HomeMy WebLinkAbout19C - QRTLY RPT HOUSING PROLECTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 3, 2015
TITLE:
QUARTERLY REPORT FOR HOUSING
DIVISION PROJECTS AND ACTIVITIES
(JULY 2015 — SEPTEMBER 2015)
(STRATEGIC PLAN NO, 5, 3)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on V' Reading
❑ Ordinance on 2n' Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Receive and file the quarterly report for Housing Division Projects and Activities (July 2015
September 2015),
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSIQN LION
At Its regular meeting on October 14, 2015, by a unanimous vote, the Community Redevelopment
and Housing Commission approved the recommended action.
DISCUSSION
The status report for the quarter ending on September 30, 2015 provides statistics for the day -to-
day affordable housing activities. 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.
Inquiries are received from the public and applications are mailed out and received for these
programs on a continuing basis, During this quarter, there were no Loan Subordination requests,
Table 1 shows the number of Inquiries, applications sent out, received, and approved by type for
the quarter and the total fiscal year.
19C -1
Quarterly Report Housing Division
Projects and Activities (July — September 2015)
Page 2
Table 1: Loan Application Status
Program
Inquiries
Applications
Sent Out
Applications
Received
Applications
A roved
01
Total FY
Q1
Total FY
Q1
Total FY
01
Total FY
Single-Family Rehabilitation
30
30
26
26
7
7
0
0
Mobile Home Rehabilitation
16
16
12
12
2
2
0
0
Multi-Family Rehabilitation
2
2
0
0
0
0
0
0
Historic Home Restoration
1
1
1
1
0
0
1
1
Homeownership
36
36
32
32
5
'751_5
5
Rehabilitation Loan Underwriting and Approval Process
Staff reviews applicant eligibility, verifies Income and assets, and oversees underwriting to ensure
compliance with program guidelines and requirements established by the funding source. In
addition, staff conducts an Inspection of the property, 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,
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 three (3) homeowner rehabilitation projects out to bid, five
(5) under construction, and one (1) was completed.
Homeownership Approval Process
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). Applicants must meet established Income requirements, complete an eight -
hour pre- purchase counseling program from a HUD - approved agency, be pre - qualified for a first
mortgage, and have a minimum of three percent of the purchase price from their own savings.
Other HUD requirements apply, including a current maxlmurn sales price of $466,000 for a single
family home or condo or $560,000 for a newly constructed condo or home. The updated
maximum sales price became effective on April 13, 2015, Additionally, the property needs to be
In good condition and pass an Inspection by staff.
19C -2
Quarterly Report Housing Division
Projects and Activities (July — September 2015)
Page 3
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 $111,440,047. This is comprised of 437
loans of which 413 are deferred or residual receipt payment loans. As shown in Table 2, the loan
portfolio generated $1,437,460 in payments of principal and interest during the quarter.
Table 2: Portfolio Revenue
Monitoring
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, 18 owner occupancy recertification letters
were mailed and 12 were returned and processed.
Staff conducted code compliance inspections for 26 units in 5 projects. Regulations require that
only a sample be selected for inspection. Staff also inspects the grounds and common areas
such as laundry rooms to ensure they also meet municipal 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 observable deficiencies, including loose
toilets, inoperative burners, faulty GPCI 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.
DEVELOPMENT PROJECTS
NSP ?, 2 and 3 Programs
The City's Intermediaries, ANR Industries, grange Housing Development Corporation, and C &C
Development, continue to look for eligible properties,
The acquisition of a single - family home located at 1235 S. Cypress closed escrow in August 2014
and the rehabilitation was completed In March 2015. During this quarter, the home was sold to a
qualified homebuyer,
19C -3
Quarterly Report Housing Division
Projects and Activities (July ^ September 2015)
Page 4
Multi- Family Acquisition /Rehabilitation Projects
The property at 940 S. Minnie Street Is currently being rehabilitated and is approximately 65 %
complete. Once the rehabilitation Is complete, the property will yield eight affordable rental units
consisting of 4 one - bedroom units, 2 two - bedroom units and 2 three - bedroom units.
In -Fill Development Projects
The construction of a new single- family home at 1314 N. Eastwood was completed by Habitat for
Humanity of Orange County during the previous quarter. The property was sold to a qualified
homebuyer during this quarter.
Habitat for Humanity of Orange County is also constructing two new single - family homes at 4106
and 4110 W. McFadden Street. The construction is approximately 70% complete.
Depot at Santiago (New 70 -Unit Affordable Rental Housing Development)
The Developer and the City were successful In receiving funds from the Strategic Growth
Council's Affordable Housing and Sustainable Communities (AHSC); otherwise, known as Cap &
Trade funds. These funds are the result of the first round of applications for affordable housing
projects and active transportation. During this quarter, the Developer successfully applied for and
was awarded the second round of 9% Tax Credits,
Andalucia Apartments (New 70 -Unit Affordable Rental Housing Development)
The Developer, 815 N. Harbor LP, was successful In obtaining 4 % Tax Credits. Construction
commenced during this quarter and the demolition of existing structures was completed.
STRATEGIC PLAN ALIGNMENT
The activities covered by this report allows the City to meet Goal #5 (Community Health,
Livability, Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities
and support efforts to preserve and Improve the livability of Santa Ana neighborhoods),
FISCAL IMPACT
There is no fiscal impact associated with this action.
19C -4