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<br />· Increased labor and material costs have reduced the effective amount of money the <br />City has to fund activities. Increasing workers compensation and health care <br />insurance costs have significantly impacted public service agencies. The cost of <br />raw materials and the cost to transport materials have also had a significant impact <br />on the cost of public facilities construction projects, <br /> <br />· Since 2001, HUD grants to the City have steadily decreased. Most recently, the <br />elimination of the CDBG program has been proposed; in it its place a new program <br />that significantly reduced eligible uses of federal funds and the amount of funds that <br />would be allocated to the City has been proposed, Additionally, in light of current <br />world events, it is anticipated that continued reductions in grant allocations will be <br />the norm. <br /> <br />· Perhaps the greatest barrier or obstacle impacting the City's ability to implement its <br />community vision has been the dramatic increase in housing costs. During the <br />report period the housing market in Orange County continued to experience <br />increases in property values and rents. Regionally, median home purchase prices <br />exceed $600,000 and average rents top $1,400 per month. These factors have <br />resulted in an increased demand for rental assistance and affordable housing in <br />general. Surging housing costs have pressured the City to identify new resources to <br />expand affordable rental and home ownership opportunities. <br /> <br />d. What is the status of qrant proqrams? <br /> <br />All grants are moving forward as anticipated. Despite the influx of significant HOME <br />program income, HOME funds have been committed and spent within statutory <br />required timeframes. CDBG activities also have been implemented in a timely manner. <br />Program staff has taken an aggressive position to ensure public service grant recipients <br />are spending funding in a timely manner rather than carrying grant funds from one year <br />to the next. Similarly, ESG grantees are required to expend funds in a timely manner. <br />If funds are not expended by the end of the report period, the City has recaptured funds <br />and reprogrammed these resources. HOPW A funds have been committed in a timely <br />manner for supportive services and tenant based rental assistance. Funds for <br />development of a new HIV/AIDS housing have been allocated and made available to <br />eligible project sponsors. <br /> <br />e. Are any activities or types of activities fallinq behind schedule? <br /> <br />No HUD-funded projects or activities are substantially behind schedule. Due to the <br />lead-time needed to design major improvement projects (e.g., street and park <br />improvements), capital projects have taken longer than anticipated to be completed. <br />Nonetheless, program staff meets regularly with project managers to monitor progress <br />and emphasis the need to complete these projects in a timely manner. Similarly, <br />HOPWA construction projects have taken longer than anticipated. City staff continues <br />to work with project sponsors to resolve issues that may prevent the completion of <br />HOPW A-funded projects. <br /> <br />29 <br /> <br />9/7/05 <br /> <br />190-33 <br />