HomeMy WebLinkAbout19F - QRTLY RPT HOUSING• i
CITY COUNCIL MEETING DATE;
AUGUST 16, 2016
TITLE:
QUARTERLY REPORT FOR HOUSING
DIVISION PROJECTS AND ACTIVITIES
APRIL 2016 — JUNE 2016
{STRATEGIC PLAN NO. 5,3)
CITY MANAG
RECOMMENDED ACTION
Receive and file.
CLERK OF COUNCIL USE ONLY
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on Vt Reading
❑ Ordinance on 2A Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its regular meeting on July 27, 2016, by a vote of 6:0, the Community Redevelopment and
Housing Commission approved the recommended action.
DISCUSSION
This report for the quarter ending on June 30, 2016 provides statistics for all of the affordable
housing projects and activities for our Housing Division. 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 down 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, received and
approved 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.
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Quarterly Report Housing Division
Projects and Activities April – June 2016
August 16, 2016
Page 2
Table 1: Applications Sent Out, Received & Approved
Rehabilitation Loan Undervvriting and Approval Progress
For our rehabilitation loans, 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 loan execution, and reserves the required loan funds.
During this quarter, one mobile home rehabilitation loan and one historic home rehabilitation loan
were funded.
Rehabilitation Program Construction Progress
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 was one homeowner rehabilitation project out to bid and six under
construction.
Downpayment Assistance Program Progress
For our downpayment assistance program, 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
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Inquiries
Applications
Applications
Applications
Program
Sent Out
Received
roved
Q4
Total
Q4
Total
Q4
Total
—App
Q4
Total
FY
FY
FY
FY
Single-Family Rehabilitation
25
100
20
89
1
11
0
1
Mobile Home Rehabilitation
15
69
15
62
1
13
1
3
Multi-Family Rehabilitation
1
5
4
4
0
1
0
0
Historic Home Restoration
1
4
1
3
0
1
0
2
Homeownership
22
108
25
107
5
18
2
10
Rehabilitation Loan Undervvriting and Approval Progress
For our rehabilitation loans, 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 loan execution, and reserves the required loan funds.
During this quarter, one mobile home rehabilitation loan and one historic home rehabilitation loan
were funded.
Rehabilitation Program Construction Progress
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 was one homeowner rehabilitation project out to bid and six under
construction.
Downpayment Assistance Program Progress
For our downpayment assistance program, 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
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Quarterly Report Housing Division
Projects and Activities April — June 2016
August 16, 2016
Page 3
maximum sales price of $480,000 for a single family home or condo or $480,000 for a newly
constructed condo or home. The updated maximum sales price became effective on May 2,
2016. Additionally, the property needs to be in good condition and pass an inspection by staff.
During this quarter, staff conducted three down payment assistance workshops and a
presentation at the Santa Ana Real Estate / Marketing Broker Preview Meeting. A total of 119
people attended the workshops. In addition, one buyer was approved for an Inclusionary
Housing Unit purchase at Magnolia Lane and two down payment assistance loans were
approved.
Loan Portfolio Management & Monitoring
The Housing Division is responsible for managing the residential loan portfolio. As of the end of
this quarter, the principal balance was $113,174,912. This is comprised of 432 loans of which
403 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio
generated $320,314 in payments of principal and interest during the quarter.
Table 2: Portfolio Revenue
Source
4th Quarter
Total FY
Loan Payoffs
$170,748
$1,615,538
Residual Receipts Payments
$114,764
$249,465
Amortized Loan Payments
$34,802
$142,370
Total
$320,314
$2,007,373
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, 45 owner - occupancy recertification letters
were mailed; 35 were returned and processed.
Staff also audited files for 106 units in 40 projects, and conducted code compliance inspections
for 6 units in one project. Regulations require that only a sample of units 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 grounds, common areas and almost all of the
inspected units were found to be in compliance at the time of initial inspection. One of the units
had an inoperative smoke alarm which was immediately repaired and passed inspection.
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Quarterly Report Housing Division
Projects and Activities April — June 2016
August 16, 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.
Habitat for Humanity of Orange County
Habitat for Humanity of Orange County completed the construction of two new single - family
homes at 4106 and 4110 W. McFadden and both of the homes were sold to qualified buyers. The
remaining properties in the Development Agreement with Habitat for Humanity was transferred to
the Developer and construction began on five homes located at 4010 - 4026 E. McFadden Street.
Once completed, the homes will be sold to qualified low- and moderate - income homebuyers.
Depot at Santiago (New 70 -Unit Affordable Rental Housing Development)
Construction commenced in April 2016 and excavation for the sub - teranean parking is complete.
The entire project is expected to be completed in July 2017. In May 2016, the project was
awarded a Southern California Association of Governments (SCAG) Sustainability Award for
Achievement in Integrated Land Use and Transportation Planning.
Andalucia Apartments (New 70 -Unit Affordable Rental Housing Development)
Rough framing is 95% complete and mechanical, electrical and plumbing systems are about 80%
complete. Construction is progressing as planned 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 57 affordable rental housing units with with a preference
for applicants who are artists and working artist families within Santa Ana. The Developer has
completed the entitlement process and submitted an application for 9% Low - Income Housing Tax
Credits. The Developer was invited to submit a full proposal application for Affordable Housing
and Sustainable Communities Program grant funds (Cap & Trade), which was submitted in June
2016. The Cap & Trade award announcement is anticipated to occur in September 2016.
Guest House
The Developer, Community Development Partners and Mercy House, was awarded HOME funds
through a Request for Proposal (RFP) process to acquire and rehabilitate a former motel on First
Street into 71 units of permanent supportive housing for homeless individuals. The project was
awarded in time for the City to meet the July 2016 HOME commitment deadline. The Developer is
currently in the process of obtaining tax credits and affordable housing bonds, which will be
finalized in July 2016.
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Quarterly Report Housing Division
Projects and Activities April — June 2016
August 16, 2016
Page 5
First Street Apartments (New 69 -Unit Affordable Rental Housing Development)
On April 19, 2016, City Council approved an award of inclusionary housing in -lieu fees to the
Developer, AMCAL Multi- Housing LLC, for the First Street Apartments project and approved a
conditional loan commitment letter of $8,900,000 that will be contingent on the City's actual
receipt of in -lieu fee payments of $9,695,725.60, or a portion thereof, or a cash equivalent to the
in -lieu fee payments from the Heritage Village OC, LLC.
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).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Robert C. Corte
Special Assistant - the- City-Manager
City Manager's Office
JB /RL
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