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Quarterly Report for Housing Division Projects and Activities <br />June 4, 2012 <br />Page 2 <br />Loan Underwriting and Approval Process <br />In this process, staff reviews applicant eligibility, verifies income and assets, and oversees <br />underwriting to determine eligibility per program guidelines. In addition, staff conducts an <br />inspection of the unit, prepares a work write up to determine rehabilitation work to be performed, <br />and develops a budget for the work. Due to the complex funding requirements, applicants may be <br />in underwriting several months. The length of time in underwriting is largely determined by the <br />applicant's timely submittal of the necessary paperwork. Once approved, staff prepares all <br />necessary loan documents, makes arrangements for execution, and reserves the required loan <br />funds. One homebuyer assistance loan and one mobile home hardship loan were approved during <br />the third quarter of the fiscal year, and Table 1 provides details on these loans. <br />Table 1: Loans Approved Durinq the Third Quarter <br />Address <br />I Loan Amount <br />Loan Type <br />701 Park Place <br />1$20,160 <br />Homebu er Assistance <br />4211 W. First Street <br />1$5,000 <br />Homeowner Rehab <br />Chart 2 shows the number of loans approved <br />during the fiscal year to date. so <br />Construction Process <br />Chart 2. Loans Approved In FY <br />During this phase, homeowners receiving 5� — <br />rehabilitation loans are guided through an open 4 �V— <br />selection of contractors to complete the work on 3 <br />their homes. Each homeowner is given a list of 2 <br />contractors that have been screened by staff for 1 a{5 — <br />insurance and bonding requirements. However, ° <br />homeowners are allowed to select any contractor Homeowner Rehab Homebuyer Assistance <br />that is licensed and meets these same <br />requirements. Staff assists the homeowners in selection of a contractor, monitors the construction <br />work, approves payments to contractors, and tracks expenditures to ensure they do not exceed <br />available funds. Multifamily projects may involve additional issues such as compliance with <br />prevailing wage requirements and /or Davis - Bacon. At the end of the third quarter there were <br />seven new construction projects which have 206 units and five homeowner rehab projects under <br />construction. <br />lLj 5• <br />