April 1, 2012 thru June 30, 2012 Performance Report

Grantee: Elyria, OH Grant: B-08-MN-39-0007 April 1, 2012 thru June 30, 2012 Performance Report 1

Grant Number: B-08-MN-39-0007 Grantee Name: Elyria, OH Grant Amount: $2,468,215.00 Estimated PI/RL Funds: $600,000.00 Obligation Date: Contract End Date: 03/13/2013 Grant Status: Active Award Date: Review by HUD: Reviewed and Approved QPR Contact: Angela Byington Budget: $3,068,215.00 Disasters: Declaration Number No Disasters Found Narratives Areas of Greatest Need: NSP Formula Target Areas 1. Estimated Foreclosure Abandonment Risk Score = 9 or higher 2. Percentage of Households within 120% AMI = 50% or higher 3. HMDA High Cost Loan Rate = 30% or higher 4. Predicted 18 Month Foreclosure Rate = 9% or higher 5. USPS Residential Vacancy Rate = 4% or higher Census Tracts and block groups meeting at least 3 of the 5 NSP formula target areas of concern are the City of Elyria s initial primary targets (not to exclude the remaining areas within the City s corporate boundaries as secondary targets). Census Tracts and Block Groups C 070102 1-3, 070200 2, 070300 2-4, 070400 1-4, 070500 1-4, 070600 1-4, 070700 1-3, 070800 1-2, 070901 1-2, 071000 1-2, 071100 1-3, 071400 1-4. Please refer to Map attachments and spreadsheet for itemized and specific breakdown of areas. Distribution and and Uses of Funds: Use of Funds: 1. Administration. 24 CFR 570.206 2301(c)(3)General Administration and Oversight of NSP activities. 2. Acquisition Rehabilitation 25% set aside. 24 CFR 570.201(a)(b)(e), 570.202 2301(c)(3)(B)purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; Acquisition, rehabilitation and sale of residential homes to populations within the 50% AMI category. Specifically, the benefit will be offering rehabilitated homes for sale at a highly discounted cost. The City will not sell a property for an amount greater than that invested in the total acquisition and rehabilitation of said property(s). 24 CFR 570.206, as part of an activity delivery cost 2301(c)(3)(A) Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers &bull 24CFR 570.201 (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective or approved purchasers. The City will provide 8 hours of housing counseling services to approved home buyers. 4. Demolition. 24 CFR 570.201(d) 2301 (c)(3)(d)demolition of blighted structures. This activity&rsquos goal is to eliminate slum and blight in these target areas which will also benefit the public&rsquos health safety and welfare. This activity addresses population needs within the 120% AMI category. The City has utilized the following data as benchmarks and thresholds for assisting target areas. Percentage of households under 120% AMI, Percentage of households mortgaged under HMDA High Cost Loan Rate, Percentage of 18 month Foreclosure Rate, Percentage of USPS Residential Vacancy Rate, and finally the Estimated Foreclosure Abandonment Risk Score. 5. Land Bank. 24 CFR 570.201(a) Acquisition and (b) Disposition. 2301(c)(3)(C) establish land banks for NSP eligible homes and properties that have been purchased by the City. This activity will serve to aid the City in responding to the rise of vacant and abandoned properties, dwindling tax receipts, increased blight, and worsening conditions for families living close to deteriorating properties. Properties will be acquired and returned to productive uses. 6. Redevelopment-Public Improvement (sidewalk construction in connection with a rehabilitation activity or demoltion activity. )24 CFR 570.201(c) Public facilities and improvements 2301(c)(3)(E) Redevelop demolished or vacant properties The funds under this activity will be used in conjunction with activities Acquisition-Rehabilitation 50 and Acquisition-Rehabilitation 120, when necessary, for repairs and/or installation of sidewalks, curbs, etc. adjacent to properties that are rehabilitated. Based on the performance measures and activity descriptions in activities Acquisition-Rehabilitation 50 and Acquisition- Rehabilitation 120, it is conceivable that approximately 50% of those units will require use of this activity. A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety and public welfare. A rent level shall be considered to be affordable for low-income families if it does not exceed 30 percent of the maximum income level of such income category and household size, wit Distribution and and Uses of Funds: h appropriate adjustments for unit size as measured by the number of bedrooms. FY2009 Fair Market Rents for Cleveland-Elyria-Mentor, OH MSA will be observed in conjunction. Continued affordability will be ensured through monitoring, following the specific HOME requirements as defined in 24 CFR Part 92, more specifically, 24 CFR 92.252(a), (c), (e) and (f) and 92.254. the City will obligate 25% of its allocation, 2

$617,000, towards serving residents earning at or below 50% of the area median income by way of acquisition and rehabilitation of properties for purchase by income eligible families. The City will ensure affordability by offering a soft second loan at a 0% deferred interest which may be forgiven following the HOME periods of affordability. Repayment will only be required when the person or family is no longer the primary resident of the property or when ownership/title changes hands, within the applicable period of affordability. 50 = The number of low-and moderate-income dwelling units ªi.e., Ü 80% of area median income that are reasonably expected to be demolished as a direct result of NSPassisted activities. 2 (including revenue received and re-used) = The number of NSP affordable housing units made available to low-, moderate-, and middle-income households ªi.e., Ü 120% of area median income that are reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing. 15 (including revenue received and re-used) = The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. Definitions and Descriptions: Low Income Targeting: Acquisition and Relocation: Public Comment: Overall Projected Budget from All Sources Budget Obligated Funds Drawdown Program Funds Drawdown Program Income Drawdown Program Income Received Funds Expended Match Contributed To Date N/A $2,687,062.00 $5,002.68 $2,687,062.00 $4,502.68 $2,686,562.00 $2,380,443.86 $2,220,399.06 $160,044.80 $45,526.75 $259,371.07 $32,368.62 $2,426,179.45 $20,739.00 3

Progress Toward Required Numeric Targets Requirement Required Overall Benefit Percentage (Projected) Overall Benefit Percentage (Actual) Minimum Non-Federal Match Limit on Public Services $370,232.25 Limit on Admin/Planning $246,821.50 Limit on State Admin To Date 0.00% 0.00% $41,478.00 $236,325.79 $236,325.79 Progress Toward Activity Type Targets Progress Toward National Objective Targets National Objective Target Actual NSP Only - LH - 25% Set-Aside $617,053.75 $1,077,411.01 Overall Progress Narrative: Grant is continuing to proceed well. Of the 14 homes puchased for rehab and sale, 5 are sold and 2 sales are pending. We are continuing to have issues from time to time with citizens who are upset that they can not purchase our vacant lots because they are not eligible for them. Project Summary Project #, Project Title To Date Program Funds Drawdown Project Funds Budgeted Program Funds Drawdown 101, Administration $1.00 $206,560.79 107, Acquisition-Rehab 120 $500,648.37 $217,434.89 P101, Administration P102, Acquisition Rehabilitation 25% set aside $1,077,411.01 $899,814.05 P103, Financing Mechanisms 25% P104, Demolition $552,084.22 $384,774.59 P105, Land Bank $531,703.40 $486,814.74 P106, Redevelopment-Public Improvement $25,215.00 $25,000.00 4

Activities Grantee Activity Number: Activity Title: Activitiy Category: Administration Project Number: 101 Projected Start Date: 03/09/2009 Benefit Type: ( ) National Objective: N/A 101 Administration Activity Status: Under Way Project Title: Administration Projected End Date: 07/09/2013 Completed Activity Actual End Date: Responsible Organization: City of Elyria. Office of Community Development will be the Overall Projected Budget from All Sources Budget Obligated Funds Drawdown $4,502.68 $4,502.68 To Date $270,648.37 $270,648.37 $270,648.37 $236,325.79 Program Funds Drawdown $206,560.79 Program Income Drawdown $29,765.00 Program Income Received Funds Expended City of Elyria. Office of Community Development will be the Apr 1 thru Jun 30, 2012 N/A $4,502.68 ($4,572.69) ($4,572.69) $25,648.37 $250,396.71 $250,396.71 Match Contributed Activity Description: 24 CFR 570.206 2301(c)(3)General Administration and Oversight of NSP activities. Location Description: City of Elyria, Ohio Activity Progress Narrative: Reported a negative to compensate for over reorting expenditures in past report. Actual expenditures for quarter were $10,720.64. Expenditures for payroll. Although expenditures continue if we try to drawdown on Admin, DRGR draws from Program Income automatically. Therefore, we are holding off until the total Program Income is higher so that we do not exceed our 10% cap on PI for admin. Accomplishments Performance Measures No Accomplishments Performance Measures found. 5

Beneficiaries Performance Measures No Beneficiaries Performance Measures found. 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 6

Grantee Activity Number: Activity Title: 102 Acquisition Rehabilitation 25% set aside Activitiy Category: Rehabilitation/reconstruction of residential structures Project Number: P102 Projected Start Date: 03/09/2009 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LH - 25% Set-Aside Activity Status: Under Way Project Title: Acquisition Rehabilitation 25% set aside Projected End Date: 07/09/2013 Completed Activity Actual End Date: Responsible Organization: City of Elyria, Ohio. Office of Community Development will Overall Projected Budget from All Sources Budget Obligated Funds Drawdown To Date $1,077,411.01 $1,077,411.01 $1,077,411.01 $970,713.89 Program Funds Drawdown $899,814.05 Program Income Drawdown $70,899.84 Program Income Received Funds Expended City of Elyria, Ohio. Office of Community Development will Apr 1 thru Jun 30, 2012 N/A $25,439.09 $25,439.09 $98,243.61 $1,000,026.46 $1,000,026.46 Match Contributed $20,739.00 Activity Description: 24 CFR 570.201(a)(b)(e), 570.202 2301(c)(3)(B)purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; Acquisition, rehabilitation and sale of residential homes to populations within the 50% AMI category. Specifically, the benefit will be offering rehabilitated homes for sale at a highly discounted cost. The City will not sell a property for an amount greater than that invested in the total acquisition and rehabilitation of said property(s).. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost. Location Description: Census Tracts and Block Groups meeting at least 3 of the 5 NSP formula areas of concern are the City's initial primary targets (not to exclude the remaining areas within the City's corporate boundaries as secondary targets). Census Tracts, Block Groups - 070102 1-3; 070200 2; 070300 2-4; 070400 1-4; 070500 1-4; 070600 1-4; 070700 1-3; 070800 1-2; 070901 1-2; 071000 1-2; 071100 1-3; 071400 1-4. Activity Progress Narrative: Four houses are sold, 151 Lowell, 342 Louisiana, 695 Weller and 714 West River. We have offers on two more. Accomplishments Performance Measures # of Properties -6 Cumulative Actual / Expected 11/14 7

#Energy Star Replacement Windows 34 #Additional Attic/Roof Insulation 5 #Efficient AC added/replaced 9 #Replaced thermostats 9 #Replaced hot water heaters 10 #Light Fixtures (indoors) replaced 25 #Light fixtures (outdoors) replaced 10 #Dishwashers replaced 0 #Low flow toilets 0 #Low flow showerheads 0 # ELI Households (0-30% AMI) 0 40/84 5/6 10/11 10/17 12/13 46/141 16/42 2/1 0/8 0/13 0/0 # of Housing Units -6 # of Singlefamily Units -6 Cumulative Actual / Expected 11/14 11/14 Beneficiaries Performance Measures Cumulative Actual / Expected Low Mod Low Mod Low/Mod% # of Households 1 0 1 4/14 0/0 4/14 100.00 # Owner Households 1 0 1 4/14 0/0 4/14 100.00 Activity Locations Address City County State Zip 342 Louisiana Avenue Elyria Ohio 44035- Status / Accept Match / N Ohio - Not Validated / N 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: 104 Demolition Activitiy Category: Clearance and Demolition Project Number: P104 Projected Start Date: 03/09/2009 Benefit Type: ( ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Demolition Projected End Date: 07/09/2013 Completed Activity Actual End Date: Responsible Organization: The City of Elyria, Ohio. Office of Community Development Overall Projected Budget from All Sources Budget Obligated Funds Drawdown To Date $552,084.22 $552,084.22 $552,084.22 $444,040.77 Program Funds Drawdown $384,774.59 Program Income Drawdown $59,266.18 Program Income Received Funds Expended The City of Elyria, Ohio. Office of Community Development Apr 1 thru Jun 30, 2012 N/A $12,622.12 $12,622.12 $66,023.96 $456,991.16 $456,991.16 Match Contributed Activity Description: 24 CFR 570.201(d) 2301 (c)(3)(d)demolition of blighted structures. This activity&rsquos goal is to eliminate slum and blight in these target areas which will also benefit the public&rsquos health safety and welfare. This activity addresses population needs within the 120% AMI category. The City has utilized the following data as benchmarks and thresholds for assisting target areas. Percentage of households under 120% AMI, Percentage of households mortgaged under HMDA High Cost Loan Rate, Percentage of 18 month Foreclosure Rate, Percentage of USPS Residential Vacancy Rate, and finally the Estimated Foreclosure Abandonment Risk Score. Location Description: Census Tracts and block groups meeting at least 3 of the 5 NSP formula areas of concern are the City of Elyria&rsquos initial primary targets (not to exclude the remaining eligible areas within the City&rsquos corporate boundaries as secondary targets). Census Tracts and Block Groups &ndash 070102 1-3, 070200 2, 070300 2-4, 070400 1-4, 070500 1-4, 070600 1-4, 070700 1-3, 070800 1-2, 070901 1-2, 071000 1-2, 071100 1-3, 071400 1-4. Activity Progress Narrative: Expenditures on partial salary, demolition of two units and preliminary judicial reports. Accomplishments Performance Measures # of Properties -22 Cumulative Actual / Expected 38/58 9

# of buildings (non-residential) -4 1/8 # of Housing Units -7 Cumulative Actual / Expected 53/50 Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations Address City County State Zip Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Status / Accept Ohio - Not Validated / N Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 10

Grantee Activity Number: Activity Title: 105 Land Bank Activitiy Category: Land Banking - Acquisition (NSP Only) Project Number: P105 Projected Start Date: 03/09/2009 Benefit Type: Area ( ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Land Bank Projected End Date: 07/09/2013 Completed Activity Actual End Date: Responsible Organization: The City of Elyria, Ohio. Office of Community Development Overall Projected Budget from All Sources Budget Obligated Funds Drawdown $500.00 $500.00 To Date $531,703.40 $531,703.40 $531,203.40 $486,814.74 Program Funds Drawdown $486,814.74 Program Income Drawdown Program Income Received Funds Expended The City of Elyria, Ohio. Office of Community Development Apr 1 thru Jun 30, 2012 N/A ($1,453.15) ($1,453.15) $28,931.06 $477,261.65 $477,261.65 Match Contributed Activity Description: 24 CFR 570.201(a) Acquisition and (b) Disposition. 2301(c)(3)(C) establish land banks for homes that have been foreclosed upon. This activity will serve to aid the City in responding to the rise of vacant and abandoned properties, dwindling tax receipts, increased blight, and worsening conditions for families living close to deteriorating properties. Properties will be acquired and returned to productive uses. The City has utilized the following data as benchmarks and thresholds for assisting target areas: Percentage of households under 120% AMI, Percentage of households mortgaged under HMDA High Cost Loan Rate, Percentage of 18 month Foreclosure Rate, Percentage of USPS Residential Vacancy Rate, and finally the Estimated Foreclosure Abandonment Risk Score. Location Description: Census Tracts and block groups meeting at least 3 of the 5 NSP formula areas of concern are the City of Elyria&rsquos initial primary targets (not to exclude the remaining eligible areas within the City&rsquos corporate boundaries as secondary targets). Census Tracts and Block Groups &ndash 070102 1-3, 070200 2, 070300 2-4, 070400 1-4, 070500 1-4, 070600 1-4, 070700 1-3, 070800 1-2, 070901 1-2, 071000 1-2, 071100 1-3, 071400 1-4. Activity Progress Narrative: Reported negative expenditure to provide for an accurate "to date" expenditure amount. The total drawn amount is greater than the total expenditure amount due to the fact that the City received reimbursement of property taxes paid previously paid. The amount of taxes that were reimbursed exceed the difference between "to date" expenditure and drawn amounts. Since the reimbursement was not Program Income, the amount was entered back into our journal, which than reduced our expenditures. Actual quarter expenditures totalled $3,443.54 for utilities, lawn maintenance and partial salary. As of 7.17.12 total expenditures totals $485,195.49. We are noting that the total drawn does exceed the expenditure, which will be corrected by reduction of next draw. 11

Accomplishments Performance Measures # of Properties -85 Cumulative Actual / Expected 35/10 # of Housing Units -71 Cumulative Actual / Expected 40/68 Beneficiaries Performance Measures No Beneficiaries Performance Measures found. 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 12

Grantee Activity Number: Activity Title: 106 Redevelopment-Public Improvements Activitiy Category: Rehabilitation/reconstruction of a public improvement Project Number: P106 Projected Start Date: 03/09/2009 Benefit Type: Area ( ) National Objective: NSP Only - LMMI Activity Status: Under Way Project Title: Redevelopment-Public Improvement Projected End Date: 07/09/2013 Completed Activity Actual End Date: Responsible Organization: The City of Elyria, Ohio. Office of Community Development Overall Projected Budget from All Sources Budget Obligated Funds Drawdown To Date $25,215.00 $25,215.00 $25,215.00 $25,000.00 Program Funds Drawdown $25,000.00 Program Income Drawdown Program Income Received Funds Expended The City of Elyria, Ohio. Office of Community Development Apr 1 thru Jun 30, 2012 N/A $25,000.00 $25,000.00 Match Contributed Activity Description: 24 CFR 570.201(c) Public facilities and improvements 2301(c)(3)(E) Redevelop demolished or vacant properties The funds under this activity will be used in conjunction with activities Acquisition-Rehabilitation 50 and Acquisition-Rehabilitation 120, when necessary, for repairs and/or installation of sidewalks, curbs, etc. adjacent to properties that are rehabilitated. Based on the performance measures and activity descriptions in activities Acquisition-Rehabilitation 50 and Acquisition-Rehabilitation 120, it is conceivable that approximately 50% of those units will require use of this activity. The City has utilized the following data as benchmarks and thresholds for assisting target areas: Percentage of households under 120% AMI, Percentage of households mortgaged under HMDA High Cost Loan Rate, Percentage of 18 month Foreclosure Rate, Percentage of USPS Residential Vacancy Rate, and finally the Estimated Foreclosure Abandonment Risk Score. Location Description: Census Tracts and block groups meeting at least 3 of the 5 NSP formula areas of concern are the City of Elyria s initial primary targets (not to exclude the remaining areas within the City s corporate boundaries as secondary targets). Census Tracts and Block Groups 070102 1-3, 070200 2, 070300 2-4, 070400 1-4, 070500 1-4, 070600 1-4, 070700 1-3, 070800 1-2, 070901 1-2, 071000 1-2, 071100 1-3, 071400 1-4. Activity Progress Narrative: Accomplishments Performance Measures Cumulative Actual / Expected 13

# of Linear feet of Public Improvement 40 40/400 Beneficiaries Performance Measures No Beneficiaries Performance Measures found. Activity Locations Address City County State Zip Other Funding Sources Budgeted - Detail No Other Match Funding Sources Found Status / Accept Ohio - Not Validated / N Other Funding Sources No Other Funding Sources Found Other Funding Sources Amount 14

Grantee Activity Number: Activity Title: 107 Acquisition-Rehab 120 Activitiy Category: Rehabilitation/reconstruction of residential structures Project Number: 107 Projected Start Date: 06/13/2011 Benefit Type: Direct ( HouseHold ) National Objective: NSP Only - LMMI Activity Status: Planned Project Title: Acquisition-Rehab 120 Projected End Date: 01/07/2013 Completed Activity Actual End Date: Responsible Organization: City of Elyria, Ohio. Office of Community Development will Overall Projected Budget from All Sources Budget Obligated Funds Drawdown $40,524.07 To Date $270,524.07 $270,524.07 $230,000.00 $217,548.67 Program Funds Drawdown $217,434.89 Program Income Drawdown $113.78 Program Income Received Funds Expended City of Elyria, Ohio. Office of Community Development will Apr 1 thru Jun 30, 2012 N/A $333.25 $333.25 $40,524.07 $216,503.47 $216,503.47 Match Contributed Activity Description: City to acquire and rehabilitate NSP eligible properties and sell to persons within the 120% AMI. Location Description: Properties will be located within the NSP eligible target area which include census tracts and block groups 070120, 1-3, 0702002, 070300, 2-4, 070400, 1-4, 070500, 1-4, 070600, 1-4, 070711, 1-3, 070800, 1-2, 070901, 1-2, 071000, 1-2, 071100, 1-3, 071400, 1-4 Activity Progress Narrative: Expenditure on utility bill. Program income from sale of house. Accomplishments Performance Measures # of Properties 0 #Energy Star Replacement Windows 9 #Additional Attic/Roof Insulation 1 #High efficiency heating plants 0 #Efficient AC added/replaced 0 Cumulative Actual / Expected 3/2 9/6 1/2 0/0 0/2 15

#Replaced thermostats 2 #Replaced hot water heaters 0 #Light Fixtures (indoors) replaced 0 #Light fixtures (outdoors) replaced 4 #Refrigerators replaced 1 #Clothes washers replaced 2 #Dishwashers replaced 1 #Units with solar panels 0 #Low flow toilets 0 #Low flow showerheads 0 #Units with bus/rail access 0 #Units exceeding Energy Star 0 #Sites re-used 0 #Units deconstructed 0 #Units other green 0 Activity funds eligible for DREF (Ike 0 2/2 1/2 13/6 4/4 2/2 3/2 2/2 0/0 0/2 0/2 0/0 0/0 0/2 0/0 0/0 0/0 # of Housing Units -2 # of Singlefamily Units -2 Cumulative Actual / Expected 1/2 1/2 Beneficiaries Performance Measures Cumulative Actual / Expected Low Mod Low Mod Low/Mod% # of Households 0 0 0 0/0 1/2 1/2 100.00 # Owner Households 0 0 0 0/0 1/2 1/2 100.00 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 16