HomeMy WebLinkAbout19D - QRTLY RPT OF HOUSING ACTIVITIESREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 15, 2017
TITLE:
QUARTERLY REPORT FOR HOUSING
DIVISION PROJECTS AND ACTIVITIES
APRIL 2017 —JUNE 2017
{STRATEGIC PLAN NO. 5,3)
INTERI CIT MANAGE -14
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1a' 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
April 2017 — June 2017.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its regular meeting on July 26, 2017, by a vote of 5:0 (A. Cano absent), the Community
Redevelopment and Housing Commission approved the recommended action.
This report for the quarter ending on June 30, 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 the total fiscal year.
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Quarterly Report for Housing Division
August 15, 2017
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, applicants 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 mobile home rehabilitation loan was 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 project out to bid and four (4) under construction.
Downnayment 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 or $499,000 for a newly
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Inquiries
Applications
Applications
Applications
Program
Sent Out
Received
Approved
Q47Total
Q4 Total
Q4 Total
Q4
Total
FY
FY
FY
FY
Single -Family Rehabilitation
33
75
12 62
2 5
0
0
Mobile Home Rehabilitation
21
57
10 49
2 7
0
2
Multi-FamilyRehabilitation
0
7
0 1
0 0
0
0
Historic Home Restoration
1
2
0 2
0 0
0
0
Homeownership
102
99
50 142
3 11
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, applicants 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 mobile home rehabilitation loan was 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 project out to bid and four (4) under construction.
Downnayment 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 or $499,000 for a newly
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Quarterly Report for Housing Division
August 15, 2017
Page 3
constructed condo or home. 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. A total of 45
people attended. City staff also participated in the NeighborWorks Homeownership Fair and
conducted a presentation to potential first-time buyers at City Ventures.
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 $114,017,804. This is comprised of 419 loans of which 395
are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated
$244,480 in payments of principal and interest during the quarter.
Table 2: Portfolio Revenue
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 building code compliance of units in rental
projects with long-term affordability covenants. During this quarter, 60 owner -occupancy
recertification letters were mailed and 54 were returned and processed.
Staff also audited files for 5 projects and conducted building code compliance inspections for 30
units in 15 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 almost all of the inspected
units were found to be in compliance at the time of initial inspection. One (1) smoke alarm was
inoperative and one (1) toilet was loose. All of the deficiencies were immediately repaired and
passed a re -inspection.
19D-3
Funding Sources
HOME
CDBG
Redevelopment
NSP
CaIHOME
Loan Payoffs
$0
$21,642
$37,778
$11,461
$40,000
Residual Receipts
$29,461
$0
$62,144
$0
$0
Payments
Amortized Loan
$7,811
$11,809
$21,527
$0
$392
Payments
Total For Q4
$37,727
$33,451
$121,449
$11,461
$40,392
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 building code compliance of units in rental
projects with long-term affordability covenants. During this quarter, 60 owner -occupancy
recertification letters were mailed and 54 were returned and processed.
Staff also audited files for 5 projects and conducted building code compliance inspections for 30
units in 15 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 almost all of the inspected
units were found to be in compliance at the time of initial inspection. One (1) smoke alarm was
inoperative and one (1) toilet was loose. All of the deficiencies were immediately repaired and
passed a re -inspection.
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Quarterly Report for Housing Division
August 15, 2017
Page 4
Affordable 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 May 31, 2017, a total of $2,194,192 is available for
affordable housing development. Exhibit 1 provides a summary of the funds available as of the
end of this quarter.
Projects under Development
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 for this program.
For Sale Infill Housing (4010 - 4026 E. Mc Fadden Street)
• Developer: Habitat for Hummanity of Orange County
• Description: Acquisition and new construction project yielding 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 on target for completion by December
2017.
Depot at Santiago (923 N. Santiago Street)
• Developer: C & C Development (Depot at Santiago, LP).
• Description: Acquisition, demolition and new construction project yielding 70 affordable rental
units, a 3,000 SF community room, and 8,500 SF of retail space.
• City Funds: HOME ($2,634,566), CDBG ($365,434).
• Update: Construction commenced in April 2016 and is about 65% complete. Project is on
target for completion in November of 2017.
The Orchard (2151 E. First Street)
• Developer: Community Development Partners and Mercy House.
• 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.
• City Funds: HOME ($1,199,869), 71 HUD Project -Based Vouchers ($7,895,194).
• Update: Construction commenced in January 2017 and is approximately 45% complete.
Project is on target for completion in the Fall of 2017.
Santa Ana Arts Collective (1666 N. Main Street)
• Developer: Meta Housing Corporation (Santa Ana Arts Collective, LP).
• Description: Acquisition, adaptive reuse and new construction project yielding 57 affordable
rental units designated for professional artists of all disciplines.
• City Funds: Inclusionary Housing ($4,775,000), HOME ($2,219,760), CDBG ($500,000).
• Update: Project closed on their financing in July 2017 and will commence construction in
August 2017.
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Quarterly Report for Housing Division
August 15, 2017
Page 5
Santa Ana Veterans Village (3312 W. First Street)
• Developer:
Jamboree Housing Corporation (Santa Ana Veterans Village, LP).
• Description:
New construction of an affordable multifamily apartment complex yielding 75 units
of permanent supportive housing with wrap-around supportive services for HUD-
VASH eligible homeless veterans in the City of Santa Ana.
• City Funds:
75 HUD-VASH Project -Based Vouchers ($11,489,000), HOME ($504,550)
• Update:
Developer applied for 9% Low -Income Housing Tax Credits on June 28, 2017.
Aqua Housing (317 E. 17th Street)
• Developer:
Community Development Partners and Mercy House.
• Description:
Acquisition, demolition and new construction of a former motel yielding 57 units of
affordable permanent supportive housing with wrap-around supportive services for
chronically homeless individuals in the City of Santa Ana.
• City Funds:
56 Project -Based Vouchers ($9,237,900).
• Update:
Developer applied for 9% Low -Income Housing Tax Credits on June 28, 2017.
First Street Apartments (1440 E. First Street)
• Developer:
AMCAL Multi -Housing, LLC.
• Description:
Demolition and new construction of an affordable multifamily apartment complex
yielding 68 units of rental housing serving very -low and extremely -low income
families.
• City Funds:
Housing Successor Agency ($8,522,740).
• Update:
Developer applied for 9% Low-income Housing Tax Credits on June 28, 2017.
Tint/ Tim Plaza (2223 West 5th Street)
• Developer:
Community Development Partners.
• Description:
New construction of an affordable multifamily apartment complex yielding 51 units of
rental housing serving very -low and extremely -low income families.
• City Funds:
Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000)
• Update:
Developer is currently pursuing other sources of financing to fill an estimated
financial gap of approximately $11.7 million.
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).
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Quarterly Report for Housing Division
August 15, 2017
Page 6
FISCAL IMPACT
There is no fiscal impact associated with this action.
Robert C. Cortez
Acting Executive Director
Community Development Agency
Exhibit: 1. Available Funds for Affordable Housing Development Projects
19D-6
Exhibit 1
Available Funds for Affordable Housing Development Projects
As of May 31, 2017 8
Housing Successor Agency (Housing Authority)
$14,601,827 Cash on Hand
($8,522,740) First Street Apartments Pre -Commitment Loan
($4,700,000) Tiny Tim Plaza Conditional Pre -Commitment Loan
($789,853) Reconciling amount (ROPS Projects)
($280,098) Habitat for Humanity Disposition and Development Agreement
($250,000) Administrative Costs Allowance'
$59,136 Available Funds
Inclusionary Housing Funds
$7,830,916 Cash on Hand'
($5,251,381) Santa Ana Arts Collective Pre -Commitment Loan & Associated Project Costs"
($1,300,000) Tiny Tim Plaza Conditional Pre -Commitment Loan
($186,936) Administrative Costs Allowance (CDA/PBA)
$1,092,599 Available Funds (*Excludes $9,695,725.60 anticipated from Heritage Village;
HOME Program
$2,954,995 Funds to Drawdown
($2,219,760) Santa Ana Arts Collective Pre -Commitment Loan'
($332,778) Community Housing Development Organizations (CHDO) Set -Aside°
$402,457 Available Funds to Drawdown
CDBG Program (Acquisition/Rehabilitation Projects Only)'
$1,140,000 Funds to Drawdown
($500,000) Santa Ana Arts Collective Pre -Commitment Loan
$640,000 Available Funds to Drawdown
2,194,192 Total Available Funds
Approved by City Council/Housing Authority on June 20, 2017.
The Housing Successor Agan, relies on available cash to fund the monitoring and compliance functions related to the farmer Redevelopment Agency's housing loans.
Inaludos new $1,224,437.20 payment from The Line project (3630 Westminster Ave) received In April 2017.
Includes Initial $1.875M loan antl addltlonal $2.9M loan approved by City Count on June 20, 2017,
Loan amount reduced from original $2.26M by City Cbunall on July 5, 2017 per U.S. Housing and Urban Development's 2016 HOME per-unit subsidy requirements.
The $332 778 includes funds currently avallablb as rated In the Tobruary 7, 2017 City Council Agenda Item 25C. An addltlonal $171,771.601s estimated In future funding.
All unencumbered funds at fiscal year and are expected to be rolled bear to the Unappropriated Balance for CDEG Capital Projects In FY 17118.
Financial information provided as of May 31, 2017 only. Updated numbers for June 2017 will be provided uponthe Finance and Management Services Agency's
completion of the FY 16117 year end closing process.
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