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HomeMy WebLinkAbout19D - QRTLY RPT HOUSING PROJECTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 3, 2013 TITLE: QUARTERLY REPORT FOR HOUSING DIVISION PROJECTS AND ACTIVITIES (JANUARY 2013 - MARCH 2013) CITY MANAGER: RECOMMENDED ACTION Receive and file. CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its special meeting held May 14, 2013, by a vote of 5:0 (Bist, Garcia absent) the Community Redevelopment and Housing Commission recommended that the City Council receive and file. DISCUSSION This status report for the quarter ending on March 31, 2013, provides statistics for the day-to-day affordable housing activities of the City and the Community Development Agency. 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 homebuyer down payment assistance and rehabilitation loans for historic single-family, single-family and mobile homes. Mobile home loans are offered as forgivable grants and are used to cover the cost of essential repairs. Applications are mailed out and received for these programs on a continuing basis. Chart 1 shows the number of applications sent out by type during the quarter. Chart 1: Applications Mailed Single Family Rehab (17) Homebuyer Assistance ? (32) Mobile Home Hardship (5) 19D-1 Quarterly Report for Housing Division Projects and Activities (Jan-March 2013) June 3, 2013 Page 2 Of the applications sent, two have been returned and are being processed. Loan Underwriting and Approval Process In this process, staff reviews applicant eligibility, verifies income and assets, and oversees underwriting to determine eligibility per program guidelines. In addition, staff conducts an inspection of the unit, 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. Two homebuyer assistance loans were approved during the third quarter of the fiscal year, and Table 1 provides details on these loans. Table 1: Loans Annroved Durina This Quarter Address Loan Amount Loan Type 1227 Camille Street $126,291 Homebu er Assistance 4809 Edinger Street $224,800 Homebu er Assistance Chart 2 shows the number of loans approved during the quarter fiscal year to date. 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 excE?ed available funds. At the end of this quarter there were five homeowner rehab projects under construction. Chart2: Loans Approved During Quarter & FY to Date 9 ! _. 6 8 ?- f FYto Date (8) 7 I- _ 6 5 4 3 FY to Date (3) 2 - 3rd Quarter (2) 1 - o Homebuyer Assistance Homeowner Rehab 1901-2 Quarterly Report for Housing Division Projects and Activities (Jan-March 2013) June 3, 2013 Page 3 Loan Portfolio Management and 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 $107,119,055. This is comprised of 496 loans of which 441 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $179,626 in payments of principal and interest during the quarter: Table 2: Portfolio Revenue Residual Receipts Payments $115,012 Amortized Loan Payments $64,614 Total $179,626 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, staff received and processed 76 owner- occupancy recertification letters. Six second-request letters were mailed to homeowners that were non-responsive. During this quarter, staff also conducted code compliance inspections for 164 units in eight projects. Regulations require that only a sample be selected for inspection. Staff also inspects the grounds and common areas such as laundry rooms to insure they also meet City 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 minor deficiencies including peeling paint, loose toilets, inoperable 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. Development Projects NSP 1 Program The federal Neighborhood Stabilization Program (NSP) is intended to target and stabilize communities hardest hit with foreclosures. To date, the City has received all three NSP awards for which it was eligible. The first award (NSP 1) came through a noncompetitive process in the amount of $5,795,155. Under its term requirements, all grant funds needed to be obligated by September 5, 2010, and expended by March 26, 2013. In addition, NSP grantees must expend at least 25% of the funds on households that have very low-incomes. The City has exceeded all of these requirements. All of the NSP 1 grant funds were obligated by August of 2010, and by the end of this quarter we had already expended more than $6.8 million or 119% of its grant amount. The amount spent is greater than the grant amount because it includes program income. The City has spent $2.4 million, or 34% of all its NSP 1 funds, on projects that serve very low-income households exclusively. During this quarter, Santa Ana WBBB L.P. completed the construction of 1901-3 Quarterly Report for Housing Division Projects and Activities (Jan-March 2013) June 3, 2013 Page 4 a 36-unit multi-family housing project located at 605 E. Washington. NSP 1 funds were utilized to acquire the site. NSP 1 is only operating with program income, and these funds will diminish over time. NSP 2 Program The City's second award (NSP 2) for $10 million was received through a highly competitive process in which only 15 local government agencies were successful. Most awards were made to nonprofit consortiums. Under the terms of this award, there is no obligation deadline to meet; however, there is an expenditure deadline. In the first quarter, HUD approved a technical amendment to allow the City to close the DPAP activity and move the remaining $336,860 to the Single-Family Acquisition-Rehabilitation activity. During this quarter, two properties were sold and one property is pending sale. Tables 3 and 4 provide additional detail. Table 3: NSP2 Sinale Familv Properties Sold During This Quarter Property Address Silent 2" Income Level 1227 W. Camile $10,000 Moderate 328 E. Harwood Place $10,000 Moderate Table 4: NSP2 Sinale Familv Properties Pendina Sale Property Address Silent 2" Income Level 705 S. Kilson $10,000 Moderate The partnership of Orange Housing Development Corporation and C&C Development was also selected to implement the NSP2 Multifamily Acquisition/Rehabilitation Program. To date, the partnership has utilized $3.94 million in NSP 2 funds to acquire a 26-unit multi-family property at 326 S. Garnsey Street. The property was rehabilitated by the partnership and the units are now 100% leased. NSP 3 Program The U.S. Department of Housing and Urban Development (HUD) has allocated the amount of $1,464,113 in NSP 3 funds to the City of Santa Ana. To receive these funds the City adopted a substantial amendment to its Annual Action Plan, and submitted it to HUD on February 28, 2011. The amendment was approved, and the City signed a grant agreement with HUD on March 10, 2011. The grant activities are: • Acquisition/Rehab/Resale-50 Percent of Area Median Income • Acquisition/Rehab/Resale-120 Percent of Area Median Income • Administration 19D-4 Quarterly Report for Housing Division Projects and Activities (Jan-March 2013) June 3, 2013 Page 5 The City's intermediary ANR has been actively seeking foreclosed properties in the NSP 3 target area. During this quarter, one property located at 1223 Baker Street was acquired and is currently being rehabilitated. The rehabilitation will be completed during the first week of April 2013. As required by regulations, comprehensive detailed quarterly reports on all of the City's NSP Programs are posted on the City's website at http://www.santa-ana.org/cda/NSP.asp. In-Fill Development Projects The construction of Santa Ana Station District Phase I, a 74-unit large-family affordable rental housing project, is nearly completed and expected to be finalized in April 2013. The construction of Phase II, an additional 40 units of large-family affordable rental housing consisting of the rehabilitation of existing structures (15 units) and new construction (25 units), is completed and fully leased. Phase III, a for-sale housing project to be developed by City Ventures consisting of approximately 24 units of large family homes, is currently in plan review. The completion of Vista Del Rio, a 41-unit handicapped-accessible affordable rental housing project located at 1600 Memory Lane, is imminent and construction is expected to be finalized in May 2013. Santa Ana WBBB L.P. completed the construction of a 36-unit multi-family housing project located at 605 E. Washington and the units are currently being leased. During this quarter, Habitat for Humanity of Orange County completed the construction of a single- family dwelling located at 1029 McLean Drive. A single-family dwelling constructed during the second quarter, located at 4809 W. Edinger, was sold during this quarter to a low-income homebuyer. Three additional single-family dwellings at 160 E. McFadden Avenue, 1114 S. Cypress and 1121 S. Cypress Avenue are currently under construction and expected to be completed in July 2013. FISCAL IMPACT There is no fiscal impact associated with this action. 6" 'C' Sandra D. Gottlieb Acting Executive Director Community Development Agency SDG/SLB/kg 19D-5 19D-6