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SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2010- <br />2011 ACTION PLAN: NSP 3 TARGET AREA GEOGRAPHY <br />INTRODUCTION <br />They City of Santa Ana's Fiscal Year 2010-11 Annual Action Plan was submitted to the <br />U. S. Department of Housing and Urban Development (HUD) on May 15, 2010. The <br />first Substantial Amendment consisted of the City's application to HUD for $1,464,113 in <br />Neighborhood Stabilization Program funds made available to the city in the third round <br />of funding for that program (NSP 3). In order to apply, the city needed to identify a <br />Target Area Geography which met HUD's criteria within which it would spend these <br />funds. Since that time, there have been insufficient foreclosed and abandoned homes <br />within this initial area to meet our goals. After consultation with HUD, the city has <br />determined that the Target Area Geography should be changed. <br />Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating <br />jurisdictions shall amend their approved plans whenever they make one of the following <br />decisions: <br />1. To make a change in its allocation priorities or a change in the method of <br />distribution of funds; <br />2. To carry out an activity, using funds from any program covered by the <br />Consolidated Plan (including program income) not previously described in the <br />action plan; or <br />3. To change the purpose, scope, location, or beneficiaries of an activity. <br />The Regulation further requires that jurisdictions identify in their citizen participation <br />plans the criteria they will use for determining what constitutes a substantial <br />amendment. <br />Consistent with these requirements, the Citizen Participation Plan adopted by the City of <br />Santa Ana as a component of its 2010/11 - 2014115 Consolidated Five Year Plan <br />identifies three criteria that will require a substantial amendment: <br />1. Changes in the use of CDBG funds from one eligible activity to another; <br />2. An activity is undertaken that was not previously included in the Consolidated <br />Plan or subsequent action plans. <br />3. More than 30 percent of the most recent annual federal grant allocation is <br />reallocated to other eligible program activities within the fiscal year. <br />The proposed change does not meet any of these criteria. However, the city has <br />determined that its significance is such that a substantial amendment is appropriate. <br />i <br />Exhibit 1 <br />29A-3