HOUSING REHABILITATION

LOAN COMMITTEE City Hall - Staff Conference Room

1500 Warburton Avenue

Santa Clara, CA 95050

REVISED AGENDA December 21, 2017

8:00 am

Committee Members Staff

Council Member Teresa O’Neill, Chair Housing & Community Services Division Manager, Jonathan Veach

Carmen Pascual Staff Analyst, Kathy Flood (Staff Liaison)

Bianca Wilczoch Office Specialist, Jennifer Caravalho

Michael Louis Ferrito

1. Call to Order

2. Public Presentations This portion of the meeting is reserved for persons to address the Housing Rehabilitation Loan Committee on any matter not on the agenda. The law does not permit Housing Rehabilitation Loan Committee action on, or extended discussion of, any item not on the agenda except under special circumstances. Commissioners or the staff liaison may briefly respond to statements made or questions posed and may request staff to report back at a subsequent meeting. Please limit your remarks to 3 minutes.

3. Review of Approved Minutes from August 10, 2017

4. Items for Discussion: A. Review Budget Status Reports B. Program Status

i. Staffing Update ii. File Reconciliation Update iii. Project Manuals 1 & 2 Update

5. Items For Possible Action: A. NCIP Program Manual Revision Updates and Recommendations

i. Grants vs. Loans

6. Adjournment - Next meeting: February 8, 2018 8:00 am

1

Housing Rehabilitation Loan Committee Minutes

August 10, 2017

MEETING MINUTES

August 10, 2017, 8:00 A.M.

Approved by Council October 10, 2017

Committee Members Present:

Teresa O’Neill – Council Member/Chair

Carmen Pascual

Bianca Wilczoch

Michael Louis Ferrito

Staff:

Andrew Crabtree, Community Development Director

Jonathan Veach, Housing Division Manager

Kathy Flood, Staff Analyst

Jennifer Caravalho, Office Specialist

Guests:

None

Matters for Council Action: None

1. Call to Order/Roll CallMeeting was called to order by Council Member/Chair O’Neill at 8:02 A.M.

2. Public PresentationsNone

3. Approval of Minutes from May 11, 2017

Motion by Committee Member Pascual and unanimously carried to approve the Minutesof May 11, 2017.

4. Items on Agenda

ITEMS FOR DISCUSSION

A. Introduction of New Housing Division ManagerJonathan Veach provided summary of his background and experience and waswelcomed.

B. Review NCIP FY2016-17 Budget Status ReportsBudget Summary of year-end snapshot was reviewed, including breakdown ofprogram income and expenditures, grants and loans, HUD required set-asides andFY201718 projections. Federal allocation is anticipated to arrive in Septemberwhich will balance the year-end budget shortfall and allow work to resume on

MINUTES OF THE HOUSING REHABILITATION

LOAN COMMITTEE City Manager’s Staff Conference Room

1500 Warburton Ave, Santa Clara, CA, 95050

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Housing Rehabilitation Loan Committee Minutes

August 10, 2017

several of the 13 pending projects as prioritized. Staff is continuing to look intooptions on finding/utilizing other funding sources to help replace the HOME fundsthat have been difficult to use which has strained the program. Committee ChairO’Neill expressed concern on how valid the program income (PI) projections are,but with the cost-benefit analysis approach that Staff is taking, they are confidentthat the reconciliation project will generate additional PI and assist in making up thebudget shortfall.

C. Program Status & UpdatesAn As-Needed Housing Specialist will be hired in the coming months to assist in thecompletion of pending projects as well as assist in compliance monitoring forconditional loan properties. Once on board, Staff Analyst Flood and the newHousing Specialist will meet with pending clients to discuss resuming projects andre-assess the scope of work as necessary and reasonable in an attempt to reduceexpenditures.

While understanding that this has been an unprecedented year with the restricted

funding and staff changes, Committee Chair O’Neill and Committee Member

Pascual expressed concern on the length of delay of pending projects and the

inconvenience to clients. To remain true to the original vision of the program which

is to address health and safety concerns first, staff created a priority list that will

assist in expediting the completion of pending projects for those with the most

immediate needs.

HUD regulations and restrictions prevent the City from ‘pooling’ jobs together for

bids with contractors in hopes of better pricing. The HUD requirements for the

bidding process and contractor selection were reviewed which clarified that the City

uses a rotating bidding process and cannot recommend contractors for any of our

jobs – the final selection has to be a decision made by the homeowner.

Committee Member Wilczoch inquired on the current number of contractors in the

program and how we advertise for our contractors and design professionals.

Director Crabtree indicated there are about 7 for the large scope jobs, and a smaller

pool for specialized scopes. Staff Analyst Flood explained that we annually

advertise per HUD requirements but given the booming economy and high demand

for construction in the past few years it has been a challenge to attract new

contractors/professionals to participate in the program.

HUD experts from Cloudburst Consulting have been working with the Division in

updating to the procedure manual and the draft will be distributed to the Committee

for review and feedback prior to the next meeting. In addition to updates that reflect

current regulations and best practices, anticipated updates include refreshing the

program’s mission, as suggested by Committee Member Ferrito, and adding an

asset cap to our application process as recommended by Division Manager Veach.

Through diligent file clean-up, re-evaluation of program guidelines and the

anticipation of an incoming Housing Specialist, Staff is confident that this year will

bring positive changes resulting in a more efficient and beneficial program for our

community.

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Housing Rehabilitation Loan Committee Minutes

August 10, 2017

D. 2018 Calendar Meeting Dates:February 8May 10August 9November 8

ITEMS FOR ACTION

A. Projects Pending Review and Action

1. Client Number 10545-2196 San Antonio PlaceStaff Recommendation: Approve an amount of $40,000 plus a 25%contingency for identified work; 3% interest, and twenty year deferredpayment. Loan is subject to availability of program funds.

Motion was made Committee Member Ferrito and unanimously carried tonot take any action on this or any new projects until the backlog ofjobs are fully assessed and revised as necessary by staff. Anyrevisions of pending project scopes will be brought back to the nextmeeting for review.

OTHER BUSINESS

A. Council Dinner Meeting DatesTuesday, August 29, 2017Tuesday, May 8, 2018

5. Adjournment – Next meeting scheduled for November 9, 2017 at 8:00 A.M.

Meeting adjourned at 9:22 A.M.

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HUD Grant CDBG HOME TOTALFY2017-18 Total HUD Grant 903,714.00$ 299,356.00$ 1,203,070.00$

Source of NCIP Funds CDBG HOME TOTALFY2016-17 Carryover -$ -$ -$ FY2016-17 Unallocated CDBG funds from Public Services 16,847.98$ -$ 16,847.98$ FY2017-18 Program Allocation 463,802.00$ -$ 463,802.00$ FY2017-18 Program Income-Loan Payments (PI) (over budgeted $366K) -$ -$ -$ Total NCIP Source of Funds 480,649.98$ -$ 480,649.98$ Set aside from current FY PI for FY2017-18 admin (20% CDBG) over $366K -$ -$ -$ 15% set aside from current FY PI for FY2018-19 Public Services over $366K -$ -$ -$ Total NCIP Available Source Funds 480,649.98$ -$ 480,649.98$

Use of Funds CDBG HOME TOTALFY2017-18 Loan Expenditures 25,646.34$ -$ 25,646.34$ FY2017-18 Grant Expenditures (AP, Direct Charges & Burden) 9,297.15$ -$ 9,297.15$ Total Use of Funds 34,943.49$ -$ 34,943.49$

Available Source Minus Use Balance 445,706.49$ -$ 445,706.49$

Current NCIP Activity CDBG HOME TOTALBalance remaining on projects in progress - Executed loans w/contingency 233,333.46$ -$ 233,333.46$ Estimated remaining soft cost expenditures of executed loans 82,194.94$ 82,194.94$ Subtotal 315,528.40$ 315,528.40$ Total of recommended loans w/contingency -$ -$ -$ Total 315,528.40$ -$ 315,528.40$

NCIP Approved Activity - Pending CDBG TOTALApproved loans not yet executed 312,500.00$ -$ 312,500.00$ Estimated soft cost expenditures of approved loans 78,125.00$ -$ 78,125.00$ Total 390,625.00$ -$ 390,625.00$

source data:CSC Account Activity Detail Query

NCIP FY2017-18 Budget Status ReportBudget Summary as of 11/30/2017

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Client/Source CDBG HOME Total10061 -$ 400.00$ 400.00$ 10381 17,581.42$ -$ 17,581.42$ 10532 4,072.84$ -$ 4,072.84$ 10536 320.65$ -$ 320.65$ 10489 25,353.40$ -$ 25,353.40$ FY16/17 Interest -$ 8,896.17$ 8,896.17$ Program Income to Date 47,328.31$ 9,296.17$ 56,624.48$

Fiscal Year CDBG/HOME2010/11 317,855.00$ 2011/12 378,590.00$ 2012/13 427,989.00$ 2013/14 748,935.00$ 2014/15 544,733.00$ 2015/16 581,303.00$

2016/17 To Date 56,624.48$ Total 3,056,029.48$

NCIP FY2017-18 Financial StatusProgram Income as of 11/30/2017

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Client Number

Prior Loan Amount

Loan AmountFY2016-17

Prior Year CDBG

Expenditures

Current Year CDBG

Expenditures Remaining

Loan Balance

Remaining Estimated

Grant Costs 00320 22,000.00$ -$ 22,000.00$ 5,472.00$ 00338 21,250.00$ -$ -$ 21,250.00$ 5,312.50$ 10502 18,204.43$ 88,000.00$ 75,566.43$ -$ 30,638.00$ 10,620.44$ 10520 40,400.00$ 14,648.20$ -$ 25,751.80$ 4,040.00$ 10538 125,000.00$ 10,660.00$ -$ 114,340.00$ 18,750.00$ 10542 125,000.00$ -$ 31,250.00$ 10544 45,000.00$ 25,646.34$ 19,353.66$ 6,750.00$

Total of executed loans 484,854.43$ 100,874.63$ 25,646.34$ 233,333.46$ 82,194.94$ 10539 100,000.00$ -$ 25,000.00$ 10541 87,500.00$ -$ 21,875.00$ 10543 125,000.00$ -$ 31,250.00$

Total of approved* loans 312,500.00$ -$ -$ -$ 78,125.00$ Totals 797,354.43$ 100,874.63$ 25,646.34$ 233,333.46$ 160,319.94$

10532 Withdrew 110,000.00$ 10533 Withdrew 30,800.00$ 10540 Project no longer eligible 31,250.00$ 10544 Reduced loan amount 11,250.00$

Total cost reduction since August 10, 2017 meeting 183,300.00$

*Approved only, loan documents not yet signed

Loan reductions/withdrawls since August 10, 2017 meeting

NCIP FY2017-18 Financial StatusLoan Approvals and Expenditures as of 11/30/17

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Borrower/Indirect Labor CDBG Grant CDBG Direct

Charges TOTAL

00320 28.00$ 541.88$ 569.88$ 00338 -$ 329.17$ 329.17$ 00399* 396.50$ -$ 396.50$ 10462 28.00$ -$ 28.00$ 10494 3,095.00$ -$ 3,095.00$ 10502 -$ 112.42$ 112.42$ 10505 33.00$ -$ 33.00$ 10520 -$ 132.43$ 132.43$ 10533 2,265.00$ 208.67$ 2,473.67$ 10538 -$ 212.71$ 212.71$ 10539 -$ 52.17$ 52.17$ 10541 -$ 240.81$ 240.81$ 10542 -$ 742.46$ 742.46$ 10543 -$ 104.33$ 104.33$ 15044 -$ 425.42$ 425.42$ 10546 -$ 349.18$ 349.18$

Expenditures to date 5,845.50$ 3,451.65$ 9,297.15$

*Burden - employee benefits based on direct labor hours

NCIP FY2017-18 Financial Status Grant Expenditures as of 11/30/17

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Activity Status

Completed since last Committee Meeting - August 10, 2017

10544 100% complete

15046 Grant client - work complete

Construction/Scheduling in Progress

00320 Scheduling

00338 Scheduling

10502 75% complete

10520 56% complete

Planning & Bidding

10538 20% complete Planning

10541 Pre-Planning phase

10542 Pre-Planning phase

10543 Pre-Planning phase

Pending Projects

10539 Client wants to revise scope to reduce cost

10532 Withdrew

10533 Withdrew

10540 Project no longer eligible

Non Active projects

Project Status as of December 15, 2017

NCIP FY2016-17 Project Status Report

4.B

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