29A - CONSOLIDATED PLAN UPDATE Exhibit 1

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2011/12 1 2010/11- 2014/15 CITY OF SANTA ANA CONSOLIDATED PLAN ACTION PLAN and very low- income households. In order to serve these populations, the City will focus limited resources toward upgrading existing housing units and expanding the number of affordable housing units for both owners and renters. Housing rehabilitation and acquisition /development of new rental housing units are examples of activities slated for implementation during the 2011 -2012 Program Year. Additionally, the City will use American Dream Downpayment Initiative (ADDI) funds on hand to assist an estimated four households to purchase a home .$ Finally, the City and local nonprofits will continue to provide services for underserved City residents. Social services to be funded during the 2011 -2012 Program Year will include home meal delivery, homelessness housing /support services, and youth programs. By focusing resources on the housing and community needs identified as HIGH priority the City will be able to utilize limited resources more efficiently. When available, Santa Ana will seek out additional resources beyond federal and local funds to address barriers. FOSTERING AND MAINTAINING AFFORDABLE HOUSING Many of the barriers to maintaining and expanding affordable housing opportunities for all residents of Santa Ana are attributable to market constraints. Many of these market constraints are beyond the control of the City, nonetheless, to the extent possible, the City will utilize its limited resources to foster and maintain affordable housing. By leveraging federal funds with local redevelopment funds and resources available to nonprofit housing developers, the City may be able to increase its supply of long term affordable housing. The City's owner occupied housing stock will be preserved with rehabilitation funds for homeowners and enforcement of local housing /building codes. In July 2008, the Housing and Economic Recovery Act of 2008 was signed into law. This law authorized the creation of the Neighborhood Stabilization Program (NSP), which aimed to curtail the negative impact of foreclosed homes on residential neighborhoods. Based on HUD's distribution formula, the City of Santa Ana qualified as a direct HUD -NSP recipient ($5,795,151); therefore in December 2008, the City amended its 2008 -2009 Annual Action Plan in order to receive NSP funds. Since this time, the City has implemented a NSP program which includes using funding to acquire and rehabilitate foreclosed residential properties. These units were marketed and sold to qualified homebuyers. Additionally, the City met the NSP requirement to allocate 25 percent of program funds for Very Low - Income persons by working in partnership with a nonprofit and for - profit housing developer. The ultimate goal of the program is to utilize limited NSP funds to make a significant impact in 8 The funding for the ADDI program has been terminated making the program obsolete; however, the City has approximately $200,000 in funding on hand. 2011 -2012 ANNUAL ACTION PLAN 30 Exhibit 1 04/21/2011