Item 09 - Housing Division Quarterly Report

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Housing Division Quarterly Report November 7, 2023 Page 3 3 8 3 6 Community Center engaging, informing, and answering questions regarding the program. •On August 19, staff participated in the Housing Authority Forum that took place in the City of Garden Grove. Staff had the opportunity to provide information to a large audience on the Housing Choice Voucher Program (Section 8) and the City’s affordable housing resources. In addition, we had a resource table providing information on all of our programs, including our Down Payment Assistance Program. As a result of these efforts, three (3) down payment assistance loan applications were approved and three (3) closed escrow. Loan Portfolio Management & Monitoring The Housing Division is responsible for managing the residential loan portfolio, which includes all of the loans entered into by the City and Housing Authority acting as the Housing Successor Agency. As of the end of the first quarter, the principal balance was $150,443,210.58. This portfolio is comprised of 351 loans of which 329 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $458,929.23 in payments of principal and interest during the first quarter. The amount of residual receipts payments changes every quarter. Table 2: Portfolio Revenue HOME CDBG Redevelopment CalHome Loan Payoffs $141,520.14 $0 $0 $48,000.00 Residual Receipts Payments $122,443.00 $0 $122,443.00 0 Amortized Loan Payments $1,184.07 $2,852.13 $20,486.89 0 Total for Q1 $265,147.21 $2,852.13 $142,929.89 $48,000.00 Monitoring As part of the requirements for these loans, staff must monitor the owner-occupancy of single-family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 67 owner- occupancy recertification letters were mailed and 49 were returned and processed. This number includes letters sent from previous months. Staff also conducted a total of 105 inspections during this quarter. Density Bonus Agreements The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers, which are variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers