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Housing Division Quarterly Report <br />August 1, 2023 <br />Page 3 <br />3 <br />6 <br />2 <br />4 <br />Loan Portfolio Management & Monitoring <br />The Housing Division is responsible for managing the residential loan portfolio, which <br />includes all of the loans entered into by the City and Housing Authority acting as the <br />Housing Successor Agency. As of the end of the fourth quarter, the principal balance <br />was $149,153,321. This portfolio is comprised of 341 loans of which 319 are deferred or <br />residual receipt payment loans. As shown in Table 2, the loan portfolio generated <br />$464,827.98 in payments of principal and interest during the fourth quarter. The amount <br />of residual receipts payments changes every quarter. <br />Table 2: Portfolio Revenue <br />HOME CDBG Redevelopment NSP <br />Loan Payoffs $0 $0 $30,000.00 $0 <br />Residual Receipts <br />Payments $98,134.72 $0 $206,463.18 $96,892.26 <br />Amortized Loan <br />Payments $8,013.80 $3,402.13 $21,921.89 $0 <br />Total for Q4 $106,148.52 $3,402.13 $258,385.07 $96,892.26 <br />Monitoring <br />As part of the requirements for these loans, staff must monitor the owner-occupancy of <br />single-family homes that have received loans and the building code compliance of units <br />in rental projects with long-term affordability covenants. During this quarter, 38 owner- <br />occupancy recertification letters were mailed and 24 were returned and processed. This <br />number includes letters sent from previous months. Staff also conducted a total of 414 <br />inspections during this quarter. <br />Density Bonus Agreements <br />The California Density Bonus law allows developers proposing five (5) or more <br />residential units to seek increases in base density for providing on-site housing units in <br />exchange for providing affordable units on site. To help make constructing on-site <br />affordable units feasible, the law allows developers to seek up to three (3) <br />incentives/concessions and an unlimited number of waivers, which are variances from <br />development standards that would help the project be built without significant burden <br />and without detriment to public health. <br />The first version of the Density Bonus Law was adopted in 1979 and has since been <br />amended at various times. Recent revisions allow affordable housing developers to <br />request incentives/concessions and/or waivers for 100-percent affordable <br />developments, even if they do not require a numerical density bonus. Moreover, in early <br />2017, the law was amended to restrict the ability of local jurisdictions to require studies <br />to “justify” the density bonus and requested incentives/waivers and places the <br />responsibility on local jurisdictions to prove that the incentives/concessions or waivers <br />are not financially warranted. <br />As of the date of this report, the City of Santa Ana has entered into the following Density <br />Bonus Agreements: