Community Development Agency
www.santa-ana.org/cd
Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 7, 2025
TOPIC: Permanent Supportive Housing Inspections Work Study Session
AGENDA TITLE
Permanent Supportive Housing Inspections Work Study Session
RECOMMENDED ACTION
Discuss and provide direction to staff.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
At its regular meeting on May 6, 2025, the City Council discussed the need to increase oversight and monitoring of City-supported Permanent Supportive Housing (PSH) communities. This discussion was prompted by a significant drug investigation and enforcement action conducted by the Police Department at a local PSH community in February 2025.
In response, the City Council directed staff to return with background information and police call-for-service data related to existing PSH communities. Additionally, recognizing that PSH communities serve a uniquely vulnerable population, including formerly homeless individuals and families with disabilities and addiction issues, staff was asked to provide potential options for enhancing the City’s role in monitoring and oversight to ensure a well-managed and safe living environment for all residents.
Overview of Permanent Supportive Housing in Santa Ana
Over the last ten years, the City Council has approved funding and entitlements for 488 permanent supportive housing units across 11 developments. PSH communities serve a uniquely vulnerable population, including formerly homeless individuals and families with disabilities. PSH units are a critical component of the City’s strategy to address homelessness, reduce public health risks, and stabilize households. These communities provide long-term housing stability and supportive services to individuals with the greatest barriers to independence. Residents in PSH units receive services and support to help improve their mental health and stability.
The following lists affordable housing projects that have PSH units in the order of when they were first developed and highlights those projects that are 100% PSH communities
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(355 units) such as The Orchard, Heroes’ Landing, Casa Querencia, Estrella Springs, WISEPlace, and FX Residences:
Project Name Address # of PSH
Units
Total # of
Units
The Orchard* 2151 E 1st Street 72 72
Depot at Santiago 923 N Santiago Street 16 70
Santa Ana Arts Collective 1666 N Main Street 15 58
Heroes’ Landing* 3314 W 1st Street 75 75
Casa Querencia* 317 17th Street 56 56
Legacy Square 301 E Santa Ana Boulevard 33 93
Estrella Springs* 1108 N Harbor Boulevard 89 89
Archways 2530 Westminster Avenue 26 85
Crossroads at Washington 1146 E Washington Avenue 43 86 WISEPlace* 1411 N Broadway 47 47
FX Residences* 801 E Santa Ana Boulevard 16 16
TOTAL 488 747
*100% Permanent Supportive Housing Projects
Current Inspection of Rental Housing
Rental housing properties and units within the City are subject to inspections to ensure compliance with minimum health, safety, and welfare standards as required by State law and local ordinances. The City conducts two levels of inspections for publicly assisted housing units:
1. Santa Ana Housing Authority (SAHA) Inspections
The Santa Ana Housing Authority administers federal rental assistance through the Housing Choice Voucher Program and Project-Based Voucher units and uses the National Standards for the Physical Inspection of Real Estate (NSPIRE) to evaluate the physical condition of housing. These standards emphasize health, safety, and functional concerns over cosmetic issues. SAHA’s Residential Construction Specialists inspect units for:
•Structural integrity: Sound walls, ceilings, and roofs free of major damage or leaks.
•Essential utilities: Working plumbing (hot and cold water), sewage connections, and heating systems.
•Safety and security: Smoke/carbon monoxide detectors, secure locks, and safe electrical systems.
•Sanitation: Proper ventilation, waste disposal, and absence of pests. •Hazardous materials: Identification of exposed wiring, lead-based paint (in pre-1978 structures), and other health hazards.
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SAHA currently employs one full-time and one part-time inspector responsible for annual inspections of both project-based and tenant-based voucher units. In addition to the annual inspections, SAHA staff also conducts the following inspections:
•Pre-Contract Inspections: Before executing a PBV Housing Assistance Payments (HAP) contract, SAHA must inspect each contract unit to ensure it meets HUD’s HQS/NSPIRE (24 CFR § 983.103(b)). The property owner cannot receive housing assistance payments for any unit until SAHA verifies it meets these standards.
•Special and Complaint Inspections: SAHA must conduct an inspection whenever a participant reports a problem or submits a complaint about the condition of their unit (24 CFR § 983.103(f)). SAHA is responsible for determining if the issue violates HQS/NSPIRE and for requiring the owner to correct the deficiency.
•Owner Non-Compliance: If an owner fails to maintain the unit in accordance with HQS/NSPIRE, SAHA must take prompt and appropriate action, which may include withholding or abating Housing Assistance Payments, or terminating the HAP contract for the affected unit(s) (24 CFR § 983.208).
2. Proactive Rental Enforcement Program (PREP) Inspections In addition to SAHA inspections, all rental units in the City, units within PSHs are subject to inspections under the City’s Proactive Rental Enforcement Program (PREP) pursuant Division 2 of Article X of the Santa Municipal Code, which began in July 2016. PREP is a systematic code enforcement program by ordinance designed to identify and correct substandard housing conditions across all rental units. Code Enforcement staff conduct proactive inspections or in response to service calls to assess:
•Threats to occupant safety
•Threats to the structural integrity of the building
•Negative impacts on surrounding neighborhoods
All rental properties must register with the City and pay the associated PREP fee, which funds these inspections.
Together, the SAHA inspections and the PREP inspections provide a two-tiered oversight system.
Calls for Service and Oversight
SAHA has modified its procedures to collect calls for service data from the Santa Ana Police Department (“SAPD”) to monitor these PSH communities on a monthly basis and Permanent Supportive Housing Inspections Work Study Session October 7, 2025
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proactively maintain active communication with property owners, managers, and service providers.
From July 1, 2024, to June 30, 2025, 100% PSH projects such as The Orchard (336 calls) and Casa Querencia (306 calls) generated a noticeable higher number of police and service calls compared to mixed-income PSH projects such as the Depot at Santiago (24 calls). Below are the calls for service at the following PSH communities in full operation from July 1, 2024 to June 30, 2025 (Archways, Estrella Springs, FX Residences, and WISEPlace are newly developed and do not have calls for service to analyze for this 1-year timeframe):
Project Name Calls for Service
The Orchard* 336
Depot at Santiago 24
Santa Ana Arts Collective 57
Heroes’ Landing* 198
Casa Querencia* 306
Legacy Square 61
Crossroads at Washington 49
*100% Permanent Supportive Housing Projects
The Orchard has had the most calls for service with a total of 336 calls for service. The Orchard was the location of the narcotic investigation and search warrant prompting the City Council’s discussion. On September 3, 2025, SAPD conducted two separate narcotic investigations and search warrants related criminal investigation at the site. A review of the calls for service highlights a range of safety concerns that have been consistent for a 14-month period (July 2, 2024 – September 7, 2025). See summary of calls for service below:
•Trespassing – 83 calls
•Narcotic Activity – 69 calls
•Disturbing the Peace – 46 calls
•Suspicious Circumstances – 45 calls
•Welfare Checks – 31 calls
•Domestic Violence – 11 calls
•Warrants – 1 served on Feb. 20, 2025, and 2 served on Sep. 3, 2025 Options for Enhancing Monitoring and Oversight
SAHA Ministerial and Administrative Inspection Option: In addition to the annual and administrative inspections available to the City under existing requirements and procedures as described above and in response to the recent concerns, SAHA has already taken actions modifying its procedures to increase monitoring and oversight of the PSHs.
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Staff met with Community Development Partners (CDP), the property owner, and Mercy House, who provides the wrap-around supportive services for residents at The Orchard, on March 4, 2025 to discuss the calls for service and the SAPD enforcement actions at the Orchard.
Following this meeting, SAHA issued Notices to Comply to CDP in March and April 2025. The Notices to Comply required a change in their property management company and mandated 24/7 on-site security. CDP added the 24/7 on-site security at the Orchard on April 7, 2025. On July 1, 2025, CDP changed their property management company from FPI to QMG. Mercy House’s onsite case manager has increased communication with the property management company concerning issues with residents. SAHA staff has communicated clear expectations, monitored progress, and coordinated follow-up meetings with CDP at The Orchard and Casa Querencia (both 100% PSH) and will continue to work toward resolving these issues.
SAHA revised procedures to allow increased monitoring and collection of calls for service data with the SAPD and Code Enforcement for all PSHs on a monthly basis.
Similar to the increased monitoring of the Orchard, SAHA will conduct regular meetings with property owners, their property managers, and the groups providing the wrap- around services to residents in the PSHs.
Public Nuisance Abatement Action: Under the current SAMC, the City has authority to inspect and take code enforcement actions on the property if necessary subject to applicable noticing requirements and due process and procedures.
As added enforcement action, working with Code Enforcement, SAPD, and the City Attorney’s Office, based on the number of calls for service, can evaluate the need to file a public nuisance and drug abatement action. This action mirrors current enforcement actions at several problem properties on East First Street and is subject to City Council approval.
This action would be prompted solely on the risk‑based inspections warranted by property conditions or risk factors, including criminal and narcotic activity, violation history, outstanding complaints, building condition, or the presence of vulnerable populations.
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FISCAL IMPACT
There is no fiscal impact associated with this action. Staff will further evaluate the need for any additional resources that may be necessary depending on direction provided by the City Council on requested inspection levels and abatement actions.
EXHIBIT
None.
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager