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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 09/12/2007 110 r 1.545078970 l MINUTES a CORPUS CHRISTI COMMUNITY IMPROVEMENT C ORIJ w 41(P LOAN REVIEW COMMITTEE 4s WEDNESDAY, September 12, 2007 N C;'=lS�e,,:1;.:.L al 12 NOON rA nal;r �! r7\Z04'V STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, Program Manager Sylvia Ford Dalia Garcia, NSD Housing Administration Supervisor Tiffany Hull Yvonne M. Haag, NSD Director Raul Torres MEMBERS PRESENT Alice Vaughn Ben Grande Alynda Asher David Cantu Jesus Leija Char Atnip Barry Lobell Judy Telge 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 8 members present. Three members were absent. First order of business was to approve the minutes of the May 9, 2007 meeting. With no corrections made to the minutes, Mr. Lobell made a motion to approve the minutes. Motion seconded was made by Mr. Grande. Motion passed unanimously. SCANNED V TX LULAC West Park Housing L.P. The first loan to be presented was a Rental Rehabilitation Loan application for TX LULAC West Park Housing L.P.. Mr. Vallejo reminded the Committee that he had presented this application, as preliminary, back in September, 2006. He informed the Committee that there were several changes that had occurred since that time. He also informed the Committee that Mr. Marquez and Mr. Henry Gorham were waiting outside and available to answer any questions. Mr. Vallejo stated that LULAC (The Trust) had recently formed TX LULAC West Park Development, L.L.C. which then partnered with D&M Ventures to form TX LULAC West Park Housing L.P. D&M Ventures is owned by David and Cindy Marquez. Documents from Stewart Title indicate that TX LULAC West Park Housing L.P. has purchased the property from the Trust and that is why the loan is now being presented under TX LULAC West Park Housing L.P. Mr. Marquez has informed staff that the partnership will change when the project is completed and U.S.A. Institutional Tax Credit Fund, L.P. will take D&M Ventures position in TX LULAC West Park Housing L.P. Mr. Vallejo passed out an organizational chart showing the relationship between the different companies. Mr. Vallejo told the Committee that Mr. Marquez has also informed staff that the Corporation's loan will not be paid immediately as he had previously stated in his presentation of September, 2006, when staff presented the loan application on a preliminary basis. They will be paying out the loan according to the 20 year term. Mr. Vallejo informed the Committee that he was presenting the ban application for approval with two contingencies. One, that staff can verify from the title policy being provided by Stewart Title that the Corporation will be in a 2nd or 3rd lien position. Two, that the title policy we receive shows TX LULAC West Park Housing L.P. as the owner. There was a lengthy discussion regarding tax credits; ownership; lien position; total debt; changes to the Partnership; and the Rental Rehabilitation Program guidelines. Mr. Vallejo advised the Committee that the after-appraisal provided for this project indicates a value between $5,000,000 to$9,000,000 when taking into consideration the tax credits they will be receiving and was available for the Committee to review. Mr. Vallejo reminded the Committee that Mr. Marquez and Mr. Henry Gorham were waiting outside and available to answer any questions the Committee has regarding this project. A motion was made by Mr. Cantu, second by Ms. Telge, to table the loan application until the Committee is provided more information. The Committee requested the following information be provided: • What is going to be the total debt to Washington Mutual Bank? • What is the debt service requirements to Washington Mutual Bank? • Who is going to be the responsible person for the Partnership should the Partnership be dissolved? • Have them provide a current financial statement from the person that is going to be responsible for the partnership. • Provide historical and projected cash flow statement for the project. • What will be the CCCIC's lien position since the Washington Mutual Bank loan has not closed and paid off GMAC and HUD? • Committee wants Corporation to be in a 2nd lien position. INV The following loans were presented for review: Alvarez, Antonia— 2009 Craig: The first loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan Program. The Committee had asked staff to get co-signers, the loan could not stand alone. Ms. Alvarez will be receiving a three bedroom, 2 bath, 1,018 sq ft house as well as Christina Sanchez and Alfredo Lugo will be the cosigners. Ms. Alvarez will be receiving a 3% loan for $45,000 and a Deferred Forgivable for $19,613. The Corporation will be in a first lien position. Ms.Alvarez has a net income$2,067. As far as the credit scores, Ms. Alvarez has a credit score of 544, Ms. Sanchez has a credit score of 567 and Mr. Lugo has a credit score of 526. I rate them as fair. Title appears in Ms. Alvarez name. Okay on the total monthly housing payment to income ratio of 30%. Total monthly debt payment to income ratio of 40% is okay. Total appraised value after reconstruction will be $65,541. Recommend approval based on the Corporation being in a first lien position. Net income that they have and the 30% and 40% ratios are okay. A motion was made by Mr. Grande to approve the loan, motion seconded was made by Mr. Cantu. Motion passed unanimously. Hinoiosa, Elide —4546 Bluebelle: The second loan application presented by Mr. Vallejo was under the Rehabilitation Loan Program. Major work that will be done is adding on a 9x9 utility room and replacing some windows. Ms. Hinojosa will be receiving a 0% loan for $19,300 and a Minimum Deferred loan for $18,000. She is also getting a Rehab grant for $6,500. The Corporation will be in the first lien position. Her net income is $335. Her credit scores are at 678 rated good. The title appears in her name. Ms. Alvarez is okay on the total monthly housing payment to income ratio of 30%. However, the 40% total debt payment to the income ratio she's at 65%. Total appraisal value after rehabilitation is at $66,816. Recommend approval based on the Corporation being in the first lien position. Credit score is fair to good. Few liabilities and Ms. Alvarez is okay on the 30%total monthly housing payment to income ratio. A motion was made by Mr. Cantu to approve the loan, motion seconded was made by Ms. Asher. A discussion by Ms. Telge was accessibly ever discussed to Ms. Hinojosa leading into the room addition. Mr. Vallejo will look into it. Motion passed unanimously. With no further discussion, meeting was adjourned. Motion was motion by Mr. Lobell and seconded by Mr. Grande.