Laserfiche WebLink
Quarterly Report Housing Division <br />Projects and Activities (Oct — Dec 2014) <br />Page 2 <br />Rehabilitation Loan Underwriting and Approval Process <br />Staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to <br />ensure compliance with program guidelines and requirements established by the funding source. <br />In addition, staff conducts an inspection of the property, prepares a work write up to determine <br />rehabilitation work to be performed, and develops a budget for the work. Due to the complex <br />funding requirements, applicants may be in underwriting several months. The length of time in <br />underwriting is largely determined by the applicant's timely submittal of the necessary paperwork. <br />Once approved, staff prepares all necessary loan documents, makes arrangements for <br />execution, and reserves the required loan funds. <br />Construction Process <br />During this phase, homeowners receiving rehabilitation loans are guided through an open <br />selection of contractors to complete the work on their homes. Each homeowner is given a list of <br />contractors that have been screened by staff for license and insurance requirements. However, <br />homeowners are allowed to select any contractor that meets these same requirements. Staff <br />assists the homeowners in selection of a contractor, monitors the construction work, approves <br />payments to contractors, and tracks expenditures to ensure they do not exceed available funds. <br />At the end of this quarter, there were three homeowner rehabilitation projects out to bid, four <br />under construction, and two were completed. <br />Homeownership Marketing and Approval Process <br />During this quarter, staff presented three workshops which were attended by 108 individuals, the <br />majority being Santa Ana residents. <br />Staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program <br />guidelines and requirements established by the U.S Department of Housing and Urban <br />Development (HUD). Applicants must meet established income requirements, complete an <br />eight -hour pre - purchase counseling program from a HUD - approved agency, be pre - qualified for a <br />first mortgage and have a minimum of three percent of the purchase price from their own <br />savings. Other HUD requirements apply, including a current maximum sales price of $390,000 <br />for an existing single family home or condo or $443,000 for a newly constructed condo or home. <br />Additionally, the property needs to be in good condition and pass an inspection by staff. <br />Loan Portfolio Management & Monitoring <br />The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As <br />of the end of this quarter, the principal balance was $110,233,735. This is comprised of 439 <br />loans of which 417 are deferred or residual receipt payment loans. As shown in Table 2, the loan <br />portfolio generated $189,311 in payments of principal and interest during the quarter. <br />19C -2 <br />