HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 03/17/2004 • I`
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CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORA tQ NRPf SEcitutr
LOAN REVIEW COMMITTEE 0fftCE
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WEDNESDAY, March 17, 2004
12 NOON 'Pe
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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
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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.
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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.
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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.