RSG has had an on-call affordable housing consulting contract with the City of El Cajon since 2018. Under this contract we have assisted with the following:
First-Time Homebuyer Program Administration
RSG is involved with the administration of the City of El Cajon’s First-Time Homebuyer Program. In this role, RSG pre-underwrites loans based on the borrower’s income and asset eligibility for the approval of maximum purchase price, including the ratio determination of housing and income. The program guidelines are carefully reviewed based on funding sources for state or federal requirements. The FTHB utilizes a combination of funding with HOME, CALHOME, and LMIHAF for the borrower’s eligibility review. Once the applicant locates a property RSG coordinates with the City to issue tentative loan commitment approval to ensure the borrower can gather the City required documents. RSG also assisted the City with the preparation of loan documents and coordinated the closing of escrow (or transaction) with the mortgage lenders, escrow office and title company.
Lexington Avenue Resyndication
RSG evaluated a proposal from a developer to acquire the leasehold interest in the Lexington Avenue Senior Apartments to identify potential fiscal and regulatory impacts. As part of the process, RSG examined the project underwriting and proposed purchase price to ensure that it was economically feasible and met legal requirements. As part of this process, RSG evaluated cost estimate reasonableness, determined the financial feasibility and if gap financing was warranted, prepared a modeling pro forma, reviewed tax credit and other funding source market conditions, and prepared a 55-year cash flow projection. We then summarized our findings to note key proposal terms, strengths and weaknesses, and need for gap financing.
Annual Reporting Requirements
As City Staff prepares these reports, RSG provides advisory services to ensure that Housing Successor funds are spent in compliance with legal requirements. We advise the City on the accurate reporting of financial data provided by staff, including data about the balance, deposits, and expenditures pertaining to the Low- and Moderate-Income Housing Asset Fund, along with information about assets reported on the Housing Assets Transfer form.
Compliance Monitoring
RSG assisted staff with conducting remote desk monitoring for the City of El Cajon’s affordable housing projects. The services consist of initiating the monitoring with the developer/property manager by making contact and drafting notification. Gathering documents to analyze occupancy status report, rent rolls, and reviewing tenant files. Coordinating with property managers on clarifying data and issuing a summarized final report of the monitoring for each affordable project, including findings and recommendations. RSG also assisted with creating income and rent limit charts according to the funding source of each project.