HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 08/09/2006 r
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MINUTES `si t:r/ r
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORA. N
LOAN REVIEW COMMITTEE /rot 88�9`'
WEDNESDAY, August 9, 2006
12 NOON
STAFF PRESENT MEMBERS ABSENT
Hector G. Vallejo, NSD Program Manager Sylvia Ford
Dalia Garcia, NSD Housing Administration Supervisor Ben Grande
Tiffany Hull
Barry Lobell
Judy Telge
MEMBERS PRESENT
Alice Vaughn
Raul Torres
David Cantu
Jesus Leija
Alynda Asher
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 five members
present. Five members were absent.
First order of business was to approve the minutes of the June 14, 2006 meeting. With no
corrections made to the minutes, Mr. Cantu made a motion to approve the minutes.
Motion was seconded by Ms. Asher. Motion passed unanimously.
SCANNED
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The following loan was presented for review:
Perez, George—617 21st St:
Mr. Vallejo presented a Demolition and Replacement loan for Mr. George Perez residing
at 617 21st St. Mr. Perez will have his niece as a co-signer.
Mr. Perez will be receiving a three bedroom, one bath, 963 sq ft house. Due to the
household size a three bedroom home will be built. He will be receiving a 0% Loan for
$27,000, Minimum Deferred Loan for$18,000 and a Deferred Forgivable Loan for$11,336.
The Corporation will be in a first lien position. Mr. Perez's monthly net income is at
$965. Mr. Perez's has no credit history. However, there are some remarks on some
medical problems. Mr. Perez is okay on his monthly housing payment to income ratio of
30%and his total monthly debt payment to income ratio is within the 40%. Total appraised
value after reconstruction is at $59,348.
Recommend approval based on the Corporation being in a first lien position; net income;
and income ratios are good.
Concerns and questions from several Committee members arose regarding Mr. Perez's
case. How is the appraised value after reconstruction determined? Mr. Vallejo informed
the Committee that he develops the appraisal value by using information from the city's
Homebuyer Program data base. On the report there are several compariables provided
and the three compariable values nearest the address of the home that is being
constructed are used to determine the appraisal value.
There was also a lengthy discussion regarding the qualifying of the co-signer. Mr. Cantu
raised the question how staff qualifies the co-signer. Mr. Vallejo informed the Committee
that previously the Committee had instructed staff that if a house is being constructed to
accommodate an adult, son or daughter, then that person needs to co-sign and be
obligated to the loan. Because of this staff did not qualify the co-signer since the intent
was only to obligate the son or daughter. Mr. Cantu stated that if the homeowner qualifies
on their own then staff didn't need to qualify the co-signer. But if the homeowner didn't
have enough income and only qualified using the son's or daughter's income and using
them as co-signer, then staff needs to also qualify them. Should the co-signer have poor
credit or too much debt then the loan may be denied.
A motion was made by Mr. Leija to approve the loan, motion seconded by Mr. Cantu.
Motion passed unanimously.
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Other Business:
Mr. Vallejo made a power point presentation to the Committee regarding the Demolition
and Replacement Loan Program that the Committee's had requested.
A handout of the Model Block Program was provided to the Committee.
With no further business, meeting was adjourned.