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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 03/17/2004 • I` MINUTES N JIM 20114 .. CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORA tQ NRPf SEcitutr LOAN REVIEW COMMITTEE 0fftCE IVER WEDNESDAY, March 17, 2004 12 NOON 'Pe 29Z9zrot- STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, NSD Program Manager David Cantu Delia Garcia, NSD Housing Administration Supervisor Ben Grande MEMBERS PRESENT Alynda Asher David Barganski Jesus Leija (new member) Barry Lobell Caroline Stahl Daniel Suckley Raul Torres Alice Vaughn Chairperson, Alice Vaughn called the meeting to order in the Second Floor Neighborhood Services Department Conference Room, 1201 Leopard St., City Hall, roll call was taken reflecting eight members present. Two members absent; with a new member joining the committee. Mr. Hector Vallejo, Program Manager introduced Mr, Jesus Leija and asked him to say a few words. First order of business was to approve the minutes of the February 11, 2004 meeting. With no corrections made to the minutes, Mr. Barry Lobell made a motion to approve the minutes. Motion was seconded by Ms. Caroline Stahl. Motion passed unanimously. The following loans were presented for review: Belinda Garza — 1417 Acapulco The first case presented by Mr. Vallejo was a Demolition and Replacement Loan with the house being 2 bedroom home with 796 sq ft of living area. Ms. Garza will be receiving a 0% Loan in the amount of$17,000, a Minimum Deferred Loan of$18,000. The Corporation will be in a first lien position. Mr. Vallejo informed the Committee that Ms. Garza's net income is low at $189.00, however Ms. Garza's credit was rated good. Mr. Vallejo stated that the title opinion is still pending. Contingent upon SCANNED • y 111. Page 2—cont'd-Garza,Belinda—1417 Acapulco: getting the title opinion and everything being in order, staff is recommending the loan be approved. Ms. Garza is within the 30% total monthly housing payment to income ration, but is over the 40% total monthly debt payment to income ratio, currently at 61%. Appraised value after rehabilitation is $49,000. Recommended approval based on the condition of the home, first lien position, credit history and 30% income ratio. Motion was made by Ms. Caroline Stahl to approve the loan as presented, motion seconded by Alynda Asher. Motion passed unanimously. A concern was brought up by Committee member Daniel Suckley regarding why driveways aren't included within the rehabilitation process, Mr. Vallejo explained the reason due to costs. However, on a 2 bedroom home at a loan limit amount of $50,000 a driveway can be provided. Anything over a two-bedroom home, again costs is an issue. Mr. Vallejo advised the loan committee members that he plans to present to the Corpus Christi Community Improvement Corporation in April or May of this year to request some changes and for an increase amount of loan for three and four bedroom homes. Hortensia Torres — 2022 Orange The second case presented by Mr. Vallejo was a Demolition and Replacement Loan for Ms. Torres. Ms. Torres will be receiving a 0% Loan in the amount of $17,000, Minimum Deferred Loan of$18,000 and a Deferred Forgivable Loan of$15,000. The Corporation will be in a first lien position. Ms. Torres has a net income of $447.00. Ms. Torres credit history has been rated from good to excellent. Title appears to be in her name. Ms. Torres is within the 30% and 40% monthly income ratio. • Appraised value after rehabilitation $60,000. Recommend approval based on first lien position, credit history , income ratios and the condition of the home. Motion was made by Mr. Daniel Suckley to approve the loan as presented, motion seconded by Mr. Barry Lobell. Motion approved unanimously. Committee member Alynda Asher questioned the location of Ms. Torres' house, which will be in the Flour Bluff area. Mr. Vallejo reminded the Committee that the Rehabilitation program is now city-wide and as long as the applicant meets all requirements and is low income, there were no designated census tracts as before which were targeted tracts on the Westside part of the city. b Paoe3-Coned Rola nd&LeticiaT The third case presented by Mr. Vallejo was a Demolition and Replacement Loan for Mr. and Mrs. Trejo whom will be receiving 3% Loan in the amount of$35,000 and a Deferred Forgivable Loan of$15,000 along with a homeowner share of$100.00. Mr. Vallejo reminded the loan committee members that the Mr. and Mrs. Trejo's case had been brought up before them approximately a year ago. The Committee at that time did not approve the loan due to Mr. Trejo being unemployed at the time. The Committee required Mr. Trejo to acquire steady employment for a period of six months. Now that Mr. Trejo has complied with this requirement, staff is bringing the case for review. The Corporation will be in a first lien position. They have a net income of $1,304.00. Credit is rated as bad to poor based on credit report. The title appears to be in both names. Mr. and Mrs. Torres are within the 30% and 40% monthly income ratio. Appraised value after rehabilitation is $49,000. Recommend approval based on the condition of the house, first lien position, income ratios and net income. Questions arose by several committee members on their past financial status and employment stability on Mr. Torres. Mr. Vallejo explained that Mrs. Torres past medical needs of which Mr. Torres prior to staffing his present employment had to leave a previous employment to care for her. However, if for any reason when approved applicants experience several defaults in their monthly payments, it is up to the Committee as well as the loan processors to work with them to avoid a foreclosure, which is the last thing the CCCIC wants to do. Mr. Vallejo explained that Mr. and Mrs. Trejo's case net income at$1,304.00 and their 30% income ratio, might indicate that they are starting to manage their finances. Motion was made by Ms. Caroline Stahl to approve the loan as presented, motion seconded by Ms. Alynda Asher. Motion approved unanimously. With no further business, meeting was adjourned.