HomeMy WebLinkAbout09 AFFORDABLE HOUSING DEFAULT REVOLVING FUND QUARTERLY REPORT~`` F `~ ~~ Agenda Item 9
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MEETING DATE: FEBRUARY 7, 2012
TO: JEFFREY C. PARKER, CITY MANAGER AND TUSTIN HOUSING
AUTHORITY EXECUTIVE DIRECTOR
FROM: HOUSING AUTHORITY
SUBJECT: QUARTERLY REPORT FOR AFFORDABLE HOUSING DEFAULT
REVOLVING FUND
SUMMARY
The Housing Authority has assumed all housing functions of the dissolved Tustin
Community Redevelopment Agency, including the Affordable Housing Default
Revolving Fund's quarterly report. Housing Authority staff has prepared the report
which details any default activity within the City's Affordable Housing Program and
identifies costs associated with curing any potential defaults.
RECOMMENDATION
Receive and file.
FISCAL IMPACT
There is no fiscal impact associated with this Agenda Item.
BACKGROUND
On February 1, 2011, the City Council and Tustin Community Redevelopment Agency
approved a Cooperative Agreement authorizing the creation of an Affordable Housing
Default Revolving Fund to exercise redemption and reimbursement rights andlor option
to purchase rights under the City and Agency's Affordable Housing Programs for units
at risk of foreclosure. The authorization included a requirement that staff provide
quarterly updates on fund activity. On January 17, 2012, the Redevelopment Agency
authorized the transfer of all housing obligations, responsibilities and assets, including
the reporting requirements listed in the Cooperative Agreement, to the Tustin Housing
Authority effective February 1, 2012 conditioned upon dissolution of the Tustin
Community Redevelopment Agency.
Agenda Report
Quarterly Report for Affordable Housing Default
Revolving Fund
February 7, 2012
Page 2
On March 1, 2011, the City Council authorized the purchase of 14554 Newport Avenue
#3, amoderate-income affordable housing unit prior to foreclosure sale of the subject
property and, on May 16th, the City purchased the unit for $362,476.73. The City is
currently paying homeowners' association dues and preparing the unit for listing. When
14554 Newport Avenue #3 is sold to another affordable homeowner, the proceeds from
the sale will become an asset of the Tustin Housing Authority pursuant to the Council's
action on January 17, 2012.
On October 18, 2011, the City Council authorized the City Attorney to pursue exercise
of the City's right of redemption and/or option to purchase the moderate-income unit at
103 t_iberty Street. In order to cure the default and avoid losing the home to
foreclosure, the City paid $26,047.96 to Bank of America to reinstate the homeowner's
loan. The City Attorney issued a "Written Demand for Reimbursement" notice to the
property owners, requiring they reimburse the City within 30 days or the City would
exercise its option to purchase their property at the affordable housing price pursuant to
the Affordable Housing Option Agreement.
The balance in the Revolving Fund Account, as of December 31, 2011, was
$858,785.31. The City Attorney's office is currently assisting with two (2) Notices of
Sale and one {1} Bankruptcy. The Agency has expended $19,990.96 far City Attorney
services associated with monitoring the status of these units and expenses were billed
against FY 2010-2011 and FY 2011-2012 approved budget accounts: 553-35-00-6016;
556-35-00-6016; and 559-35-00-6016.
The attached repart contains the expenditures from the period of January 1, 2011 to
December 31, 2011. Given the nature of the billing process, expenditures for December
2011 will nat likely show up on the report until actual payment is made in February.
Staff will provide an updated expenditure report for the Fourth Quarter when submitting
the next quarterly report in April 2012.
t
Christine Shingleton
Assistant Executive Offices
Attachment: Affordable Housing Default Revolving Fund Report -Period Ending 12131!11
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