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Quarterly Report Housing Division <br />Projects and Activities (July — September 2015) <br />Page 2 <br />Table 1: Loan Application Status <br />Program <br />01 <br />Inquiries <br />Total FY <br />Applications <br />Sent Out <br />Applications <br />Received <br />Applications <br />Approved <br />Q1 Total FY Q1 <br />Total FY Q1 Total FY <br />Single -Family Rehabilitation <br />30 <br />30 <br />26 26 <br />7 <br />7 <br />0 <br />0 <br />Mobile Home Rehabilitation <br />16 <br />16 <br />12 12 <br />2 <br />2 <br />0 <br />0 <br />Multi-FamilyRehabilitation <br />2 <br />2 <br />0 0 <br />0 <br />0 <br />0 <br />0 <br />Historic Home Restoration <br />1 <br />1 <br />1 1 <br />0 <br />0 <br />1 <br />1 <br />Homeownership36 <br />36 <br />32 32 <br />5 <br />5 <br />5 <br />5 <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 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 (3) homeowner rehabilitation projects out to bid, five <br />(5) under construction, and one (1) was completed. <br />Homeownership Approval Process <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 prequalified 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 maxlmurn 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 on April 13, 2015, Additionally, the property needs to be <br />In good condition and pass an Inspection by staff. <br />19C-2 <br />