Southern California | HealthyCal - Part 2
 

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Summer Food Program reaches out to low-income families

By Margaret T. Simpson

PASADENA–Hungry children don’t think about trends or statistics. They just want a good meal. But educators and policy advocates are watching the numbers to see if this year’s Summer Food Program will reach 1.9 million eligible low-income California students who didn’t take advantage of free meals available in 2009.

The number of summer food sites decreased by almost 50 percent in 2009 from the previous year, and many parents weren’t notified about other summer meal locations in their communities.

Poster in Pasadena's McDonald Park promoting the Summer Food Program.

“Schools cut their summer school, and it was sudden enough that other agencies in the community didn’t have time to respond,” said Phyllis Bramson-Paul, director of nutrition services division for the California Department of Education.

Overall use of the summer meal program statewide has declined for several years from a high of 29 percent of those eligible in 2006 to last year’s low of 21 percent. Yet the number of eligible children has risen. In 2008, 1.6 million children were eligible to participate but did not. Last year’s increase to 1.9 million brought concerns that this summer’s participation rate will be even lower than last year due to the continued loss of summer school programs.

Many factors influence participation rates, including the number and type of site sponsors, parent notification, safety of site locations and the perception of stigma in receiving program meals.

“The need is definitely there,” said Wes Howard, interim child nutrition administrator for the Pasadena Unified School District. “From what I gather in speaking to parents and my workers, I’m anticipating this summer around 6,500 for lunch and 4,000 for breakfast.” This is a 20 percent increase over last summer’s participation rate for the district.

Howard’s aggressive marketing, including appearances on local cable television, resulted in 14 new nonprofit sponsors to compensate for the loss of summer school sites. Howard praised the Department of Education’s outreach efforts that include a new coalition to increase program sponsors and offer enhanced training.

“Even during the regular school year, our free and reduced-food eligibility in Pasadena is 70 percent,” said Howard. “Out of that 70 percent, our participation rates were 92 percent per day, which tells me even though that stigma may be there, the need overrides that stigma. Parents are strapped now because of the economic times we’re in.”

A hopeful trend in summer meal programming is to link meals with learning. More sites offer day camps with art, exercise and field trips. Working parents find a safe, well-staffed meal site that provides quality child care and enrichment.

In the cafeteria of Altadena Elementary School, Rose Kalajian manages a summer breakfast and lunch program that serves over 150 students per meal, mostly children in the early grades. Her day program is one of the area’s largest, with more than 84 percent of students enrolled in the low-income meal program.

Kalajian is convinced her program provides vital nutrition for many of the students.

“Some children are not eating breakfast at home,” she said. “No one in this country should go hungry.”

In the lunchroom next to Kalajian’s cafeteria, parent Daria Gale works part-time as a teacher’s aide in the summer. Gale’s four children eat at the school, and she relies on the subsidized meals, which include fresh vegetables and fruit, to keep her family healthy.

“I think it’s great. I’m low-income, and I don’t have to buy all the extra food,” she said. School breakfast and lunch meals are a big part of her family’s diet during the summer months. “Fresh fruit and vegetables are so costly at the grocery store. Usually at home it’s canned vegetables all the time.”

Kalajian said parents feel safe sending their children to the school. Its high teacher-to-student ratio (the Pasadena district requires one aide for every 10 students) and structured learning modules offer a positive learning experience. “It needs to be safe for kids,” she said.

Not all summer meal sites are at schools. Program sponsors can include nonprofits, food banks, city parks departments and Indian Tribal governments.

Howard has noticed a decline in park-based participation, and the trend worries him.

“In the past we’d get all the neighborhood kids at the local parks,” he said. “The parks used to be big numbers.”

Many parents believe that parks are high-crime areas no longer safe for children, said Howard, and whether their fears are accurate or supported by statistics, it is the perception that matters most. Recent cutbacks in park security personnel haven’t helped to reassure parents their kids will be safe in the parks.

“Most of the kids who are eating are students enrolled in City of Pasadena day camp or some type of structured program,” said Howard. “Very few kids are just in the parks.”

Site Coordinator Antoinette Hernandez and her staff are based in Pasadena’s McDonald Park. Her site is a walk-in site, open to any child in the neighborhood, and the number of children varies from day to day. Her staff-to-child ratio is high, and staff members are vigilant about ensuring a safe environment for children in their program.

Hernandez decided early on to educate children and parents about good nutrition. “Some kids haven’t been fed breakfast at home,” she said. “Parents send kids to the park with bags of cookies and candy snacks.” Under her supervision, children have built solar ovens and prepared fresh salsa. For some children it’s their first taste of fresh food.

The focus on health reduces any embarrassment a parent may have, said Hernandez, and the activities provide a safe, fun learning opportunity for kids.

Irene Borromeo, a local resident, walked her children to McDonald Park. It was only their first day, and she was impressed. Her son and daughter ate their lunches and then pieced together a jigsaw puzzle with Hernandez and several staff members.

“It’s so accessible,” said Borromeo. “I definitely think it’s a positive experience. It’s important to have a supervised environment.”

Hernandez wants to get the word out about her site. “Parents are trying to find good day care, so letting people know about our program is really important.” Kids tell their friends, she said, and that helps.

“We’re very fortunate to have the program,” she said. “We don’t want it to disappear.”

 

Three new homes link Logan Barrio’s future, past

By Joy Hepp

The neighborhood kids who spend afternoons playing in Santa Ana’s Chepa’s Park may have heard tales of Josephina “Chepa” Andrade. The woman known as “La Reina de la Logan” united a generation of activists in a fight against city hall and helped to create the park that now bears her name. But they probably aren’t aware that her legacy is living on at the other side of the park’s handball court.

The Baltazar family moved into their new home on Logan Street in December and are helping to carry on their family legacy.

One of Chepa’s four daughters, 53-year-old Lucy Baltazar, moved with her extended family of six into a new four-bedroom, two-story home on the lot abutting Chepa’s park on Christmas Eve last year. The greatest gift, Baltazar says, was the opportunity to be a home owner after 30 years of renting. The Baltazars were one of three families (The Tran and Rojas families moved in next door and across the street) to be selected via a lottery to purchase homes priced approximately $100,000 below market rate in the heart of Santa Ana’s historic Logan Barrio. Baltazar believes her departed mother had something to do with it.

“As soon as they pulled out that number I know she and god were looking down on us,” she says.

In August of 2008 the city of Santa Ana approved a $1.5-million agreement with the Orange County Community Housing Corp., a nonprofit organization that advocates for low-income housing, to build the homes and sell them to local first time buyers. OCCHC in turn contracted with Hope Builders, a licensed general contracting venture staffed by students of Taller San Jose, a nonprofit that readies at-risk youth for the workplace.

The lottery was open to residents from all over the city, but organizers “told the city that we’d like to limit it to people living in the neighborhood,” said longtime neighborhood activist Sam Romero, who was babysat by Chepa as a child and later worked alongside her through several neighborhood battles. “But it’s difficult when you’re using public money.” Romero says he can’t think of a better family to inhabit one of the homes.

A Fight for Residential Status

The fact that the city was enthusiastic about the program at all is the result of a decades-long battle by local activists, including Chepa Andrade, to keep their neighborhood in tact.

“They’ve been fighting to maintain the residential footing that they’ve got and try to improve on it so that the world knows they’re a residential neighborhood, not an industrial park,” says Allen Baldwin, OCCHC’s Executive director. “These three houses are a part of that statement.”

Chepa Andrade was an integral part of that fight for three decades. Born in 1926 on the corner of Logan and Stafford Streets during a time when Barrio Logan was one of the only places in Orange County where Mexican- Americans were permitted to own homes, she and her neighbors grew up alongside walnut and orange groves where their family members worked in packing facilities. Over time the laborers’ enclave became inundated with industry, and its remaining residents were all but forgotten by the city.

In the 1970s families complained of cesspools forming beneath their rented homes due to broken plumbing, of refrigerators that would not chill because multiple houses were connected to the same power service, of houses divided into five small apartments, some infested with rodents.

Despite these conditions, Barrio Logan residents considered their patch of land bordered by railroad tracks in the eastern part of the city to be sacred ground. One of the first times Andrade got involved was in 1969 when the city announced a plan to extend Civic Center Drive through the barrio, essentially cutting it in half.

“We said ‘Baloney.’ We weren’t going to let what happened to the poor people in Chavez Ravine, commonly known as Dodger Stadium, happen in here,” recalls Romero, who continues his role as community activist today. “Chepa wanted to barricade the streets.”

Andrade and Romero were part of a group that convinced the city to relent on their plan and allow residents to build additions to their existing dwellings. The residents were also given permission to build Logan Park. That park was renamed Chepa’s Park at an unveiling that occurred the same day as the ground breaking for the three new homes.

Although gaining the right to build home additions and a city park was considered a victory, the protesters weren’t able to maintain their momentum. However, when Father George Wanser, a Jesuit priest assigned to the neighborhood by the Oakland Training Institute, a faith-based community organizing group, discovered a 1973 land use plan that would have phased out Barrio Logan to clear the way for an industrial park, it was impetus the neighbors needed to boost their organizing efforts. Wanser also concluded that the industrial zoning had been impeding residents from attaining building permits and government or conventional loans and therefore left little opportunity for home owners to improve their living situations.

“The key to save this neighborhood was to get into a long drawn out fight and we got well organized,” says Romero. He recalls that Andrade – also referred to as the “neighborhood Florence Nightingale,” for her efforts to make certain the Logan’s diabetic residents remembered to take their insulin shots – had effective tactics for amassing large crowds at city hall protests.

“It was standing room only because Chepa would get on the telephone and call all of her uncles and nieces and nephews,” Romero says.

In what was considered a striking victory, Chepa and the Logan activists convinced the City Council to rezone the barrio — changing parts of it from industrial to residential. Under the new rezoning package most of the 118 residential structures could stay.

A Legacy Lives On

When the lottery was held on July 11th, 2009 the Baltazars, including Lucy; her husband Javier, 60; daughters Josephine, 32 and Natalie, 22 and granddaughters 7-year-old Anila and 3-year-old Alina were all living in a two bedroom bungalow where they had to take turns cooking dinner in the small kitchen. When theirs was the second name called, Lucy says she felt a sense of relief.

According to the California Association of Realtors, the median home price in September 2009, the month ground was broken on the homes, was $245,000. The price for a brand new three bedroom home would have been significantly more. The price of living on a street where you know all of your neighbors is invaluable.

“Sure you have problems … but we want to stay here,” Baltazar says “Everybody is close to each other. You can go across the street and ask for something.”

Lucy’s brother, Joe Andrade, lives two houses away from the Baltazar’s new home and takes pride in keeping Logan’s streets as free of gangs and drugs as possible.

“If somebody was dealing around here, I would know,” he says. He believes the addition of the three new houses will help perpetuate his mother’s efforts.

“It brings more power to the neighborhood because you can depend on the home owners more than the renters because renters don’t care as much,” he says. “Plus, they’re more likely to show up at meetings.”

In the years since their initial victories, the residents of Barrio Logan have remained defiant of the city’s expectations that the neighborhood would eventually become completely industrial. Residents see the three new houses sitting atop the land of a former fire extinguisher and sprinkler manufacturer as shining examples of what happens when neighbors fight city hall. Baltazar, Romero, and Andrade say they don’t plan on giving up their cause any time soon.

“She’s installed it into us,” Joe Andrade says of his late mother. “She fought so hard for the neighborhood that we can’t stop now.”

 

Anaheim program teaches music production to at-risk youth

By Joy Hepp

In the music industry it’s all about who you know. And contrary to popular belief, not every kid in Orange County has Mickey Mouse on speed dial.

Despite a recent drop in violent crime, the county is not immune to gang activity. In 2008, a 15-year-old was shot to death by a suspected west side Anaheim gang member at a Fullerton bus stop. The city is also fighting a battle with taggers, whose graffiti is a sore spot with those in the local tourism industry.

Anaheim’s Project RYTMO (Reaching Youth Through Music Opportunities) seeks to be a positive alternative for youth in need of a creative outlet and support system.

The nonprofit organization provides at-risk 14-to-24-year-olds with occupational music technology skills and introduces them to industry insiders in the process. Since the program’s inception in 2003, several graduates have gone on to work in music or to study at local universities.

“A lot of [young people] are searching for some form of expression for their anger and for their frustration… and many of them are really struggling,” RYTMO Co-founder Joey Arreguin says. “Add a recession, add no jobs, no education, high school drop outs, youth who already have a history of incarceration, foster youth and homeless youth, and you start to understand that there’s a real void in our communities and our ability to connect with young people.”

Arreguin added that one of the biggest challenges for community organizations working with at-risk youth is finding activities that will consistently keep them focused and engaged.

“If a young person is not into sports, then its really down to either music or technology,” he says.

With a curriculum that integrates music theory, performance, business techniques and editing software programs, RYTMO’s administrators believe they have found a winning combination.

“We know that after school between 3 pm and 6 pm is a time when a lot of the crime goes up,” says RYTMO Vice President Michael Anderson. “Bringing them into a music program where they have to concentrate on writing words or coming up with their beats takes them off the streets and into their homes where they are practicing and working on their craft of music.”

Arreguin and Anderson say they have seen evidence of RYTMO’s effect on the community in their own backyard. According to Arreguin, the fence behind RYTMO headquarters cuts across the dividing line between two rival Anaheim gangs and was covered in their graffiti.

After two members of the opposing gangs met and befriended each other in one of RYTMO’s programs, they agreed to convince their respective organizations that the fence was off limits. It’s been tag-free ever since.

Watch a video report on the youth in RYTMO:

Anaheim music program caters to at-risk youth from Joy Hepp on Vimeo.

 

From tagging crew to video crew

Growing up in Boyle Heights, Fernando Almanzar dabbled in tagging and considered joining a crew or a gang before turning away from that lifestyle. Today he is an intern at the Boyle Heights Technology Youth Center, where he is learning the skill of video production. He is a success story for the Los Angeles Youth Opportunity Movement, which offers grant-funded academic programs and job training for residents age 14 to 21 who meet poverty guidelines and are authorized to work. Almanzar is also the co-vice chair of the Opportunity Movement’s Boyle Heights Youth Council. HealthyCal contributor Patrick Burke offers this video profile.

Positive Feedback from Patrick Burke on Vimeo.

 

Price of ‘progress’: displacing low-income tenants

By Joy Hepp

Residents of the Boyle Heights community in East LA already know how to protect their community from outside dangers. Years of protests in the 1980s halted the construction of a nearby prison; legal action spearheaded by Councilmember Jose Huizar staved off the expansion of a hazardous waste facility; and efforts by Jesuit priest Gregory Boyle helped to rehabilitate gang members by giving them opportunities that they hadn’t found on the streets.

Now residents of this historic neighborhood are learning how to hold onto the neighbors and customs that have provided its rich cultural heritage.


To see a video version of this story, click here.

The largely Spanish-speaking community is still feeling the repercussions of losing more than 900 families that were displaced when the city of Los Angeles remodeled a major housing development a decade ago. Many believe that a similar exodus will occur when the city approves similar plans to convert Wyvernwood, a 1,187-unit, 70-acre property eligible for listing in the National Register of Historic Places, into an upscale development with room for up to 4,000 condominiums. A 2008 plan suggested by the developer would set aside 600 low-income units. Community members are wondering what will happen to the residents of the remaining 587 units.

A statue of ranchera singer Lucha Reyes looks out over Mariachi Plaza as a film crew sets up for a music video shoot. Photo by Joy Hepp.

Community leaders say the economic downturn has given them the chance to educate and organize Boyle Heights residents so they will be part of the planning process for Wyvernwood and other potential projects. The financial slowdown has also given non-profit organizations time to ensure historic properties remain accessible to current residents.

The East LA Community Corporation (ELACC), a nonprofit group that works to build low-income housing and organize existing residents, has been given the go-ahead to renovate and convert the “Mariachi Hotel” into affordable single men’s housing units.

The landmark building overlooks Mariachi Plaza, a place where local musicians have come to look for work for since the 1960’s. Because of the area’s proximity to the Pico-Aliso Metro stop, it’s quickly becoming a place where the musicians are in danger of being priced out.

Gentrification is not a foreign concept in Los Angeles. Yet while now-hip neighborhoods like Venice and Silverlake have been transformed by market forces, in Boyle Heights the government is driving the change.

“Public investment and public entities are coming in and assembling land that a private developer would never be able to on their own,” explains Maria Cabildo, president of the community corporation.

The most recent population shuffle happened in the late ‘90s when the city of Los Angeles demolished both the Pico-Aliso and Aliso Village low-income housing projects. More than 940 families were displaced and there was a net loss of 661 affordable housing units. In addition, the construction of the Edward R. Roybal Metro Gold Line Eastside Extension, the expanded Rudy de Leon/Hollenbeck Police Station, and the expansion of the General Hospital have displaced more than 1,000 families.

Not long after the new units were built, developers began to take notice of the neighborhood’s proximity to downtown Los Angeles and the unique architecture dating back to the early 20th century when Mexican, Russian and Japanese immigrants all called the area home.

“Suddenly you could rent out a one bedroom apartment in Boyle Heights for $1,000 a month,” Cabildo says.

In 2008 organizations like ELACC were inundated with calls for help from residents who claimed their landlords were trying to illegally evict them or significantly raise the price on their rent-controlled properties.

Twenty-one-year-old Claudia Gomez says she lost several neighbors during that period because they were not aware of their legal rights. One family bought property elsewhere, lost it in foreclosure and are currently living with family members.

“They tried to do the same thing with us, but because my mom got involved. Now they’re afraid of my mom,” says Gomez, who, along with her mother, is active with Union de Vecinos, a grassroots community organization that got its start when a group of residents wanted to fight to preserve their low income housing. Despite her family’s victories, there are still battles to be fought. There’s a persistent mold problem in both her family’s home and in its adjoining unit. Traffic is a concern on nearby Wabash Avenue, a thoroughfare that runs in front of Evergreen Ave. Elementary school, so Gomez organized a group of neighborhood moms and elementary school children to make signs urging drivers to slow down.

Cabildo believes this type of neighborhood unity is in danger when residents are priced out of low-income housing. Oftentimes residents who eke out a living cutting hair or collecting recyclable goods also provide important links and services to the community.

“The strength of social networks helps you get by,” Cabildo says. “In our community people are really dependent on neighbors for things like help with kids after school. You’re not paying a market childcare rate because you have that relationship where you’re kind of helping each other in different ways.”

Strong social networks have also been integral in fighting gang violence. In the 1990s Father Gregory Boyle started Homeboy Industries, a non-profit job placement program that was founded in the heart of the old Pico-Aliso projects. According to Union de Vecinos director Leonardo Vilchis, figures like Boyle and other neighborhood elders were “able to negotiate from the point of authority with the gang members.”

“Now all these families that used to live here are dispersed all across the city in places that look like what used to be here without a network of support, without the leadership and without the ability to intervene and reduce these conditions,” Vilchis says. Residents believe a similar story may unfold if the city of Los Angeles gives Wyvernwood’s redevelopment proposal the go-ahead.

Some members of the community are more enthusiastic about the prospects of big-time development. Around the time properties started selling for $300,000, architect and founder of Barrio Planners, Frank Villalobos told LA Weekly he thought gentrification was “great.” This comment raised a lot of eyebrows with community leaders, but Villalobos stands by it.

“You have other multicultural groups in Los Angeles today, and so when I referenced gentrification, you have to define who is the gentry, and the gentry of course is other minorities that are moving in,” he explains.

Regardless of which groups are moving in, the area is set for even more change. Barrio Planners is working with a developer to create a multi-story mixed-used property to be built on the site of Mariachi plaza.

“I would like to see that we develop things that match the community …and we don’t end up with the typical stores,” he says. “That’s the intent, but the market place will find what’s doable. Unfortunately, what drives our society are the ones who come in and invest.”

For now, the economic downturn and the efforts of community organizers may be keeping gentrification at bay. Located across the street from the proposed Mariachi plaza development is Primera Taza. With espresso made from beans imported by a local Guatemalan business owner and muffins made in a neighborhood bakery, the coffee shop and art gallery is the kind of locally owned business everyone can get excited about.

On a recent Friday afternoon a reporter quizzed the barista preparing her Mexican mocha. “Do you ever see any hipsters in here?”

She replied, “What’s a hipster?”

Video and reporting by Joy Hepp. from Daniel Weintraub on Vimeo.

 

OC-based program helps thousands get refunds

Bob Cohen, executive director of the Legal Aid Society of Orange County

Bob Cohen saw a problem and vowed to correct it. He saw a need and wanted to fill it. Today, thousands of people across the country are getting tax refunds and credits easily and without charge because of his work and the Legal Aid Society of Orange County, which Cohen directs.

The problem Cohen saw was desperate low-income people, often people with little knowledge of the government or tax system, losing much of their refunds to tax preparers who offered them instant money while taking a huge cut of their check. The need he wanted to fill was for an easy, online program that would allow people to skip the commercial tax preparers, file their taxes themselves and get their money almost as quickly.

It turns out that the service is also a form of economic development, generating payments to people who spend most of what they receive because they are poor. That generates business for retailers and others in their community.

Most of the money comes from the Earned Income Tax Credit, which is designed to ease the transition from public assistance to the workforce. Without it, many people would see a decline in their income when they got a job. The credit phases out as incomes grow, so that it still pays to work.

“When we looked at that issue, and at our capabilities, and what we had been learning from technology, we thought the earned income tax credit really lent itself to an area where there was a big need and there would be a big benefit,” Cohen said.

“Until we provided our service, there was no non-profit providing electronic filing services and there was no product really targeting our client community, low-income workers. We’re making a concerted effort to enable them to do it by themselves, to learn from the experience and to be able to do their own taxes, and more importantly, to use the Internet. The digital divide can empower you if you are on the right side of it.”

One of the big problems with the earned income tax credit is that those low-income workers who are entitled to it and go to tax preparers would sign up, often unknowingly, for what are known as “refund anticipation loans. “

“You go to get your taxes done and you are asked this innocent question: would you like your money right away?” Cohen said. “Who says ‘no’ to that question? The clients we represent need their money yesterday. But if they are entitled to a $4,000 refund, and this year we have had a number of folks who are entitled to a refund like that, it becomes a very lucrative target. The tax preparers will set up a fee structure and an interest rate that takes about half the loan before you even get it.”

Sometimes, the people don’t even know they are getting a loan.

“They don’t actually know what their return amount was because they never looked at their return” said Jeanette Valencia, who directs outreach for the program. “They are told if you want your money today, this I what you will get.”

If every thing goes right, the loan is closed out when the IRS sends the refund to the preparer.

“If it doesn’t go right, if you calculated your taxes wrong, or if you owe the IRS money, or you owe money for child support, the IRS could give you less, or even nothing” Cohen said. But the customer is still on the hook for the loan.

Legal Aid, drawing on its experience creating award-winning online court document templates, wrote software to allow people to file their taxes online in 2003.

But the organization has had a long struggle with the IRS. The problems began shortly after they decided to create their program.

“We were bugging the IRS about how we wanted to do this, because it was a great economic development program,” Cohen said. “We wrote them but they didn’t respond. Then we got a letter back from the IRS saying we had been randomly selected to be audited. They sent a guy down to do a very in-depth audit of us. While he was doing it, I said, ‘Is this our reward for coming up with a great idea?’ He said, ‘I don’t know anything about that.’””

Eventually the organization got the go-ahead, but even after creating the program it was still mostly a local service. At first it was used only in Orange County, and often with the help of a volunteer or staff person at a community organization. Soon groups in other cities in California, and other parts of the country, started using the program with their clients.

Then, before the 2009 tax filing season, Cohen applied to the IRS to be placed on the government home page with the other online services that offered free filing for low-income people. At first the IRS refused, Cohen said, because that page was reserved for members of the “Free File Alliance,” a coalition of commercial tax preparers. But after Cohen threatened to sue, the agency backed down.

Now 500 partners nationwide are using the program, and individuals can use it in their own homes or offices. Last year, Cohen says, the program brought $102 million in credits and refunds to taxpayers across the country.

“Not half bad for a local legal aid program,” he says.

The program is offered in English, Spanish and Vietnamese, and users can switch back and forth while keeping their tax data in tact. The project is supported by the United Way, the City of Irvine, grants from financial institutions and the national Legal Services Corporation.

According to Valencia, about 80 percent of the refunds that people get from the earned income tax credit get reinvested back into their community. But an estimated $1 billion in credits are left on the table in California alone because people don’t know they qualify or they don’t know how to fill out the forms.

To use the program, go here.

 

Santa Ana foreclosure fix moving slowly

By Adam Elmahrek
Voice of OC

In January of 2009, during the height of the economic crisis, federal officials steered nearly $6 million to the City of Santa Ana to buy and restore foreclosed homes and provide down payment assistance to borrowers.

This home in South Santa Ana is among four previously foreclosed homes bought, fixed up and sold by the city of Santa Ana through grants provided by the federal Neighborhood Stabilization program. The city his happy with its progress since it first received money in early 2009. Critics, however, question the effectiveness of the program.

Santa Ana’s top housing official is happy with the results.

Yet since then, only five homes have new families, and only two borrowers have been helped. Five other properties are currently in escrow.

“We have approximately half our funds spent and I believe we are ahead of the game,” said Shelly Landry-Bayle, Housing Manager for the Santa Ana Community Development Agency. “So far, we are very satisfied with our progress.”

Some in Washington obviously agree with Landry-Bayle. In January, the city was given another $10 million from the U.S. Housing and Urban Development’s Neighborhood Stabilization Program.

But a local economist and a Santa Ana realtor think otherwise.

“They could have taken that money, dropped it from an airplane over Santa Ana and it would have helped more people,” said Donald Booth, Professor of economics at Chapman University.

'I think the program is too little too late,' said Phil Schaeffer, a Santa Ana realtor who has worked in the community for 20 years. 'The impact on the foreclosure situation has been negligible.'
The housing bust has clobbered Santa Ana. At some points in recent years the city has been home to as many as 1,500 foreclosures. The federal money is to be used to buy up foreclosed homes and multi-unit buildings, then refurbish and resell them so previously stable neighborhoods don’t become blighted. A smaller portion is set aside for down payment assistance.

“I think the program is too little too late,” said Phil Schaeffer, a Santa Ana realtor who has worked in the community for 20 years. “The impact on the foreclosure situation has been negligible.”

To date, Santa Ana has spent $3.1 million of its grant funds, according to HUD spokesman Brian Sullivan. The city has thus far provided Voice of OC with an accounting of $3 million of that spending. The money has gone, among other things, toward purchasing the homes, rehabilitation and administrative costs.

Also part of the $3.1 million in total spending was $1.4 million spent on the acquisition and rehabilitation of a 14-unit, low-income housing complex on Durant St. Rehabilitation of the housing complex is not yet complete.

Finally, $108,797 in developer fees was paid to ANR Industries, the Santa Fe Springs-based contractor that won the city bid to do the work.

Sullivan said Santa Ana is ahead of the curve compared to other cities involved in the program. However, Sullivan acknowledged, because the cities take out mortgages on the properties they purchase and refurbish, they have to compete with private investors for loans from banks.

Private investors are not bound by contingencies required by the program such as a 1 percent loan discount for the borrower and strict environmental regulations. “The bank asks itself, ‘who do I want to sell the house to? An investor that comes to me with cash, or a community that has all these obligations?’” Sullivan said.

At the rate the program is going now, it would take 10 years for Santa Ana to wipe out 10 percent of the foreclosure problem, Booth said.

In addition to the small number of properties fixed up, there has been confusion over responsibility for repairs that have been done by ANR Industries.

In at least one case, ANR Industries sold a condominium unit even though damage was obviously visible on the exterior of the home. An unsightly scar blemishes the stucco wall near the window facing the neighborhood, and the wooden fencing around the patio remains unpainted.

George Jordan, Vice President of ANR Industries, said exterior repairs like stucco damage and wooden fencing are typically the responsibility of the Homeowners Association.

“We always seek to correct as many of the issues as possible,” Jordan said. “We don’t always have the liberty to make those repairs.”
The HOA for this property, South Coast Terrace, has been struggling financially and halted any piecemeal property repairs, according to Board of Directors Member Wallace Rodecker. But Rodecker said ANR Industries could have made the repairs if it wanted to.

The down payment assistance portion of the program has also shown few results. Landry-Bayle said just two borrowers have taken advantage of the down payment assistance leg of the federal program. Obligations attached to down payment loans made through the program – complex terms for a borrower to negotiate for on his own – have stifled interest, Landry-Bayle acknowledged.

“It’s a little hard for someone with no experience negotiating discounts with banks to do so,” Landry-Bayle said. Despite the limited impact across the city, families that have moved into the refurbished homes said the program has made a difference in their lives.

Anthony Malfavon, 34, bought a home through the program and was ecstatic about what he called a piece of the American dream.

“I just feel truly blessed,” Malfavon said.

But experts like Booth and Schaeffer remain skeptical.

“You could have taken all that money and distributed it to 100 people and gotten them all nice homes,” Booth said. “So far, it looks like a complete waste.”

This story was produced by HealthyCal partner Voice of OC, a new online news site covering Orange County that will go live in March.

 
 
 

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