19F - QRTLY RPTS HOUSING DIVISION

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Quarterly Report for Housing Division Projects and Activities November 7, 2011 Page 4 As part of the requirements for these funds, staff must monitor the owner-occupancy for single- family homes that have received loans, and the code compliance of units in rental projects with long-term affordability covenants. During the first quarter, 134 letters were sent to homeowners to verify that they continue to occupy the home as their primary residence. All, but four homeowners, have responded and are in compliance. The remaining few have been sent, or will receive, a follow-up letter. During the first quarter, staff also conducted code compliance inspections for a sample of six units in two projects that contain a total of 21 units. Regulations require that only a sample be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to ensure they also meet City code requirements. All of the inspected units, as well as the grounds and common areas, were found to be in compliance. All the units passed at the time of inspection, and no follow-up visits were required. Development Projects NSP 1 Program The federal Neighborhood Stabilization Program (NSP) is intended to target and stabilize communities hardest hit with foreclosures. To date, the City has received all three NSP awards for which it was eligible. The first award (NSP 1) came through a noncompetitive process in the amount of $5,795,155. Under its terms, all grant funds must be obligated by September 5, 2010, and expended by March 26, 2013. In addition, NSP grantees must expend at least 25% of the funds on households that have very low incomes. The City has exceeded all of these requirements. All of our NSP 1 grant funds were obligated by August of 2010; and by the end of the first quarter, we had already expended more than $6.3 million or 108.8% of the grant amount. The amount spent is greater than the grant amount because it includes program income. Only 24% of NSP 1 grantees have spent 100% or more of their grant amount. Finally, the City has already spent $2.34 million, or 33% of all of its NSP 1 funds, on projects that serve very low- income households exclusively. Currently, NSP 1 is only operating with program income, and these funds will diminish over time. NSP 1 includes the following four programs: Down Payment Assistance Program, Single-Family Acquisition-Rehabilitation Program, Historic/Condominium Acquisition-Rehabilitation Program and a Multifamily Acquisition-Rehabilitation Program. ANR Industries, the intermediary selected to implement homeownership programs including the Single-Family and Historic/Condominium, is responsible for the acquisition, rehabilitation, and resale of the foreclosed units. These homes are sold to families with incomes up to 120% of the area median (AMI). As of the end of the first quarter, ANR had used NSP 1 funds to acquire 35 single-family homes and condominium units for rehabilitation and resale to qualifying families. ANR has spent more than $3.3 million in NSP 1 funds and has leveraged an additional $4.5 million in private funds to make these affordable units 19F-4