29A - NSP2 AMEND TARGET AREA - Laserfiche WebLink

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Source: SRC, L-C. Cost burden is a serious issue as well. The term refers to a situation where a household pays more than 30 percent of their gross income for housing costs. The 2007 American Community Survey reports that 47 percent of the City's homeowner population pays 30 percent or more of their gross monthly income on housing costs while the percentage for the renter population is 55. Overpayment is an issue in Santa Ana for both homeowners and renters alike which cause serious housing costs burden for families with lower incomes. Due to high housing cost, many families have no choice but to live in overcrowded conditions. In these four census tracts, over half of renters (64 percent) pay over 30 percent of their household income towards rent. While nearly half (46.3 percent) of homeowners pay more than 30 percent towards housing costs. (4) Other Relevant Factors Contributing To Local Market Conditions or Neighborhood Decline These four proposed census tracts have the following other factors contributing to the local market conditions and the City's substantial amendment: • High Foreclosure Risk Score - These four census tracts have high foreclosure risk scores, according to HUD as of 2009. • Percent of High -Cost Mortgages and High Leverage — these four census tracts had high rates of HMDA mortgages made between 2004 to 2007 that are high cost and high leverage, according to HUD as of 2009. This factor is a good predictor of foreclosure problems in the area. NSP 2 Substantial Amendment - City of Santa Ana Page 7 29A -9