19D - QRTLY RPT HOUSING PROJECTS

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Quarterly Report for Housing Division Projects and Activities June 4, 2012 Page 3 Loan Portfolio Management and Monitoring The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of the end of the third quarter, the principal balance was $83,784,832. This is comprised of 474 loans of which 417 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $46,826 in payments of principal and interest during the quarter: Table 2: Portfolio Revenue Residual Receipts Payments $43,198 Amortized Loan Payments $46,826 Total $90,024 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 fiscal year to date 136 letters have been sent to homeowners to verify that they continue to occupy the home as their primary residence. Four homeowners have been found not to be in compliance with their loan terms because they no longer live in the homes, and the City has begun the process to get repayment. During the third quarter staff also conducted code compliance inspections for 77 units in twelve projects containing a total of 237 units. Regulations require that only a sample be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to insure they also meet City code requirements. and inoperable outlets. Owners of buildings found not to be in compliance are given a deadline by which all repairs must be made, and staff conducts re- inspections to insure that repairs have actually been made. 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 third quarter we had already expended more than $6.7 million or 116% of its grant amount. The amount spent is greater than the grant amount because it includes program income. Finally, the City has spent $2.34 million, or 33% of all 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. 19D-3