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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 11/24/1993 'Yr 2_ MINUTES S CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION LOAN REVIEW COMMITTEE NOVEMBER 24, 1993 12 NOON STAFF PRESENT MEMBERS ABSENT Fred Pena, Rehabilitation Supervisor Forrest Smith Delia Garcia, Loan Processor Supervisor Burford Dobbins Annie Maron, Recording Secretary Leroy San Miguel Paul Shamoun Louis Garza MEMBERS PRESENT Ernest Carter Rose Royce Huegele Alice Vaughn Ruben Fuentes Diana Bazan Alynda Asher Chairman Rose Royce Huegele called the meeting to order in the Human Resources Conference Room on the 2nd Floor of City Hall. The first order of business was to approve the minutes of the October 20, 1993 meeting. Mr. Carter moved to approve the minutes, seconded by Ms. Bazan. Motion passed unanimously. The following loan requests were presented: A rehabilitation loan request for Rosie and Alfredo Chavez, 4726 Phillip, in the amount of $29,500' at zero percent interest amortized over a 25-year period. The loan includes a $4,000.00 emergency grant and a $15,000.00 minimum deferred loan. Total monthly payment of principal, taxes and insurance will be $158.33. The Corporation will be in a first lien position. Ms. Huegele stated that the application indicated a request for an extended term on the loan and inquired if it was necessary, considering the amount of the Chavez's discretionary income. Ms. Garcia explained that an extension is automatic on zero percent loans over $10,000, and that perhaps Mr. and Mrs. Chavez feel that an extended term would be beneficial since he is retired and on a fixed income. Mr. Carter moved to approve the loan, seconded by Mr. Bazan. Motion passed unanimously. A demolition and replacement loan request for Ramon and Beatrice Dives, 2842 Sarita in the amount of $33,100.00 at three percent interest amortized over a 20-year period. The loan includes a $2,450.00 relocation grant. Total monthly payment of principal, taxes and insurance will be $279.98. The Corporation will be in a first lien position. SCANNED Minutes of the Loan RIFSew Committee November 24, 1993 Page 2 Mr. Carter asked if there were any problems with the Dives' credit due to some items that they have co-signed. Ms. Garcia stated that there are no problems, and that they are not delinquent on items they co-signed. Mr. Carter moved to approve the loan, seconded by Ms. Vaughn. Motion passed unanimously. A demolition and replacement loan request for Felipe and Lucia Franco, 2713 Sabinas, in the amount $35,800.00 at three percent interest amortized over a 20-year period. The loan includes a $1,800.00 relocation grant. Total monthly payment of principal, taxes and insurance will be 8234.56. The Corporation will be in a first lien position. Ms. Huegele inquired if there was any information on the brother-in-law who lives with the Francos. Ms. Garcia explained that he is disabled with Down's Syndrome and that the specifications call for handicapped facilities for him. Mr. Carter asked if this loan could qualify for zero percent interest since there is a permanent, disabled resident of the household. Ms. Garcia said the interest rate is determined by income guidelines. Ms. Huegele asked how long the disabled man has lived with the Francos. Ms. Garcia stated he has probably lived with them his entire life. Mr. Carter inquired as to the minimum income necessary for a family of three to qualify for a zero percent loan. Ms. Garcia stated approximately 822,000. Mr. Fuentes moved to approve the loan, seconded by Ms. Bazan. Motion passed unanimously. A rehabilitation loan for Frank Gutierrez, 1021 Stirman, in the amount $25,000.00 at three percent interest amortized over a 20-year period. Total monthly payment of principal,taxes and insurance will be $178.65. The Corporation will be in a second lien position. Ms. Huegele noted the old date of the slides and asked if the house had been reinspected. Mr. Pena replied no, but that the contract would be amended if the owner had done any work on the house. He also stated that a title search was just completed. Mr. Carter asked if the house was ever recommended for demolition. Mr. Pena stated that, based on the opinion of the property advisor, the house has always been a rehabilitation project. Ms. Huegele asked if the abstracts of judgements have shown up on lien searches, and Ms. Garcia replied that they have. Ms. Bazan asked if HUD was assigned the mortgage because Mr. Gutierrez got behind on his payments. Ms. Garcia replied that was correct. Ms. Huegele stated that the Corporation is in a second lien position, and asked if the balance was too high to incorporate the first lien into the loan. Ms. Garcia said yes. Mr. Fuentes asked if there was a judgement. Ms. Garcia responded yes. Mr. Carter expressed concern over the cost of rehabilitating a frame house that will likely deteriorate again soon. Mr. Pena said that the loan request could be tabled in order to let Mr. Gutierrez reconsider his options. Ms. Bazan asked when there would be a new loan figure if Mr. Gutierrez chooses to demolish. Mr. Pena stated that the project would have to be readvertised and rebid, and Minutes of the Loan RhSaw Committee V November 24, 1993 Page 3 the new figure would be available sometime around January. Mr. Carter moved to table the loan, seconded by Ms. Bazan. Motion passed unanimously. A rehabilitation loan request for Nora Lee Harris, 1334 Florida, in the amount $26,650.00 at zero percent interest amortized over a 15-year period. The loan includes a $4,000.00 emergency grant and a $15,000.00 minimum deferred loan. Total monthly payment of principal, taxes and insurance will be $148.50. The Corporation will be in a first lien position. Ms. Huegele inquired why the attorney-in-fact has signed the documents for Ms. Harris. Ms. Garcia and Mr. Pena stated that the owner is staying with a relative out of state in anticipation of construction. Ms. Huegele asked if the documents regarding the promissory note could be sent to her for her signature. Ms. Garcia replied affirmatively. Ms. Huegele asked if Ms. Harris had found a contractor since this is a Self-Help project. Mr. Pena stated that she has chosen Miller Construction. Ms. Huegele asked if the City has worked with, or researched, this contractor. Mr. Pena said no, the selection of a contractor is based on the homeowner's judgement. Ms. Huegele asked that a stipulation be added to the loan that Ms. Harris sign the promissory note herself. Mr. Carter agreed. Mr. Fuentes made a motion to approve the loan, seconded by Mr. Carter. Motion passed unanimously. A rehabilitation loan request for Kathleen Hitchcock, 1133 Whitaker, in the amount $23,300.00 at zero percent interest amortized over a 25-year period. The loan includes a $4,000.00 emergency grant and a $15,000.00 minimum deferred loan. Total monthly payment of principal, taxes and insurance will be $89.33. The Corporation will be in a first lien position. The applicant is requesting an extended payment term. Ms. Bazan noted that the application includes a request for a term extension. Ms. Vaughn stated that there was an error in the property's square footage, which was listed as 24.00. Mr. Pena replied the maximum possible is 44'x30'. Ms. Huegele asked if this error affects the appraised value of the property. Mr. Pena said no, that the value is determined by the plans. Mr. Fuentes inquired as to the extension request. Ms. Garcia explained that the applicant is 68 and only works part-time. Ms. Bazan made a motion to approve the loan, seconded by Ms. Vaughn. Motion passed unanimously. A rehabilitation loan request for Jimmie and Viola Martinez, 1813 Juanita, in the amount $18,550.00 at three percent interest amortized over a 20-year period. Total monthly payment of principal, taxes and insurance will be $151.32. The Corporation will be in a first lien position. Minutes of the Loan RMw Committee November 24, 1993 Page 4 Ms. Huegele stated that she did not see an affidavit from the Martinez's son stating that he is responsible for some of the accounts on his parents' credit report. Ms. Garcia explained that the son's name and information shows up on the credit report in error because his name is the same as his father's. Ms. Huegele asked if the Martinez's co-signed anything for their son. Ms. Garcia replied no. Mr. Carter asked how one can be certain the credit information is correct. Ms. Garcia explained that they asked the applicants and have taken them at their word. Ms. Huegele expressed concern over the applicants' amount of unsecured debt. Ms. Asher asked if they have received credit counseling. Ms. Garcia stated that Mr. and Mrs. Martinez were advised to pay off as much as possible, particularly before Loan Review Committee. Mr. Carter asked if the Martinez's could be advised to attend credit counseling. Mr. Pena said yes. Ms. Huegele stated that credit counseling is usually for people with a greater level of debt, and that the Martinez's problem is not making the payments; it's incurring too much unsecured debt. Mr. Carter made a motion to approve the loan, seconded by Ms. Bazan. Motion passed unanimously. A rehabilitation minimum monthly deferred loan request for Frank and Louise Sage, 3301 Mahan, in the amount 816,950.00 at zero percent interest amortized over a 1,295 month period. The loan includes a 84,000.00 emergency grant. Total monthly payment of principal only will be $60.00. The Corporation will be in a first lien position. Mr. Carter asked if the house has adequate closet space. Mr. Pena replied yes. Ms. Huegele asked why an attorney has signed for Mr. Sage, and if Mr. Sage will be signing original documents. Ms. Garcia stated that Mr. Sage is blind. Mr. Pena added that Mr. Sage can sign in the presence of two witnesses, and that Mrs. Sage can also sign. Ms. Huegele is in favor of Mr. and Mrs. Sage, and the two necessary witnesses, signing the documents. Ms. Huegele asked if handicapped facilities are included in the plans. Mr. Pena stated that the plans indicate no, possibly because Mr. Sage is familiar with the layout of his house. Mr. Fuentes inquired as to the Humana delinquency on the credit report. Ms. Garcia explained that the Sage's thought their insurance company had paid this item, and that they paid it immediately when they discovered their error. Ms. Bazan made a motion to approve the loan, seconded by Ms. Vaughn. Motion passed unanimously. Ms. Garcia distributed a chart which illustrated the status of the CCCIC's accounts. Mr. Carter asked if there has been any improvement since the previous report. Ms. Huegele suggested that trends toward improvement or delinquency could be included in subsequent reports. There being no further business, the meeting was adjourned at 1:00 p.m. 9. 11 I34Y]lenii. V V CITY OF CORPUS CHRISTI DEPARTMENT OF COMMUNITY DEVELOPMENT TO: Loan Review Committee Members FROM: Hector G. Vallejo, Program Manager DATE: December 17, 1993 SUBJECT: Corpus Christi Community Improvement Corporation ICCCICI Enclosed are applications, for assistance under the City's Single Family Rehabilitation Program, which will be reviewed during our meeting on Wednesday, December 22, 1993. The meeting will be held in the Building Inspections' Conference room located on the 2nd Floor of City Hall, 1201 Leopard, beginning at Noon. We look forward to your attendance at this meeting. If you have any questions concerning the enclosed material, please feel free to call me at 880-3018. Hector G. Vallejo Program Manager , . � J AGENDA CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION 1201 LEOPARD, 2ND FLOOR BUILDING INSPECTIONS CONFERENCE ROOM WEDNESDAY, DECEMBER 22, 1993 DURING THE REGULAR MEETING OF THE LOAN REVIEW COMMITTEE BEGINNING AT NOON I. Call meeting to order. II. Approve minutes of the November 24, 1993 meeting. III. Single Family Residential Loan Requests: 1 . Benevidez, Robert 2028 Marguerite 2. Chavez, Maria 226 Cortez 3. Gutierrez, Frank 1021 Stirman 4. Morales, Mateo 5230 William 5. Myers, Townsel 2821 Lawton 6. Pena, Dora 4514 Green Grove 7. Trevino, Abel 550 Pueblo 8. Turner, Cora Lee 1710 Lexington 9. Wilkerson, Billie B. 910 Susan IV. Adjourn.