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Mobile Home Hardship Program April 7, 2015 Page 2 Under the new HOME Final Rule, the City must require the scope of rehabilitation work to address major systems, ensuring that they have a useful life of at least five years upon project completion, and meet the required property standards. Since the program began, construction and materials costs have increased, which limits the amount of work that can be completed within the $5,000 budget. Currently, eligible applicants are being turned down due to the cost to properly rehabilitate their mobile home exceeds the maximum loan amount, and the applicants do not have the financial capability to contribute their own funds to cover the balance. In the event that loan proceeds are estimated to be insufficient to properly rehabilitate the home, the applicant is expected to contribute their own funds to cover the balance. In order to ensure that the program remains effective, staff is recommending that the maximum loan amount be increased up to $12,000 and offered to all Santa Ana residents with a total household income at or below 50 percent area median income including seniors, disabled households, veterans and artists. Two mobile home rehabilitation projects were completed in this current fiscal year. Currently, there are three projects in the pipeline that would benefit from the program increase. All other program guidelines will remain the same. The proposed amendments to the Mobile Home Hardship Program will allow staff to meet the new requirements of the HOME Final Rule and provide loans to more eligible households within Santa Ana. Currently, the City has allocated $200,000 in HOME funds for fiscal year 2014 -15 for the single family home and mobile home rehabilitation program. The proposed amendments align with the City's Housing Element, Five -Year Strategic Plan and the Five -Year Consolidated Plan. STRATEGIC PLAN ALIGNMENT Approval of this items allows the City to meet Goal #5 (Community Health, Livability, Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities and support efforts to preserved and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT Funds are available in the HOME Program Resident Rehabilitation Loan (Account no.13018780- 69151). I Re es Executiv Director Community Development Agency KR/SS /nv /sb APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency 19C -2