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Quarterly Report Housing Division <br />Projects and Activities (April — June 2015) <br />Page 2 <br />Rehabilitation Loan Underwriting and Approval Process <br />Staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to ensure <br />compliance with program guidelines and requirements established by the funding source. In <br />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 execution, <br />and reserves the required loan funds. <br />Construction Process <br />During this phase, homeowners receiving rehabilitation to <br />selection of contractors to complete the work on their homes. <br />contractors that have been screened by staff for license and <br />homeowners are allowed to select any contractor that meet <br />assists the homeowners in selection of a contractor, monito <br />payments to contractors, and tracks expenditures to ensure t <br />At the end of this quarter, there were three homeowner ret <br />under construction, and two were completed. <br />Homeownership Marketing and Approval Process <br />ans are guided through an open <br />Each homeowner is given a list of <br />insurance requirements. However, <br />s these same requirements. Staff <br />rs the construction work, approves <br />hey do not exceed available funds. <br />iabilltation projects out to .bid, four <br />During this quarter, staff represented the City of Santa Ana at the HOPE Now Homebuyer Fair <br />and presented and Mobile Home rehabilitation loan informational session at the Quiet Village <br />Mobile Home Park which was attended by 27 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 eight - <br />hour pre - purchase counseling program from a HUD - approved agency, be pre - qualified for a first <br />mortgage and have a minimum of three percent of the purchase price from their own savings. <br />Other HUD requirements apply, Including a current maximum sales price of $466,000 for a single <br />family home or condo or $560,000 for a newly constructed condo or home. The updated <br />maximum sales price became effective in April 13, 2015. Additionally, the property needs to be in <br />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 $112,534,247. This is comprised of 439 <br />19E -2 <br />