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Housing Division Quarterly Report <br />September 6, 2022 <br />Page 3 <br />2 <br />9 <br />2 <br />9 <br />lenders at Wells Fargo to get the City’s program approved within their company for an <br />easier approval process. These activities for our Down Payment Assistance Loan <br />Program are supplemented by a current 4 to 6 unit affordable homeownership project <br />that staff is negotiating with Habitat for Humanity. <br />Loan Portfolio Management & Monitoring <br />The Housing Division is responsible for managing the residential loan portfolio, which <br />includes all of the loans entered by the City and Housing Authority acting as the Housing <br />Successor Agency. As of the end of the fourth quarter, the principal balance was <br />$136,023,826.72. This is comprised of 340 loans, in which 315 are deferred or residual <br />receipt payment loans. As shown in Table 2, the loan portfolio generated $701,240.48 in <br />payments of principal and interest during the fourth quarter. The amount of residual <br />receipts payments changes every quarter. <br />Table 2: Portfolio Revenue <br /> Funding Source <br /> HOME CDBG Redevelopment NSP CalHOME Inclusionary <br />Loan Payoffs $58,241.42 $135,214.21 $0 $10,579.02 $50,0000.00 $30,000.00 <br />Residual Receipts <br />Payments $79,934.99 $0 $172,461.05 $139,351.08 $0 $0 <br />Amortized Loan <br />Payments $1,288.88 $3,616.01 $20,153.82 $0 $300.00 $0 <br />Total for Q4 $139,565.29 $138,830.22 $192,614.87 $149,930.10 $50,300.00 $30,000.00 <br />Monitoring <br />As part of the requirements for these loans, staff must monitor the owner-occupancy of <br />single-family homes that have received loans, and the building code compliance of units <br />in rental projects with long-term affordability covenants. During this quarter, 47 owner- <br />occupancy recertification letters were mailed and 46 were returned and processed. This <br />number includes letters sent from previous months. Staff also conducted a total of 192 <br />inspections during this quarter. <br />Density Bonus Housing Agreements <br />The California Density Bonus law allows developers proposing five or more residential <br />units to seek increases in base density for providing on-site housing units in exchange for <br />providing affordable on-site units. To help make constructing affordable on-site units <br />feasible, the law allows developers to seek up to three incentives/concessions and an <br />unlimited number of waivers, which are essentially variances from development <br />standards that would help the project be built without significant burden and without <br />detriment to public health. The first version of the Density Bonus Law was adopted in <br />1979 and has since been amended at various times. Recent revisions allow affordable <br />housing developers to request incentives/concessions and/or waivers for 100-percent <br />affordable developments, even if they do not require a numerical density bonus. <br />Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions <br />to require studies to “justify” the density bonus and requested incentives/waivers and