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Quarterly Report for Housing <br />Division Projects and Activities <br />November 15, 2010 <br />Page 2 <br />used to cover the cost of essential repairs. The Housing Division reviews applications to <br />determine which program best fits the needs of the applicants. Applications are mailed out and <br />received for these programs on a continuing basis. Chart 1 shows the number of applications sent <br />out by type during the first quarter of the fiscal year. <br />Loan Underwriting and Approval Pro__cess <br />In this process staff reviews applicant eligibility, verifies income and assets, oversees underwriting, <br />conducts an inspection of the unit, and prepares a work write up to determine rehabilitation work to <br />be performed. Due to the complex funding requirements, applicants may be in underwriting for <br />several months. The time frame is largely determined by the applicant's timely submittal of the <br />necessary paperwork. Once approved, staff prepares all necessary loan documents, makes <br />arrangements for execution, and reserves the required loan funds. One mobile home rehabilitation <br />loan and eight homebuyer assistance loans were approved during the first quarter of the fiscal <br />year. <br />Construction Process <br />During this phase, staff monitors the construction work, approves payments to contractors, and <br />tracks expenditures to ensure they do not exceed available funds. Multifamily projects often <br />involve additional issues such as compliance with prevailing wage requirements andlor Davis- <br />Bacon. As of September 30, 2010, including the multifamily units, there was a total of 50 units <br />underway. <br />Loan Portfolio Management <br />The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of <br />the end of the first quarter, the principal balance was $74,410,778. This is comprised of 443 loans <br />of which 381 are deferred or residual receipt payment loans. The loan portfolio generated $78,919 <br />in payments of principal and interest to date this quarter. <br />Development Projects <br />703 North Lacy <br />The City Council and Agency have approved loans to Orange Housing Development Corporation <br />(OHDC) and C&C Development for acquisition and rehabilitation of a 28-unit building at 703 North <br />Lacy. Rents are to be restricted to those affordable to extremely low- and very low-income <br />households. Rehabilitation on this project is currently underway. The developer is finalizing the first <br />floor units and completing landscaping on the property. The estimated completion date is the end <br />of October 2010. <br />