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HomeMy WebLinkAbout19G - QRTLY REPORT OF HOUSING PROJECTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 5, 2013 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES (APRIL 2013 - JUNE 2013) 'AGER RECOMMENDED ACTION Receive and file. APPROVED ? As Recommended ? As Amended ? Ordinance on 1s` Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on July 16, 2013, by a vote of 7:0 the Community Redevelopment and Housing Commission recommended that the City Council receive and file. DISCUSSION This status report for the quarter ending on June 30, 2013, affordable housing activities of the City and the Community divided into three sections: Loan Activity, Loan Portfolio Development Projects. Loan Activity Applications 35 The Housing Division offers several 30 different programs including homebuyer down payment assistance and z5 rehabilitation loans for historic single- 20 family, single-family and mobile homes. Mobile home loans are offered as 15 forgivable grants and are used to cover 10 the cost of essential repairs. Applications are mailed out and received 5 for these programs on a continuing basis. 0 CLERK OF COUNCIL USE ONLY: provides statistics for the day-to-day Development Agency. The report is Management and Monitoring, and Chart1: Applications Mailed During the Quarter 19G-1 Single Family Mobile Home Homebuyer Rehab Hardship Assistance Quarterly Report for Housing Division Projects and Programs August 5, 2013 Page 2 Chart 1 shows the number of applications sent out by type for the fourth quarter. Of the applications sent, three have been returned and are being processed. Loan Underwritinq 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. There were no loans approved during this quarter; however there are seven rehabilitation applications and 2 homebuyer applications in underwriting process for eligibility. Construction Process During this phase, 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 in selection of a contractor, monitors the construction work, approves payments to contractors, and tracks expenditures to ensure they do not exceed available funds. At the end of this quarter there were two homeowner rehab projects out to bid and two 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 $107,207,478. This is comprised of 490 loans of which 440 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $685,478 in payments of principal and interest during the quarter: Table 2: Portfolio Revenue 4th Quarter FY 12-13 Loan Payoffs $253,012 $293,441 Residual Receipts Payments $389,110 $649,434 Amortized Loan Payments $43,356 $164,698 Total $685,478 1,107,573 19G-2 Quarterly Report for Housing Division Projects and Programs August 5, 2013 Page 3 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 83 owner- occupancy recertification letters. Ten second-request letters were mailed to homeowners that were non-responsive. During this quarter, staff also conducted code compliance inspections for 39 units in two 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 majority of the inspected units as well as the grounds and common areas were found to be in compliance at the time of initial inspection. Some of the units had minor deficiencies including loose toilets, inoperative burners, faulty GFCI outlets, inoperative smoke alarms and carbon monoxide detectors. All of the deficiencies were repaired and the units were found to be in compliance at the time of the subsequent re-inspection. Subordinations Due to the historic drop in mortgage interest rates, the City experienced a significant increase in requests for subordination. During the fiscal year there were a total of 28 requests for subordination received and approved of which 14 were in the fourth quarter. The subordinations were reviewed for conformance with City policy and granted to homeowners that were refinancing their existing first mortgage to a more favorable interest rate. Per the subordination policy, no cash is allowed to be taken. Development Projects Neighborhood Stabilization Program 2 (NSP 2) 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. There were no properties sold during the fourth quarter; eight properties were sold during the fiscal year. Neighborhood Stabilization Program 3 (NSP 3) 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: 19G-3 Quarterly Report for Housing Division Projects and Programs August 5, 2013 Page 4 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 located at 1223 Baker Street was acquired, rehabilitated and is currently in escrow for sale to a qualified homebuyer. In-Fill Development Projects The construction of Vista Del Rio, a 41-unit handicapped-accessible affordable rental housing project located at 1600 Memory Lane, is nearly complete and expected to be finalized in July 2013. During this quarter, Habitat for Humanity of Orange County completed the construction of a single-family dwelling located at 1029 McLean Drive. A single-family dwelling located at 4809 W. Edinger was sold to a low-income homebuyer. Three additional single-family dwellings at 160 E. McFadden Avenue, 1114 S. Cypress and 1121 S. Cypress Avenue are currently under construction and expected to be completed in July 2013. FISCAL IMPACT There is no fiscal impact associated with this action. (71 C Sandra D. Gottlieb Acting Executive Director Community Development Agency SDG/SLB/kg Prepared by: Ray Lirette 19G-4