|
Quarterly Report Housing Division Projects and Activities (October — December 2015)
<br />February 16, 2016
<br />Page 2
<br />Table 1: Applications Sent Out, Received & Approved
<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 two homeowner rehabilitation projects out to bid, six under
<br />construction, and two were 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 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 />19D-2
<br />Inquiries
<br />Applications
<br />Applications
<br />Applications
<br />Program
<br />Sent Out
<br />Received
<br />A roved
<br />Q2
<br />Total
<br />Q2
<br />Total
<br />Q2
<br />Total
<br />Q2
<br />Total
<br />FY
<br />FY
<br />FY
<br />FY
<br />Single-Family Rehabilitation
<br />25
<br />55
<br />25
<br />51
<br />3
<br />10
<br />0
<br />0
<br />Mobile Home Rehabilitation
<br />20
<br />36
<br />20
<br />32
<br />6
<br />8
<br />1
<br />1
<br />Multi-Family Rehabilitation
<br />1
<br />3
<br />0
<br />0
<br />0
<br />0
<br />0
<br />0
<br />Historic Home Restoration
<br />1
<br />2
<br />0
<br />1
<br />0
<br />0
<br />1
<br />2
<br />Homeownership
<br />30
<br />66
<br />30
<br />62
<br />5
<br />10
<br />1
<br />6
<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 two homeowner rehabilitation projects out to bid, six under
<br />construction, and two were 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 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 />19D-2
<br />
|