HomeMy WebLinkAbout19D - HOUSING DIV REPORTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 6, 2018
CLERK OF COUNCIL USE ONLY:
TITLE:
APPROVED
QUARTERLY REPORT FOR HOUSING
❑
DIVISION PROJECTS AND ACTIVITIES
0
OCTOBER 2017 — DECEMBER 2017
0
{STRATEGIC PLAN NO. 5,3)
RECOMMENDED ACTION
As Recommended
As Amended
Ordinance on 1s' Reading
Ordinance on 2ntl Reading
Implementing Resolution
Set Public Hearing For
CONTINUED TO
FILE NUMBER
Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of
October 2017 — Decemebr 2017.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its regular meeting on January 24, 2018, by a vote of 7:0 (Frazier absent), the Community
Redevelopment and Housing Commission approved the recommended action.
This report for the quarter ending on December 31, 2017 provides statistics for all of the
affordable housing projects and activities for the Housing Division. The report is divided into three
sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable Housing Funds
and Commitments, 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 mobile homes, single-family, multi -family, and
historic homes. Inquiries are received from the public and applications are mailed out, received
and approved for these programs on a continual basis. Table 1 shows the number of inquiries,
applications sent out, received and approved by type for the quarter and for the total fiscal year.
1913-1
Quarterly Report for Housing Division
February 6, 2018
Page 2
Table 1: Applications Sent Out, Received & Approved
Rehabilitation Loan Underwriting and Approval Progress
For the 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, applications may be in underwriting for
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 (1) mobile home loan was approved and three (3) inclusionary housing
purchases at City Ventures were approved.
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 with the evaluation of bids and selection of a contractor. Staff also
monitors the construction work, approves payments to contractors, and tracks expenditures to
ensure compliance with the loan agreement and program guidelines. At the end of this quarter,
there was one (1) homeowner rehabilitation projects out to bid and four (4) under construction.
Downpayment Assistance Program Progress
For the 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
maximum sales price of $499,000 for a single family home or condo. The updated maximum
sales price became effective on March 1, 2017. Additionally, the property needs to be in good
condition and pass an inspection. During this quarter, staff conducted one (1) down payment
assistance workshop in which a total of 21 people attended.
19D-2
Inquiries
Applications
Applications
Applications
Program
Sent Out
Received
A
roved
Q2
Total
Total Total Total
Q2 Q2 Q2
FY
FY
FY
FY
Single -Family Rehabilitation
29
61
25
50
1 6
0
1
Mobile Home Rehabilitation
20
50
17
42
1 4
1
1
Multi -Family Rehabilitation
0
0
0
0
0 0
0
0
Historic Home Restoration
2
3
2
3
0 0
0
0
Homeownership
40
115
30
94
1 2
0
0
Rehabilitation Loan Underwriting and Approval Progress
For the 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, applications may be in underwriting for
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 (1) mobile home loan was approved and three (3) inclusionary housing
purchases at City Ventures were approved.
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 with the evaluation of bids and selection of a contractor. Staff also
monitors the construction work, approves payments to contractors, and tracks expenditures to
ensure compliance with the loan agreement and program guidelines. At the end of this quarter,
there was one (1) homeowner rehabilitation projects out to bid and four (4) under construction.
Downpayment Assistance Program Progress
For the 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
maximum sales price of $499,000 for a single family home or condo. The updated maximum
sales price became effective on March 1, 2017. Additionally, the property needs to be in good
condition and pass an inspection. During this quarter, staff conducted one (1) down payment
assistance workshop in which a total of 21 people attended.
19D-2
Quarterly Report for Housing Division
February 6, 2018
Page 3
Loan Portfolio Management & Monitoring
The Housing Division is responsible for managing the residential loan portfolio which includes all
of the loans entered into by the City and Housing Authority acting as the Housing Successor
Agency. As of the end of this quarter, the principal balance was $120,985,418. This is comprised
of 409 loans of which 385 are deferred or residual receipt payment loans. As shown in Table 2,
the loan portfolio generated $292,144 in payments of principal and interest during this quarter.
Table 2: Portfolio Revenue
Monitoring
As part of the requirements for these funds, staff must monitor the owner -occupancy of single
family homes that have received loans, and the building code compliance of units in rental
projects with long-term affordability covenants. During this quarter, 72 owner -occupancy
recertification letters were mailed and 67 were returned and processed.
Staff also audited files for five (5) projects and conducted building code compliance inspections
for 32 units in three (3) projects. 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 all of the
inspected units were found to be in compliance at the time of initial inspection.
Available Funds for Affordable Housing Development Projects
The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency
manages multiple sources of local, state and federal funds to promote and facilitate the
development of affordable housing. As of December 31, 2017, a total of $6,230,070 is available
for affordable housing development. Exhibit 1 provides a summary of the funds available as of the
end of this quarter.
19D-3
Funding Sources
HOME
CDBG
Redevelopment
NSP
CalHOME
Loan Payoffs
$10,074
$0
$0
$32,707
$0
Residual Receipts
$156,550
$0
$32,648
$0
$0
Payments
Amortized Loan
$16,078
$7,488
$36,598
$0
$0
Payments
Total For Q2
$182,702
$7,488
$69,246
$32,707
$0
Monitoring
As part of the requirements for these funds, staff must monitor the owner -occupancy of single
family homes that have received loans, and the building code compliance of units in rental
projects with long-term affordability covenants. During this quarter, 72 owner -occupancy
recertification letters were mailed and 67 were returned and processed.
Staff also audited files for five (5) projects and conducted building code compliance inspections
for 32 units in three (3) projects. 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 all of the
inspected units were found to be in compliance at the time of initial inspection.
Available Funds for Affordable Housing Development Projects
The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency
manages multiple sources of local, state and federal funds to promote and facilitate the
development of affordable housing. As of December 31, 2017, a total of $6,230,070 is available
for affordable housing development. Exhibit 1 provides a summary of the funds available as of the
end of this quarter.
19D-3
Quarterly Report for Housing Division
February 6, 2018
Page 4
Housing Opportunity Ordinance
All in -lieu fees, penalties and other monies collected pursuant to the Housing Opportunity
Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since inception,
the Inclusionary Housing Fund has generated $10,563,306.35 to be used for the development of
housing affordable to low and moderate income households, with a reasonable amount spent on
administrative or related expenses associated with the administration of the Housing Opportunity
Ordinance. To date, the Inclusionary Housing Fund has invested $6,075,000 towards the
development of 107 affordable rental housing units in the City. In regards to affordable ownership
housing units, a total of 23 inclusionary affordable homes have been produced and/or are under
construction as a result of our Housing Opportunity Ordinance.
Projects Under Development
Below are brief summaries for projects under development. Exhibit 2 provides a development
timeline for the larger development projects including the Depot at Santiago, the Orchard, the
Santa Ana Arts Collective, First Street Apartments, Santa Ana Veterans Village, Aqua Housing,
and Tiny Tim Plaza.
NSP 1. 2 and 3 Programs
The City will begin the final closeout of the NSP 1, 2, and 3 Programs and will reallocate the final program
balance to the Community
Development Block Grant (CDBG) Program.
For Sale Infill Housing (4010 - 4026 E. McFadden Street)
• Developer:
Habitat for Humanity of Orange County
• Description:
Acquisition and new construction project comprised of five (5) affordable single-
family homes to be sold to qualified low- to moderate -income buyers.
• City Funds:
Land provided by the Redevelopment Agency
• Status:
Project is currently under construction and expected to be completed in February
2018. Staff is working with the developer on the selection of qualified buyers.
Depot at Santiago
(923 N. Santiago Street)
• Developer:
C & C Development
• Description:
Acquisition, demolition and new construction project comprised of 69 affordable
rental units, 1 manger's unit, a 3,000 SF community room, and 8,500 SF of retail
space.
• City Funds:
HOME ($2,634,566), CDBG ($365,434), Eight (8) Project -Based Vouchers
• Update:
Construction commenced in April 2016 and is about 90% complete. Project is
expected to be completed in February 2018.
The Orchard (2151 E. First Street)
• Developer:
Community Development Partners with Mercy House as the service provider
• Description:
Acquisition and rehabilitation of former motel yielding 71 units of affordable
permanent supportive housing with wrap-around supportive services for chronically
homeless individuals in the City of Santa Ana, and 1 manager's unit.
• City Funds:
HOME ($1,199,869), 71 Project -Based Vouchers ($7,895,194)
1901-4
Quarterly Report for Housing Division
February 6, 2018
Page 5
• Update: Construction commenced in January 2017 and is approximately 95% complete.
Project is expected to be completed in January 2018.
Santa Ana Arts Collective (1666 N. Main Street)
• Developer: Meta Housing Corporation
• Description: Acquisition, adaptive reuse and new construction project comprised of 57 affordable
rental units designated for professional artists of all disciplines, and 1 manager's
unit.
• City Funds: Inclusionary Housing ($4,775,000), HOME ($2,219,760), CDBG ($500,000)
• Update: Construction commenced on July 28, 2017 and the project is approximately 10%
complete.
First Street Apartments (1440 E. First Street)
• Developer: AMCAL Multi -Housing, LLC.
• Description: Demolition and new construction of an affordable multifamily apartment complex
consisting of 68 units of rental housing serving very -low and extremely -low income
families, and 1 manager's unit.
• City Funds: Housing Successor Agency ($8,522,740), Eight (8) Project -Based Vouchers
• Update: Housing Authority approved the Loan Agreement for the project on January 16,
2018.
Santa Ana Veterans Village (3312 W. First Street)
• Developer:
Jamboree Housing Corporation with Step Up on Second as the service provider
• Description:
New construction of an affordable multifamily apartment complex consisting of 75
units of permanent supportive housing with wrap-around supportive services for
HUD-VASH eligible homeless veterans in the City of Santa Ana, and 1 manager's
unit.
• City Funds:
75 HUD-VASH Project -Based Vouchers, HOME ($353,962)
• Update:
Jamboree Housing received an award of Special Needs Housing Program funds
from the County of Orange for 20 of the 75 units ($2,912,000). With this additional
financing, Jamboree will be applying for 9% Low Income Housing Tax Credits on
February 28, 2018.
Aqua Housing (317 E. 17th Street)
• Developer: Community Development Partners with Mercy House as the service provider
• Description: Acquisition, demolition and new construction of a former motel yielding 56 units of
affordable permanent supportive housing with wrap-around supportive services for
chronically homeless individuals in the City of Santa Ana, and 1 manager's unit.
• City Funds: 56 Project -Based Vouchers
• Update: Community Development Partners (CDP) received an award of Special Needs
Housing Program funds from the County of Orange for 9 of the 56 units
($1,310,400). On January 16, 2018, CDP submitted an application for an Infill
Infrastructure Grant Program funds from the California Department of Housing and
Community Development. If successful, CDP will apply for 4% over-the-counter
Low Income Housing Tax Credits.
19D-5
Quarterly Report for Housing Division
February 6, 2018
Page 6
Tiny Tim Plaza (2223 West 5th Street)
• Developer:
Community Development Partners.
• Description:
New construction of an affordable multifamily apartment complex consisting of 51
units of rental housing serving very -low and extremely -low income families, and 1
manager's unit.
• City Funds:
Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000)
• Update:
CDP is currently pursuing other sources of financing to fill an estimated financial gap
of approximately $11.7 million. On January 16, 2018, CDP submitted an application
for Affordable Housing and Sustainable Communities grant funds and for Infill
Infrastructure Grant Program funds from the California Department of Housing and
Community Development. If successful, CDP will apply for 4% over-the-counter
Low Income Housing Tax Credits.
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 M. Zur Schmi d
Interim Executive Dir
Community Development Agency
Exhibits: 1. Available Funds for Affordable Housing Development Projects
2. Project Timelines
19D-6
rd
Exhibit 1
Available Funds for Affordable Housing Development Projects
As of December 31, 2017
Housing Successor Agency (Housing Authority)
$13,992,189 Cash on Hand
($8,522,740) First Street Apartments Pre -Commitment Loan'
($4,700,000) Tiny Tim Plaza Conditional Pre -Commitment Loan 2
($277,836) Habitat for Humanity Disposition and Development Agreement
($250.000) Administrative Costs Allowance 3
$241,613 Available Funds
Inclusionary Housing Funds
$5,645,431 Cash on Hand °
($471,230) Santa Ana Arts Collective Project Costs e
($1,300,000) Tiny Tim Plaza Conditional Pre -Commitment Loan 2
($345,875) Administrative Costs Allowance (CDA/PBA)
$3,528,326 Available Funds
HOME Program
$1,839,903 Funds to Drawdown
($353.963) Santa Ana Veterans Village Pre -Commitment Loan
$1,485,940 Available Funds to Drawdown
CDBG Program (Acquisition/Rehabilitation Projects Only)
$1,474,191 Funds to Drawdown
($500,000) Santa Ana Arts Collective Loan
$974,191 Available Funds to Drawdown
$6,230,070 Total Available Funds
' Approved by Housing Authority on January 16, 2018.
2 Approved by City Council/Housing Authority on June 20. 2017.
3 The Housing Successor Agency relies on available cash to fund the monitoring and compliance functions related to the farmer Redevelopment
Agency's housing loans.
4 PR Broadslone Heritage Holdings, Phase I paid In -lieu teas in the amount of $2,712,304.10 In November 2017.
° Project costs only, $4.8M In loans approved by City Council paid on July 26, 2017.
° Approved by City Council on February 7, 2017.
19D-7
19D-8
EXHIBIT 2
Current Affordable Housing Development Project Timelines
Depot at Santiago,- 923 N. Santiago St'
Feb -13
RFP Issued for HOME/CDBG Funds
May -13
Awarded HOME/CDBG Funds
Jun -14
Planning Entitlements Approved
Oct -14
RFQ Issued for PBVs
Apr -15
Submitted Application for AHSC (Cap &Trade Funds)
May -15
Awarded PBVs
Jun -15
Awarded AHSC (Cap & Trade) Funds
Sep -15
9% Tax Credits Awarded
Nov -15
Relocation Plan Approved
May -16
Building Permits Pulled/Construction Initiated
Apr -18
Anticipated Construction Completion
The Orchard -2151 E. First St
Oct -15
Conditional Use Permit Approved
Dec -15
RFP Issued for PBVs
Feb -16
RFP Issued for HOME Funds
Mar -16
Awarded PBVs
Jun -16
Awarded HOME Funds
Jul -16
4% Federal Tax Credit +Tax Exempt Bond Awarded
Sep -16
Building Permits Pulled/Construction Initiated
Feb -18
Anticipated Construction Completion
Santa Ana Arts°Collective -1666 N. Main St
Jun -15
RFP Issued
Nov -15
Approved HOME/CDBG Funds
Mar -16
Submitted Application for AHSC (Cap & Trade Funds)
Sep -16
Awarded AHSC (Cap & Trade) Funds
Nov -16
9% Tax Credits Awarded
Dec -16
Relocation Plan Approved
Jul -17
Final Loan Approved/ Close of Escrow
Jul -17
Planning Entitlements Approved
Jul -17
Building Permits Pulled/Construction Initiated
Nov -18
Anticipated Construction Completion
19D-9
First Street Apartments -1440 E. First St
Oct -15
Developer Submitted Request for Funds to CDA
Apr -16
Planning Entitlements Approved
Jun -17
Awarded Successor Agency Funds
Jun -17
Relocation Plan Approved
Sep -17
9% Tax Credits Awarded
Jan -18
Final Housing Authority Loan Approved
Feb -18
Anticipated Close of Escrow
Santa Ana Veterans Village - 3312-W. First St
Dec -16
RFP Issued for PBVs
Apr -17
Approved HUD VASH PBVs
Jun -17
Awarded HOME CHDO Funds
Jun -17
Planning Entitlements Approved
Jan -18
Awarded County Special Needs Housing Funds
Feb -18
Anticipated Submittal of 9% Federal Tax Credit Application
Jun -18
Anticipated Award of 9% Federal Tax Credits
Aqua Housing - 317 E. 17th St
Dec -16
RFP Issued for PBVs
Apr -17
Approved PBVs
Jun -17
Planning Entitlements Approved
Jun -17
Approved Additional PBVs
Jan -18
Awarded County Special Needs Housing Funds
Jan -18
Submitted Application for HCD Infill Infrastructure Funds
Jan -18
Developer is securing additional financing prior to submittal of Federal Tax
Credit Application
May -18
Anticipated Award of HCD Infill Infrastructure Funds
Tiny Tim Plaza - 2223 W. 5th St
Dec -16
Developer Submitted Request for Funds to CDA
Jun -17
Awarded City and Successor Agency Funds
Jan -18
Planning Entitlements Approved
Jan -18
Submitted Application for AHSC (Cap & Trade Funds)
Jan -18
Submitted Application for HCD Infill Infrastructure Funds
Jan -18
Developer is securing additional financing prior to submittal of Federal Tax
Credit Application
May -18
Anticipated Award of HCD Infill Infrastructure Funds
Jun -18
Anticipated Award of AHSC (Cap & Trade Funds)
19D-10