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Quarterly Report for Housing Division Projects and Activities <br />November 4, 2013 <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. There were four loans approved during this quarter; three rehabilitation applications are <br />pending and two homebuyer applications were denied due to program eligibility. <br />Construction Process <br />During this phase, homeowners receiving rehabilitation loans are guided through an open selection <br />of contractors to complete the work on their homes. Each homeowner is given a list of contractors <br />that have been screened by staff for license and insurance requirements. However, homeowners <br />are allowed to select any contractor that meets these same requirements. Staff assists the <br />homeowners in selection of a contractor, monitors the construction work, approves payments to <br />contractors, and tracks expenditures to ensure they do not exceed available funds. At the end of <br />this quarter there were three homeowner rehab projects out to bid and one under construction. <br />Loan Portfolio Management and Monitoring <br />The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of <br />the end of this quarter, the principal balance was $107,097,466. This is comprised of 480 loans of <br />which 441 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio <br />generated $98,703 in payments of principal and interest during the quarter: <br />Table 2: Portfolio Revenue <br />As part of the requirements for these funds, staff must monitor the owner - occupancy for single <br />family homes that have received loans, and the code compliance of units in rental projects with <br />long -term affordability covenants. During this quarter, 34 owner occupancy recertification letters <br />were mailed; 23 were returned and processed. <br />During this quarter, staff also conducted code compliance inspections for 23 units in three projects. <br />Regulations require that only a sample be selected for inspection. Staff also inspects the grounds <br />19F -2 <br />First Quarter <br />FY 13 -14 <br />Loan Payoffs <br />$40,464 <br />$40,464 <br />Residual Receipts Payments <br />$0 <br />$0 <br />Amortized Loan Payments <br />$58,239 <br />$58,239 <br />Total <br />$98,703 <br />$98,703 <br />As part of the requirements for these funds, staff must monitor the owner - occupancy for single <br />family homes that have received loans, and the code compliance of units in rental projects with <br />long -term affordability covenants. During this quarter, 34 owner occupancy recertification letters <br />were mailed; 23 were returned and processed. <br />During this quarter, staff also conducted code compliance inspections for 23 units in three projects. <br />Regulations require that only a sample be selected for inspection. Staff also inspects the grounds <br />19F -2 <br />