HomeMy WebLinkAboutItem 12 - Quarterly Report for Housing Division Projects and Activities Community Development Agency
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Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 7, 2021
TOPIC: Quarterly Report for Housing Division Projects and Activities
AGENDA TITLE:
Quarterly Report for Housing Division Projects and Activities for the Period of April 2021
– June 2021
RECOMMENDED ACTION
Receive and file the Quarterly Report for Housing Division Projects and Activities for the
period of April 2021 – June 2021.
DISCUSSION
This report for the quarter ending on June 30, 2021 provides statistics for all of the
affordable housing projects and activities for the Housing Division. The report is divided
into four sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable
Housing Funds and Commitments, and Development Projects.
Loan Activity
Applications
The Housing Division offers several different programs, including: down payment
assistance for first-time homebuyers and rehabilitation loans for mobile homes, single-
family, multi-family, and historic homes. Inquiries are received from the public and
applications are mailed out, received, and approved for these programs on a continual
basis. Table 1 shows the number of inquiries, applications sent out, received, and
approved by type for the quarter and for the total fiscal year.
Table 1: Applications Sent Out, Received & Approved
Inquiries Applications
Sent Out
Applications
Received
Applications
ApprovedProgram
Q4 Total FY Q4 Total FY Q4 Total FY Q4 Total FY
Single-Family Rehabilitation 12 48 13 45 3 4 0 0
Mobile Home Rehabilitation 5 19 5 18 2 3 0 0
Multi-Family Rehabilitation 0 0 0 0 0 0 0 0
Historic Home Restoration 0 1 0 1 0 0 0 0
Homeownership / DPAP 16 56 16 50 8 19 5 11
Loan Subordinations 3 20 3 20 3 20 3 20
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The number of applications received is typically lower than the number of applications
sent out in any given period due to the stringent program guidelines for eligibility regulated
by the federal government, which makes it difficult for most applicants to qualify. Due to
the Coronavirus (COVID-19), application processing for the Single-Family and Mobile
Home Rehabilitation Program continued to be on hold during the fourth quarter. There
are currently nine applications for the Single-Family Rehabilitation Program and four
applications for the Mobile Home Rehabilitation Program on hold.
Homeowners who have second liens with the City of Santa Ana have been interested in
refinancing their first lien mortgage to take advantage of the low interest rates. When the
first lien is refinanced, it is necessary for the City to subordinate its second lien. During
the fourth quarter, three requests for subordination were received, approved, and
processed.
Rehabilitation Loan Underwriting and Approval Progress
During this quarter, no mobile home rehabilitation loans were funded due to the program
being on hold.
Rehabilitation Program Construction Progress
Homeowners receiving rehabilitation loans are guided through an open selection of
contractors to complete the work on their homes. Each homeowner is given a list of
contractors that have been screened by staff for license and insurance requirements.
However, homeowners are allowed to select any contractor that meets these same
requirements. Staff assists the homeowners with the evaluation of bids and selection of
a contractor. Staff also monitors the construction work, approves payments to contractors,
and tracks expenditures to ensure compliance with the loan agreement and program
guidelines. During this quarter, zero additional homes were completed.
Down Payment Assistance Loan Program (DPAP) Progress
For the Down Payment Assistance Loan Program, 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). During
this quarter, staff conducted one down payment assistance virtual workshop via Zoom
with 24 attendees. Five down payment assistance loans closed escrow. Eight down
payment assistance applications were received, and five applications were approved.
Loan Portfolio Management & Monitoring
The Housing Division is responsible for managing the residential loan portfolio, which
includes all of the loans entered into by the City and Housing Authority acting as the
Housing Successor Agency. As of the end of the fourth quarter, the principal balance was
$138,481,778.26. This is composed of 369 loans, of which 346 are deferred or residual
receipt payment loans. As shown in Table 2, the loan portfolio generated $159,735.00 in
payments of principal and interest during the fourth quarter. The amount of residual
receipts payments changes every quarter.
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Table 2: Portfolio Revenue
Funding Source
HOME CDBG Redevelopment NSP CalHOME
Loan Payoffs $0 $81,380 $0 $0 $43,861
Residual Receipts Payments $0 $6,663 $0 $0 $0
Amortized Loan Payments $2,896 $5,788 $19,147 $0 $43,861
Total for Q4 $2,896 $93,831 $19,147 $0 $43,861
Monitoring
As part of the requirements for these funds, staff must monitor the owner-occupancy of
single-family homes that have received loans, and the building code compliance of units
in rental projects with long-term affordability covenants. During this quarter, 67 owner-
occupancy recertification letters were mailed and 43 were returned and processed. This
number includes letters sent from previous months.
On-Site compliance monitoring of the tenant files was not conducted this quarter due to
COVID-19. HUD has temporarily waived the requirement for ongoing periodic inspections
of HOME-assisted rental housing through September 30, 2021.
Available Funds and Land Assets for Affordable Housing Development Projects
The City of Santa Ana and the Housing Authority acting as the Housing Successor
Agency manages multiple sources of local, state and federal funds to promote and
facilitate the development of affordable housing as well as land assets held by the
Housing Authority. Exhibit 1 provides a summary of the funds available as of March 31,
2021. Exhibit 2 provides a summary of available land assets.
Housing Opportunity Ordinance
On-Site Development:
Since 2011, a total of 33 units have been developed on-site as a result of the Housing
Opportunity Ordinance, including 23 ownership units for-sale and 10 rental units:
Units Built On-Site
Ownership Rental Total
23 10 33
In-Lieu Fees Generated:
All in-lieu fees, penalties and other monies collected pursuant to the Housing Opportunity
Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since
inception, the Inclusionary Housing Fund has generated $21,510,127 to be used for the
development of housing affordable to low- and moderate-income households, with a
reasonable amount spent on administrative or related expenses associated with the
administration of the Housing Opportunity Ordinance. In-Lieu fees generated have been
used to develop new affordable housing opportunities, provide emergency shelter, and
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create homeownership opportunities. Below is a summary of how in-lieu fees have been
used by the City:
Project Inclusionary Housing
Funds SPENT # of Units Address
Santa Ana Arts
Collective $4,775,000 57 1666 N Main Street
Tiny Tim Plaza $1,300,000 50 2239 W 5th Street
The Link Interim
Emergency Shelter $4,140,295 N/A 2320 S Red Hill
Avenue
TOTAL $10,215,295 107
Project Inclusionary Housing
Funds COMMITTED # of Units Address
Habitat for Humanity
“Lacy & Vance”$565,271 2 416 Vance Street & 826
N Lacy Street
Westview House $1,514,113 84 2530 and 2534
Westminster Avenue
WISE Place Steps to
Independence Public
Service Program
$90,000 N/A N/A
Down Payment
Assistance $210,000 N/A N/A
TOTAL $2,379,384 86
Affordable Housing Development Projects
There is one recently completed affordable housing project, two affordable housing
projects under construction, and four affordable housing projects in pre-development.
Below is a brief summary and status-update for each project. Exhibit 3 provides a
development timeline for each project.
Projects Completed
La Placita Cinco – formerly Tiny Tim Plaza (2239 West 5th Street)
Developer Community Development Partners
Description
New construction of an affordable multifamily apartment complex consisting
of 50 units of rental housing serving very-low and extremely-low income
families, and one (1) manager’s unit.
City / Authority
Funds Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000)
Update The project is 100% complete, with only minimal close-out items remaining.
All final inspections were signed, and the Certificate of Occupancy was
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issued on June 22, 2021. Retail renovations are complete, with final signage
in progress. The project is now 100% leased.
Projects under Construction
Legacy Square (609 North Spurgeon Street)
Developer National Community Renaissance with Mercy House as the service provider
Description
New construction of a 100% affordable multifamily apartment complex
consisting of 92 units of rental housing and one (1) manager’s unit. All units
will be affordable to households earning less than 60% AMI of which 33 units
will be set-aside for permanent supportive housing.
Authority
Funds Eight (8) Project-Based Vouchers (PBVs)
Update Construction is currently ongoing and on July 8, 2021 a Groundbreaking
Ceremony was celebrated. The estimated completion date is February 2023.
North Harbor Village (1108 North Harbor Boulevard)
Developer Jamboree Housing Corporation
Description Acquisition and rehabilitation of a former motel yielding 89 units of permanent
supportive housing.
City / Authority
Funds
CDBG ($1,687,047); Eight-nine (89) PBVs consisting of 34 HUD-VASH PBVs
and 55 non HUD-VASH PBVs.
Update
The developer closed on their construction financing on April 1, 2021
Construction is currently ongoing. The estimated completion date is October
2022.
Projects in Pre-Development
Crossroads at Washington (1126 and 1146 East Washington Avenue)
Developer Related Companies of California with A Community of Friends (ACOF) as co-
developer and lead service provider
Description
New construction of a 100% affordable multifamily apartment complex
consisting of 85 units of rental housing and one (1) manager’s unit. All units
will be affordable to households earning less than 30% AMI of which 43 units
will be set-aside for permanent supportive housing.
City / Authority
Funds
HOME Investment Partnerships Program ($3,007,489), Neighborhood
Stabilization Program ($963,951), sixty-five (65) year ground lease
agreement for 1126 and 1146 E. Washington Avenue (Appraised Value as of
September 22, 2019: $4,108,136)
Update
The Developer was successfully awarded Orange County Housing Finance
Trust funds in May 2021. The Developer continues to work with the City,
County, and the California Department of Toxic Substances Control (DTSC)
on supplemental environmental investigations. The City, County, and DTSC
are expected to enter into a Standard Voluntary Agreement for further
agency oversight.
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FX Residences (801, 809, 809 ½ East Santa Ana Boulevard)
Developer HomeAid Orange County, Inc. with Mercy House as the service provider
Description New construction of an affordable multifamily apartment complex consisting
of 16 units of permanent supportive housing, and one (1) manager’s unit.
City / Authority
Funds
Housing Successor Agency ($1,069,947), three (3) PBVs, 99-year ground
lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25,
2018: $788,000)
Update
HomeAid Orange County applied for $300,000 from Federal Home Loan Bank
of San Francisco through their Affordable Housing Program (AHP) Loan
Program at the beginning of March but the project was not awarded the AHP
funds. Following this project setback, HomeAid Orange County is revising and
refining their proforma to calculate their financial gap as they work to close on
their financing by the end of this year with additional financial support from the
City.
Habitat for Humanity (416 Vance Street & 826 North Lacy Street)
Developer Habitat for Humanity of Orange County
Description New construction of two single-family detached homes for homeownership
serving households up to 120% AMI.
City / Authority
Funds
Inclusionary Housing ($565,271) and a 99-year ground lease agreement for
416 Vance Street and 826 N. Lacy Street (Appraised Value as of Oct 25,
2018: $578,000)
Update
On April 6, 2021, City Council approved a First Amendment to the Conditional
Grant Agreement with Habitat for Humanity of Orange County for an
additional $333,777 in Inclusionary Housing Funds for a total Inclusionary
Grant amount of $565,271 for the development of the project. The
Developer’s Site Plan Review application was submitted in April 2021. The
Developer is working through Site Plan Review prior to issuance of their
building permit to start construction.
Westview House (2530 Westminster Avenue)
Developer Community Development Partners
Description
New construction of an affordable multifamily apartment development
consisting of 85 units of both large family and PSH with one (1) manager’s
unit. Twenty-six of the units will be funded by PBV and MHSA funds through
the NPLH program.
City / Authority
Funds
Inclusionary Housing ($1,514,113), HOME Investment Partnerships Program
($2,003,705), Rental Rehabilitation Program ($386,523), and twenty-six (26)
Mainstream Program PBVs
Update
The developer applied for the OC 2020 Supportive Housing NOFA MHSA
funds and received this funding award. The developer also applied for
competitive NPLH funds on January 19th and received a formal award for
these funds from HCD. The developer will apply for 4% tax credits and bonds
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on September 9, 2021 and is expected to close on their financing before June
2022.
Regional Housing Needs Assessment
Housing projects that have been approved, permitted, or received a certificate of
occupancy after June 30, 2021, may be counted towards the 6th Regional Housing Needs
Assessment (RHNA) Cycle (October 2021 to October 2029). Below is a summary of our
progress to meet our 6th RHNA Cycle requirements for affordable housing:
Very Low Income Low Income Moderate Income
RHNA Allocation 606 362 545
Pipeline Projects 414*529 2
Remaining RHNA 192 -167 543
* 281 units are for extremely low income households (0 – 30% AMI)
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Available Funds for Affordable Housing Development Projects
2. Available Land Assets for Affordable Housing Development
3. Project Timelines
Submitted By: Steven A. Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
$3,650,079 Cash on Hand
($1,069,947)Frances Xavier Residence Project Pre-Commitment Loan 1
($250,000)Administrative Costs Allowance 2
($2,076,527)Administrative Costs Allowance for Future Fiscal Years 3
($157,386)Crossroads at Washington Option Agreement Amendment 4
$0 Available Funds
Inclusionary Housing Funds
$10,436,303 Cash on Hand
($210,000)Down Payment Assistance Program 5
($231,494)Lacy Street Project Pre-Commitment Loan 6
($1,514,113)Westview House Pre-Commitment Loan 7
($70,273)WISEPlace Steps to Independence Program Agreement 8
($2,070,579)Administrative Costs Allowance (CDA/PBA)
$6,339,844 Available Funds
HOME Program
$7,202,730 Funds to Drawdown
($3,007,489)Crossroads at Washington Pre-Commitment Loan 9
($2,003,705)Westview House Pre-Commitment Loan 7
$2,191,536 Available Funds to Drawdown
CDBG Program (Acquisition/Rehabilitation Projects Only)
$2,134,716 Funds to Drawdown
($1,687,047)North Harbor Village Project Pre-Commitment Loan 10
$447,669 Available Funds to Drawdown
NSP Program (Abandoned, Foreclosed or Vacant Properties Only)
$1,394,088 Funds to Drawdown
($963,951)Crossroads at Washington Pre-Commitment Loan 9
($96,395)Crossroads at Washington Project Costs
($333,742)Transfer to CDBG in FY 20/21
$0 Available Funds to Drawdown
Rental Rehabilitation Grant Program
$392,875 Cash on Hand
11
($386,523)Westview House Pre-Commitment Loan 7
$6,352 Available Funds
$8,985,402 Total Available Funds
1 Approved by Housing Authority on January 15, 2019.
2 The Housing Successor Agency relies on available cash to fund the monitoring and compliance functions related to the former Redevelopment Agency's housing loans.
3 Funds to be set aside for compliance and monitoring requirements due to uncertainty of future repayment revenues.
4 Approved by Housing Authority on December 15, 2020.
5 $400,000 originally approved by City Council on March 6, 2018. Five loans paid through end of September 2020.
6 Approved by City Council/Housing Authority on March 5, 2019. Additional $333,777 approved by City Council on April 6, 2020 (to be reflected in subsequent quarter.)
7 Approved by City Council on April 7, 2020.
8 Approved by City Council on April 7, 2020.
9 Approved by City Council on July 2, 2019.
10 Approved by City Council/Housing Authority on March 5, 2019. Loan agreement on April 20, 2021 City Council agenda for approval.
11 Old program income available after close out of program with HUD.
Available Funds for Affordable Housing Development Projects
As of March 31, 2021
Housing Successor Agency (Housing Authority)
EXHIBIT 1
EXHIBIT 2
AVAILABLE LAND ASSETS FOR AFFORDABLE HOUSING DEVELOPMENT
(1) 302 E. Twenty-Second Street
a. APN: 003-122-25
b. Lot Size: 27,817sf
c. Current Zoning: R1 Single-Family Residence, which allows one house per lot.
d. Parcel was acquired 10/30/2002 using Low and Moderate Income Housing Asset
Fund - 20% Set Aside.
e. Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway
widening project. The site was vacant and undeveloped at the time it was acquired.
f. General Plan: Low Density Residential, which allows single-family residences and
ancillary uses.
g. Maximum du/ac: Seven units per acre.
h. Site Condition / Environmental Conditions: Property is irregular in shape, is below
the minimum lot size for a residential lot, and will most likely require the approval of
several variances from the zoning code in order to facilitate a residential unit.
EXHIBIT 3
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Current Affordable Housing Development Project Timelines
Projects Completed
La Placita Cinco – 2223 W. 5th Street
Dec 16 Developer submitted request for funds to CDA
Jun 17 Awarded City and Housing Successor Agency Funds
Jan 18 Planning entitlements approved
Jul 18 Submittal of 9% Low-Income Housing Tax Credit Application
Oct 18 Award of 9% Low-Income Housing Tax Credits
May 19 Close of Escrow
Jun 19 Construction initiated
Jun 21 Construction completion
Projects Under Construction
Legacy Square – 609 North Spurgeon Street
Aug 18 Santa Ana CDA Funding Application
Dec 18 Applied for NPLH and SNHP Funds
Jan 19 Santa Ana funding award
Feb 19 Planning entitlements approved
Feb 19 Applied for Round 4 AHSC Funding
May 19 Award of SNHP funds
Jul 19 Applied for Round 1 MHP
Nov 19 Applied for State 4% tax credits
Jan 20 Construction drawings (8-12 weeks)
Feb 20 Apply for Round 5 AHSC funding
May 20 Apply for 4% tax credits
May 20 Plan check (12-16 weeks)
Jun 20 Award of AHSC funds
July 20 Award of 4% Tax Credits
July 20 Award of Tax-Exempt Bonds
May 20 Plan Check (12-16 weeks)
Jan 21 Building permit issuance
Feb 21 Construction closing/syndication
Feb 21 Begin construction (24 months)
Jul 21 Groundbreaking Ceremony
Feb 23 Construction complete
June 23 100% fully leased (2 months)
North Harbor Village – 1108 N. Harbor
Mar 19 Start of design development
Mar 19 Applied to FHLBSF for AHP Financing ($890,000)
Mar 19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and
$1,687,047)
EXHIBIT 3
Page 2 of 4
Mar 19 Start environmental approval process with City of Santa Ana (CEQA/NEPA)
Mar 19 Applied for Home Depot Grant ($500,000)
Jun 19 CEQA / NEPA Approval – City of Santa Ana
Jun 19 AHP Award Date ($890,000)
Aug 20 Applied to HCD for MHP 1st Round Funding ($13,316,412)
Dec 19 Notified project did not receive 1st Round MHP funding
Feb 20 Applied to HCD for VHHP Funding ($10,000,000)
Mar 20 Applied to HCD for MHP 2nd round funding
Mar 20 Applied to OCHFT Financing ($2,292,920)
May 20 Notified project did not receive 2st Round MHP funding
May 20 Received OCHFT funding award ($2,292,920)
Jun 20 Received VHHP funding award ($10,000,000)
Jun 20 Submitted Plans for Ministerial Design Approval
Jun 20 Applied for CDLAC tax exempt bond allocation ($24,000,000)
Jul 20 Applied for TCAC 4% competitive state and federal tax credits ($9,896,911)
Sept 20 CDLAC Allocation
Nov 20 Ministerial Design Approval (upon completion of community meeting on
11/4/2020)
Oct 20 TCAC Allocation
Oct 20 Start construction documents for rehab
Nov 20 Submit first plan check
Dec 20 Awarded Home Depot Grant
Jan 21 Receipt of first plan check comments
Jan 21 Submit second plan check
Feb 21 Receipt of second plan check comments
Feb 21 Submit third plan check
Mar 21 Received permit ready
Apr 21 Construction loan closing
Apr 21 Pull Permits and start construction
Oct 22 Construction complete
Oct 22 Start of lease up
Apr 23 Full occupancy
Projects in Pre-Development
Crossroads at Washington – 1126 and 1146 E. Washington Avenue
Aug 19 Submitted PSH application to County
Oct 19 Submitted for Planning entitlements
Oct 19 Community meeting
Nov 19 Approval of Joint Powers Agreement, Option to Ground Lease, Voucher
Resolution and Cooperation Agreement, and Regional Housing Needs
Assessment (RHNA) Agreement and Density Bonus
Dec 19 NEPA EA City Approval – City of Santa Ana submits NEPA EA to HUD
Feb 20 PSH Funds and Voucher approval from County Board of Supervisors
Feb 20 Planning entitlements approved
Mar 20 TCAC 9% Application – 1st Round 2020
Jul 20 TCAC FCAA/9% Application – 2nd Round 2020
EXHIBIT 3
Page 3 of 4
Oct 20 TCAC FCAA/9% Award – 2nd Round 2020
Mar 21 Submitted OCHFT PSH NOFA Application
May 21 OCHFT PSH NOFA Award
Dec 21 Submit for 1st plan check
May 22 City issues permit ready letter
May 22 Start construction
Aug 23 Construction complete
Dec 23 Full occupancy
FX Residences – 801, 809, 809 ½ E. Santa Ana Boulevard
Jan 19 Council approval for land lease and project funding
Jan 19 Submittal of application for NPLH funding
Feb 19 Confirm with City staff that project site can yield additional units under
existing zoning
Mar 19 Revise conceptual drawings for additional 5 units (17 total units, up from the
original 12 units)
Mar 19 SNHP funding application submitted to County
Apr 19 City staff to review revised conceptual design
Apr 19 Begin development agreement
May 19 Board of Supervisors meeting for SNHP funding
Jul 19 Execute Development Agreement
Jul 19 Formal awards letters for NPLH funding to be issued
Aug 19 Initial planning submittal
Sept 19 Sunshine Ordinance Meeting
Mar 21 Planning Commission Meeting (ministerial approval of density bonus)
Sept 21 City Council Meeting (ministerial approval of density bonus)
Sept/Oct 21Submit for first plan check
Feb 21 Building Permit
Mar 21 Begin construction (grading, weather permitting)
Mar 22 Completion of construction
Habitat for Humanity – 416 Vance Street & 826 N. Lacy Street
May 20 DDA signed
June 20 Prepare grading plans
Oct 20 Prepare architectural plans
Oct 20 Submit Neighborhood Review Application
Feb 21 Final Approval from Historic French Park Committee
Apr 21 Submit Site Review Application
May 21 Submit grading/improvements
May 21 Submit architectural plans
Jun 21 Grading permit issued
Aug 21 Commence Grading
Aug 21 Building Permits issued
Sep 21 Begin construction
Aug 22 Anticipated construction completion
Aug 22 Certificate of Occupancy / Closings
EXHIBIT 3
Page 4 of 4
Westview House – 2530 Westminster Avenue
Oct 19 City of Santa Ana RFP submittal
May 20 OC 2020 Supportive Housing NOFA Submittal
Dec 20 OC 2020 Supportive Housing NOFA award
Jan 21 City of Santa Ana PBV Award
Jan 21 Construction/permanent debt commitments
Jan 21 Receive Entitlements
Jan 21 No Place Like Home application
Mar 21 OCHFT application
May 21 OCHFT Award
Jun 21 No Place Like Home commitment
Sep 21 CDLAC/TCAC 4% application
Dec 21 CDLAC/TCAC 4% award
June 22 Close on construction financing
June 22 Construction permits issued
June 22 Construction start
Dec 23 Construction complete
March 24 All units Leased
August 24 Perm Debt Conversion