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MINUTES
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
LOAN REVIEW COMMITTEE
JANUARY 26, 1994
12 NOON
STAFF PRESENT MEMBERS ABSENT
Hector G. Vallejo, Program Manager Ernest Carter
Fred Pena, Rehabilitation Supervisor Louis Garza
Dalia Garcia, Loan Processor Supervisor Leroy San Miguel
MEMBERS PRESENT
Alynda Asher
Diana Bazan
Ruben Fuentes
Rose Royce Huegele
Robert Jones
Paul Shamoun
Forrest Smith
Alice Vaughn
Chairperson Rose Royce Huegele called the meeting to order at 12:05 p.m. in the Building
Inspection Conference Room on the 2nd Floor of City Hall.
The first order of business was to approve the minutes of the December 22, 1993 meeting.
Mr. Smith moved to approve the minutes, seconded by Ms. Bazan. Motion passed
unanimously.
The following loan requests were presented:
A demolition replacement loan request for Gervase Leathers, 2118 Van Loan, in the amount
of $8,200 at zero (0%) percent interest amortized over a 25-year period. The loan includes
a $4,000.00 emergency grant, a $1,400.00 relocation grant and a $15,000 minimum deferred
loan. Total monthly payment of principal, taxes and insurance will be $82.33. The
Corporation will be in a first lien position.
Ms. Huegele asked where Mr. Leathers claims his homestead. Mr. Vallejo answered that he
will live at the project address when the house is completed and currently claims it as his
homestead. Mr. Jones asked whether this property could be a rental. Mr. Vallejo replied that
it could not be a rental and that if it were, all monies would have to be paid back.
Mr. Smith moved to approve the loan as presented, seconded by Mr. Fuentes. Motion passed
unanimously.
A demolition replacement loan request for Luis and Gloria Martinez, 4549 Molina, in the
amount of $9,500.00 at zero 10%) percent interest amortized over a 15-year period. The loan
includes a $4,000.00 emergency grant, a $1,600.00 relocation grant and a $15,000 minimum
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Minutes of the Loan Review Committee January 26, 1994
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deferred loan. Total monthly payment of principal, taxes and insurance is $99.78. The
Corporation will be in a first lien position.
Ms. Huegele inquired if the Martinez's paid off the balance on their car repossession. Mr.
Vallejo responded no; Mr. Martinez returned car because he and the owner could not reach
an agreement regarding necessary repairs. Mr. Shamoun expressed concern over the
repossession. Ms. Huegele and Mr. Smith noted further collection items on their credit report.
Ms. Garcia explained that Mr. Martinez is disabled. Mr. Vallejo added that his medical
problems put them behind on their payments. He also reiterated that Mr. Martinez voluntarily
returned the car after being unable to reach an understanding with the owner.
Ms. Bazan moved to approve the loan, seconded by Mr. Fuentes. Motion passed, opposed
by Mr. Shamoun.
A demolition replacement loan request for Elide Rios, 2522 Sarita, in the amount of
$14,800.00 at zero (0%) percent interest amortized over a 25-year period. The loan includes
a 54,000.00 emergency grant, a $1,400.00 relocation grant and a $15,000 minimum deferred
loan. The monthly payment of principal, taxes and insurance is $104.33. The Corporation
will be in a first lien position.
Ms. Huegele noted that Ms. Rios has an automobile repossession. Mr. Shamoun expressed
concern over this matter. Mr. Vallejo explained that Ms. Rios had co-signed this loan for her
daughter. Mr. Smith inquired as the length of time a person must be living in the house to be
considered a permanent resident. Mr. Vallejo replied that if an individual is currently living
there, he is considered a permanent resident and his income is included in the applicant's
monthly income. Ms. Huegele asked why Ms. Rios was late on her October and November
credit payments. Ms. Garcia replied that perhaps because her daughter was in a car wreck.
Mr. Jones asked what generally happens with loan recipients who have borderline credit. Mr.
Vallejo said that people are pretty good with their payments; they usually make their house
payments first because they do not want to risk losing their homes. He also stated that by
approving this loan, the Committee would be helping five people. Ms. Vaughn stated she is
concerned about Ms. Rios' recent $2400 in purchases. Ms. Garcia explained that Ms. Rios
purchased a stove, T.V. and VCR.
Mr. Shamoun moved to disapprove the loan, seconded by Ms. Vaughn. Discussion ensued
regarding the Committee's options. Ms. Huegele asked for a show of hands vote, since she
was unable to determine the result of a verbal vote. Motion was opposed by Ms. Asher, Ms.
Bazan, Mr. Fuentes, Ms. Huegele, Mr. Jones and Mr. Smith. A new motion was made by Mr.
Smith to approve the loan, contingent on Ms. Rios receiving credit counseling. Mr. Jones
seconded the motion. Motion passed, opposed by Mr. Shamoun.
Mr. Vallejo asked the Committee how often it would like to receive a report showing a month-
by-month overview of delinquency trends. Discussion ensued regarding the trends. Ms.
Huegele stated that it would be sufficient for the Committee to receive the overview on a
quarterly basis, and the Housing/Counseling Section's delinquency report on a monthly basis.
There being no further business, the meeting was adjourned.
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