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Quarterly Report Housing Division Projects and Activities (April — June 2015) Page 2 Rehabilitation Loan Underwriting and Approval 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 to selection of contractors to complete the work on their homes. contractors that have been screened by staff for license and homeowners are allowed to select any contractor that meet assists the homeowners in selection of a contractor, monito payments to contractors, and tracks expenditures to ensure t At the end of this quarter, there were three homeowner ret under construction, and two were completed. Homeownership Marketing and Approval Process ans are guided through an open Each homeowner is given a list of insurance requirements. However, s these same requirements. Staff rs the construction work, approves hey do not exceed available funds. iabilltation projects out to .bid, four During this quarter, staff represented the City of Santa Ana at the HOPE Now Homebuyer Fair and presented and Mobile Home rehabilitation loan informational session at the Quiet Village Mobile Home Park which was attended by 27 residents. Staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by the U.S Department of Housing and Urban Development (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 $466,000 for a single family home or condo or $560,000 for a newly constructed condo or home. The updated maximum sales price became effective in April 13, 2015. Additionally, the property needs to be in good condition and pass an inspection by staff. Loan Portfolio Management & 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 $112,534,247. This is comprised of 439 19E -2