2014-006 - Santa Ana General Plan Housing Element and Public Safety Element Updates

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600 50% 40% ad 30% alt i5 20% 10% • 0% Homeowner Renter Moderate overpayment E Severe overpayment Chart A -20: Housing Overpayment in Santa Ana Source: U.S. Census Bureau, 2007- 2011 American Community Survey. HOUSING NEEDS sampling methodology), so these figures may not reflect current housing problems. Housing overcrowding is most severe among lower income households and lower income, large, renter families. Based on recent demographic and housing trends, it is unclear whether this level of housing overcrowding will decline. According to the 2011 ACS, approximately 21 percent of home owners (8,020) live in overcrowded conditions, with many severely overcrowded. In contrast, 43 percent of renters (16,311) live in overcrowded housing. Forty -five percent of the foreign born population in Santa Ana live in overcrowded conditions, while it is estimated that only 9 percent of native residents live in overcrowded situations. The non - citizen, foreign born residents experience a lower income and have a larger household size (6.2) than family size (53), indicating that these households are comprised of families and unrelated people living under the same roof. Housing Overpayment Housing overpayment is also a significant problem in Santa Ana. The state - recognized definition of overpayment is spending 30 percent or more for a renter and 35 percent or more for a homeowner of one's income on housing. Housing overpayment is a critical issue in that households spending too much for housing must often forego other necessities, including health insurance and adequately - sized housing. In recent years, the housing boom artificially pushed up unprecedented increases in sales prices. Many low and moderate income households purchased homes in the past decade with adjustable rate mortgages and are now incurring high cost burdens. Overpayment occurs at two levels. Moderate overpayment refers to housing costs between 30 to 50 percent of gross income; severe overpayment refers to housing costs in excess of 50 percent of gross income. The 2011 ACS reports 31,676 households (43 percent) overpaid for housing. Of this total, 57 percent were renters (21,496 households) and 39 percent were owners (13,867 households). Housing overpayment is most severe among extremely low and low income households and special needs groups. Of the 40,775 lower income households in the City, 17,534 (43 percent) overpaid for housing. Approximately 64 percent of lower income renters and roughly 73 percent of lower income owners allocate more than 30 percent of their income for housing costs. The ACS acknowledges error rates of 25 to 50 percent (based on sampling methodology), so these figures may be exaggerated. Nevertheless, it is safe to assume that a majority of lower income households currently pay more than 30 percent of their income in housing costs. CITY OF SANTA ANA GENERAL PLAN HOUSING ELEMENT