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III. PROGRAM/PROJECT DESCRIPTION-DETAIL In the space below, describe the program/project. Include information as to how the program/project will benefit low-income people/households. max. char. 2000 § 570.202 Eligible rehabilitation and preservation activities. (a) Types of buildings and improvements eligible for rehabilitation assistance. CDBG funds may be used to finance the rehabilitation of privately owned buildings and improvements for residential purposes, (b) Types of assistance. CDBG funds may be used to finance the following types of rehabilitation activities, and related costs, either singly, or in combination, through the use of grants, loans, loan guarantees, interest supplements, or other means for buildings and improvements described in paragraph (a) of this section, except that rehabilitation of commercial or industrial buildings is limited as described in paragraph (a)(3) of this section. IV. STATEMENT OF NEED In the space below, describe why this program/project is needed. Include information as to any effects if CDBG funds are not awarded and whether similar programs/projects are available in the community. max. char. 2000 The State of California reports that as of January 1, 2009, there were 75,856 housing units in Santa Ana - 59 percent of these units were constructed for homeownership with the balance (41 percent) built to house renters; however, approximately 48 percent of all housing units are presently occupied by renters. Approximately 12,000 homes were built in Santa Ana during the last 30 years and are generally in good condition, but it is important to note that much of Santa Ana's housing was built during between 1960 and 1980. Furthermore, an estimated 27,080 housing units were built before 1960, Many of these homes are being to show signs of disrepair and may greatly benefit from rehabilitation. Overcrowding is another variable that impacts housing condition. According to the City's Neighborhood Preservation staff, approximately 15 to 20 percent of the City's multifamily housing and single-family housing units are overcrowded (based on the State standard for housing occupancy). Despite a significant drop in home values, homeownership in Santa Ana still remains out of reach for many Low- and Moderate-Income households, Similarly, rents limit the housing options for some lower income households. As required by the State, the City's Housing Element outlines a strategy to address housing needs. The City has identified vacant and underutilized land that is suitable for housing development - it is possible that a portion of units may be developed as affordable housing for lower income households. The Housing Element has also identified several barriers to the creation of housing opportunities in Santa Ana. There are several market and environmental constratnts that the City cannot control (e.g., price of land, cost of financing, seismic hazards); however, there are some actions the City can take to mitigate these constraints and those imposed by local government action, These mitigation strategies have been incorporated into the Consolidated Plan. 3 75B-84