Loading...
HomeMy WebLinkAbout03 - HSGQTRLYPROJACTREQUEST FOR HOUSING AUTHORITY ACTION MEETING DATE: MARCH 2, 2009 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES t XECUTI E DIRECTOR RECOMMENDED ACTION Receive and file. RECORDING SECRETARY USE ONLY: APPROVED ^ As Recommended ^ As Amended CONTINUED TO COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting of February 3, 2009, by a vote of 4:0 (Villasenor absent), the Community Redevelopment and Housing Commission recommended that the Housing Authority receive and file the Quarterly Report for the Housing Division Projects and Activities. DISCUSSION This status report for the fiscal year 2008-09 quarter ending December 31, 2008, provides statistics for the day-to-day affordable housing activities of the City and the Community Redevelopment Agency. The report is divided into three sections: Loan Activity, Laan Portfolio Management, and Development Projects. Loan Activity Chart ~ Applications Sent First Time Homebuyer42 Applications The Housing Services Division offers several NEobilel-Some different ro rams. The ss P g loans offered include first time homebuyer assistance (American Dream Down-payment Assistance, "ADDI"), rehab Single Family Rehab~4 ~~ ~= Report for Housing Division Projects and Activities March 2, 2009 Page 2 loans for owner occupied historic single family, single family and mobile homes. There are four different mobile home programs: Mobile Home Hardship Forgivable Loan Program, Federal Empowerment Zone Forgivable Loan Program, CalHome Mobile Home Rehab Loan Program, and CalHome Replacement Loan Program. The Housing Division reviews applications to determine which program best fits the needs of the applicants. Applications are mailed out and received for these programs on a continuing basis. Chart 1 shows the number of applications sent out by type during this second quarter of the fiscal year. Loan Underwriting and Approval Process In this process, staff reviews applicant eligibility, verifies income and assets, oversees underwriting, conducts an inspection of the unit, and prepares a work write up to determine rehabilitation work to be performed. Due to the complex funding requirements, applicants may be in underwriting several months. It 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. Two single family rehab loans, two mobile home replacement loans, five mobile home rehab loans and three single family new construction loans were approved during the first two quarters of the fiscal year. Chart 2 Loans Approved 6 5 4 3 z oso°r°AM~ Chart 2 reflects the total number of loans ^ 50% AM 3 approved this fiscal 03o%AM1 year by type of loan and income level. a Single Family Mobile Home Mobile Home HomebuyerlVew Rehabilitation Replacement Rehabilitation Construckion Construction Process During this phase, staff monitors the construction work, approves payments to contractors, and tracks expenditures to ensure they do not exceed available funds. Multifamily projects often involve additional ;:, Report for Housing Division Projects and Activities March 2, 2009 Page 3 issues such as compliance with prevailing wage requirements and/or Davis- Bacon. As of December 31, 2008, there were a total of 233 units underway. Loan Portfolio Management The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of the end of the second quarter of the fiscal year, the principal balance was $58,155,141. This is comprised of 424 loans of which 347 are deferred or residual receipts payment loans. The loan portfolio generated $152,823 in repayments of principal and interest through the second quarter of the fiscal year. Development Projects/Multi-Family Rehabilitation Townsend and Raitt On January 7, 2008, the City Council and Community Redevelopment Agency approved $8,991,422 in loans to Townsend & Raitt, LLC for acquisition and rehabilitation of five apartment buildings on Townsend and Raitt Streets. The buildings contain a total of 51 one bedroom apartment units, 50 of which are to be restricted to occupancy by very low-income households. The remaining unit was to be reserved for an onsite manager. The acquisition of 701 and 709 S. Townsend was completed on February 15, 2008, and the acquisition of 817 and 821 S. Raitt and 834 S. Raitt was completed May 15, 2008. The rehabilitation of 701. S. Townsend is now complete, and rehabilitation of 709 S. Townsend will begin soon. Wilshire/Minnie On December 18, 2006, the City Council, Community Redevelopment Agency and Housing Authority approved $10,500,000 and $7,967,109 in bonds in loans to Wilshire/Minnie, L.P for acquisition and rehabilitation of 17 apartment buildings on Wilshire and Minnie Streets. The original 166 units were to be converted into 144 one, two, three and four bedroom units, with 143 of the units restricted to low and very low-income households. The remaining unit was to be reserved for an onsite manager. The rehabilitation work is approximately 70 percent complete. The remaining work is scheduled to be completed by April 2009. Eighty units have been leased up in accordance with the recorded restrictions and another forty will be ready for occupancy within the next two months. r Report for Housing Division Projects and Activities March 2, 2009 Page 4 Raitt Street Infill Site Civic Center Barrio Housing Corporation (CCBHC)is proposing to construct an 11-unit affordable housing project comprised of three triplexes and two single family units. The project will be integrated with CCBHC's existing 12-unit development to the north. Plans have recently been submitted for the City's site plan review process, while the developer continues proforma preparation and lender negotiations. This material will form the basis of a Disposition and Development Agreement (DDA), which is anticipated to be considered in June of 2009. 1000 Block of N Logan The Logan Infill project consists of three vacant lots located at 1006, 1012, and 1015 North Logan Street. Orange County Community Housing Corporation {OCCHC) and its general contractor, Taller San Jase, commenced construction in December 2D08. Foundation work is now complete and framing is underway on all three homes. Each home will be sold to a low-income homebuyer. The project is scheduled to be completed in December 2009. RSI/McFadden Staff has concluded negotiations with The Ron Simon Education and Housing Foundation for the development of two parcels at the corner of McFadden and Orange. The DDA was approved at the January 5, 2009, City Council meeting. This is a pilot project which will demonstrate that homes can be built in an expedited and efficient manner with below market construction costs. Once the DDA is executed, the properties will be conveyed to the developer to commence construction. The proposed schedule anticipates completion of the homes in April 2009. Birch Street Infill The Agency has been working with a non-profit to develop the sites. Due to the design and other issues, the cost to develop was too high. Staff is currently exploring other options. Multi-Site Infill The Agency has authorized staff to enter into negotiations with The Olson Company for the development of single-family homes on scattered Infill Report for Housing Division Projects and Activities March 2, 2009 Page 5 lots throughout the City. The DDA went before the Agency for approval on February 2, 2009. The item was tabled. FISCAL IMPACT There is no fiscal impact associated with this action. elly andry- yle Housing Manager Community Development Agency CJN/SLB/sr