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Home My WebLink About19C - QRTLY RPT HOUSING PROJECTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 4, 2013 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES r CITY MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1st Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER This status report for the quarter ending on December 31, 2012, 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, Loan Portfolio Management and Monitoring, and Development Projects. Loan Activity Applications The Housing Division offers several different programs including 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 used to cover the cost of essential repairs. Applications are mailed out and received for these programs on a continuous basis. Chart 1 shows the number of applications sent Chart 1: Applications Mailed Assistance 15 Single Family Rehab 25 , 19C-1 Mobile Home Hardship 5 Quarterly Report Housing Division Projects March 4, 2013 Page 2 out by type during the quarter. Of the applications sent, two have been returned and are being processed. Loan Underwriting and Approval Process In this process, staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to determine eligibility per program guidelines. In addition, staff conducts an inspection of the unit, prepares a work write up to determine rehabilitation work to be performed, and develops a budget for the work. Due to the complex funding requirements, applicants may be in underwriting several months. The length of time in underwriting 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. Three homebuyer assistance loans, two owner occupied rehab loans, and one mobile home hardship loan were approved during the second quarter of the fiscal year, and Table 1 provides details on these loans. Table 1: Loans Anoroved Durina This quarter Address Loan Amount Loan Type 2032 S. Artesia Street $10,000 Homebuyer Assistance 2537 Camden Place $10,000 Homebu er Assistance 1904 Wood Street $10,000 Homebuyer Assistance 2214 Cedar Street $50,482 Owner Occupied Rehab 2314 Mark Street $34,440 Owner Occupied Rehab 4211 W. First Street, #159 $ 4,850 Mobile Home Hardship Chart 2 shows the number of loans approved during the fiscal year to date. Chart 2. Loans Approved In FY Construction Process 7 6 During this phase, homeowners receiving rehabilitation loans are guided through an 5 open selection of contractors to complete 4 the work on their homes. Each homeowner is given a list of contractors 3 that have been screened by staff for license and insurance requirements. 2 However, homeowners are allowed to select any contractor that meets these 1 same requirements. Staff assists the homeowners in selection of a contractor, ° monitors the construction work, approves 19C-2 Homeowner Rehab Homebuyer Assistance Quarterly Report Housing Division Projects March 4, 2013 Page 3 payments to contractors, and tracks expenditures to ensure they do not exceed available funds. At the end of this quarter there were six homeowner rehab projects under construction. Loan Portfolio Management and Monitoring The Housing Division is responsible for ensuring the integrity of the residential loan portfolio. As of the end of this quarter, the principal balance was $107,121,888. This is comprised of 500 loans of which 443 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $204,149 in payments of principal and interest during the quarter: Table 2: Portfolio Revenue Residual Receipts Payments $147,919 Amortized Loan Payments $56,230 Total $204,149 As part of the requirements for these funds, staff must monitor the owner-occupancy for single family homes that have received loans, and the code compliance of units in rental projects with long-term affordability covenants. During this quarter, staff received and processed 154 owner- occupancy recertification letters. Sixteen second request letters were mailed to homeowners that were non-responsive in the previous quarter. During this fiscal year to date, staff also conducted code compliance inspections for 43 units in three projects. Regulations require that only a sample be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to insure they also meet City code requirements. The inspected units as well as the grounds and common areas were found to be in compliance at the time of initial inspection except for three units that needed minor repairs, a loose toilet, an inoperable smoke alarm and faulty GFCI outlet. All of the necessary repairs were made and the units were found to be in compliance at the time of the subsequent re- inspection. Development Projects NSP 1 Program The federal Neighborhood Stabilization Program (NSP) is intended to target and stabilize communities hardest hit with foreclosures. To date, the City has received all three NSP awards for which it was eligible. 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 26, 2013. In addition, NSP grantees must expend at least 25% of the funds on households that have very low-incomes. The City has exceeded all of these requirements. All of our NSP 1 grant funds were obligated by August of 2010, and by the end of this quarter had already expended more than $6.8 million or 119% of its grant amount. The 19C-3 Quarterly Report Housing Division Projects March 4, 2013 Page 4 amount spent is greater than the grant amount because it includes program income. Finally, the City has spent $2.4 million, or 34% of all its NSP 1 funds, on projects that serve very low-income households exclusively. Currently NSP 1 is only operating with program income, and these funds will diminish over time. During the second quarter, two properties were sold. Table 3 provides additional details. Table 3: NSP1 Single Family Properties Sold During This Quarter Property Address Silent 2" Income Level 1904 S. Wood $10,000 Moderate 2537 W. Camden Place $10,000 Moderate 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, there is an expenditure deadline. In the first quarter, HUD approved a technical amendment to allow the City to close the DPAP activity and move the remaining $336,860 to the Single-Family Acquisition-Rehabilitation activity. During this quarter, two properties were being rehabilitated and one property was offered for resale. Tables 4 and 5 provide additional detail. Table 4: NSP2 Properties Being Rehabilitation Address Projected Completion Date 705 S. Kilson 11/23/2012 1227 W. Camile 11/22/2012 able 5: NSP2 Single Family Properties Available for Sa, Address Affordability Level 328 E. Harwood Place Moderate The partnership of Orange Housing Development Corporation and C&C Development was also selected to implement the NSP2 Multifamily Acquisition/Rehabilitation Program. To date, the partnership has used $3.94 million in NSP 2 funds to acquire a 26-unit multi-family property at 326 S. Garnsey Street. The property was rehabilitated by the partnership and the units are now 100% leased. NSP 3 Program 19C-4 Quarterly Report Housing Division Projects March 4, 2013 Page 5 The U.S. Department of Housing and Urban Development (HUD) has allocated the amount of $1,464,113 in NSP 3 funds to the City of Santa Ana. To receive these funds, the City adopted a substantial amendment to its Annual Action Plan, and submitted it to HUD on February 28, 2011. The amendment was approved, and the City signed a grant agreement with HUD on March 10, 2011. The grant activities are: • Acquisition/Rehab/Resale-50 Percent of Area Median Income • Acquisition/Rehab/Resale-120 Percent of Area Median Income • Administration The City's intermediary ANR has been actively seeking foreclosed properties in the NSP 3 target area. During this quarter, one property was acquired and is being rehabilitated. The rehabilitation is expected to be completed during the first week of April 2013. As required by regulations, comprehensive detailed quarterly reports on all of the City's NSP Programs are posted on the City's website at hftp://www.santa-ana.org/cda/NSP-asp- In-Fill Development Projects Santa Ana Station District Phase I, a 74-unit large-family affordable rental housing project is currently under construction and is expected to be completed in March 2013. Phase II incorporates an additional 40 units of large-family affordable rental housing consisting of the rehabilitation of existing structures (15 units) and new construction (25 units). During this quarter, the rehabilitated units were completed and are being leased. The new units are expected to be completed March 2013. Phase III, a for-sale housing project, to be developed by City Ventures, includes approximately 24 units of large family homes. The developer is currently in plan review for the first component of 8 townhomes. Vista Del Rio, a 41-unit handicapped-accessible affordable rental housing project located at 1600 Memory Lane, is currently under construction and is expected to be completed in March 2013. Santa Ana WBBB L.P. completed the construction of three projects (15 units) during this quarter. The completed units located at 217-219 S. Birch Street, 435-437 S. Birch Street and 2034-2038 N. Bush Street are being leased. The construction of a 36-unit multi-family housing project located at 605-611 E. Washington is currently under construction and is expected to be completed in February 2013. During this quarter, Habitat for Humanity of Orange County (Habitat) completed the construction of a single-family dwelling located at 4809 Edinger Street. An additional single-family dwelling located at 1029 McLean Drive is currently under construction and expected to be completed in February 2013. Habitat also purchased three additional sites from the City. These sites are located at 160 E. McFadden Avenue, 1114 S. Cypress Avenue and 1121 S. Cypress Avenue. 19C-5 Quarterly Report Housing Division Projects March 4, 2013 Page 6 FISCAL IMPACT There is no fiscal impact associated with this action. 11"b " Vu? &Ja? Nancy T. Ed rds Interim Exec ve Director Community Development Agency NTE/SLB/RL/kg 19C-6