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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 09/27/2006 w JAN 2007 I ECEIVLD C:1 SECeErnars OfFGE MINUTES CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION LOAN REVIEW COMMITTEE WEDNESDAY, September 27, 2006 12 NOON STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, NW Program Manager Judy Telge Dalia Garcia, NSD Housing Administration Supervisor Tiffany Hull MEMBERS PRESENT Alice Vaughn Ben Grande Barry Lobell Raul Torres David Cantu Jesus Leija Alynda Asher Sylvia Ford OTHERS PRESENT: David Marquez, Affordable Housing Consultants Kimberly Keener, Affordable Housing Consultants Henry Gorham, President of Local Chapter of LULAC 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 eight members present. Two members were absent. SCANNED 1r First order of business was to approve the minutes of the August 9, 2006 meeting. With no corrections made to the minutes, Mr. Cantu made a motion to approve the minutes. Motion seconded was made by Mr. Torres. Motion passed unanimously. Several items will be presented to the Committee in today's meeting. Election of Chairperson and Vice Chairperson were conducted. Ms. Vaughn will continue as Chairperson and Mr. Grande will become the new Vice Chairperson. Mr. Cantu made a motion and was seconded by Ms. Ford. Motion passed unanimously. The next item on the agenda was a loan presentation by Mr. David Marquez, Affordable Housing Consultants,for LULAC West Apartments. Mr. Marquez informed the Committee that LULAC West Apartments applied for taxing credits for total rehabilitation and an upgrade of major systems,a 35 year old, 124 unit complex located at 10702 IH-37. Before the presenters were called in, Mr. Vallejo informed the Committee that the consultants requested from the Committee a commitment letter saying that we were committing the funds towards this project. I explained to the consultants that at this time we could not give them a commitment letter because the Loan Review Committee is the only one that can approve or disapprove the funding. So the most I could do is give them a letter of explanation as how the funds will be used. Therefore, I invited them to come before the Committee and give a preliminary presentation on what the project was all about. After the presentation there were concerns and questions from several Committee members regarding the written loan requirements. The Committee felt it needed to be further reviewed before making a commitment to grant the necessary funding to begin the rehabilitation to the LULAC Village West Park Apartment project. Mr. Grande made a motion for staff to continue working the loan and motion seconded was made by Ms. Ford. Motion passed unanimously. 4.0 V The following loans was presented for review: Garcia, Robert& Delia — 2017 Sherman: The first loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan. Mr. and Mrs. Garcia will be receiving a 3% Loan for $35,000 and a Deferred Forgivable Loan for$17,070. The Corporation will be in a first lien position. They have a net income of$746 and rated their credit scores as good. Mr. Garcia's credit score is at 662 and Mrs. Garcia's is at 672. Title appears in their name. Mr. and Mrs. Garcia are okay on their total monthly housing payment to income ratio of 30%, but are over the 40% total debt payment to income ratio,their at 41%. Total appraised value after reconstruction is at $56,220. Recommend approval based on the Corporation being in a first lien position, net income, credit scores and income ratios. A motion was made by Mr. Cantu to approve the loan, motion seconded was made by Mr. Grande. Motion passed unanimously. Sierra, Jesus & Maria Velasco— 643 Cheyenne: The second loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan. Mr. Sierra and Ms.Velasco will be receiving a three bedroom, 2 bath, 1002 sq ft house.They will be receiving a 3% Loan for$45,000 and a Deferred Forgivable Loan for $14,205. The Corporation will be in the first lien position. They have a net income of$680. Their total monthly housing payment to income ratio is okay, but are over the 40% total debt payment to income ratio, their at 63%. Total appraised value after reconstruction is at $69,790. Recommend approval based on the Corporation being is a first lien position, net income good, okay on the 30% total monthly housing payment to income ratio. There were concerns from several committee members on the homeowners total debt payment to income ratio being high at 63%and still having the Corporation hold the loan at a first lien position . Mr. Vallejo informed the Committee, in the reviewing the application,the reason why he is recommending approval was due to the condition of their home and that it might help improve their environment and health concerns. As far as the risk to the Corporation being in the first lien position, it is protected. Mr.Vallejo also noted and realizes due to the high debt ratio, it is a risk factor; however after reviewing the homeowners liabilities, the only high debt incurred is their vehicle payment. A motion was made by Mr. Leija to approve the loan, motion seconded was made by Mr. Cantu. Motion passed unanimously. V Soliz, Emilia — 131310th St.: The third loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan. Ms. Soliz will be receiving a two bedroom, 1 bath, 840 sq ft house. She qualified for a 0% Loan for$17,000, a Minimum Deferred for$18,000 and a Deferred Forgivable Loan for$17,275. The Corporation will be in the first lien position. Ms. Soliz's net income is at $455. Credit score was rated good at 642. Title appears in her name. She is okay at the total monthly housing payment to income ratio at 30%, but is over the 40%total debt payment to income ratio at 46%. Total appraised value after reconstruction is at $58,872. Recommend approval based on Ms. Soliz's credit, being at the 30% monthly housing payment to income ratio and the Corporation being in the first lien position. A motion was made by Ms. Ford to approve the loan, motion seconded was made by Mr. Lobell. Motion passed unanimously. Williams, Ethel — 1402 Madre: The fourth loan application presented by Mr. Vallejo was under the Rehabilitation Loan Program. Mr.Vallejo informed the Committee that Ms.Williams case had been presented to the Committee in November 2005 and motion passed unanimously. Due to problems with the initial contractor a new contractor needed to be obtained. Since the next contractor in line placed a higher bid for the job, Ms.Williams case needed to come before the Committee again for review. A motion was made by Mr. Cantu to approve the loan, motion seconded was made by Ms. Asher. Motion passed unanimously. Having no further business, motion to adjourn meeting was made by Ms. Asher and seconded was made by Ms. Ford. Motion passed unanimously and the meeting was adjourned.