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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 01/26/1994 fis tut 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 SCANNED tt y N Minutes of the Loan Review Committee January 26, 1994 Page 2 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. mq.,.04