Agenda Packet_2023-08-01 - Laserfiche WebLink

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Housing Division Quarterly Report August 1, 2023 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 the fourth quarter, the principal balance was $149,153,321. This portfolio is comprised of 341 loans of which 319 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $464,827.98 in payments of principal and interest during the fourth quarter. The amount of residual receipts payments changes every quarter. Table 2: Portfolio Revenue HOME CDBG Redevelopment NSP Loan Payoffs $0 $0 $30,000.00 $0 Residual Receipts $98134.72 $0 $206,463.18 $96,892.26 Payments Amortized Loan $8,013.80 $3,402.13 $21,921.89 $0 Payments Total for Q4 $1063148.52 $3,402.13 $258,385.07 $96,892.26 Monitoring As part of the requirements for these loans, 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, 38 owner - occupancy recertification letters were mailed and 24 were returned and processed. This number includes letters sent from previous months. Staff also conducted a total of 414 inspections during this quarter. Density Bonus Agreements The California Density Bonus law allows developers proposing five (5) or more residential units to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek up to three (3) incentives/concessions and an unlimited number of waivers, which are variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers for 100-percent affordable developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the responsibility on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. As of the date of this report, the City of Santa Ana has entered into the following Density Bonus Agreements: City Council 9-3 8/1/2023