19C - CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION RPT

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3. Are maior goals on target? 2011-2012 is the second year of the five-year Consolidated Plan cycle may be too early to estimate if five-year goals will be met; however, as discussed above, during 2011-2012 some activities did not meet planned goals. These activities include: ¦ Only 14 single family housing units were assisted during the report period; the Action Plan called for 33 units to be assisted. ¦ The City's fair housing services provider met 72.3% of planned annual goal ¦ Two homelessness prevention programs fell short of annual goals (Dayle McIntosh Center and the Southwest Minority Economic Development Association 4. Barriers that have a negative impact on fulfilling the strategies and overall vision? The City encountered some barriers as it set out to implement its overall vision for community improvement; the most significant include the following: ¦ Perhaps the greatest barrier or obstacle impacting the City's ability to implement its community vision has been housing costs. While the cost of home buying has become relatively more affordable, homeownership still remains a challenge for lower income households. At the end of June 2012, the median home sales price was $316,000. Median home sales prices still remain out of reach for lower income households. Additionally, stringent underwriting standards by lenders has also eliminated many buyers with low income and marginal credit from obtaining a home purchase loan. Despite a drop in home purchase prices over the past years, rents have remained relatively stable. The average rent for an apartment in Santa Ana has increased from an average $1,528 in July 2011 to $1,621 in July 2012. The County of Orange estimates that an individual earning minimum wage will have to work 133 hours/week to afford rent for a modest 1-bedroom apartment.10 Housing costs continue to pressure the City to identify resources to expand affordable rental and home ownership opportunities, especially for lower income households. ¦ Increases in transportation and material costs have reduced the effective amount of money the City has to fund activities. The cost of raw materials and more recently the transport materials have had significant impact on the cost of public facilities construction projects and housing rehabilitation. ¦ Municipalities throughout California continue to deal with budget deficits that have forced reductions in personnel and furloughs as a means to close budget shortfalls. City staff that manage HUD funds have not been immune to these budget pressures. State legislation that eliminated redevelopment funding has created a significant barrier to carryout the goals and programs delineated in the Consolidated Plan. 10 2012 Community Indicators, Orange County, March 2012. 08/23/2012 32 19C-40