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HomeMy WebLinkAbout03 - QRTLY HSG DIV PROJS-ACTIVITIESREQUEST FOR H®IJS~NG AuT~oR~TY AcT®n~ MEETING DATE: RECORDING SECRETARY uSE ONLY: NOVEMBER 15, 2010 TITLE QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES APPROVED ^ As Recommended ^ As Amended CONTIfVUED TO EXECU VE DIRECTOR RECOMMENDED ACTION Receive and file. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting of October 19, 2010, by a vote of 4:0 (Plascencia absent), the Community Redevelopment and Housing Commission recommended that the Housing Authority receive and file the Quarterly Report for Housing Division Projects and Activities. DISCUSSION This status report for the quarter ending on September 30, 2010 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 Applications The Housing Services Division offers several different programs. The loans offered include homebuyer down payment assistance and rehabilitation loans for historic single family, single family and mobile homes. Mobile home loans are offered as forgivable grants, and are Chart 1 Applications Sent Mobile Home Homebuyer town payment Assistance 32 ~"~"~ ' Single Family r ~, Rehab 12 ,,~ Quarterly Report for Housing Division Projects and Activities November 15, 2010 Page 2 used to cover the cost of essential repairs. 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 the first quarter of the fiscal year. Loan Underwriting and Approval Pro__cess 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 for several months. The time frame 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. One mobile home rehabilitation loan and eight homebuyer assistance loans were approved during the first quarter of the fiscal year. 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 issues such as compliance with prevailing wage requirements andlor Davis- Bacon. As of September 30, 2010, including the multifamily units, there was a total of 50 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 first quarter, the principal balance was $74,410,778. This is comprised of 443 loans of which 381 are deferred or residual receipt payment loans. The loan portfolio generated $78,919 in payments of principal and interest to date this quarter. Development Projects 703 North Lacy The City Council and Agency have approved loans to Orange Housing Development Corporation (OHDC) and C&C Development for acquisition and rehabilitation of a 28-unit building at 703 North Lacy. Rents are to be restricted to those affordable to extremely low- and very low-income households. Rehabilitation on this project is currently underway. The developer is finalizing the first floor units and completing landscaping on the property. The estimated completion date is the end of October 2010. Quarterly Report for Housing Division Projects and Activities November 15, 2010 Page 3 NSP ~ Program The federal Neighborhood Stabilization Program {NSP) is intended to target and stabilize communities hardest hit with foreclosures. To date, the City has received two NSP awards. The first award {NSP 1) came through a noncompetitive process in the amount of $5,795,'155. Under its terms, all grant funds must be obligated by September 5, 2010, and expended by March 25, 2013. In addition, NSP grantees must expend at least 25 percent of the funds on households who are very low-income. However, the City has exceeded this requirement by obligating $2.45 million or 42 percent of its grant to very low-income households. Currently, the City has expended $2.1 million or 32 percent of its funds dedicated to projects to serve very low-incame households. As of the end of the first quarter, the City had obligated all of its NSP 1 funds prior to the September 5 deadline and had expended $5,761,1$0 or 99.4 percent. NSP 1 implements the following four programs: Down Payment Assistance Program, Single- Family Acquisition-Rehabilitation Program, HistoriclCondominium AcquisitionTRehabilitation Program and a Multifamily Acquisition-Rehabilitation Program. ANR Industries, the intermediary selected to implement homeownership programs including the Single-1=amity and HistoriclCondo, is responsible for the acquisition, rehabilitation, and resale of the foreclosed units. These homes will be sold to families with incomes up to 120 percent of the area median (AMI). As of the end of the first quarter, ANR had used NSP 1 funds to acquire 33 single-family homes for rehabilitation and resale to qualifying families. Of these, 21 had been sold, with twelve being purchased by low- income families and nine by moderate-income families. Of the 12 remaining homes, three are being rehabilitated, four are far sale, and five are in escrow. ANR has spent more than $3.2 million in NSP 1 funds and has leveraged an additional $4.4 million in private funds to make these affordable units available. The partnership of OHDC and C&C Development was selected to implement the Multifamily AcquisitionlRehabilitation Program. To date, the partnership has used $1.4 million in NSP 1 funds to acquire a 14-unit multi-family property at 14'10 North Durant Street. The rehabilitation Es complete and the property is currently being leased and has eight units occupied. The partnership also used $655,000 in NSP 1 funds to acquire two vacant parcels at 605-611 East Washington Avenue on which they will construct approximately 30 affordable rental units. They are beginning the design process on this project. These units will be targeted to households at or below 50 percent of AMI. Quarterly Report for Housing Division Projects and Activities November 15, 2010 Page 4 NSP 2 Program The City's second award (NSP 2} for $10 million was received through a highly competitive process in which only 15 local government agencies were successful. Most awards were made to nonprofit consortiums. Under the terms of this award, there is no obligation deadline to meet; however, half of the funds must be expended by February 11, 2012, and the remainder by February 11, 2013. As of the end of the first quarter, the City had expended $948,878 or 9.5 percent of the funds. NSP 2 implements three programs: Down Payment Assistance Program, Single-Family Acquisition-Rehabilitation Program, and a Multifamily Acquisition-Rehabilitation Program. As of the end of the first quarter, ANR homes had used NSP 2 funds to acquire five single-family homes. Of these five homes, four are undergoing rehab and one is for sale. ANR has spent more than $890,000 in NSP 2 funds and has leveraged an additional $828,750 in private funds to make these affordable units available. A comprehensive and detailed quarterly report on the City's NSP Programs {NSP 1 and NSP 2} is posted on the City's website at http:l/www.santa- ana.orglcdalNSP.asp. Scattered Sites RFP On October 9, 2009 the Agency released a Request for Qualifications for the selection of qualified developers for 13 Agency-owned parcels. On December 21, 2009 the Agency selected three developers for the project. Habitat for Humanity of Orange County was selected as developer for single family housing at sites identified as 719 & 812 North Concord Street; 1114 &-1121 South Cypress Avenue; 1314 Eastwood Avenue; 4809 West Edinger Avenue; 4010 & 4018 West McFadden Avenue; 4106 & 4110 West McFadden Avenue; 717 East Third; and 1029 McLean Drive. Staff is working with Habitat for Humanity to finalize the Disposition and Development Agreement {DDA}. Also approved was OHDC and C&C Development as the developer for multi-family housing at sites identified as 217, 219 & 435, 437 South Birch Street; 2034 & 2038 North Bush Street; and North Spurgeon & East 22"d Street. They have submitted plans for the Birch Street and Bush Street properties. Their DDA was approved on September 7 for all sites except North Spurgeon, which is still being negotiated. Finally, the Agency selected Hope Builders, a Division of Taller San Jose, as developer for two single family homes on a site identified as 542 East Central Avenue. This site will afford Hope Builders further training in the construction of single family dwellings and assist in its mission of providing high quality construction jobs for local Santa Ana residents who are graduates of Taller San Jose. Staff continues working with Hope Builders on their DDA. Quarterly Report for Housing Division Projects and Activities November 15, 2010 Page 5 Station District On June 7, 2010, after an extensive public outreach process which garnered a great deal of input on community needs and issues, the City Council/Redevelopment Agency approved several monumental actions to facilitate the development of an affordable housing project, located in the 94-acre Station District, that will enhance the Lacy neighborhood and support the transit vision for the area. The project is situated along a corridor that is a key connection from the I-5 freeway into the Downtown and will also serve as a major transportation link for the planned Go Local f=ixed Guideway System. Related CalifornialGriffin Realty Corporation, the master developer selected last year after awide-reaching Request for Proposals process, helped spearhead the outreach efforts with support from the City. The project calls for the construction of approximately 112 rental units and 32 for safe units on a total of approximately 6 acres of land. The City is also looking to provide a community center and park/open space in conjunction with the developer project. Of the 112 rental units, all but two (manager units) will be available to persons at or below 50% of the adjusted median income (AMI); and of those, 20% of the units will be offered to residents at 30% AMI. This amount of affordability exceeds that required by State law, as well as the requirements imposed for state tax credit financing. The term of affordability will be for 55 years. Additionally, six of the for-sale units will be offered at 120% AMI. The estimated market price fora 3 bedroom home in the Lacy Neighborhood today is approximately $290,000. The 26 market rate homes will be sold between $250,000 and $300,000. The affordable homebuyers {120% AMI) will be provided a $30,000 silent second loan, thus reducing the sales price to the range of $220,000 and $270,000. The first component of the developer project would be 74 podium apartment units to be rented to extremely-low and very-low income households. The 74 unit project was submitted for State tax credit financing in July 2010; however, the application had to be rescinded due to a lawsuit being filed on the Environmental Impact Report for the project and larger Transit Zoning Code area. It is hoped that the developer will be able to resubmit for tax credits in March 2011. If successful in securing the credits, construction will commence in October 2011 and take approximately 18 months to complete. The for-sale project is slated to commence construction in mid-2011 and be completed within 18 months. Quarterly Report for Housing Division Projects and Activities November 15, 2010 Page 0 FISCAL IMPACT There is no fiscal impact associated with this action. ~ ~ ~ Shealy L ° dry-Bayl Housing Manager Community Development Agency CJ NISLBIMA/sr