newport Beach
2024-2025 CAPER
13 Discuss the difference between goals and outcomes and problems encountered in meeting these goals.
Goals established in the FY 2024-25 Annual Action Plan relating to providing affordable housing included providing homeless and fair housing services. The City of Newport Beach has limited CDBG funds and therefore does not use CDBG to produce affordable housing units. Instead, the City’s CDBG Program focuses on alleviating financial burden and homelessness for LMI households and homeless households through a variety of services.
In PY2024-25, the City allocated CDBG funds to the Newport Beach Police Department’s Motel Voucher Program and to Families Forward Housing Program. Each program serves homeless community members in the City of Newport Beach.
• Fair Housing Foundation: Fair Housing Services . CDBG funds were used to assist 135 people with fair housing services, including intake and investigation of complaints, education and outreach, and landlord/tenant counseling and mediation. • Families Forward : Housing Program. CDBG funds were used to assist 27 people with homelessness prevention, stability support, food pantry assistance, and more. o In an effort to identify more Newport Beach families that needed prevention and stabilization services, Families Forward significantly increased the amount of outreach to Newport Beach. This included building on our already existing outreach efforts and several new approaches. For example, they sent a letter to any family or individual from Newport Beach who received food pantry services since July. This letter invited them to call or come into their offices to meet with a Family Navigator, who would assess their financial need and determine if they were in need of and eligible for any other form of financial assistance.
• Newport Beach: City Motel Voucher Program. CDBG funds were used to assist 16 homeless persons through the City’s Police Department Motel Voucher Program.
During PY2024-25, the City continued to use non -CDBG funding sources , such as the local Affordable Housing fund, to address the following goals:
• Expand the Supply of Affordable Housing. Based on 2016-2020 ACS and CHAS data, there is a limited supply of housing units affordable to lower -income households. Data shows a particular need for increased rental housing units affordable to households earning 0 to 80 percent of the area median income (AMI). In all, nearly 77 percent of LMI households in the City of Newport Beach are cost-burdened, spending 30 percent or more of their income on housing. The City continues to use its Affordable Housing Trust Fund and other available options under the State Density Bonus law to expand the supply of affordable housing stock.
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City of Newport Beach 2024-2025 CAPER 14
• Preserve the Supply of Affordable Housing . As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to remain safe and habitable. The situation is of concern for LMI homeowners who are generally not in a financial position to properly maintain their homes. The age and condition of Newport Beach’s housing stock is an important indicator of potential rehabilitation needs. Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate-income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low - and moderate -income households in the community.
In addition to the above, the City reported the following non-CDBG funded accomplishments from January 1 to June 30, 2025 . There were 25 street exits from homelessness, with the outcomes below:
• Two exits into independent living
• Two exits into permanent housing
• Four exits reunified with family and friends
• 23 exits into shelters
• One exit into a skilled nursing home
• One exit into a sobering facility
Discuss how these outcomes will impact future annual action plans.
The City of Newport Beach will continue to use non-CDBG funding sources, such as the Local Housing Trust Fund, to expand and preserve the affordable housing stock.
Include the number of extremely low -income, low -income, and moderate- income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.
Table 7 – Number of Persons Served
Number of Persons Served CDBG Actual
Extremely Low-income 116
Low-income 47
Moderate-income 30
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City of Newport Beach
2024-2025 CAPER
15 Total 193
Narrative Information
The City of Newport Beach continues to prioritize the promotion of affordable housing for its residents through its Local Housing Fund and through State Density Bonus Law. While the 2020- 2024 Consolidated Plan indicated that CDBG funds will not be used for affordable housing, the City recognizes the importance of affordable housing opportunities and continues to prioritize the promotion of affordable housing through the Local Housing Fund and the State Density Bonus law.
In addition, the City continued to provide CDBG funds in FY2024-25 to support fair housing services and homelessness prevention services.
The City continues to work to expand the supply of affordable housing through implementation of Density Bonuses . A pproved projects through the 2020 -2024 Consolidated Plan cycle are summarized below:
• In 2017, the Newport Crossings Mixed- Use project, a 350-dwelling unit mixed-use development, was submitted within the Airport Area under the Residential Overlay of the Newport Place Planned Community. In exchange for providing 78 units affordable to low-income households, the developer requested a density bonus of 91 units (35 percent bonus), an incentive to allow for flexibility with unit mix, and a development waiver of building height. The Environmental Impact Report (EIR) was certified, and the project was approved by the Planning Commission on February 21, 2019. The City entered into an Affordable Housing Agreement with the developer on November 9, 2023. The project is currently in plan check review for building permit issuance.
• In December 2019, an application was submitted for a new mixed-use development located at 2510 West Coast Highway that includes the development of 36 dwelling units, 3 of which would be restricted for very low-income households. In exchange for providing t he very low -income units, the developer has requested a density bonus of 9 units (35 percent bonus) and development waiver of building height.
The project was approved by the Planning Commission in February of 2021 and the City Council in July of 2021. The project is currently in plan check review for building permit issuance.
• In December of 2014, an application for the Newport Airport Village was filed, requesting approval of a General Plan Amendment, Planned Community Development Plan (PCDP), and a Development Agreement that would allow for the future redevelopment of the 16.46-acre property with up to 444 dwelling units (329 21-19
City of Newport Beach 2024-2025 CAPER 16
base units and 115 density bonus units) and 297,572 square feet of retail, office, and other airport supporting uses. Approvals were granted by City Council on September 22, 2020. The property owner is actively seeking a builder to implement and construct the project.
• In April of 2020, an application was submitted for Residences at 4400 Von Karman, requesting the rezoning of nonresidential property to mixed- use land uses, including up to 260 residential units plus an allowance for density bonus units up to a total of 312 units (13 Very-Low Income units). The project was approved by the City Council in February 2021.
• In June of 2021, an application was submitted for a new 193 -unit apartment complex located at 1300 Bristol Street. The project consists of 77 base units (including 24 very- low-income units), 77 transfer of development units, and a density bonus of 39 units.
The project was recommended for approval by the Planning Commission on February 17, 2022, and approved by the City Council on March 22, 2022. • In November of 2022, an application was submitted for a new 282 -unit apartment complex located at 1600 Dove Street. The project consists of 188 base units (including 28 very -low-income units), and a density bonus of 94 units. The project was recommended for approval by the Planning Commission on May 23, 2024, and was approved by the City Council in August 2024.
• In December 2022, an application was submitted for a new 229 -unit apartment complex located at 1400 Bristol Street. The project consists of 153 base units (including 23 low-income units), and a density bonus of 76 units. The project was recommended for approval by the Planning Commission on December 7, 2023, and approved by the City Council on April 23, 2024.
• In February 2023, an application was submitted for a new 78 -uit condominium complex located at 1401 Quail Street. The project consists of 52 base units (including 16 low-income units), and a density bonus of 26 units. The project was recommended for approval by the Planning Commission on December 21, 2023, and approved by the City Council on April 23, 2024.
• In November 2023, entitlements to refine and implement a portion of the Newport Airport Village project were submitted for 4540, 4570, 4600, 4630 Campus Drive and 4647 MacArthur Boulevard. The Planning Commission reviewed and approved the project on April 18, 2024.
As a result of the City’s former Inclusionary Housing Ordinance, the City collected approximately $4.2 21-20
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2024-2025 CAPER
17 million in the Affordable Housing Fund. The fees were paid by developers of residential housing in - lieu of providing affordable units. The purpose of the Affordable Housing Fund is to construct, rehabilitate or subsidize affordable housing or assist other governmental entities, private organizations, or individuals to provide or preserve affordable housing. On April 29, 2015, the City published a Request for Proposals for the use of the Affordable Housing Fund toward affordable housing development or programming. The following projects were recommended for funding from an evaluation panel and the City’s Affordable Housing Task Force. • Newport Shores Project: An agreement with Community Development Partners granting $1,975,000 to assist with the acquisition, rehabilitation, and conversion of an existing 12- unit apartment building located at 6001 Coast Boulevard for affordable housing. This project opened as of March 2018.
• Senior Home Repair Program: The City granted up to $600,000 to Habitat for Humanity Orange County for the purpose of establishing a critical home repair program for lower - income seniors. This program is active, has approved fifteen project applications, completed fourteen projects, and is continuing to accept applications. • Seaview Lutheran Plaza Rehabilitation: The City Council approved an agreement granting $800,000 to Seaview Lutheran Plaza to rehabilitate 100 apartment bathrooms to include ADA toilets, removal of tubs, installation of new showers with safety grab bars, new flooring, and paint. The project was completed during the 2017-2018 Program Year. • Costa Mesa Bridge Shelter: The City of Costa Mesa, in partnership with the City of Newport Beach, opened a bridge shelter in May 2021. With 72 beds, the facility provides temporary shelter and support services to individuals experiencing homelessness in Newport Beach and Costa Mesa, with the goal of assisting those individuals to find permanent supportive housing in the area. The shelter is operated by a case management provider that helps clients locate appropriate permanent housing, assists with job searches, and other on -site services. The City contributed $1.4 million to the initial construction costs and will spend $1 million per year to support ongoing operational costs. The shelter has assisted dozens of homeless individuals and 14 people have been housed from Newport Beach. The facility has been expanded and Newport Beach has 5 additional dedicated beds, at a cost of $1.25 million per year for operations. Newport Beach will also have access to 5 additional beds, based on availability, at a daily rate of $155.
• Travelodge motel at 1400 Bristol St. in Costa Mesa: City of Newport Beach will be participating in a major regional project to create permanent supportive housing for those experiencing homelessness and at risk of becoming homeless. The project is a partnership between the County of Orange, the cities of Newport Beach and Costa Mesa and 21-21
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2024-2025 CAPER
18 developer American Family Housing, funded largely by a State grant. California Department of Housing and Community Development (HCD) announced an award of $29 million in Homekey grant funds toward the $45 million total project cost. Newport Beach will contribute $3 million in the form of a 55-year, three percent interest loan. American Family Housing will convert an aging Travelodge motel into a residential community of 78 affordable apartment homes. Construction is expected to take one year, and the apartments will be leased by the end of 2025.
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City of Newport Beach
2024-2025 CAPER
19 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
During PY2024 -25, the City of Newport Beach continued to support the efforts of the Orange County Continuum of Care (CoC) and its member organizations working to address homelessness throughout the County. The Orange County CoC uses the Coordinated Entry System (CES) to help individuals move through the system at a faster pace, there by reducing the amount of time between outreach, intake, and service provision.
The City of Newport Beach also continued to implement its own outreach methods throughout the jurisdiction. The Newport Beach Police Department (NBPD) has four designated homeless liaison officers who work directly with people experiencing homelessness in the City. City staff and its partners also provide resource information and make referrals to 2-1-1 Orange County (211OC).
Offered by Orange County United Way, 211OC is a key service that connects residents with thousands of local health and human service resources. Persons and households in need can call 2-1-1 and/or text their zip code to 898211 to be connected to United Way’s resource database.
During PY2024- 25, the City allocated CDBG funds to activities aimed at reducing and ending homelessness. Through their Housing Program, Families Forward assisted 27 persons through prevention and stabilization support. The NBPD additionally assisted 16 persons through the Motel Voucher Program. This program provides financial assistance for homeless persons to stay in a motel, and also helps with food, clothing, and security deposits. The purpose of the City’s Motel Voucher Program is to bridge the gap betw een unsheltered homelessness and permanent housing.
The Orange County Point -in-Time (PIT) Count collects data on the number of homeless persons across the jurisdiction every two years . The 2024 PIT Count revealed a total of 71 unsheltered homeless persons in the City of Newport Beach. Compared with 2022 data, there has been an approximately 26 percent decrease in unsheltered homelessness in the City.
Addressing the emergency shelter and transitional housing needs of homeless persons
During FY2024-25, the City continued to work with City Net, a nonprofit organization that assists with community outreach and case management services. Working collaboratively with City Net, homeless individuals are connected to emergency housing and other pertinent services. As discussed previously, the Newport Beach Police Department (NBPD) also has four dedicated homeless liaison officers who assist with outreach and connect homeless individuals to the appropriate shelter and transitional housing resourc es as needed. Understanding that each individual and household has 21-23
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20 different needs, City staff works on a case-by-case basis to provide shelter and other needed services.
United Way County’s 2-1-1 Orange County (211OC) also continues to assist with connecting homeless individuals to the appropriate local resources, including emergency shelters. Persons and households in need can call 2-1-1 and/or text their zip code to 898211 to be connected to United Way’s resource database.
The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure that housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system in order to address the immediate needs of Orange County’s homeless population. Homeless Shelter Directory, a nonprofit organization, also provides a directory of homeless resources in the City of Newport Beach.
In Spring 2021, the City of Newport Beach partnered with the City of Costa Mesa to open the Costa Mesa Bridge Shelte r. With 72 beds, the facility provides temporary shelter and support services to individuals experiencing homelessness in Newport Beach and Costa Mesa, with the goal of assisting those individuals to find permanent supportive housing in the area. The shelter is operated by a case management provider that helps clients locate appropriate permanent housing, assists with job searches, and other on-site services. The City contributed $1.4 million to the initial construction costs and will spend $1 million per year to support ongoing operational costs.
During the winter season, the Orange County Cold Weather Armo ry Emergency Shelter Program provides shelter and services for homeless persons at the National Guard Armories. Individuals receive a shelter bed, meals, warm showers, and warm clothing as is available. Orange County service providers are additionally on site to provide other needed services. Other local and regional organizations working to address the emergency shelter and transitional housing needs of homeless persons include:
• Orange Coast Interfaith Shelter – transitional shelter and supportive services • Orange County Rescue Mission – transitional and emergency housing • WISEPlace – shelter, case management, counseling, employment assistance, health and wellness services, addiction recovery, and more.
• Human Options – shelter for women victims of domestic abuse • Serving People in Need (SPIN) – offers guided assistance to permanent housing placement The Orange County CoC recognizes the need to maintain a level of transitional housing. Currently, the CoC is examining methods to shorten stays in emergency shelters and transitional housing so that resources may be used for both rapid re-housing and placement in permanent supportive housing. 21-24
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21 During PY2024-25, the City of Newport Beach allocated CDBG funds to activities aimed at reducing and ending homelessness. Through their Housing Program, Families Forward assisted 27 persons through prevention and stabilization support. The NBPD additionally assisted 16 persons through the Motel Voucher Program. This program provides financial assistance for homeless persons to stay in a motel, and also helps with food, clothing, and security deposits. The purpose of the City’s Motel Voucher Program is to bridge the gap between unsheltered homelessness and permanent housing.
The City keeps a Homeless Data Dashboard on the City website, featuring statistics about annual and current homelessness in the jurisdiction. Between J uly 2024 to June 30, 2025, there were 11 successful street exits in the City. All successful exits were to the Costa Mesa Bridge Shelter.
Helping low -income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs Guided by the 2020 -2024 Consolidated Plan, CDBG activities funded by the City of Newport Beach during PY2024-25 included public services aimed at alleviating financial instability/poverty, ensuring fair housing conditions, and preventing and eliminating homelessness. Altogether, these services and programs help prevent low-income individuals and families from becoming homeless, including those who are extremely low-income and/or have additional special needs. During PY2024-25, the following services were provided through the City’s CDBG program:
• The City’s Motel Voucher Program assisted 16 individuals by providing financial assistance for motel vouchers, food, and security deposit assistance. Th e provision of motel vouchers can prevent LMI individuals and families from street homelessness by securing a transitional, safe place to sleep while a stable housing situation is sought. • Families Forward assisted 27 individuals through their Housing Program which provides a transition from crisis to stability and self -sufficiency for homeless families. Services include transitional housing, counseling, food, career coaching, life skills, education, and acquisition of permanent housing. Individualized self-sufficiency plans are developed with case managers, and progress is monitored on a regular basis at monthly case management meetings.
Depending on financial capacity, families will pay 0 t o 30 percent of their income in rent.
Transitional housing ranges from 1 to 24 months. Case managers conduct pre - and post- program surveys to document this data.
• Fair housing services were provided to 135 individuals, which included counseling and landlord-tenant mediation. These housing services can prevent individuals from being evicted and therefore aid in the prevention of homelessness.
• Meals on Wheels of Orange County provided meals to 44 LMI seniors. Low-income seniors are vulnerable to becoming homeless due to limited income. Providing meals to this population 21-25
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22 with special needs allows them to save money on food expenses, while improving access to better nutrition.
In addition to the above, the Orange County Continuum of Care (CoC) encourages services aimed at reducing incidences of homelessness for those receiving public assistance and those likely to become homeless after being discharged from publicly funded institutions and systems of care. Some of these services include:
• Emergency Rental and Utility Assistance: Short -term financial assistance to prevent eviction and utility shut off.
• Credit Counseling: Financial counseling and advocacy to assist households to repair credit history.
• Legal/Mediation Services: Tenant-landlord legal/mediation services to prevent eviction. • Food Banks and Pantries: Direct provision of food, toiletries, and other necessities. • Transportation Assistance: Direct provision of bus vouchers and other forms of transportation assistance.
• Clothing Assistance: Direct provision of clothing for needy families and individuals. • Prescription/Medical/Dental Services: Direct provision of prescription, medical, and dental services.
• Workforce Development: Direct provision of job training services designed to develop and enhance employment skills, as well as to help clients secure and retain living wage jobs. • Information & Referral Services: Direct provision of 24 -hour/7-days-a-week call center services to provide health and human service information to at-risk populations. • Recuperative care for homeless individuals who become ill or injured.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the peri od of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
During PY2024- 25, the City allocated CDBG funds to Families Forward’s Housing Program. The Housing Program provides transitional housing, counseling, career coaching, life skills, and case management services to homeless families. In addition, the Housing Program places an emphasis on self-sufficiency and stability. Clients work with a case manager to develop a self -sufficiency plan. Depending on financial capacity, families may pay 0 to 30 percent of their income toward rent. Transitional housing offered through the Housing Program ranges from 1 to 2 4 months.
During PY2024-25, 27 Newport Beach residents were assisted through the CDBG allocation.
In addition, the City is currently working to solidify an agreement with Trellis International, a local nonprofit organization serving individuals experiencing homelessness or housing insecurity. 21-26
City of Newport Beach 2024-2025 CAPER 23
Through volunteer projects managed by Trellis’ Community Impact Team (CIT), participants develop and refine skills needed to re-enter the job market and remain both stably employed and housed. Housing Choice Vouchers (HCVs) are available to Newport Beach residents through the Orange County Housing Authority.
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24 CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
Newport Beach is within the service area of the Orange County Housing Authority (OCHA) for the purposes of Section 8 and Public Housing. The data presented below is for Newport Beach and the narrative responses address the needs of the entire C ounty, with specific references to the City of Newport Beach.
As of J uly 30, 2025, OCHA administered 88 Housing Choice Vouchers utilized by Newport Beach residents, including 21 for families, 5 for households with disabled members, and 62 for elderly households.
The City of Newport Beach does not own public housing. During the current five-year planning period, OCHA’s goals include:
• Apply for additional housing assistance funding and programs that may become available. • Explore the use of Project -Based Housing Choice Vouchers or other housing funds to promote the construction or acquisition activities that will result in additional units or developments that will serve special needs populations. • Ensure consistent quality of assisted housing services by maintaining high performer status in Section Eight Management Assessment Program (SEMAP) scores. • Promote Family Self-Sufficiency incentives and homeownership opportunities for Housing Choice Voucher participants in partnership with local programs and related service providers.
• Expand assisted housing choices by conducting outreach efforts to increase the number of property owners and their participation in housing assistance programs. • Identify and utilize technology to enhance operational effectiveness and efficiency in delivery of housing assistance services.
Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
OCHA supports resident councils and actively seeks input from public housing authority residents on the management and implementation of OCHA policies and procedures.
Housing prices in Orange County are so high that homeownership opportunities are limited for OCHA residents. On a limited basis, OCHA has partnered with Habitat for Humanity to provide two affordable homeownership units, but these types of efforts are limited due to financial constraint.
OCHA also manages a Housing Choice Voucher Homeownership Program that it markets to all OCHA program tenants.
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City of Newport Beach 2024-2025 CAPER 25
Actions taken to provide assistance to troubled PHAs
Not applicable.
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26 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) Housing and development costs in the City of Newport Beach remain expensive, as is the case across much of the State of California and the surrounding jurisdictions. This is reflected in the 2020-2024 Consolidated Plan and in the City’s 2021-2029 Housing Element. Currently, the demand for affordable housing exceeds the supply of affordable housing. Due to insufficient resources to help meet demand, increasing the affordable housing supply to meet these needs remains difficult.
On March 9, 2021, the City Council adopted Resolution No. 2021-18 adding City Council Policy K-4 (Reducing the Barriers to the Creation of Housing). Council Policy K-4 recognizes that the City has several major constraints on existing lands that severely limit or totally restrict the City’s ability to accommodate growth to the extent identified in the 6
th Cycle Regional Housing Needs Allocation
(“RHNA”). As a result, the City continuously searches out new and flexible land use and zoning strategies. Council Policy K-4 contains three distinct housing-related recommendations:
1. Production of Accessory Dwelling Units (ADUs): Sets forth directives to further encourage and incentivize the development of ADUs beyond the minimum State law requirements as an important strategy to accommodate future growth in combination with other strategies to meet the RHNA a llocation. To implement this policy, the City has completed the following: 1) d eveloped a fee waiver program for new ADU development; 2) contracted design services to develop pre-approved ADU plans that property owners can utilize at no- cost to construct ADUs and to expediate the approval process; 3) create d a user-friendly website dedicated to inform property owners on the benefits of ADU development, clear instructions and a comprehensive guidebook, incentives for ADU development, and development standards (www.newportbeachca.gov/adu); and 4) formed an ADU Planning Commission Ad -Hoc Committee and held community meetings to development more flexible development standards to encourage ADU development. On February 14, 2023, the City Council adopted Ordinance No. 2023 -2 updating Newport Beach Municipal Code Section 20.48.200 (Accessory Dwelling Units) for consistency with 2022 updates to State ADU law and to incorporate the recommendations of the Ad-Hoc Committee.
2. Planning Commission Review and Recommendations for Mixed -Use Designations :
Despite the mixed-use housing opportunities that were created in the 2006 Comprehensive General Plan Update, a majority of these sites remain underutilized with single, non - residential uses, such as retail or office. The City’s existing development standards related to mixed -use development may create constraints to the redevelopment of these 21-30
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27 properties. Therefore, th is policy directs staff and the Planning Commission to annually review the established mixed-use zones in the City and recommend code changes or policy ideas to the City Council that reduce regulatory barriers and incentivize mixed -use residential development. To implement this policy, the City has adopted Housing Policy Action 4H (Review Mixed-Use Zones) as part the 6th Cycle Housing Element update. The City has been focused on implementing the rezoning program (Policy Actions 1A through 1G) to accommodate new residential development projects on the Housing Opportunity Sites.
Once these are completed, focus will shift to other Housing Policy Actions, including 4H.
Utilizing the REAP 2.0 program through Southern California Association of Governments (SCAG) in coordination with the Orange County Council of Governments ( OCCOG). Project is expected to begin in 2025 with recommendations anticipated mid-2026.
3. Mixed-Us e Resorts : Mixed-use resorts provide an opportunity to revitalize older resort hotels by incorporating accessory residential units. The policy affirms the City Council’s direction to interpret ambiguities in code provisions to allow for limited residential units as an accessory use to the principal use of a hotel and to pursue any needed amendments to accommodate such uses. To implement this policy, the City Council upheld Director’s Determination No. DD2021-001 on August 24, 2021, finding that accessory residential is an allowed use within resort hotels. On May 12, 2022, the Planning Commission approved the Ritz-Carlton Residences located at 900 Newport Center Drive and involved the conversion of 159 hotel rooms into hotel branded residences. The project was conditioned to require the payment of $100,000 per unit fee as the means determined appropriate by the Community Development Director to address potential impacts to public services, public safety, public access, and affordable housing. Of the $100,000 per unit fee, $65,000 per unit would be reserved for a future affordable housing project.
To
address housing affordability and the lack of monetary resources for affordable housing, the City will continue to invest Affordable Housing Fund resources to incentivize the development of affordable housing during the current Consolidated Plan cycle. In addition, the City will continue to work with the County and refer LMI residents for participation in their Housing Rehabilitation Program.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The primary obstacle s to meeting the underserved needs of LMI and special needs populations include a lack of funding from federal, state, and other local sources, and the high cost of housing that is not affordable to LMI residents.
To address these obstacles in PY2024-25, the City invested CDBG funds through the 2024 -2025 Annual Action Plan in projects that provide public services and prevent homelessness. The following activities were funded with CDBG during PY2024-25:
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28 • The City’s Motel Voucher Program assisted 16 individuals by providing financial assistance for motel vouchers, food, and security deposit assistance. The provision of motel vouchers can prevent LMI individuals and families from street homelessness by securing a transitional, safe place to sleep while a stable housing situation is sought. • Families Forward assisted 27 individuals through their Housing Program which provides a transition from crisis to stability and self -sufficiency for homeless families. Services include transitional housing, counseling, food, career coaching, life skills, education, and acquisition of permanent housing. Individualized self-sufficiency plans are developed with case managers, and progress is monitored on a regular basis at monthly case management meetings.
Depending on financial capacity, families will pay 0 t o 30 percent of their income in rent.
Transitional housing ranges from 1 to 24 months. Case managers conduct pre - and post- program surveys to document this data.
• Fair housing services were provided to 135 individuals, which included counseling and landlord-tenant mediation. These housing services can prevent individuals from being evicted and therefore aid in the prevention of homelessness.
• Meals on Wheels of Orange County provided meals to 44 LMI seniors. Low-income seniors are vulnerable to becoming homeless due to limited income. Providing meals to this special needs population allows them to save money on food expenses.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City of Newport Beach disseminated U.S. EPA brochures with education about lead- based paint (LBP) hazards. All units that received assistance and were built prior to January 1, 1978, were tested for LBP. If and when LBP was detected, appropriate abatement procedures were followed in accordance with the requirements of 24 CFR Part 35.
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City of Newport Beach’s CDBG program is largely focused on reducing the number of poverty - level families through the funding of public services. During PY2024-25, the City allocated CDBG funds to several public services for LMI seniors, youth, families, and homeless persons/households.
Accomplishments included:
• The City’s Motel Voucher Program assisted 16 individuals by providing financial assistance for motel vouchers, food, and security deposit assistance. The provision of motel vouchers can prevent LMI individuals and families from street homelessness by securing a transitional, safe place to sleep while a stable housing situation is sought. • Families Forward assisted 27 individuals through their Housing Program which provides a transition from crisis to stability and self -sufficiency for homeless families. Services include transitional housing, counseling, food, career coaching, life skills, education, and acquisition of permanent housing. Individualized self-sufficiency plans are developed with case managers, 21-32
City of Newport Beach 2024-2025 CAPER 29
and progress is monitored on a regular basis at monthly case management meetings.
Depending on financial capacity, families will pay 0 to 30 percent of their income in rent.
Transitional housing ranges from 1 to 24 months. Case managers conduct pre - and post- program surveys to document this data.
• Fair housing services were provided to 135 individuals through the Fair Housing Foundation , which included counseling and landlord-tenant mediation. These housing services can prevent individuals from being evicted and therefore aid in the prevention of homelessness. • Meals on Wheels of Orange County provided meals to 44 LMI seniors. Low-income seniors are vulnerable to becoming homeless due to limited income. Providing meals to this special needs population allows them to save money on food expenses.
During PY2024-25, the City had also planned to fund the Boys and Girls Club’s workforce development program for youth aged 16 to 24 who are aging out of the Boys and Girls Club program. However, the administrative burden of the CDBG funds was prohibitive to getting any funding reimbursement requests.
In addition to the above, the City continues to seek new funding opportunities and new partnership opportunities while supporting the following local initiatives:
• Supporting activities that expand the supply of housing that is affordable to low - and moderate-income households, including investment of the City’s Housing Trust Fund resources and using the State Density Bonus law to incentivize the development of additional affordable housing units;
• Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; and
• Supporting housing preservation programs that ensure low- income households have a safe, decent and appropriate place to live.
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Moreover , in California, some primary programs that assist families experiencing poverty are CalWORKs, CalFresh (formerly food stamps) and Medi -Cal. These programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition, and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.
Actions taken to develop institutional structure. 91.220(k); 91.320(j) The institutional delivery system in Newport Beach is high -functioning and collaborative . T he relationship between local government and the nonprofit sector is comprised of a network of capable 21-33
City of Newport Beach 2024-2025 CAPER 30
community-based organizations that are delivering a full range of services to residents. Affordable housing development and preservation activities are carried out by the Planning Division of the Community Development Department in partnership with other agencies. Public service activities will be carried out by nonprofit organizations to achieve the Strategic Plan goals. The Planning Division and the Public Works Department will work together with contractors to implement public facility improvement projects in subsequent program years implementing the 20 20-2024 Consolidated Plan Strategic Plan.
One of the keyways the City is developing and expanding institutional structure to meet underserved needs is by funding a wide variety of services targeted to seniors, and individuals or families at risk of homelessness with CDBG public service grants.
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
To enhance coordination between public and private housing and social service agencies during PY2024-25, the City invested CDBG funds in public service agencies/providers and continued to form relationships with these agencies and more.
In the implementation of the 2024-2025 Annual Action Plan, the City invested CDBG resources in the following public service agencies/projects:
• Meals on Wheels
• City Motel Voucher Program
• Fair Housing Foundation
• Families Forward
Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City partnered with 15 other Orange County jurisdictions to conduct a regional Analysis of Impediments to Fair Housing Choice (AI) report for the 5 -year program period of 2015 -2019. An updated 2025-2029 Orange County Regional Assessment of Fair Housing was published during PY2024-25.
In PY2024-25, the City allocated CDBG funds to the Fair Housing Foundation (FHF) for the provision of fair housing education, counseling, and landlord-tenant mediation services. FHF assisted 135 persons in the City of Newport Beach with their CDBG allocation. 21-34
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31 CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements To ensure that CDBG funds are used efficiently and in compliance with applicable regulations, the City provides technical assistance to all subrecipients at the beginning of each program year and monitors subrecipients throughout the program year.
Technical Assistance
To enhance compliance with federal program regulations, the City made technical assistance available to prospective applicants for CDBG Notice of Funding Availability (NOFA) upon request to review the Strategic Plan goals, program requirements and available resources with potential applicants. After the approval of the 2024-2025 Annual Action Plan, a mandatory subrecipient workshop was held to review program regulations in detail, to provide useful forms and resources for documenting compliance, and to review the City’s compliance procedures and requirements.
Additionally, individualized technical assistance was provided on an as -needed basis throughout the program year.
Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to determine eligibility, conformance with a National Objective and conformance with a Plan goal.
This review also examines the proposed use of funds, eligibility of the service area, eligibility of the intended beneficiaries and likelihood of compliance with other federal requirements.
Subrecipients are required to submit an audit and other documentation to establish their capacity, and any findings noted in the audit are reviewed with the applicant. Eligible applications are then considered for funding. Once funded, desk monitoring includes ongoing review of required quarterly performance reports.
For CDBG public service activities, on-site monitoring is conducted at least once every two years, or more frequently as needed , to ensure compliance. These reviews include both a fiscal and programmatic review of the subrecipient’s activities. The reviews determine if the subrecipient is complying with program regulations and the City contract. Areas routinely reviewed include overall administration, financial systems, appropriateness of program expenditures, program delivery, client eligibility determinat ion and documentation, reporting systems, and progress toward achieving contractual goals. Following the monitoring visit, a written report is provided delineating the results of the review, along with any findings of non- compliance and the required corrective action (s). Subrecipients normally have 30 days to provide the City with corrective actions taken to address any noted findings. Individualized technical assistance is provided as soon 21-35
City of Newport Beach 2024-2025 CAPER 32
as compliance concerns are identified. For CDB G capital projects, monitoring also includes compliance with regulatory agreement requirements.
Technical Assistance was provided at the beginning of the program year in a congregate workshop setting as well as 1:1 technical assistance as needed during the program year.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.
In accordance with the City’s adopted Citizen Participation Plan, a public notice was published in the Daily Pilot on September 6, 2025, notifying the public of the availability of the Consolidated Annual Performance and Evaluation Report for a 15 -day public review and comment period beginning September 6, 2025, and ending September 23, 2025. A copy of the public notices is included in Appendix A.
The draft CAPER was available on the City website and at the following locations:
Community Development Department
100 Civic Center Drive
Newport Beach, CA, 92660
(949) 644-3200
City Clerk’s Office
100 Civic Center Drive
Newport Beach, CA 92660
(949) 644-3005
Central Library
1000 Avocado Ave
Newport Beach, CA 92660
(949) 717-3800
City Website
http://www.newportbeachca.gov/CDBGreports
A public hearing was conducted before the City Council on Tuesday, September 23, 2025, to solicit comments from residents and interested parties. A summary of any written or oral comments received during the public hearing are included in Appendix B of the CAPER document. 21-36
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
Not applicable. The City did not make any amendments to its 2024-2025 Annual Action Plan.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
The City does not receive Brownfields Economic Development Initiative grants. [BEDI grantees] Describe accomplishments and program outcomes during the last year.
Not applicable.
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APPENDICES
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APPENDIX “A”
PUBLIC NOTICE
To Be Inserted in Final CAPER
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APPENDIX “B”
SUMMARY OF CITIZEN PARTICIPATION
COMMENTS
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SUMMARY OF CITIZEN PARTICIPATION COMMENTS
In compliance with the City’s approved Citizen Participation Plan and implementing regulation 24 CFR 91.105, a public notice was published on (see attached proof of publication) to solicit public comments from interested citizens regarding the draft 20 24-2025 CAPER. The draft CAPER was made available to the public for a period of 15 days in order to provide an opportunity for the public to review the document.
Insert written or verbal comments received.
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APPENDIX “C”
IDIS REPORTS
PR01 - HUD Grants and Program Income
PR03 - CDBG Activity Summary
PR06 - Summary of Consolidated Plan Projects
PR23 - Summary of Accomplishments
PR26 - CDBG Financial Summary
PR26 – CDBG-CV Financial Summary
To Be Inserted in Final CAPER
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