HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 03/31/1994 fid
MINUTES
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
LOAN REVIEW COMMITTEE
MARCH 31, 1994
12 NOON
STAFF PRESENT MEMBERS ABSENT
Hector G. Vallejo, Program Manager Louis Garza
Delia Garcia, Loan Processor Supervisor Leroy San Miguel
Forrest Smith
MEMBERS PRESENT
Alynda Asher
Diana Bazan
Ernest Carter
Ruben Fuentes
Rose Royce Huegele
Robert Jones
Paul Shamoun
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 January 26, 1994
meeting. Mr. Jones moved to approve the minutes, seconded by Ms. Bazan. Motion
passed unanimously.
The following loan requests were presented:
Mr. Vallejo informed the Committee that CCCIC had Foreclosure on the house and
now are selling the property at 1115 Sam Rankin. A loan request for Antonio and
Brijida Leos, in the amount of $12,100.00 at zero (0%) percent interest amortized
over a 25-year period. The loan includes a $15,000 minimum deferred loan.
Applicants are making a $200.00 down payment. Total monthly payment of principal,
taxes and insurance will be $75.33.
The House was recently appraised at $25,700.00. Mr. Vallejo informed the
Committee of the problems of the original applicants and how the house was
abandoned. He also stated that the City had to foreclose on the house in November
1991 . Mr. Jones asked if we had recovered any money on the house. Mr. Vallejo
stated that we got some money, but not all of it. This case was through the CDC
(Community Development Corporation).
SCANNED
,
S
Mr. Vallejo explained the Leos family is currently living in a 3-room house with 9
members in the family and these type of living conditions are bad for the family. Mr.
Vallejo also pointed that staff had concerns with credit but the problems were related
to medical problems. The family didn't have medical insurance and, therefore,
incurred these expenses. Mr. Vallejo pointed out that they have been renting at
present location for the past 10 years and paying $150.00 per month, so we would
be reducing housing expenses from $220.00 to $160.00 and putting applicants in
better position financially as well as helping with the living conditions of the family.
Ms. Huegele asked if the landlord had been contacted regarding payment history. Mr.
Vallejo stated that he believed the loan processor did and got information from the
landlord. Ms. Huegele asked how the Leos payment history was with the rent. Ms.
Garcia said that Mr. Leos has been paying all the time and has not had any problems
with the rent.
Ms. Bazan stated that all their credit history was medically related. Mr. Vallejo
confirmed.
Ms. Vaughn asked what was the item on the credit report dealing with the City of
Corpus Christi. In response, Ms. Garcia stated it was the utility bill at one time.
Ms. Bazan asked if we had any other people who wanted to buy this house. Mr.
Vallejo replied that we did, but we take it in a first-come, first-served based, and we
don't submit the ones with problems to the Committee.
Ms. Bazan asked where we advertised this house. Mr. Vallejo said in the newspaper.
Ms. Asher asked it was advertised only for financing, cash or what. Mr Vallejo said
only for financing, and applicants must meet program guidelines.
Mr.Jones asked how the 515,000.00 minimum deferred works. Mr. Vallejo explained
that the money is being deferred until the title to the house changes, and applicants
must pay a minimum monthly payment of 810.00. Ms. Garcia also stated that the
minimum deferred only applies to the 62 or over applicants or the disabled. Mr.
Vallejo explained that the minimum deferred was to check the electrical was still safe
and plumbing was working, if the doors were broken and making sure house was safe
before the applicants move in.
Mr. Jones asked if the applicants buy the house as is. Mr. Vallejo said that we
considered advertising the house as is when first advertised, but then reconsidered
taking into account that if there were serious problems we couldn't ask the applicants
to fix the problems themselves especially if they didn't have the money to do the
work. We felt we wanted to place the family in a safe unit.
Ms. Bazan stated that it was a very good opportunity to help the applicants reduce the
40 4011
housing expenses from $75.00 vs $150.00 and that they have a good rent payment
history as far as the rent is concerned as long as they do it, they need an opportunity
to move into more adequate housing as well.
Ms. Bazan moved that the application be approved. It was seconded by Mr. Carter.
The motion was passed unanimously.
Mr. Vallejo presented a request for a loan for Alberta Montes. The City was selling
the house at 202 Cheyenne. Mr. Vallejo explained that the previous Owner passed
away and heirs lived out of state and didn't want to take care of the house. House
was a "shot-gun" house and was a three (3) room house. The loan was Foreclosed
on in September, 1988 and has been vacant since 1988. The house was small and
needed a single person to buy the house. We decided to demo the house and move
another house on the lot. A loan request for Alberta Montes, in the amount of
$21,000.00 at zero (0%) percent interest amortized over a 20-year period. The total
monthly payments will be 5150.00. The appraised value is $20,000.00. The present
monthly income is $842.00. Total assets is $6,031.00. Present fixed monthly
income is $114.00. Lowered housing expenses by $22.00. Monthly liabilities
$30.00, unpaid balance $200.00. Total payments after this loan is $407.00.
Mr. Jones asked that Ms. Montes has only worked for one year. Mr. Vallejo
confirmed. Mr. Jones asked what Ms. Montes did prior to working for the one year.
Ms. Garcia said that they would have to look at the file. Mr. Jones was wondering
if there was a rule of thumb of working for a number of years. Ms. Garcia said that
Ms. Montes had been working at another tortilla factory.
Ms. Vaughn asked what the employment requirement was, as far as the number of
months to be considered permanent. Mr. Vallejo replied that there was no requirement
for working a certain number of months. Mr. Vallejo also stated that FHA might
consider six (6) months as a permanent position.
Mr. Shamoun moved to approve the loan. It was seconded by Alynda Asher.
Mr. Jones asked about the 0%. Mr. Vallejo stated that the applicant was just paying
back the principal, and that the 0% was based on income.
Ms. Huegele stated that a motion was approved, and asked for the vote. The motion
was passed unanimously.
Mr. Vallejo presented a loan request for Jesus & Marie Moreno. City was selling the
house at 805 Elesa. Foreclosed on property twice. Originally purchased by a family
in 1985. Family got divorced and we foreclosed in 1989. One son tried to save the
house for his family. And he was approved for a loan by the Committee in 1991. We
then Foreclosed on the loan in March 1993. Advertised the house for sale and sold
quickly. A loan request for Jesus & Maria 0. Moreno, in the amount of $26,050.00
at three (3%) percent interest amortized over a 20-year period. The total monthly
410 V
payments will be $219.47. Monthly income at $1,611.00. Total assets $2,600.00.
Monthly fixed charges at $90.00. Housing expenses will be going down from
$391.00 to $334.00. Liabilities is $0.00. Total payments of this loan will be
$424.00.
Ms. Asher was concerned about the problem with Sunniland. Ms. Garcia stated that
the applicants went to Mexico and forgot about the payments until they came back.
Ms. Bazan made a statement that the payments were made late.
Mr. Jones asked what the original purchase was. Ms. Huegele replied that the original
purchase was $1,168.00 and paid off the charged balance of $222.00. Ms. Garcia
also stated that applicants paid in full.
Mr. Carter moved to approved the loan. Ms. Bazan seconded. The motion passed
unanimously.
Mr. Vallejo passed out the delinquency report and the month-by-month recap of loans.
Being no further business, Ms. Huegele asked for a motion to adjourn. Meeting was
adjourned at 12:33 p.m.