2. Identify actions to help homeless persons make the transition to permanent housing and independent living.

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1 Homeless Needs 1. Identify actions taken to address needs of homeless persons. 2. Identify actions to help homeless persons make the transition to permanent housing and independent living. 3. Identify new Federal resources obtained from Homeless SuperNOFA. 1) During , LAHSA funded several 24-hour emergency shelters and transitional programs. These programs target a wide variety of homeless persons including persons with special needs such as mental illness, HIV/AIDS, substance abuse and youth. LAHSA funds twenty-one (21) emergency programs with 499 beds and nine (9) transitional programs with 206 beds. LAHSA also funds supportive services only projects. The purpose of these projects is to provide supplemental services to homeless persons already housed in emergency and transitional housing. 2) Homeless individuals and families graduating from transitional or emergency housing programs access standard market housing through a typical application process. Agencies receiving ESG and CDBG funding through the Homeless Shelter and Services programs employ housing relocation specialists or case managers to assist the resident in locating a suitable home, placing them on a waiting list if necessary, and assist them in completing the rental application. Case managers may also work with the client to overcome poor credit history and to obtain funds for move-in expenses. Agencies refer clients to affordable housing projects owned by non-profit organizations. These projects often have units that are subsidized through Section 8 or other state and federal programs. Agencies are able to assist clients in accessing tenant-based Section 8 certificates and are required to provide one year of follow-up supportive services to clients who utilize the certificates. Permanent supportive housing projects are often geared to a specific population such as persons who are mentally ill or people living with HIV/AIDS. Generally each project has a waiting list and case managers must be proactive in placing their clients on these lists at the appropriate point in their transition process so that a unit will be available upon graduation. Case managers from transitional housing projects often provide follow-up to their clients for six months in the permanent housing setting to ensure that the client has the life skills necessary to maintain residence in the new home. For formerly homeless people to remain housed for the long term, it is vital that they have a reliable income from employment or from benefit programs. Case managers in emergency and transitional programs determine eligibility for mainstream benefit programs and assist clients to enroll. This may include helping the client gather required documentation like a drivers license or California identification card, birth certificate, social security card, pay stubs, etc. Benefit programs, including eligibility requirements, are explained and clients are assisted in completing application forms and scheduling initial appointments. Clients are generally provided with referral packets to each program for which they are eligible, including addresses and directions to the benefits office, transportation assistance (i.e. taxi vouchers, bus tokens), and program information sheets. During the program year, LAHSA implemented the Housing Assistance Pilot Program (HAPP), which constitutes a new approach to helping homeless families obtain and remain in safe affordable permanent housing. The HAPP provides a monthly financial assistance to homeless families for up to one year. The amount of financial assistance provided will gradually decrease 31st Program Year ( ) CAPER 69 FINAL

2 during this one-year period as the family s income increases or stabilizes. As a result, the amount of financial assistance provided will decrease by 10% each month after the fifth month. This program provides a new approach to transitioning families from homelessness by providing vital rental assistance during the first few months of securing permanent housing. Studies show that most homeless families fall back into homelessness in the first three or four months after moving into permanent housing. The HAPP addresses this drawback by providing support during this critical time in a family s transition. The HAPP will also increase economic opportunities for the families served by enabling them to increase and/or stabilize their skills and income during the period that financial assistance is provided. 3) The Los Angeles Continuum of Care received $1,242,420 for 4 new permanent housing projects for disabled homeless persons (SHP) in the 2005 funding year. In addition, $15,077,040 for 6 new Shelter+Care projects was awarded to Los Angeles in Specific Homeless Prevention Elements 1. Identify actions taken to prevent homelessness LAHSA funds a Rent to Prevent Eviction Program through CDBG that targets low-income families with incomes below 30% of the median income as established by the Department of Housing and Urban Development. This program provides one-time only financial assistance to pay rent for households in need. Assisted clients must demonstrate rent arrears due to unforeseen expenses. Through the SRO Moderate Rehabilitation and Shelter+Care programs, HACLA provides $120,500,000 in housing assistance to approximately 3,000 households. While not part of the City s Consolidated Plan, these programs are important components of HACLA s overall strategy to address the needs the homeless and those at risk of becoming homeless. They complement and strengthen LAHSA s efforts to address the housing and supportive needs of the homeless. HACLA has administered the programs for several years, and HUD has asked that the city report on progress in both the annual Action Plans and CAPER document. SRO Moderate Rehabilitation: The Section 8 rental assistance provided under this program is designed to bring more SRO units into the local housing supply to assist homeless persons into permanent housing. Much like the Moderate Rehabilitation Program, HUD's strategy is to convert existing housing, a rundown hotel, or even an abandoned building into safe and decent housing. The target population for SRO Moderate Rehab funding is homeless individuals coming directly from the street, or from emergency and transitional shelters. The Housing Authority has successfully competed for Section 8 Moderate Rehabilitation Homeless Assistance funding since Currently there are 1,108 units with $69,223,002 in rental assistance subsidy. Shelter+Care is designed to promote permanent housing with supportive services to persons who have HIV/AIDS with or without associated diseases, serious mental illness, chronic substance abuse, or some combination of these disabilities, coming from the streets and emergency shelters. Shelter+Care grants require a supportive services match equal to, or greater than, the Section 8 rental assistance award. HACLA has successfully competed for Shelter +Care Homeless Assistance funding since In 2005, HACLA provided $7.2 million in rental assistance subsidies. 1,776 households are supported through the Shelter+Care program. 31st Program Year ( ) CAPER 70 FINAL

3 Section 8 Collaboratives (Demonstration Grant Projects) LA HOPE Collaborative This demonstration grant targets the chronically homeless population who wish to work. Individuals receive initial support through the AB 2034 Program. They are housed through the Shelter+Care Program. A total of $2,992,440 has been awarded to HACLA. Of the 76 funded certificates, 56 have been approved and issued contracts, with 51 of these leased, 2 more with units that passed inspection, and 1 with inspection pending. Skid Row Collaborative This demonstration grant targets the chronically homeless population with chronic substance abuse issues. Individuals are housed through the Shelter+Care Program. A total of $689,760 was awarded to HACLA. The project now houses 20 individuals. Connections Collaborative (HUD CDC Housing and Health Study Connections) This demonstration grant targets the homeless, or those at imminent risk of being homeless, who have AIDS/HIV. The Housing Authority has been awarded $1,080,000 rental assistance for 105 individuals and their families. At the present time, of the 105 participants receiving a housing subsidy, 83 have located housing and 2 are deceased. The remaining 20 participants continue their housing search. COMMUNITY DEVELOPMENT 1. Assessment of Relationship of CDBG Funds to Goals and Objectives a) Assess the use of CDBG funds in relation to the priorities, needs, goals, and specific objectives in the Consolidated Plan, particularly the highest priority activities. b) Evaluate progress made toward meeting goals for providing affordable housing using CDBG funds, including the number and types of households served. c) Indicate the extent to which CDBG funds were used for activities that benefited extremely low-income, low-income, and moderate-income persons. 2. Changes in Program Objectives a) Identify the nature of and the reasons for any changes in program objectives and how the jurisdiction would change its program as a result of its experiences. 3. Assessment of Efforts in Carrying Out Planned Actions a) Indicate how grantee pursued all resources indicated in the Consolidated Plan. b) Indicate how grantee provided certifications of consistency in a fair and impartial manner. c) Indicate how grantee did not hinder Consolidated Plan implementation by action or willful inaction. 4. For Funds Not Used for National Objectives a) Indicate how use of CDBG funds did not meet national objectives. b) Indicate how did not comply with overall benefit certification. 5. Anti-displacement and Relocation for activities that involve acquisition, rehabilitation or demolition of occupied real property a) Describe steps actually taken to minimize the amount of displacement resulting from the CDBG-assisted activities. b) Describe steps taken to identify households, businesses, farms or nonprofit organizations who occupied properties subject to the Uniform Relocation Act or Section 104(d) of the Housing and Community Development Act of 1974, as amended, and whether or not they were displaced, and the nature of their needs and preferences. c) Describe steps taken to ensure the timely issuance of information notices to displaced households, businesses, farms, or nonprofit organizations. 31st Program Year ( ) CAPER 71 FINAL

4 6. Low/Mod Job Activities for economic development activities undertaken where jobs were made available but not taken by low- and moderate-income persons: a) Describe actions taken by grantee and businesses to ensure first consideration was or will be given to low/mod persons. b) List by job title of all the permanent jobs created/retained and those that were made available to low/mod persons. c) If any of jobs claimed as being available to low/mod persons require special skill, work experience, or education, provide a description of steps being taken or that will be taken to provide such skills, experience, or education. 7. Low/Mod Limited Clientele Activities for activities not falling within one of the categories of presumed limited clientele low and moderate income benefit a) Describe how the nature, location, or other information demonstrates the activities benefit a limited clientele at least 51% of whom are low- and moderate-income. 8. Program income received a) Detail the amount of program income reported that was returned to each individual revolving fund, e.g., housing rehabilitation, economic development, or other type of revolving fund. b) Detail the amount repaid on each float-funded activity. c) Detail all other loan repayments broken down by the categories of housing rehabilitation, economic development, or other. d) Detail the amount of income received from the sale of property by parcel. 9. Prior period adjustments where reimbursement was made this reporting period for expenditures (made in previous reporting periods) that have been disallowed, provide the following information: a) The activity name and number as shown in IDIS; b) The program year(s) in which the expenditure(s) for the disallowed activity(ies) was reported; c) The amount returned to line-of-credit or program account; and d) Total amount to be reimbursed and the time period over which the reimbursement is to be made, if the reimbursement is made with multi-year payments. 10. Loans and other receivables a) List the principal balance for each float-funded activity outstanding as of the end of the reporting period and the date(s) by which the funds are expected to be received. b) List the total number of other loans outstanding and the principal balance owed as of the end of the reporting period. c) List separately the total number of outstanding loans that are deferred or forgivable, the principal balance owed as of the end of the reporting period, and the terms of the deferral or forgiveness. d) Detail the total number and amount of loans made with CDBG funds that have gone into default and for which the balance was forgiven or written off during the reporting period. e) Provide a List of the parcels of property owned by the grantee or its subrecipients that have been acquired or improved using CDBG funds and that are available for sale as of the end of the reporting period. 11. Lump Sum Agreements a) Provide the name of the financial institution. b) Provide the date the funds were deposited. c) Provide the date the use of funds commenced. d) Provide the percentage of funds disbursed within 180 days of deposit in the institution. 31st Program Year ( ) CAPER 72 FINAL

5 12. Housing Rehabilitation for each type of rehabilitation program for which projects/units were reported as completed during the program year a) Identify the type of program and number of projects/units completed for each program. b) Provide the total CDBG funds involved in the program. c) Detail other public and private funds involved in the project. 13. Neighborhood Revitalization Strategies for grantees that have HUD-approved neighborhood revitalization strategies a) Describe progress against benchmarks for the program year. For grantees with Federally-designated Empowerment Zones (EZ) or Enterprise Communities (EC) that received HUD approval for a neighborhood revitalization strategy, reports that are required as part of the EZ/EC process shall suffice for purposes of reporting progress. All programs and project activities carried out by the City must meet one of the Consolidated Plan priorities and strategies and primarily serve low- and moderate-income persons and families. LAHD Response 1(a) LAHD s programs, including those not funded by CDBG, support all five priorities and several strategies contained within the City s Strategic Plan: Increasing public safety, increasing access to affordable and decent housing, promoting the development of our youth, securing our economic future and protecting and assisting the City s special needs population. For example: City Priority One - Increasing Public Safety. Strategy: to build upon and expand successful programs for graffiti removal, alley closure and identification of nuisance properties: Through public-private partnerships, vacant HUD-foreclosed properties that might otherwise become neighborhood nuisances have been purchased from HUD, rehabilitated by local affordable housing developers and sold to low income first time buyers, using HOME Program funds. Associated City Strategy: to create effective and innovative neighborhood security programs: Those new owners often become active in neighborhood watch and other security programs City Priority Two - Increasing Access to Affordable and Decent Housing. Strategy: to expand home ownership programs in low-to-moderate-income areas: LAHD operates a variety of first time homebuyer programs using HOME funds and other federal resources such as tax-exempt finance and mortgage credit certificates, and has also developed a new moderate income homebuyer assistance program with nonfederal funds. Priority Three - Promoting the Development of Our Youth. Strategy: to establish childcare facilities and assure adequate staffing: A number of childcare facilities have been built as part of affordable housing developments financed by the Affordable Housing Trust Fund, many of which utilize CDBG funds as part of their financing. In addition, our first time homebuyer assistance programs enable low income families to provide home-based childcare if they are so inclined, which is difficult to do in an apartment setting. Priority Four Secure our Economic Future. Strategy: to attract and retain jobs that pay living wages. Both the housing production and code enforcement programs of the Housing Department contribute to the local economy by creating jobs and demand for building materials. Historical data indicates that about 100 construction and related jobs are created by the development of each affordable housing project, many of which are financed in part with CDBG funds. The Systematic Code Enforcement Program (SCEP) inspects over 760,000 rental units in the city. Based on experience with the types of 31st Program Year ( ) CAPER 73 FINAL

6 repairs commonly required to bring properties into compliance with state health and safety codes, LAHD estimate that SCEP has resulted in approximately $1.3 billion investment in repairing the City s rental housing stock, for labor and materials. Priority Five Protect and assist the City s special needs populations. Associated City Strategy: to provide a variety of housing types and supportive services for the City s special needs residents. About half of the affordable housing developments financed by the Affordable Housing Trust Fund and LAHD s funds, which include CDBG dollars, serve persons with special needs, The Department s Handyworker Program, fully funded with CDBG, serves elderly and disabled low income homeowners by providing minor home repairs. The Comprehensive Rehabilitation Program funded with HOME and CDBG dollars can provide more funds, and is available upon application by the same homeowners if their homes need more substantial rehabilitation to preserve their property. Although the Department of Building and Safety s PACE teams are not directly involved with affordable housing, they do entice developers to create housing units by making neighborhoods more livable. 1(c) CDBG funds enable the City to build new affordable rental housing for extremely low income persons with special needs, and very low income working families. CDBG-funded programs assist low and moderate-income residents by providing affordable rehabilitation loans, home improvement loans and down payment assistance to first time homebuyers - all critically important programs which serve individual households and also improve neighborhoods. Activities funded through the Human Services and Family Development Division, particularly the Family Development Network and Neighborhood Action Programs overwhelmingly serve extremely low-income residents. The City of Los Angeles has increasingly become a city of haves and have-nots. In part because the City has a growing number of residents, most that have at least one member of the family working, who earn income below 200% of poverty levels; to be eligible to receive services through City-funded programs, all clients must meet low-income guidelines. 2(a) The City did not experience any shift in its overall Consolidated Plan objectives over the past program year, nor did the City Priorities and Strategies to be pursued change. In the selfevaluation section and in other sections of the CAPER narrative, departments such as LAHD have identified areas within their programs or the program themselves - that could change as a result of their experience managing such activities; and in several cases, departments took corrective action to assure that Consolidated Plan funded programs and approaches remain relevant and continue to meet the needs of their intended beneficiaries. LAHD s management reorganization is an example of how a department can re-invent itself without compromising City goals or the HUD Primary Objective. LADBS would like to expand the Citywide PACE program in order to provide a timelier and more pro-active service to the City. Due to demands made upon limited resources, available, Citywide PACE often operates reactively. 3(a) The City pursued all available resources available to it during the course of the Program Year. The CAPER section on leveraging provides a fuller picture of the additional funds and in-kind contributions received by the city during the Program Year. Funds received from a variety of federal, state, and local sources significantly leveraged Consolidated Plan grants. 31st Program Year ( ) CAPER 74 FINAL

7 3(b) The Community Development Department provided numerous organizations within the City of Los Angeles with certifications of consistency for the Youthbuild, Homeless SuperNOFA including Shelter + Care Renewals; Supportive Housing Program; ROSS Elderly Resident Services, Neighborhood Networks, Public Housing Self-Sufficiency; Section 8 Family Self- Sufficiency; Homeownership Supportive Services; and several other HUD initiatives. Documentation of the Certifications of Consistency is on file with the Community Development Department. 3(c) The City of Los Angeles did not knowingly hinder Consolidated Plan implementation by action or willful inaction, and affirmatively pursued the goals, priorities, and strategies outlined in the Consolidated Plan. The city adhered to all requirements and certifications contained within the grant agreement executed with HUD for the four grants comprising the Consolidated Plan. (4) Consolidated Plan funds were used only in connection with the three National Objectives set forth in the regulations governing the CDBG grant, and the City fully complied with the requirement to expend at least 70% of federal funds received to benefit low- to moderate-income persons over a three-year period The City, as in years past, exceeded this requirement during the program year and is detailed in the PR 26 (Financial Summary) report. 5(a) All applicant/developers requesting funding for the development of new affordable housing are given a set of LAHD NOFA funding regulations and requirements at preapplication meetings held 30 to 60 days prior to the NOFA application due date. At these meetings it is stated that displacement of existing residents must be minimized. Also, it is stated that proposals involving tenant relocation -- both the cost in dollars and the number of families to be displaced -- may not be viewed as favorably as those which involve no displacement, when the proposal is being considered for funding. Under LAHD NOFA Regulations, Section 2.9 Relocation, it is identified that the use of LAHD funds triggers the Uniform Relocation Act requirements. The regulation first states, Displacement of site residents is to be minimized. It also states that, if the project involves relocation, a detailed relocation plan must be submitted with the application for review. The regulation also states that any project which requires relocation must comply with the Uniform Relocation Act or the City of Los Angeles Rent Stabilization Ordinance, whichever is more restrictive. Lastly, the regulation states that projects that require extensive relocation are discouraged. Meaning that they are unlikely to receive funding if the projects require extensive relocation without some very compelling reasons why the relocation would greatly improve tenant living conditions. More importantly, there is considerable financial disincentive for the developer to choose properties that will require extensive relocation, because the cost of that alone can make a development financially infeasible. And last but certainly not least, the mission of most affordable housing developers is to provide a better life for low-income people; that calculus does not usually include displacing some poor people to help others. LAHD Response 5(b) Whenever a funded project involves the relocation of households, the LAHD finance officer works closely with the developer and the relocation consultant to identify the members of the household and their relocation needs and new location preferences. The consultant and their staff set up at the project site to interview the tenants on weekends and on some evenings. At these regular interviews, the appropriate HUD forms are completed and the tenants are given ample opportunities to identify relocation needs and preferences. After the household needs are identified, tenants then are shown comparable units and advised of the funds that they are entitled to for temporary and permanent relocation. 31st Program Year ( ) CAPER 75 FINAL

8 5(c) The City has adopted and follows an Anti-Displacement and Relocation Policy as part of its Citizen Participation Plan. LAHD has made it a requirement of the project receiving funding that the developer has, with the help of their relocation consultant, properly provided to all households the necessary notices. This requirement must be met before the project may receive any loan funds. When the NOFA application is first received, the relocation plan is reviewed for accuracy and an understanding of the amount and type of relocation involved. If the proper notifications have not already been given, or are not given immediately after the developer receives funding approval, the project may not be funded. If the developer can later identify that the notification oversight has been corrected then LAHD will reconsider the project. The finance officer reviews each draw involving relocation. If any problems are identified such as inadequate notification to the tenants, the entire loan draw will be withheld until the problems are corrected. (6) None reported (7) For all programs and projects funded through CDBG using the Low Mod Limited Clientele National Objective, income documentation is required unless beneficiaries fall within one of the several groups defined in the CDBG regulations as presumed to be low and moderate-income by their status (seniors, abused and battered spouses, the homeless, and others). The City uses an income self-certification form for applicants wishing to participate in CDBGfunded public services; 20% of submissions are audited and applicants are required to provide income documentation. In the case of minors, the parents household income must be provided. No City CDBG-funded programs or projects were classified under the alternative tests for Low Mod Limited Clientele (nature and location) during Program Year (8) Program Income Reported for Revolving Funds for Program Year : CDBG Program Funds Returned to Revolving Fund/Type: No revolving funds Amount Repaid on Float-Funded Activities Float repayment extended (please see item 10) outstanding balance $3 million Other Loan Repayments by Type HOME No revolving funds Not applicable None ESG No revolving funds Not applicable None HOPWA No revolving funds Not applicable None Income Received from Sales of Parcels The LAHD does not have individual revolving funds. Program income is receipted into IDIS and drawn for the next available activity. LAHD records program income from different sources into individual funds, as well as directly into the fund set up for CDBG (Fund 424).) The receipts that are recorded in individual funds such as Rental Rehabilitation and Section 108 are transferred to CDBG Fund 424 on a monthly basis. Receipts from other sources such as CDBG Earthquake Supplemental A and B funds are recorded directly in CDBG Regular Program Income as funds are received. The program income transferred is used as a source of funds in the Consolidated Plan process. (9) No prior period adjustments for disallowed costs. None 31st Program Year ( ) CAPER 76 FINAL

9 (10) (a - e) Program Principal Bal. Float Funded Activity/Expctd. Receipt (10)(a) Please see narrative below Total No. of Other Loans Outstanding/Principal Balance Owed (10)(b) Outstanding Loans/Deferred or Forgivable/Outstand. Balance (10)(c) CDBG Loans in Default/Bal. Forgiven (10)(d) Parcels Owned/Improvs. /Avail. for Sale (10)(e) None CDBG Please see LAHD response Not applicable Please see LAHD below response below 10(d) HOME Not applicable Please see LAHD response Please see LAHD Please see LAHD None below response below 10(d) response below 10(d) ESG Not applicable Not applicable Not applicable Not applicable Not applicable HOPWA Not applicable Not applicable Not applicable Not applicable Not applicable 10(a) - Detail In December 2001, the Mayor and City Council authorized CDD and the Agency to execute various cooperation agreements for financing of the North Hollywood Mixed Use Project, more commonly known as NoHo Commons, inclusive of a $3 million CDBG float loan. The CAO reported that the project, as approved, will be developed in three phases and include over 430 multifamily rental units, 275 loft-style and live-work units and 350,000 square feet of office and retail space. In October 2002, CDD and the Community Redevelopment Agency (CRA) executed a $3 million CDBG float loan agreement to assist with the acquisition and offsite improvements for NoHo Commons. The loan was to be payable within 2.5 years (the maturity date was April 30, 2005). At the time, however, it was also agreed by the CDD and the Agency that a new float loan could be renegotiated at the expiration of the initial term. The contract amendment approved by the City Council in July, 2005 modified the repayment terms of the loan and extended the maturity date to December 31, The funds for the float loan were provided from undisbursed funds from budgeted activities that did not need the funds immediately. The repayment terms included $1 million plus accrued interest (estimated at $300,000) to be an obligation of the North Hollywood Redevelopment Project Area (NHRPA) tax increment funds, and $2 million in lieu of cash will be repaid upon conveyance of real property for street and highway uses by the Agency to the City. CDD will be responsible for the cash repayment of the $2 million. Subsequently, in a report to the Mayor and Council dated March 23, 2006 (attached to the Council file), CDD requested authority to amend a loan agreement between the Department and the CRA to modify the maturity date of the loan to the Agency from December 31, 2007 to March 30, CDD also requested a waiver of approximately $300,000 in accrued interest on the loan. Per CDBG regulations, any extension of the repayment period for a float-funded activity shall be considered to be a new Consolidated Plan activity. Because NoHo Commons did not appear at that time to be in a position to produce sufficient program income to cover the float amount, even under the extended term, it would have ceased to qualify as a float loan. CDD staff In the 2006 action the CRA identified discretionary funding to pay the loan principal in full. CRA staff also confirmed its intent to repay the $3 million principal entirely from tax increment proceeds of the NHRPA. The funds would be received as program income, and applied directly to the HUD Line of Credit to remove the float loan obligation. At its meeting held March 28, 2006, the Housing, Community, and Economic Development Committee (HCED) recommended that Council approve the City Administrative Officer s recommendation to authorize CDD to amend its contract with the CRA, and to approve the related actions shown in the CAO report. HCED further acted to recommend that Council approve COD's request to waive $300,000 in accrued loan interest. 31st Program Year ( ) CAPER 77 FINAL

10 LAHD Response 10(c) The Los Angeles Housing Department is reporting a total of 4,500 outstanding loans, funded by CDBG, HOME, Section 108, 1994 Earthquake CDBG & HOME funds, and other non-federal sources, for a receivable value of $779,617,901. Of these loans, 1,827 are deferred-payment, including $30,317,287 in CDBG and $21,790,822 in HOME. LAHD has a total of 153 forgivable loans outstanding, including $468,980 of CDBG and $436,051 of HOME funds. All terms granted are in conformance with standard loan program policies approved by the Mayor and City Council, in conformance with federal regulations. LAHD Response 10(d) For the 31 st Program Year, no loans were written off by the Housing Department. (11) The City does not use housing rehabilitation lump sum agreements (as defined at 24 CFR ) or other housing rehabilitation revolving funds using CDBG funds. (12) As mentioned elsewhere, LAHD s rehabilitation loan programs underwent evaluation and redesign starting in 2004; the new programs were rolled out in August An extensive marketing campaign was conducted through mailings, postings in libraries, and public meetings to explain the new program guidelines. The Comprehensive Rehabilitation Program for lowincome single family owner-occupants benefited from this effort, but there was minimal response for the new programs for smaller rental properties. This should improve over time. Approximately 1,000 applications were mailed in response to requests from property owners throughout the City, and 195 loan applications were received in response, which represent the current pipeline. Housing Rehabilitation: Single-Family Rehabilitation A total of 57 loans for Comprehensive Rehabilitation of owner-occupied single-family homes were made during the Program Year. $750,000 in CDBG dollars was spent to complete these projects. $33,737 in HOME dollars were also allocated and spent for the completion of these single-family preservation projects. Due to home values rising above the FHA 221(d) (3) limits used by the HOME program, LAHD could not use much of the HOME dollars allocated for this program; the CDBG funds budgeted were utilized. In addition, there are 172 applications in the pipeline waiting for final review and approval. Multi-family Rehabilitation For the 2-4 unit mom & pop loan program, 1 loan for a two-unit property was made during the 2005/06 Program Year, for which $334,000 in CDBG dollars was spent. The Small Property 5-28 Unit rehab loan program made four loans for a total of 13 units, using $577,087 in CDBG funds. Because these are new programs there is not yet a major response to the marketing materials that were distributed about them. There is a pipeline of 23 applications for a total of 35 units in the 2-4 Unit Loan Program awaiting final review and approval. (13) Not applicable. The City has no Neighborhood Revitalization Strategy Areas at present. 31st Program Year ( ) CAPER 78 FINAL