19D - QRTLY RPT HOUSING - Laserfiche WebLink

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Quarterly Report Housing Division Projects and Activities (Oct - Dec 2013) Page 2 Loan Underwriting and Approval Process In this process, staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to determine eligibility per program guidelines. In addition, staff conducts an inspection of the unit, prepares a work write up to determine rehabilitation work to be performed, and develops a budget for the work. Due to the complex funding requirements, applicants may be in underwriting several months. The length of time in underwriting is largely determined by the applicant's timely submittal of the necessary paperwork. Once approved, staff prepares all necessary loan documents, makes arrangements for execution, and reserves the required loan funds. There were five loans approved during this quarter; three rehabilitation applications are pending and one homebuyer application was denied due to program eligibility. Construction Process During this phase, homeowners receiving rehabilitation loans are guided through an open selection of contractors to complete the work on their homes. Each homeowner is given a list of contractors that have been screened by staff for license and insurance requirements. However, homeowners are allowed to select any contractor that meets these same requirements. Staff assists the homeowners in selection of a contractor, monitors the construction work, approves payments to contractors, and tracks expenditures to ensure they do not exceed available funds. At the end of this quarter there were four rehab projects out to bid and three under construction. Loan Portfolio Management and Monitoring The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of the end of this quarter, the principal balance was $109,260,586. This is comprised of 474 loans of which 441 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $522,824 in payments of principal and interest during the quarter: Table 2: Portfolio Revenue 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, 32 owner occupancy recertification letters were mailed; 25 were returned and processed. 19D-2 Second Quarter FY 13 -14 Loan Payoffs $366,796 $407,260 Residual Receipts Payments $116,183 $116,183 Amortized Loan Payments $39,845 $98,084 Total $522,824 $621,527 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, 32 owner occupancy recertification letters were mailed; 25 were returned and processed. 19D-2