HomeMy WebLinkAbout19F - QRTLY RPT HOUSINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 17, 2018
TITLE;
QUARTERLY REPORT FOR HOUSING
DIVISION PROJECTS AND ACTIVITIES
JANUARY 2016 — MARCH 2016
(STRATEGIC PLAN NO. 5, 3)
CITY MANAGER
!RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
C] As Recommended
j� As Amended
CJ Ordinance onl'tReading
❑ Ordinance on 2 "0 Reading
❑ Implementing Resolution
[j Set Public Hearing For
CONTINUED TO
Receive and file the quarterly report for Housing Division Projects and Activities (January 2016 —
March 2016).
CQfNMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At Its regular meeting on April 27, 2016, by a vote of 5:0 (A, Marcia absent), the Community
Redevelopment and Housing Commission approved the recommended action.
DISCUSSION
The status report for the quarter ending on March 31, 2016 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 clown payment assistance for
first -time homebuyers 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 continual basis. During this quarter, there was one Loan Subordination
request, Table 1 shows the number of inquiries, applications sent out, received and approved by
type for the quarter and the total fiscal year.
19F -1
Quarterly Report Housing Division
Projects and Activities January — March 2016
May 17, 2016
Page 2
Table 1: Applications Sent Out, Received & Approved
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 two (2) homeowner rehabilitation projects out to bid and six
(6) under construction.
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 maximum sales price of $466,000 for a single
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Inquiries
Applications
Applications
Applications
Program
Sent Out
Received
Approved
Q3
Total
03
Total
Q3
Total
Q3
Total
FY
FY
FY
FY
Single-Family Rehabilitation
20
75
18
69
0
10
1
1
Mobile Home Rehabilitation
18
54
15
47
4
12
1
2
Multi-Family Rehabilitation
1
4
0
0
1
1
0
0
Historic Home Restoration
1
3
1
2
1
1
0
2
Homeownership
20
86
20
82
3
13
2
8
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 two (2) homeowner rehabilitation projects out to bid and six
(6) under construction.
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 maximum sales price of $466,000 for a single
19F -2
Quarterly Report Housing Division
Projects and Activities January — March 2016
May 17, 2016
Page 3
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. During this quarter, two (2) buyers were
approved for Inclusionary Housing Unit purchases at Magnolia Lane.
Loan Portfolio Management & 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 $111,349,414. This is comprised of 429
loans of which 403 are deferred or residual receipt payment loans. As shown in Table 2, the loan
portfolio generated $64,021 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, 42 owner occupancy recertification letters
were mailed; 30 were returned and processed.
Staff also audited files for 52 units in 12 projects, and conducted code compliance inspections for
126 units in 73 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 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.
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3rd Quarter
Total FY
Loan Payoffs
$22,825
$1,444,790
Residual Receipts Payments
$6,663
$134,701
Amortized Loan Payments
$34,533
$107,568
Total
$64,021
$1,687,059
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, 42 owner occupancy recertification letters
were mailed; 30 were returned and processed.
Staff also audited files for 52 units in 12 projects, and conducted code compliance inspections for
126 units in 73 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 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.
19F -3
Quarterly Report Housing Division
Projects and Activities January — March 2016
May 17, 2016
Page 4
Development Projects
NSP 1, 2 and 3 Programs
The City's intermediaries, ANR Industries, Orange Housing Development Corporation, and C &C
Development, continue to look for eligible properties.
Multi- Family Acquisition / Rehabilitation Projects
The rehabilitation of 940 S. Minnie Street was completed during this fiscal year and is fully
occupied. The City issued a Request for Proposals (RFP) for Acquisition and Rehabilitation of
Affordable Housing within the City of Santa Ana. It is anticipated that the RFP will be awarded in
Quarter 4 of this fiscal year before the City's July 2016 HOME commitment deadline.
In -Fill Development Projects
Habitat for Humanity of Orange County completed the construction of two new single - family
homes at 4106 and 4110 W. McFadden Street and is currently working with qualified buyers for
each of the properties.
Depot at Santiago (New 70 -Unit Affordable Rental Housing Development)
Permits were issued and construction commenced in April 2016. This project is expected to be
completed in July 2017.
Andalucia Apartments (New 70 -Unit Affordable Rental Housing Development)
Foundations and onsite roadways are in place. Rough framing is about 25% complete.
Construction is progressing well and is on target for completion in December 2016.
Santa Ana Arts Collective (Adaptive Reuse of 64 Affordable Rental Housing)
The Developer, Meta Housing Corporation, was awarded funds through a Request for Proposal
(RFP) process to acquire and develop 64 Affordable Rental Housing units with preference for
low- income artist households. The Developer is in the entitlement process and working on their
application for Low - Income Housing Tax Credits. The Developer completed a concept proposal
application for Cap & Trade funds in February 2016.
STRATEGIC PLAN ALIGNMENT
The activities covered by this report allow 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).
19F -4
Quarterly Report Housing Division
Projects and Activities January — March 2016
May 17, 2016
Page 5
FISCAL IMPACT
There is no fiscal impact associated with this action.
Robert C. Cort z_... - -- ''
Special Assistant to the City Manager
City Manager's Office
JB /RL
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