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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 12/14/2005 4.00 0 s ti 0e MINUTES ` t_ ZZ�b CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION LOAN REVIEW COMMITTEE WEDNESDAY, December 14, 2005 12 NOON STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, NSD Program Manager Sylvia Ford Delia Garcia, NSD Housing Administration Supervisor Tiffany Hull Yvonne Haag, NSD Director Caroline Stahl Raul Torres MEMBERS PRESENT Alice Vaughn David Cantu Alynda Asher Ben Grande Jesus Leija Judy Telge Barry Lobell Chairperson, Alice Vaughn called the meeting to order in the 1st 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 November 16, 2005 meeting. With no corrections made to the minutes, Mr. Cantu made a motion to approve the minutes. Motion was seconded by Ms. Telge. Motion passed unanimously. SCANNED 4111110 The following loans were presented for review: Gonzalez, Victor— 2618 Cleo: The first loan application presented by Mr.Vallejo was a Demolition and Replacement. Mr. Gonzalez will be receiving a two bedroom, 840 sq ft house. Mr. Gonzalez will be receiving a 3% Loan for $35,000,and a Deferred Forgivable Loan for $16,350. The Corporation will be in a first lien position. Mr. Vallejo informed the Committee that Mr. Gonzalez has a net income of $983. His credit is rated very good with a credit score of 803; and the title appears in his name. He is okay on his monthly payment to income ratio of 30%and total debt payment to income ratio of 40% is okay. Total appraised value after rehabilitation is $56,870. Recommend approval based on the Corporation being in a first lien position; okay on the 30% and 40% income ratio; low credit liabilities; and a credit score of 803. Mr. Vallejo is recommending that the committee approve this loan application. Several concerns regarding Mr. Gonzalez's loan arose from various committee members. First, since Mr. Gonzalez credit score was rated at 803 , why didn't Mr. Gonzalez seek to go to a private sector for a loan? Mr. Vallejo stated that Mr. Gonzalez qualified under the program guidelines and therefore we must provide assistance, however, Mr.Vallejo did not know how a private sector would rate Mr. Gonzalez's credit. A second question was regarding, why demolish Mr. Gonzalez's home rather than rehabilitate it? Mr. Vallejo stated that when the inspector does his survey on a home, if the costs to rehabilitate a home totals up to the costs to reconstruct a new home in the staffs opinion it makes more sense to give the homeowner a new home because it will be, more energy efficient and better insulated. A third question was regarding Mr. Gonzalez's age of 90 years old and his ability to pay off the loan. Mr. Vallejo stated,hopefully Mr. Gonzalez will have a will leaving his home to someone. At that point, whoever stays with the house will contact us or if we find out we will try to contact the family. If that person stays with the house and qualifies for the program and are low income, then we will refinance under their name so they can live in the house and make the mortgage payments. On the other hand, if the person that stays with the home does not qualify and has a good job along with a good income at that point we ask that they seek an outside private financial source and pay the Corporation off. If they are unable to get outside financing then the Corporation will refinance the home at the going rate at the time. A motion was made by Mr. Cantu t0 approve the loan, motion seconded by Ms. Asher. Motion passed unanimously. rar � Reyes. San Juanita —2225 Soledad: The second loan application presented by Mr.Vallejo was a Demolition and Replacement. Ms. Reyes will be receiving a two bedroom, two bath, 840 sq ft house. Ms. Reyes will be receiving a 0% Loan for $17,000, Minimum Deferred for $18,000 and a Deferred Forgivable Loan for$18,970. The Corporation will be in a first lien position. Mr. Vallejo concern with Ms. Reyes loan is her net income of $227. No credit activity. Title does appear in her name. Her monthly payment to income ratio of 30% is okay. Ms. Reyes total debt payment to income ratio being at 55% instead of the 40%. Total appraised value after rehabilitation is $55,523. Recommend approval based on the condition of the home; the Corporation being in a first lien position; okay on the 30% total housing payment to income ratio and zero liabilities. Mr. Vallejo is recommending that the committee approve this loan application. Motion was made by Ms. Asher to approve the loan and motion seconded by Ms. Telge. Motion passed unanimously. Mr.Vallejo informed the Committee that the CDC (Community Development Corporation) finally put out a proposal to solicit builders. Proposals are due on December 16, 2005 prior to 5:00 p.m. The next step will be for staff to review the proposals and to make recommendations to the Board. The Board will then select the builders that will be participating in our New Construction Home Buyer Program. Having no further business, motion to adjourn meeting was made by Mr. Cantu and seconded by Ms. Asher. Motion passed unanimously and the meeting was adjourned.