July 1, 2011 thru September 30, 2011 Performance Report

Grantee: Alameda County, CA Grant: B-09-CN-CA-0052 July 1, 2011 thru September 30, 2011 Performance Report 1

Grant Number: B-09-CN-CA-0052 Grantee Name: Alameda County, CA Grant Amount: $11,000,000.00 Grant Status: Active Obligation Date: Award Date: 02/11/2010 Contract End Date: 02/11/2013 Review by HUD: Submitted - Await for Review QPR Contact: Michelle Starratt Disasters: Declaration Number NSP Narratives Executive Summary: Alameda County is one of the many counties in California whose neighborhoods have been hard hit by the foreclosure crisis. While real estate prices have dropped throughout the County, many properties are still sitting vacant and are in need of major rehabilitation. These properties create blighted neighborhoods, invite vandalism, and further threaten to destabilize our communities by bringing down the property values. To increase our effectiveness in reversing the effects of foreclosures and declining property values in our community, HCD (Applicant) developed a consortium of local governments to respond to the foreclosure problem. Consortium members are those cities in the County with eligible census tracts, including Dublin, Emeryville, Hayward, Fremont, Livermore, Pleasanton, Newark, San Leandro, Union City and the urbanized areas of unincorporated Alameda County. HCD will work in these local jurisdictions along with non-profit partners to implement the NSP2 program. Under HCD&rsquos direction, non-profit partners will acquire, rehabilitate and resell foreclosed properties to eligible households. Working together, HCD will respond to the crisis created by increased foreclosure and declining property values. HCD will create a minimum of 100 units using the NSP 2 funds, over a period of 3 years (or grant term) We will commit Ten Million Dollars ($10,000,000) of Mortgage Credit Certificate Allocation as Leverage for the application. A maximum amount of $100,000 per unit will be invested permanently into each unit to achieve affordability and feasibility of the program. The NSP budget will allow for the required 25% of the funds to be spent on households at 50% or below Area Median Income, 10% towards administration costs, and 65% towards households between 51-120% of area median income. We intend to create between 28-40 rental units for households at 50% or below AMI and 60-72 homeownership units for households below 120% of AMI. Target Geography: The County of Alameda has formed a NSP II Consortium comprised of census tracts in the cities of Emeryville (North County), the Cities of San Leandro, Hayward and neighborhoods in the unincorporated portions of Alameda County (Mid County), the cities of Livermore, Pleasanton, Dublin neighborhoods in the unincorporated portions of Alameda County (East County), and the cities of Fremont, Newark and Union City. The target areas within the Consortium are those census tracts with the greatest needs. Neighborhood NSP2 Census Tract North County - Emeryville 4251 Mid County NSP2 Census Tract Unincorporated AC/Castro Valley 4301 4302 Unincorporated/El Portal Ridge 4305 2

San Leandro 4325 4334 Unincorporated/Ashland 4338 Hayward & Unincorporated/Five Canyons 4351 4351.01 Unincorporated/Fairview 4352 Hayward & Unincorporated/Cherryland 4356 Unincorporated/San Lorenzo 4358 Hayward 4377 4364.01 4371 4381 4382.01 4382.02 South County NSP NSP2 Census Tract Union City 4403.01 4403.02 4403.09 Fremont 4414.01 4415.03 4416.02 4417 4419.01 4426 4431.01 Newark 4441 4442 4446 Newark & Fremont 4443 East County NSP Dublin 4501 4504 Dublin & Unincorporated 4507.21 4505 Pleasanton 4507.22 4506.02 Pleasanton & Unincorporated/Sunol 4507.01 4507.03 Livermore & Unincorporated 4513 4511.01 Livermore 4512.01 4514.02 4515.02 4516.02 4517.02 Program Approach: Program Approach Alameda County and the Consortium partners have established a Technical Advisory Committee (NSP2 TAC) to provide policy direction for the implementation of the NSP2 grant. The Technical Advisory Committee is made up of staff from each participating jurisdiction, with Alameda County staff leading the TAC and providing staff to the TAC and the NSP2 Program. The overall NSP2 Program is divided between two programs: Single Family Homeownership and the Multi-Family Rental Programs. 3

Multi-Family Rental The Multi-Family Rental Program received an allocation of $2,750,000, which will be allocated to one or more development partners and projects to be identified through a competitive Request for Proposals (NSP2 RFP). The NSP2RFP will be released in 2010. At minimum, the funds will generate 35 units of long-term affordable housing, which translates to a subsidy of approximately $78,000 per unit. However, the RFP will provide additional incentive for projects that provide a higher leverage and lower required NSP funding per unit. These funds will be allocated to the most competitive project proposal(s), rather than distributed across the Consortium geographically. A multifamily property(wings) was identified to be used for the rental program. This property is not located in an approved census tract, but is in an impacted neighborhood. This property is vacant only (not foreclosed/abandoned), but in default of a current loan. A request was sent to HUD for a technical amendment to allow the census tract (4377) that the property is located in to be approved. The technical amendment also requested that $400,000 of funds from Activity B be transferred to Activity E to be used for this particular property (per the new Frank- Dodd Act that allows vacant only properties to be used for the 25% set aside requirement). The technical amendment was approved. This technical amendment will not decrease the number of units assisted in this Activity. For the remaining $2.35 million of 25% set aside rental funds, HCD will select, through a competitive process, one or more multi-family rental properties which meet the NSP program requirements, and assist a Development Partner in acquiring/redeveloping the property and renting the property to very-low income (50% or below area medain income) households. Single Family Home-ownership The Single Family Acquisition, Rehab and Resale Program is the largest budgeted program in the Alameda County Consortium NSP2 program, with $7.15 million allocated. It is expected that this program will create between 65-73 units, at a subsidy of approximately $96,000 per unit. The primary goal of the NSP2 program is to stabilize neighborhoods. There is sufficient funding in this program to use it throughout the NSP2 Consortium. Under the Consortium Funding Agreement, the participating jurisdictions agreed to an initial allocation of funding, split so that no jurisdiction receives less than three unit&rsquos worth of funding and those jurisdictions with the highest number of foreclosures and vacancy rates receive a larger share. The allocation is as follows: Dublin 3 $ 288,000.00 Emeryville 4 $ 384,000.00 Fremont 8 $ 768,000.00 Hayward 15 $ 1,440,000.00 Livermore 9 $ 864,000.00 Newark 5 $ 480,000.00 Pleasanton/Sunol 4 $ 384,000.00 San Leandro 6 $ 576,000.00 Union City 6 $ 576,000.00 Unincorporated 13 $ 1,248,000.00 Sub- 73 $ 7,008,000.00 Contingency - Balance Under the Homeownership program, two non profit development partners (DP&rsquos) were selected to implement the NSP2 Homeownership program. Each of the DP&rsquos were selected competitively through NSP1 funded programs of one or more of the consortium members: Hallmark Community Solutions and Habitat for Humanity East Bay. Each of the jurisdictions chose which DP to work with, and the funding to that jurisdiction will be given to the selected DP. After a years time, the initial allocation will be reviewed, and funding may move between DP&rsquos if implementation in that area is not working. The two DP&rsquos will use funding from NSP2, in combination with leverage funds from commercial sources to acquire and rehabilitate blighted properties. Once a property is selected, the home will be rehabilitated and readied for resale to first time home buyers. Properties are evaluated for health and safety hazards, and then a work write up is developed specifically to that property. Construction is expcted to take between four and six months on each home. During this time, buyers are lined up who are interested in these properties, and who are willing to participate in a minimum of eight hours of homebuyer counseling through the Unity Council, or other HUD qualified first time home buyer training program. Consortium Members: Consortium Members Alameda County Housing and Community Development is the Grantee and Lead Member of the Consortium. Consortium members include the cities of Emeryville, Dublin, Pleasanton, Livermore, Fremont, Newark, Union City, San Leandro, Hayward and unincorporated Alameda County. How to Get Additional Information: How to get additional Information Contact Michelle Starratt at Alameda County HCD by calling 510-670-5207 or emailing her at NSP@acgov.org Additional information on homebuyer education and resources will be posted to the action plan as they are developed. We expect to have a regional website, where all NSP funded homes will be easily published. This is expected by summer 2010. 4

Overall Projected Budget from All Sources CDBG Program Funds Budgeted Program Funds Drawdown Program Funds Obligated Program Funds Expended Match Contributed Program Income Received Program Income Drawdown To Date $11,000,000.00 $11,000,000.00 $1,424,866.05 $749,972.00 $4,386,864.72 $5,454,651.49 $1,681,039.86 $4,399,107.60 $379,858.00 $2,297,845.00 $269,390.15 $422,078.78 $41,011.19 $152,688.63 Progress Toward Required Numeric Targets Requirement Required Overall Benefit Percentage (Projected) Overall Benefit Percentage (Actual) Minimum Non-Federal Match Limit on Public Services Limit on Admin/Planning $1,100,000.00 Limit on State Admin To Date 0.00% 0.00% $2,297,845.00 $399,214.42 Progress Toward Activity Type Targets Activity Type Target Actual Administration $1,100,000.00 $1,100,000.00 Progress Toward National Objective Targets National Objective Target Actual NSP Only - LH - 25% Set-Aside $2,750,000.00 $2,750,000.00 Overall Progress Narrative: Overall activity on this grant continues to show great progress. The County has identified four rental housing projects to serve households at 50% or below AMI (25% set-aside). Two of those projects are in currently approved census tracts, and two are in census tracts that require a substantial amenmdnet. We have submitted our request to HUD for a substantial amenmdne to add those two new census tracts. The Board of Supervisors of Alameda County will approve contracts for two of these projects before the end of December 2011. Staff will work on contracts and loan agreements, etc. once contracts are signed and in place. We are currently working on Enviromnmental Reviews for all four projects and when completed they will provide over 150 units of housing. In the Single family program, four new units were purchased and two more were identified. Staff completed 5 environmental reviews for these properties. HCD will forward a substantial amendment to HUD requesting to add two additional census tracts, which will allow HCD to develop the rental projects 5

Project Summary Project #, Project Title To Date Program Funds Drawdown Project Funds Budgeted Program Funds Drawdown 100(2), Administrative costs NSP2 $1,100,000.00 $399,214.42 120 (2) Homeownership, NSP2 Homeownership $1,424,866.05 $7,150,000.00 $3,987,650.30 9999, Restricted Balance VLI Rental NSP2, VLI NSP2 Multifamily Rental $2,750,000.00 Activities 6

Grantee Activity Number: Activity Title: Activitiy Category: Administration Project Number: 100(2) Projected Start Date: 02/11/2010 Benefit Type: National Objective: 100 (2) Administration Activity Status: Under Way Project Title: Administrative costs NSP2 Projected End Date: 02/11/2013 Completed Activity Actual End Date: Responsible Organization: Alameda County Houisng and Community Development Overall Projected Budget from All Sources CDBG Program Funds Budgeted Program Funds Drawdown Program Funds Obligated Program Funds Expended Alameda County Houisng and Community Development Match Contributed Program Income Received Program Income Drawdown Jul 1 thru Sep 30, 2011 $11,226.50 $11,226.50 To Date $1,100,000.00 $1,100,000.00 $399,214.42 $1,100,000.00 $224,396.28 $224,396.28 Activity Description: Grant Administration, staffing the NSP2 Technical Advisory Commitee, Selection and approval of Development Partners, administering the contracts with the Development Partners, Financial oversight, Program oversight, setting Policy and monitoring performances and program objectives. Location Description: Administration Activities are carried out by Alameda County's Housing and Community Development Department, located in Hayward, CA. Activity Progress Narrative: Accomplishments Performance Measures No Accomplishments Performance Measures found. Beneficiaries Performance Measures No Beneficiaries Performance Measures found. 7

Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 8

Grantee Activity Number: Activity Title: 200 (2) HCS For Sale Housing - HCS Activitiy Category: Acquisition - general Project Number: 120 (2) Homeownership Projected Start Date: 04/27/2010 Benefit Type: Direct Benefit (Households) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: NSP2 Homeownership Projected End Date: 02/11/2013 Completed Activity Actual End Date: 08/02/2011 Responsible Organization: Hallmark Community Solutions Overall Projected Budget from All Sources CDBG Program Funds Budgeted Program Funds Drawdown Program Funds Obligated Program Funds Expended Hallmark Community Solutions Match Contributed Program Income Received Program Income Drawdown Jul 1 thru Sep 30, 2011 $1,138,662.48 $749,972.00 $1,383,609.79 $1,383,609.79 $379,858.00 $269,390.15 To Date $5,063,000.00 $5,063,000.00 $3,239,404.11 $3,489,761.00 $3,625,919.45 $3,625,919.45 $1,871,397.00 $269,390.15 Activity Description: Hallmark Community Solutions (HCS) will acquire, rehabilitate and resell vacant and blighted homes in their approved census tracks. They will be working with CDFI Clearinghouse to leverage the NSP2 funding, and leave approximately $96,000 of NSP2 funding in each of the properties they acquire and rehabilitate. The properties will be available for sale to first time homebuyers, who will be able to access Mortgage Credit Certificates to achieve affordable homeownership. Location Description: Hallmark Community Solutions (HCS) was selected by the following Consortium partners to work in each of their jurisdictions: the Cities of Dublin, Pleasanton, Livermore, Fremont, Union City, San Leandro and the Unincorporated County. HCS had competed and won two NSP1 RFP rounds representing all of the cities listed above. The City of Newark choose to split its pot of funding and award 3 of its units to HCS and two to Habitat, so both organizations will be working in both cities. Activity Progress Narrative: During the last quarter, Hello Housing purchased 4 properties, and has a total of 9 that are being rehabilitated. The following are the estimated permanent subsidy, the construction financing, and the mortgage assistance for the 4 properties purchased this quarter: 16032 Bayberry Lane, San Lorenzo: The estimated NSP permanent subsidy is $133,973 and the estimated mortgage assistance is $11,250 The entire total development cost is $538,973 and supported by NSP funds. Escrow closed on this property on 8/16/2011. 36614 Bonnie Street, Newark: The estimated NSP permanent subsidy is $165,803 and the estimated mortgage assistance is $8,400. The entire total development cost is $445,803 and is supported by NSP funds. Escrow closed on this property on 8/16/2011. 1417 Kelly Avenue, San Leandro: The estimated NSP permanent subsidy is $156,358 and the estimated mortgage assistance is $8,400. The entire total development cost is $436,358 and is supported by NSP funds. Escrow closed on this property on 8/16/2011. 241 Teddy Drive, Union City: The estimated NSP permanent subsidy is $152,809 and the estimated mortgage assistance is 9

$8,500. The entire total development cost is $437,809 and is supported by NSP funds. Escrow closed on this property on 9/7/2011. The property at 5739 Parkside was sold to an eligible homeowner last quarter. The homebuyer was provided $1,000 in NSP mortgage assistance. We received program income in the amount of $180,394.78, which was entered into DRGR and used to purchase 241Teddy Drive. The property at 543 Tulsa sold to an eligible homeowner last quarter. The homebuyer was provided $8,850 in NSP mortgage assistance. We received program income in the amount of $88,995.37, which was entered into DRGR. The total permanent subsidy on this property is $171,192. The construction financing on this property was $175,319. Accomplishments Performance Measures # of Properties 0 # of buildings (non-residential) 0 # of Parcels acquired by 0 # of Parcels acquired by admin 0 # of Parcels acquired voluntarily 0 0/52 0/52 # of Housing Units 2 2/52 # of Singlefamily Units 2 Beneficiaries Performance Measures Low Mod Low Mod Low/Mod% # of Permanent Jobs Created 0 0 0 0 2/52 Low Mod Low Mod Low/Mod% # of Households 0 2 2 2/52 2/52 100.00 # of Persons 0 0 0 0 # Owner Households 0 2 2 2/52 2/52 100.00 Activity Locations Address City State Zip 543 Tulsa Street San Leandro NA 94580 5739 Parkside Place Newark NA 94538 Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 10

Grantee Activity Number: Activity Title: 200 (2) HH Homeownership - HH Activitiy Category: Acquisition - general Project Number: 120 (2) Homeownership Projected Start Date: 04/27/2010 Benefit Type: Direct Benefit (Households) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: NSP2 Homeownership Projected End Date: 02/11/2013 Completed Activity Actual End Date: Responsible Organization: Habitat for Humanity East BAy Overall Projected Budget from All Sources CDBG Program Funds Budgeted Program Funds Drawdown Program Funds Obligated Program Funds Expended Habitat for Humanity East BAy Match Contributed Program Income Received Program Income Drawdown Jul 1 thru Sep 30, 2011 $286,203.57 $286,203.57 $286,203.57 $41,011.19 To Date $2,087,000.00 $2,087,000.00 $748,246.19 $864,890.49 $548,791.87 $548,791.87 $426,448.00 $152,688.63 $152,688.63 Activity Description: Habitat for Humanity East Bay (HH) will acquire, rehabilitate and resell vacant and blighted homes in their approved census tracks. They will leverage their NSP2 funding with a construction line of credit and leave approximately $96,000 of NSP2 funding in each of the properties they acquire and rehabilitate. The properties will be available for sale to first time homebuyers, who will be able to access Mortgage Credit Certificates to achieve affordable homeownership. Location Description: Habitat for Humanity East Bay (HH) was selected by the following Consortium partners to work in each of their jurisdictions: the Cities of Emeryville, Hayward and Newark. HH had competed in the NSP1 Hayward RFP and won. The City of Newark choose to split its pot of funding and award 2 of its units to HH and three to HCS, so both organizations will be working in both cities. Activity Progress Narrative: Habitat for Humanity purchased one property last quarter: 1674 E Street, Hayward: The estimated NSP permanent subsidy is $117,831, and the estimated mortgage assistance is $9,900. The entire total development cost is $447,831 and is supported by NSP funds. Escrow closed on this property on 8/24/2011 Accomplishments Performance Measures # of Properties 0 # of buildings (non-residential) 0 # of Parcels acquired by 0 2/21 11

# of Parcels acquired by admin 0 # of Parcels acquired voluntarily 0 acquisition compensation to 0 2/21 # of Housing Units 0 2/21 # of Singlefamily Units 0 Beneficiaries Performance Measures Low Mod Low Mod Low/Mod% # of Permanent Jobs Created 0 0 0 0 2/21 Low Mod Low Mod Low/Mod% # of Households 2 0 2 2/0 2/0 4/21 100.00 # of Persons 0 0 0 0 # Owner Households 2 0 2 2/0 2/0 4/21 100.00 Activity Locations Address City State Zip 137 Temescal Circle Emeryville NA 94608 24543 Portsmouth Avenue Hayward NA 94545 Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 12

Grantee Activity Number: Activity Title: Activitiy Category: Acquisition - general Project Number: VLI Rental NSP2 Projected Start Date: 04/27/2010 Benefit Type: Direct Benefit (Households) National Objective: NSP Only - LH - 25% Set-Aside 300 (2) Rental Housing Activity Status: Under Way Project Title: VLI NSP2 Multifamily Rental Projected End Date: 02/11/2013 Completed Activity Actual End Date: Responsible Organization: Alameda County Houisng and Community Development Overall Projected Budget from All Sources CDBG Program Funds Budgeted Program Funds Drawdown Program Funds Obligated Program Funds Expended Alameda County Houisng and Community Development Match Contributed Program Income Received Program Income Drawdown Jul 1 thru Sep 30, 2011 To Date $2,750,000.00 $2,750,000.00 Activity Description: A multifamily property(wings) was identified to be used for the rental program. This property is not located in an approved census tract, but is in an impacted neighborhood. This property is vacant only (not foreclosed/abandoned), but in default of a current loan. A request was sent to HUD for a technical amendment to allow the census tract (4377) that the property is located in to be approved. The technical amendment also requested that $400,000 of funds from Activity B be transferred to Activity E to be used for this particular property (per the new Frank-Dodd Act that allows vacant only properties to be used for the 25% set aside requirement). The technical amendment was approved. This technical amendment will not decrease the number of units assisted in this Activity. For the remaining $2.35 million of 25% set aside rental funds, HCD will select, through a competitive process, one or more multi-family rental properties which meet the NSP program requirements, and assist a Development Partner in acquiring the property, rehabilitating the property, and renting the property to very-low income (50% or below area medain income) households. Location Description: Alameda County Housing and Community Development Department (HCD) will issue an RFP (Request for Proposals) to select the most completitive project(s) within consortiuum jursidictions. Once the project is selected, this section will be updated to report the actual location of the project(s). Activity Progress Narrative: Alameda County HCD staff has identified four NSP rental properties to include in our NSP rental program. These properties will provide over 150 units of housing for households at or below 50% area median income. Environmental reviews are being completed and we expect to enter into contracts with all four properties in the next quarter. All properties will be acquired and rehabilitated by Eden Housing. HCD is making a Substantial Amendment to its Action Plan to include two additional census tracts in its grant. These projects were all chosen due to their readiness to proceed and the positive impact they will have on their communities. 13

Accomplishments Performance Measures # of Properties 0 # of buildings (non-residential) 0 # of Parcels acquired by 0 # of Parcels acquired by admin 0 # of Parcels acquired voluntarily 0 acquisition compensation to 0 0/1 0/1 0/1 # of Housing Units 0 0/35 # of Multifamily Units 0 Beneficiaries Performance Measures Low Mod Low Mod Low/Mod% # of Permanent Jobs Created 0 0 0 0 0/35 Low Mod Low Mod Low/Mod% # of Households 0 0 0 0/35 0 # of Persons 0 0 0 0 # Renter Households 0 0 0 0/35 0 Activity Locations No Activity Locations found. Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 14