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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 05/18/2005 v V MINUTES CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION LOAN REVIEW COMMITTEE WEDNESDAY, May 18, 2005 12 NOON STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, NSD Program Manager Alynda Asher Dalia Garcia, NSD Housing Administration Supervisor David Cantu Sylvia Ford Jesus Leija MEMBERS PRESENT Alice Vaughn Ben Grande Barry Lobell Daniel Suckley Caroline Stahl Raul Torres Judy Telge (arrived at 12:20p.m.) Chairperson, Alice Vaughn called the meeting to order in the First Floor Staff Conference Room, 1201 Leopard St., City Hall, roll call was taken with seven members present. Four members absent. First order of business was to approve the minutes of the April 13, 2005 meeting. With no corrections made to the minutes, Ms. Stahl made a motion to approve the minutes. Motion was seconded by Mr. Torres. Motion passed unanimously. Mr. Vallejo noted to the Committee members that originally their were four loans to be presented before them today but two dropped out. SCANNED The following loans were presented for review: Noyola, Maricella—4829 Ingram: The first loan presented by Mr. Vallejo was a Demolition and Replacement. Ms. Noyola will be receiving a 0% Loan for $50,000, and a Deferred Forgivable Loan for $17,800. The Corporation will be in a first lien position. Mr. Vallejo informed the Committee that Ms. Noyola has a net income of$1,249. Her credit history is rated fair and the title appears in her name. She is okay on her monthly payment to income ratio of 30% and total debt payment to income ratio of 40%. Total appraised value after rehabilitation is$69,000. Ms. Noyola will be receiving a four bedroom, two bath home. Recommend approval based on the Corporation being in a first lien position; her credit is fair; ratios are okay and her liabilities are at zero. Committee member, Mr. Suckley made a comment that this loan has been the largest and most expensive house that he had ever seen since he has been on the Committee and asked what was the upper threshold amounts. Mr.Vallejo responded that approximately a year ago, he presented to the Corpus Christi Community Improvement Corporation to increase the loan amounts for the Demolition and Replacement Program. The Board approved increases for a two bedroom of$55,000, a three bedroom of$65,000 and $70,000 for a four bedroom. Previously, there were no limits in total loan amounts. Problems started to occur when the $50,000 loans were not enough for three and four bedroom homes. Mr. Suckley asked, if the limit on a $70,000 loan, would that be the total between the total deferred forgivable ban amount and the first lien amount? Mr. Vallejo confirmed that the limit would need to equal the two loan amounts offered to the homebuyer. Mr. Vallejo also stated that their may be occasions where the homeowner might not qualify for a four bedroom; but, have their own funds to afford the extra bedroom. So the Committee may see more homeowners that may come in with that difference to get the extra bedrooms that they want. Committee member, Ms. Stahl stated to staff when it comes to a homeowner receiving public assistance, in this case food stamps; that it can be counted as income. Staff member, Ms. Garcia stated that normally food stamp had not been counted as income. In Ms. Noyola's case she receives $455 in food stamps. A motion was made by Mr. Suckley to approve the loan, motion seconded by Mr. Cantu. Motion passed unanimously. V Russell, Cecile—3134 Elgin: Committee Member:Judy Telge (arrived at 12:20p.m.) The second loan presented by Mr. Vallejo was a Demolition and Replacement. Ms. Russell will be receiving a 0% Loan in the amount of$17,000, a Minimum Deferred Loan of $18,000 and a Deferred Forgivable Loan for $12,500. Mr. Vallejo informed the Committee that staff had not received the title opinion from the attorney and therefore presenting this case contingent on the title opinion indicating no problems. If for any reason the attorney foresees a problem, the loan will be at a pending status until resolved. The Corporation will be in the first lien position. She has a net income $825. Mr. Vallejo brought to the attention of the Committee that the credit report indicated no fico score. The monthly payment to income ratio of 30% and total debt payment to income ratio of 40% are okay. Ms. Russell will be receiving a two bedroom and 1 bath home. Total appraised value after rehabilitation is $50,687. Recommend approval based on the 30% and 40% income ratios, the Corporation being in a first lien position and her liabilities are at zero. A motion was made by Ms. Telge to approve the loan, motion seconded by Mr. Torres. Motion passed unanimously. Mr. Vallejo updated the Committee that the 4A Board approved the proposals for the In-field Lot Program and the Homebuyer Programs and the CCCDC met and approved the funding for the New Construction Homebuyer Program and selected the builders. Having no further business, motion to adjourn meeting was made by Mr. LobelI and seconded by Ms. Stahl. Motion passed unanimously and the meeting was adjourned.