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has been able to increase and preserve its supply of affordable rental housing. Additionally, the City's owner occupied rehabilitation program helped preserve housing units occupied by lower income households. Homeownership opportunities for low- and moderate - income first time buyers were advanced by the City's participation in the MCC program and its partnership with Habitat For Humanity. HOPWA funds helped foster and maintain affordable housing for persons with HIV and AIDS via homelessness prevention, tenant based rental assistance, and transitional /hospice housing programs. Additionally, the Santa Ana Housing Authority provided Section 8 rental assistance vouchers to very-low income households. Participants in the Authority's Section 8 Family Self- Sufficiency program were provided classes on how to prepare for homeownership — some households began investment into an escrow account that will be used for a down payment. These and other related accomplishments for the report period have been highlighted throughout this report. Finally, during the report period, the City was awarded HUD resources via the American Dream Downpayment Initiative (ADDI) program. The ADDI program resources can be used to also assist qualified first time homebuyers purchase a home. During the report period, initial steps were taken to implement the ADDI program; the program should be operational during the 2004 -2005 report period. 3. ACTIONS TO ELIMINATE BARRIERS TO AFFORDABLE HOUSING: The 2000 — 2004 Consolidated Plan identified several barriers to the development of affordable housing including the following: ■ Governmental constraints such as property taxing, land -use controls (e.g., density and zoning restrictions), building codes, building permit fees and off -site improvement requirements. ■ Real estate market constraints primarily involve the availability, cost, and competition for land. Other constraints include finance costs and costs of construction. Available land in the City mostly consists of small parcels that are difficult to assemble for significant new construction projects. Relocation costs and housing replacement requirements for redeveloping improved properties also act as barriers to the development of affordable housing. Additionally, several contractors who previously participated in public- funded housing rehabilitation activities have chosen not to bid on such projects. The primarily reasons give are the added cost of complying with federal regulations (e.g., prevailing wage and Section 3) and the length of time they need to complete a project is disrupted by issues such as lead -based paint testing, removal and clearance. ■ Escalating rents have impacted the ability of lower income households to obtain decent and affordable housing. Over the past year, Santa Ana rental rates have increased 1.5 %, to an average cost of $1,156 per month. The Center on Budget and Policy Priorities reports that there is one affordable housing unit for every 18 9/9 /oa 19E -21