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Block Groups. Comparing 1990 and 2000 Census data has helped the City <br />evaluate if program efforts to improve the quality of life for lower income Santa Ana <br />households have had an impact. A comparison seems to indicate a further <br />concentration of lower income residents in Santa Ana's low- and moderate - income <br />target area. During the 2004 -2005 report period, the City will begin steps to develop <br />performance output measures that not only measure the number of persons <br />assisted by HUD - funded activities, but also will measure how the quality of life for <br />low- and moderate - income persons is improved. <br />c. What barriers may have a negative impact on fulfilling the strategies and the <br />overall vision? <br />The City has endeavored to implement its overall vision for community improvement <br />despite obstacles and barriers. Implementation of HUD's new lead paint hazard <br />regulations has necessitated the utilization of extensive staff time to implement a <br />compliance process. Housing rehabilitation projects have experienced significant <br />delays (30 to 60 days) as "rehabilitation" work cannot commence until lead testing <br />and clearance has been completed. These delays and added costs act as a <br />disincentive for program participation. As described previously, some property <br />owners have chosen to not participate in housing rehabilitation activities simple due <br />to issues related to lead -based paint compliance. Activities such as CDBG /ESG <br />funded transitional housing also experienced delays. If applicable, grant recipients <br />were required to provide proof of lead paint testing and clearance. If clearance was <br />not provided, City staff withheld payment in order to assure compliance. This has <br />resulted in slower spending of CDBG and ESG funds. <br />During the report period the housing market in Orange County continued to <br />experience increases in property values and rents. During the report period the City <br />was able to raise its HOME -after rehabilitation value to $380,000. And while this <br />change allowed the City to assist more lower income households rehabilitate their <br />properties, it did not necessarily help first -time homebuyers as this new median <br />maximum purchase price was still out of reach for most households with an income <br />at 80% of the County median. These housing costs surges have resulted in an <br />increased demand for rental assistance and affordable housing in general. <br />Increasing housing costs have placed additional pressure on the City to identify new <br />resources to further expand affordable rental and ownership housing opportunities. <br />Additionally, increased labor and material costs have reduced the effective amount <br />of money the City has to fund activities impacting the costs of public services and <br />construction of public facilities. <br />Finally, California counties and cities are still waiting for the full impact of the State's <br />budget crisis. Early indicators show that many programs that have typically received <br />state funding will see severe reductions in resources; therefore added pressures will <br />be placed on the HUD grant funds administered by the City. <br />28 9/9104 <br />19E -31 <br />