29A - CONSOLIDATED PLAN UPDATE Exhibit 1

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2010/11 - 2014 -15 CITY OF SANTA ANA CONSOLIDATED PLAN I 2011/12 ACTION PLAN neighborhoods that have been hard hit by the slump in the housing market and sub -prime market collapse. The City was also notified in January 2010 that it was awarded $10,000,000 in NSP2 funds (a nationwide competition). These resources will be used in the same manner as NSP1 funding. Between both NSP awards, the City anticipates assisting 140 households to become new homeowners. Additionally, the City anticipates producing at least 54 newly refurbished rental units that are affordable to very low- income households. BARRIERS TO AFFORDABLE HOUSING The City will implement an array of housing programs in order to enhance and expand the supply of affordable housing in Santa Ana. As outlined above, the City will provide housing rehabilitation programs for both owner- and rental- housing units. Additionally, programs to provide new homeownership opportunities will be undertaken with NSP funding. For renters, the City will evaluate various activities including rental assistance vouchers, acquisition and rehabilitation, and also may consider new construction activities. The City will continue to utilize its strategy to leverage federal funds with non - federal resources, especially those available to nonprofit housing developers. A new barrier to the provision of affordable housing for Santa Ana residents has come to light in the past year — significant reductions in federal funds (e.g., HOME, CDBG) and a threat from the Governor to eliminate redevelopment agencies. The City utilizes these funding resources to develop and upgrade the community's housing stock. With pending reductions in housing resources, the City will most likely scale back or delay pending and future activities aimed at improving /expanding the City's housing stock for lower income households. LEAD -BASED PAINT As outlined in the City's 2010 -2014 Consolidated Plan, HUD estimates that 74 percent of dwellings built prior to 1980 have some level of lead -based paint. Since over 80 percent of Santa Ana's housing was built before 1980, the City recognizes lead -based paint hazards as an economic and health issue. The cost of removing lead paint often acts as a deterrent to addressing this problem especially for lower income families. The City has implemented HUD's lead -based paint hazards regulations (Title X). These regulations require that certain types of HUD - funded housing activities must be tested for lead -based paint hazards prior to the beginning of any work. If the property owner moves forward with the HUD - funded housing activity, all lead -based paint hazards will be controlled or abated using HUD defined "safe work practices." Complying with lead paint requirements has increased rehabilitation 04/21/2011 31 2010 -2011 ANNUAL ACTION PLAN Exhibit 1