19C - QRTLY RPT FOR HOUSING - Laserfiche WebLink

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Quarterly Report Housing Division Projects and Activities (Jan — Mar 2014) June 3, 2014 Page 2 Rehabilitation Loan Underwritinq and ADDroval Process Staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to ensure compliance with program guidelines and requirements established by the funding source. In addition, staff conducts an inspection of the property, 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. 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 three homeowner rehab projects out to bid and five under construction. Homeownership Marketing and Approval Process In January, the City began marketing a new down - payment assistance program. Outreach included: Councilmember Sarmiento's newsletter, water bill insert, Nixie press release, Miniondas newspaper article, interview with Orange County Register, contact with community partners and Homebuyer Counseling Centers. Staff presented six workshops which were attended by 147 individuals, the majority being Santa Ana residents. The first workshop was covered by Telemundo and NBC news broadcasts. Staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by HUD. Applicants must meet established income requirements, complete an eight -hour pre - purchase counseling program from a HUD - approved agency, be pre - qualified for a first mortgage and have a minimum of three percent of the purchase price from their own savings. Other HUD requirements apply, including a current maximum sales price of $390,000 for a single family home or condo or $443,000 for a newly constructed condo or home. Additionally, the property needs to be in good condition and pass an inspection by staff. Staff received a significant interest in the program and is anticipating an increase in the number of applications received and approved over the next few months. 19C -2