19G - QRTLY REPORT OF HOUSING PROJECTS

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Quarterly Report for Housing Division Projects and Programs August 5, 2013 Page 3 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 this quarter, staff received and processed 83 owner- occupancy recertification letters. Ten second-request letters were mailed to homeowners that were non-responsive. During this quarter, staff also conducted code compliance inspections for 39 units in two projects. 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. The majority of the inspected units as well as the grounds and common areas were found to be in compliance at the time of initial inspection. Some of the units had minor deficiencies including loose toilets, inoperative burners, faulty GFCI outlets, inoperative smoke alarms and carbon monoxide detectors. All of the deficiencies were repaired and the units were found to be in compliance at the time of the subsequent re-inspection. Subordinations Due to the historic drop in mortgage interest rates, the City experienced a significant increase in requests for subordination. During the fiscal year there were a total of 28 requests for subordination received and approved of which 14 were in the fourth quarter. The subordinations were reviewed for conformance with City policy and granted to homeowners that were refinancing their existing first mortgage to a more favorable interest rate. Per the subordination policy, no cash is allowed to be taken. Development Projects Neighborhood Stabilization Program 2 (NSP 2) The City's second award (NSP 2) for $10 million was received through a highly competitive process in which only 15 local government agencies were successful. Most awards were made to nonprofit consortiums. Under the terms of this award, there is no obligation deadline to meet; however, there is an expenditure deadline. In the first quarter, HUD approved a technical amendment to allow the City to close the DPAP activity and move the remaining $336,860 to the Single-Family Acquisition-Rehabilitation activity. There were no properties sold during the fourth quarter; eight properties were sold during the fiscal year. Neighborhood Stabilization Program 3 (NSP 3) The U.S. Department of Housing and Urban Development (HUD) has allocated the amount of $1,464,113 in NSP 3 funds to the City of Santa Ana. To receive these funds the City adopted a substantial amendment to its Annual Action Plan, and submitted it to HUD on February 28, 2011. The amendment was approved, and the City signed a grant agreement with HUD on March 10, 2011. The grant activities are: 19G-3