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in Orange County is highly fragmented with 27 school districts serving the county's students. <br />District boundaries frequently map onto municipal boundaries, which in turn correlate to patterns <br />of segregation. Inter -district transfers are only available for extremely limited circumstances. This <br />Analysis did not reveal school assignment policies that contribute to segregation within individual <br />school districts. <br />Loss of Affordable Housing <br />The loss of affordable housing is a significant contributing factor to fair housing issues in Orange <br />County. When subsidy contracts expire, the housing providers that often have the least economic <br />incentive to renew their affordability restrictions are those that are located in higher opportunity <br />areas or in areas that are gentrifying or at risk of gentrification. In Orange County, according to <br />the National Affordable Housing Preservation Database, there are 69 subsidized properties with <br />affordability restrictions that are scheduled to expire between now and the end of 2024. The loss <br />of the developments among these that are most likely to be converted to market -rate occupancy <br />could contribute to segregation and fuel displacement. <br />Occupancy Codes and Restrictions <br />Occupancy codes and restrictions are a significant contributing factor to fair housing issues in <br />Orange County. Specifically, there is a substantial recent history of municipal ordinances targeting <br />group homes, in general, and community residences for people in recovery from alcohol or <br />substance abuse disorders, in particular. In 2015, the City of Newport Beach entered into a $5.25 <br />million settlement of a challenge to its ordinance, but that settlement did not including injunctive <br />relief calling for a repeal of that ordinance.25 Group home operators have also challenged the City <br />of Costa Mesa's ordinance, though a jury found in the City's favor.26 Following the jury's verdict <br />in that case, there were reports that Orange County was considering similar restrictions for its <br />unincorporated areas. 2' Although municipalities have an interest in protecting the health and safety <br />of group home residents, these types of restrictions may be burdensome for ethical, high -quality <br />group home operators, and the need for restrictions generally is not backed up by data showing <br />increased need for public services, including emergency services. Occupancy codes and <br />restrictions are not as high priority of a barrier as the factors that hinder the development of <br />permanent supportive housing, as group homes are generally less integrated than independent <br />living settings. <br />25 Hannah Fry, Newport Will Pay Group Homes $5.25 Million Settlement, L.A. TIMES (July 16, 2015), <br />hops://www.latimes. com/socal/dadypilot/news/tn-dpt-me-0716-newport-Eroup-home-settlement-20150716- <br />story.html. <br />26 Alicia Robinson, Federal Jury Sides with Costa Mesa in Sober Living Case, O.C. REGISTER (Dec. 7, 2018), <br />https://www.ocregister.com/2018/12/07/federal-ijI -sides-with-costa-mesa-in-sober-living case/. <br />29 Teri Sforza, Orange County, Following Costa Mesa's Lead May Regulate Sober Living Homes, O.C. REGISTER <br />(Sep. 20, 2019), https://www.ocregister.com/2019/09/20/orange-county-following-costa-mesas-lead-may-regulate- <br />sober-liv ing-homes/. <br />323 <br />75A-602 <br />