HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 04/14/1992 MINUTES OF LOAN REVIEW COMMITTEE
APRIL 14, 1992
12 NOON
STAFF PRESENT MEMBERS ABSENT
Juan F. Hernandez, Rehab Supervisor Servando Caballero
Lana Taylor, Senior Secretary II Melody Cooper
Louis Garza
Armando Reyna
Paul Shamoun
MEMBERS PRESENT
Ernest Carter
Rose Huegele
Javier Leal
Sylvia Perez
Leroy San Miguel
Forrest Smith
Acting Chairman Rose Huegele called the meeting to order in the Building Inspections
Conference Room.
The first order of business was the continuation of the Single Family Rehabilitation
Loan Program that began at the April 10, 1992 Committee meeting. The following
Single Family loan requests were made:
A demolition and replacement loan request for Josephine Fuentes, 2522 Terrace, in
the amount of $27,300 at zero percent interest amortized over a 15-year period. The
loan includes refinancing costs of $1,880.00, a grant of $3,300.00, a relocation grant
of $1,400.00, and a $15,000.00 minimum deferred loan. Total payment of principal,
taxes and interest is $84.20. The Corporation will be in a first lien position.
Ms. Huegele questioned how Ms. Fuentes was going to pay for the loan as she had
not paid mortgage payments since 1984. Ms. Fuentes had stated in her letter that
all of her benefits were taken up with paying for medications. Mr. Smith added that
her letter also described a mental condition. Mr. San Miguel questioned whether or
not Ms. Fuentes would be capable of making these kinds of decisions. Discussion
continued regarding Ms. Fuentes' health, mental condition and her capability to repay
the loan.
Mr. San Miguel made a motion to disapprove the request based on the financial
aspects of this request, seconded by (no second recorded or on tape). Motion passed
unanimously.
SCANNED
Minutes of the Loan Review Committee
April 14, 1992
Page 2
A demolition and replacement loan request for Alex M. and Maria Graciela Garza,
9125 Stock, in the amount of $34,000.00 at zero percent amortized over a twenty-
five-year period. The loan request includes refinancing costs of $6,650.00, and the
owner's share of $2,050.00. Total monthly payment of principal, taxes and interest
is $178.33. The Corporation will be in a first lien position.
Ms. Perez made a motion to approve the loan, seconded by Mr. San Miguel. Motion
passed.
A rehabilitation loan request for Lillie Mae Harding, 1017 12th Street, in the amount
of $11,020.00 at zero percent interest amortized over a twenty-year period. The
request includes a $15,000.00 minimum deferred loan; a $3,300.00 grant; and a
$250.00 paint grant. Total payment of principal, taxes and interest is $122.04. The
Corporation will be in a first lien position.
--411besierrcontinued on placement of the stairs and whether or not moving the stairs
would be in violation of the fire safety code.
Mr. Smith made a motion to approve the request, seconded by Ms. Perez. Motion
passed.
A rehabilitation loan request for Magdalena Harwood, 4841 Phillip Drive, in the
amount of $5,000.00 at three 13%1 percent interest amortized over a ten-year period.
Total payment of principal, taxes and interest is $48.28. The Corporation will be in
a second lien position.
Ms. Huegele asked if an estoppel letter was sent to the first mortgagee when the
Corporation is in a second lien position. Mr. Hernandez replied that an attorney
reviews the loan request and then an estoppel letter is sent. This occurs after the
Committee approves the loan. Ms. Huegele asked if Ms. Harwood could wait to have
the work done until she sells the house on Barcelona. If the Barcelona renter did not
pay rent, then Ms. Harwood would not be able to make the loan payments. If the
loan is tabled, then Ms. Harwood could come back to the Committee one more time.
Mr. San Miguel made a motion to table the request until disposition of the house on
Barcelona has been assured, seconded by Mr. Leal. Motion passed.
A rehabilitation loan request for Mildred A. Hudgins, 2046 18th Street, in the amount
of $24,669.00 at zero percent interest amortized over a ten-year period. The request
includes a $15,000.00 minimum deferred loan, a $3,300.00 grant, and a $3,300.00
Minutes of the Loan Review Committee
April 14, 1992
Page 3
paint grant. Total monthly payment of principal, taxes and interest is $62.47. The
Corporation will be in a second lien position.
Mr. Smith raised the question as to whether it would be to Ms. Hudgins' advantage
monetarily to amortize payments over fifteen or twenty years. Staff was requested
to amortize the payments over twenty years.
Ms. Perez made a motion to approve the request to be amortized over twenty years,
seconded by Ernest Carter. Motion passed.
A rehabilitation loan request for Roberto Leal, 2206 Belton, in the amount of
$25,150.00 at three 13) percent interest amortized over a twenty-year period. Total
monthly payment of principal, taxes and interest is $180.48. The Corporation will be
in a first lien position.
Discussion continued regarding Mr. Leal's credit rating. The Committee felt that Mr.
Leal had a lot of unsecured debt. Most of the debt was from Mrs. Leal's illness and
funeral expenses. Ms. Perez stated that Mr. Leal put a $12,500.00 downpayment
on the house and did not feel that Mr. Leal would default on the loan.
Ms. Perez made a motion to approve the request, seconded by Ernest Carter. Motion
passed.
A rehabilitation loan request for Rafael S. and Juanita G. Ortiz, 1718 Harriett, in the
amount of $9,226.00 at three (3%) percent interest amortized over a fifteen-year
period. Total monthly payment of principal, taxes and interest is $84.88. The
Corporation will be in a first lien position.
Mr. Carter made a motion to approve the request, seconded by Ms. Perez. Motion
passed.
A demolition and replacement loan request for Joe G. (aka Jose) and Josefa Trevino,
4302 Elvira, in the amount of $33,450.00 at three 13%) percent interest amortized
over a twenty-year period. The loan request includes a refinancing amount of $4,864,
and a $1,400.00 relocation grant. Total monthly payment of principal, taxes and
interest is $222.50. The Corporation will be in a first lien position.
Ms. Perez made a motion to approve the request, seconded by Mr. Leal. Motion
passed.
Minutes of the Loan Review Committee
April 14, 1992
Page 4
Next order of business was the sale of foreclosed properties:
Ms. Huegele stated that she would be interested in periodically reviewing lists of loans
that are slow pay or past due. Mr. Hernandez stated that he would get with Ms.
Trevino and the Collections Department and have a listing prepared for a future
meeting.
A loan request for Isador Prado to purchase the property at 321 Anchor. Mr. Prado
would be buying the house as an investor and would not live in it himself. The bid
amount for the house is $13,200.00 with a downpayment of $200.00 at three 13%)
interest amortized over a twenty-year period. Total monthly payment would be
5146.59. Total loan amount would be $14,350.00.
Ms. Perez was not aware investors could buy these foreclosed properties. Mr.
Hernandez said they could buy them, but will have to rent to low income persons.
Ms. Huegele asked what guarantee the Committee would have that Mr. Prado would
rent to low income persons only and how it could be monitored. Mr. Hernandez said
that there is a provision in the deed that states that HCD would have to monitor it
physically. Ms. Huegele questioned why Mr. Prado would be given a three (3%)
percent loan out of our program. Mr. Hernandez stated that it had been tried for a
long time to find a purchaser for the one bedroom house that needed a lot of repairs.
There had been no other offers. Ms. Perez asked, as Mr. Prado was on HCD's
contractor list, whether or not this was a conflict of interest. Mr. Hernandez stated
that he would have to get an opinion from the Legal Department on this issue. Ms.
Huegele wanted to know if Mr. Prado's income of $50,000.00 a year had been
verified. Mr. Hernandez stated that HUD had Mr. Prado's tax returns and they verified
his stated income.
Mr. Smith asked how HUD acquired these properties. Mr. Hernandez stated these
were properties that been repaired before. Mr. Smith questioned who the contractor
had been for this property.
Ms. Perez made a motion to table the loan request until the next meeting so the City
Secretary's Office would have time to verify that Mr. Prado's purchase was not a
conflict of interest, seconded by Mr. Leal. Motion passed.
A loan request for Jeanette Ross to purchase the property at 1504 Van Loan in the
amount of $26,000 at zero percent interest amortized over a twenty-five year period.
Total payment of principal, taxes and interest would be $160.67.
Minutes of the Loan Review Committee
April 14, 1992
Page 5
This is the house HUD was reserving for the Housing Authority, and Ms. Ross is the
person the Housing Authority provided. Ms. Huegele asked about Ms. Ross' payment
history. Mr. Hernandez stated that Ms. Ross had recently become divorced, had not
been receiving child support and was supporting her family and herself. She started
receiving child support in December 1991.
Motion was made by Mr. Carter to approve the loan request, seconded by Mr. Smith.
Motion passed.
A loan request for Torivio and Oralia Gonzalez to purchase the property at 1921 Palm
in the amount of $18,400.00 at zero percent interest amortized over a twenty-five
year period. Total monthly payment of principal, taxes and interest would be
$137.00.
Motion was made by Mr. Smith to approve the request, seconded by Ms. Perez.
The next meeting was scheduled for Wednesday, May 13, 1992 at noon.
There being no further business, the meeting adjourned.
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