HomeMy WebLinkAboutC2024-312 - 7/23/2024 - Approved HOME SUBRECIPIENT AGREEMENT
between the
THE CITY OF CORPUS CHRISTI
And
COMMUNITY DEVELOPMENT CORPORATION OF BROWNSVILLE
THIS SUBRECIPIENT AGREEMENT ("Agreement") is entered into as of
fl�/12.12025 , byand between CITY OF CORPUS CHRISTI, a Texas home-
rule municipal corporation ("CITY"), and COMMUNITY DEVELOPMENT
CORPORATION OF BROWNSVILLE, a Texas nonprofit corporation, hereinafter
referred to as ("SUBRECIPIENT").
WHEREAS, as a participating jurisdiction in the HOME Investment Partnerships
Program ("HOME"), the CITY receives HOME funds from the United States
Department of Housing and Urban Development ("HUD") under Title II of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C., § 12701 et seq.), as
amended and updated through December 22, 2004, December 16, 2011, and July
24, 2013, Catalogue of Federal Domestic Assistance Number 14.239; and
WHEREAS, many low-income households lack the financial resources and have
difficulty securing affordable homeownership opportunities in the City of Corpus
Christi; and
WHEREAS, SUBRECIPIENT requested HOME funds from the CITY to administer
the City of Corpus Christi Homebuyer Assistance Program (" HBA Program")
targeting low- to-moderate income residents of the City of Corpus Christi; and
WHEREAS, SUBRECIPIENT estimates that $300,000 of HOME funds will be used
to provide down payment and closing cost assistance to 12 low income households
with up to $25,000.00 over the two (2) year term of this Agreement; and
WHEREAS, SUBRECIPIENT will use some of the funding for project delivery/soft
cost expenses of the Program; and
WHEREAS, the Program is an eligible use of HOME funds pursuant to 24 CFR
92.206; and as a nonprofit agency, SUBRECIPIENT is an eligible HOME subrecipient
pursuant to 24 CFR Part 92; and
WHEREAS, the Program has been determined to be a categorically excluded activity
pursuant to 24 CFR 58.35(b)(1) and is therefore not subject to the environmental
review provisions of 24 CFR 58.5; and
WHEREAS, the Program complies with the requirements of 24 CFR 58.6; and
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WHEREAS, SUBRECIPIENT shall ensure that households participating in the
Program purchase suitable units located in the CITY that meet housing and
occupancy standards and have reasonable mortgage terms and affordable
housing payments as defined herein; and
WHEREAS, a written agreement is required by HUD between HOME
subrecipients and HOME Participating Jurisdictions for the use of CITY HOME
funds, which is the subject of this Agreement; and
WHEREAS, CITY HOME funds are subject to certain agreements and conditions
as more particularly set out in this Agreement.
NOW, THEREFORE, it is agreed by and between the parties hereto, as follows:
1 . CITY HOME FUNDS
A. AMOUNT: In exchange for the satisfactory performance of this Agreement,
the CITY hereby agrees to disburse to SUBRECIPIENT the amount of
Three Hundred Thousand ($300.000)utilizing FY2025-PY2024HOME funds
("HOME Award") as detailed in Exhibit A ("Budget") and Exhibit A-1
(Timeline and Expenditures) (attached hereto and incorporated herein, and
as provided for in Section 3 below to assist a minimum of 12 families with
annual household incomes that do not exceed eighty percent (80%) of the
area median income as established by HUD annually. In the event
sufficient HOME funds for this Agreement are not available to the CITY,
this Agreement shall terminate and be of no further force and effect, and
SUBRECIPIENT shall hold the CITY harmless.
B. EFFECTIVE DATE: The effective date of this Agreement shall be the date it is
executed by CITY ("Effective Date"). This Agreement shall remain in effect for
two (2) years from Effective Date. The SUBRECIPIENT expressly agrees to
perform all work required by this agreement in accordance with the
Performance Schedule in Exhibit B.
2. CONDITIONS PRECEDENT
The CITY shall not disburse CITY HOME funds to SUBRECIPIENT (as
described in Section 3 below) until SUBRECIPIENT has executed and
delivered to the CITY this Agreement and proof of SUBRECIPIENT'S
insurance coverage pursuant to Exhibit C ("Standard Indemnification and
Insurance Provisions") attached hereto and incorporated herein.
3. DISBURSEMENT OF CITY HOME FUNDS
Subject to satisfaction ofthe conditions precedent provided above in Section
2, the CITY shall disburse CITY HOME funds to SUBRECIPIENT on a
reimbursement basis in accordance with this Agreement.
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A. ELIGIBLE HOUSEHOLDS: All HBA program participant households receiving
assistance shall be low-income households, purchasing residential property
located in the City of Corpus Christi, with annual household incomes that do
not exceed eighty percent (80%) of the area median income as established
annually by HUD ("Homebuyer"). Annual household income is hereby defined
as the combined household income that is anticipated by all adult members of
the household during the twelve (12) months following the effective date of
their acceptance to the Program ("Annual Household Income").
SUBRECIPIENT shall verify income for every Homebuyer; SUBRECIPIENT
agrees that if the Homebuyer has not closed on a home within 6 months of
income verification, that the Homebuyer's income will be re-verified prior to
receiving assistance from the Program.
B. ELIGIBLE COSTS: SUBRECIPIENT shall use CITY HOME funds as
described in this Section B ("Eligible Costs") to enable Homebuyers to
purchase decent and affordable housing.
1) Eligible activities: To provide HOME funding for assistance to
homebuyers through deferred subordinate financing, per 24 CFR
92.205(a) and (b).
2) Eligible project costs: To provide a maximum of $300.000 in HOME
funding for acquisition costs, including acquisition by homebuyers,
downpayment assistance, closing costs and principal buy downs per 24
CFR 92.206(c), and a maximum of $12,0001 in project delivery /soft
costs and no administrative costs per 24 CFR 92.206(d) and 24 CFR
92.207.The proposed project delivery/soft costs should be related to
project delivery costs, these costs include but are not limited to:
processing of applications for HOME assistance; appraisals required by
the HOME program regulations; preparation of work write-ups, work
specifications and cost estimates or review of these items if an owner
has had them independently prepared; project underwriting;
construction inspections and oversight; project document preparation;
costs associated with a project specific environmental review; costs
associated with informing tenants or homeowners about relocation
rights or benefits; costs to provide affirmative marketing and fair housing
information to prospective homeowners and tenants as required by 24
CFR 92.351 ; and, staff time such as preparing work specifications, loan
processing, inspections, and other services related to assisting potential
owners, tenants, and homebuyers. Administrative Cost(s) include but
are not limited to: operational overhead (utilities, insurance, phone
service, office supplies, copier leasing, building maintenance, audit
services, postage, printing, auto fuel, marketing, trainings, janitorial
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services, licenses fees, legal notices, accounting services, and
internet/web services) and administrative staff time, payroll taxes and
fringe benefits. Administrative costs not tied to a specific address will not
be allowed under this agreement.
C. EXPENDITURE SUMMARY AND PAYMENT REQUEST FORM:
SUBRECIPIENT shall submit to the CITY monthly, requests for disbursement
("Reimbursement Requests") of CITY HOME funds. The amount requested
shall be equal to the amount expended by SUBRECIPIENT for Eligible Project
Costs. The SUBRECIPIENT acknowledges that it may not request funds
disbursement until funds are needed for payment of eligible costs. The amount
of each disbursement request may not exceed the amount needed. All soft
costs that the SUBRECIPIENT is requesting reimbursement for shall be
submitted in such detail to associate the costs with a specific HOME-assisted
address. All administration costs will be reimbursed based on the approved
cost allocation plan and related to this contract. All project delivery/soft costs
will be capped at $12,000. No administration costs will be allowed.
D. TERMINATION DATE: The agreement shall terminate two years from the effective
date (the date it is executed by the City). Requests for reimbursement for the final
invoice must be submitted no later than 30 days before the termination date of the
agreement. The CITY will review, approve, and reimburse the SUBRECIPIENT
within 60 days of an approved request for reimbursement from the
SUBRECIPIENT.
E. NO PROGRAM INCOME RETAINED BYSUBRECIPIENT: Funds provided by
SUBRECIPIENT to Buyers consist of funding for deferred, forgivable loans for
the payment of Eligible Costs. Any repayment of HOME funds will be in the
form of a recapture or repayment by the CITY under 24 CFR 92.503.
4. CONDITIONS FOR USE OF CITY HOME FUNDS SUBRECIPIENT covenants
and agrees to conduct the following activities in operating the Program. Failure
to comply shall be an event of default under this Agreement.
A. PROGRAM POLICIES AND PROCEDURES
1) SUBRECIPIENT shall administer the Program as a homebuyer
assistance program in accordance with 24 CFR 92.
2) SUBRECIPIENT shall administer the Program in a manner
consistent with the HOME Investment Partnerships Program 2013
Final Rule, which is set forth at 24 CFR Part 92, dated July 24, 2013,
and consistent with any subsequent relevant amendments, policies,
procedures, guidelines and revisions established by HUD
(collectively, "HOME Regulations").
3) SUBRECIPIENT shall administer the Program in accordance with
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this Agreement and the written policies, procedures and standards
of the City of Corpus Christi Homebuyer Assistance Program and
attached exhibits ("Policies and Procedures"), attached as Exhibit
D, incorporated by reference and may be amended with review and
approval of the SUBRECIPIENT. In the event of a discrepancy
between the HOME Regulations and the provisions of this
Agreement including the Policies and Procedures and all Exhibits
attached hereto, the HOME Regulations shall apply.
B. SPECIFIC PROGRAM REQUIREMENTS: SUBRECIPIENT shall
comply with the following requirements in administering the Program:
1. Project requirements: SUBRECIPIENT shall implement the Program under the
applicable HOME homebuyer requirements at 24 CFR 92.254(a). Housing
assisted will be single family housing with a purchase price that does not
exceed 95 percent of the median purchase price for the area, as further defined
in 24 CFR 92.254(a)(2)(iii). The project must meet the requirements at 24 CFR
92, Subpart F (HOME project requirements) and 24 CFR 92, Subpart H (other
federal requirements). Assisted property must meet the applicable HOME
property standards at 24 CFR 92.251. Assisted property must meet the lead-
based paint hazard disclosure and remediation requirements as described in
Exhibit E.
2. Affordability requirements: Assisted housing units must meet affordability
requirements for not less than 5 years (if the amount of assistance is less than
$15,000). The Program will be implemented under the HOME recapture
requirements at 24 CFR 92.254(a)(5)(ii); the amount of assistance subject to
recapture includes any HOME assistance that reduced the purchase price form
fair market value to an affordable price, per 24 CFR 254(a)(5)(ii)(A)(5), and
may include the following amounts due at closing: down payment assistance,
principal reduction to the extent necessary to achieve required debt-to-income
ratios, prepaid taxes and insurance, and reasonable and necessary closing
costs, per the Policies and Procedures. The SUBRECIPIENT will determine
the amount of assistance necessary and reasonable, within the above limits,
to achieve the affordability ratios described in the Policies and Procedures,
using the Homebuyer Affordability Analysis, attached as Exhibit F, or a similar
affordability evaluation tool, with prior written approval by the CITY. The
SUBRECIPIENT may propose underwriting standards that are more affordable
than those presented in the Policies and Procedures, subject to prior written
approval by the CITY; similarly, the SUBRECIPIENT may propose exceptions
to achieve greater affordability, based on income, living expenses or other
considerations which, in the opinion of the SUBRECIPIENT, are necessary
and reasonable to maximize the likelihood of success of the Buyer, as long as
similar cases are treated similarly and any changes in underwriting standards
receive prior written approval by the CITY. Sale of Properties will be contingent
on the execution of a written agreement between the SUBRECIPIENT and the
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Buyer, per Section 4.B.4.i below, and attached as Exhibit G.
3. Recapture provisions: If the property owner (the original buyer) no longer
occupies the home as its principal residence, either voluntarily (sale) or
involuntarily (foreclosure), before the end of the affordability period, the
HOME funds that enabled the buyer to purchase the dwelling must be
repaid to the CITY. See 24 CFR 92.254(a)(5)(ii). Note, if the property owner
fails to reside in the HOME-assisted unit as its principal residence due to
noncompliance, then the Buyer must repay HOME funds to the
SUBRECIPIENT per the terms of the Homebuyer Assistance Contract
(Exhibit G) and the Deed of Trust and Note that will be provided by and
executed for the SUBRECIPIENT at closing. These funds would be
considered recaptured funds, per the terms of 24 CFR 92.503. The amount
subject to recapture cannot exceed the net proceeds; "net proceeds" are
the sales price minus superior loan repayments (other than HOME funds)
and any seller's closing costs. "Sales price" presumes an arm's length
transaction at market value; if the CITY determines that the sale has
occurred at less than market value, the CITY may, at its discretion, re-
compute the sale price to market value, at its discretion. To compute the
treatment of funds subject recapture, the SUBRECIPIENT will use the
"owner investment returned first" method, described at 24 CFR
92.254(a)(5)(ii)(A)(4). SUBRECIPIENT agrees that if the Homebuyer has not
closed on a home within 6 months of income verification, that the Homebuyer's
income will be re-verified prior to receiving assistance from the Program.
4. Written Agreements: SUBRECIPIENT shall ensure that an offer to purchase is
contingent on the execution of the Homebuyer Assistance Contract between
the Buyer and the SUBRECIPIENT.
i. Homebuyer Assistance Contract: The Homebuyer Assistance
Contract between the SUBRECIPIENT and the Buyer shall conform to
the requirements in 92.254(a), specifying the value of the property, the
principal residence requirement and the recapture provisions. In
addition, the agreement must specify the amount of HOME funds, the
form of assistance, the use of funds, and the time by which the housing
must be acquired. The Homebuyer Assistance Contract shall follow the
form of Exhibit G unless revised with the prior written approval of the
CITY.
5. Sponsorship: SUBRECIPIENT agrees to acknowledge the sponsorship of
the CITY at any event promoting the project or any other project sponsors. As
such, SUBRECIPIENT shall give credit to the CITY as the project funding
source in all presentations, written documents, publicity and advertisements
regarding the SUBRECIPIENT Homebuyer Assistance Program.
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6. HUD approved Homebuyer Class: SUBRECIPIENT agrees to ensure
homebuyer completes HUD approved Homebuyer Class prior to Homebuyer
Assistance.
7. Housing Quality Standards: SUBRECIPIENT agrees to conduct HUD required
Housing Quality Standard inspections for every home assisted.
8. NO CITY OBLIGATION TO BUYER: the CITY'S obligation is limited
exclusively to providing HOME funds to SUBRECIPIENT pursuant to the
terms of this Agreement. The CITY has no obligation, either express or
implied, to the Buyer. In the event HOME funds become unavailable to the
CITY, the CITY'S obligations under this Agreement shall cease, and this
Agreement shall terminate, as specified in Section 1 .A above.
9. REPAYMENT OF CITY FUNDS, RENTAL ASSISTANCE PAYMENTS AND
REVERSION OF ASSETS: So long as SUBRECIPIENT continues to operate
the Program pursuant to the terms and conditions of this Agreement,
SUBRECIPIENT is not required to repay the CITY HOME funds as long as the.
program remains in compliance. Any unspent HOME funds, and any accounts
receivable attributable to the use of HOME funds, remaining at the termination
of this Agreement shall revert back to the CITY.
10.PROGRAM ADMINISTRATION AND COMPLIANCE MONITORING
i. Records: SUBRECIPIENT shall maintain all records as may be
required to be kept pursuant to the terms of any law, regulation or
ordinance to which SUBRECIPIENT may be subject in the
performance of this Agreement, including, but not limited to, 24 CFR
92.508. Such records include, but are not limited to records for each
Buyer, including but not limited to source documentation used or relied
upon to determine income eligibility, all written agreements described
above in Section 4.B.4.i, and all financial transactions in any way
related to the Program. SUBRECIPIENT shall ensure that the use of
CITY HOME funds is in accordance with generally accepted accounting
principles. All Program-related files and records shall be made
available to the CITY at any time during regular working hours at the
request of the CITY. SUBRECIPIENT agrees to retain all records for a
period of at least five (5) years following SUBRECIPIENT's final
payment of Homebuyer Assistance pursuant to this Agreement or the
termination of this Agreement, whichever is later.
ii. Reports: SUBRECIPIENT shall prepare and deliver all data, reports
and records that the CITY and HUD may require or request.
iii. Audits: SUBRECIPIENT shall conduct annual audits in accordance
with 24 CFR 92.506, 24 CFR 84.26 and 85.26, and Uniform
Administrative Requirements, Cost Principles and Audit
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Requirements for Federal Awards codified at 2 CFR Part 200. If
SUBRECIPIENT spends $1,000,000 or more within its accounting
year in federal funds, it shall be subject to a single-audit according to
2 CFR Part 200.
iv. Review and Inspection by CITY: SUBRECIPIENT agrees that the CITY
shall have the right to review all records and inspect assisted homes to
ensure compliance under this Agreement. SUBRECIPJENT shall make
available to the CITY all records, files, reports and documents maintained
by SUBRECIPIENT pursuant to the terms of this Agreement. Any such
auditor review may be conducted by the CITY at any time during
SUBRECIPIENT's regular business hours upon seventy-two (72)
hours written notice by the CITY. SUBRECIPIENT shall also make
arrangements for inspection of assisted units by CITY staff upon five
(5) days written notice by the CITY.
V. Reimbursement for Improper Expenditures: If it is determined by
CITY that funds provided under the terms of this Agreement have
been used by or on behalf of SUBRECIPIENT in a manner or for a
purpose not authorized by this Agreement, SUBRECIPIENT shall, at
CITY'S request, pay to CITY within 120 days of the CITY request, an
amount equal to one hundred percent (100%) of all amounts
expended for unauthorized purposes or in an unauthorized manner,
including interest accrued on such amounts at the legal rate of interest
in effect at the time of the CITY'S request. This Section E.5 shall
survive the termination of this Agreement.
vi. Uniform Administrative Requirements: SUBRECIPIENT shall
comply with the applicable uniform administrative requirements as
described in Section 92.505 of the HOME Regulations.
5. EVENTS OF DEFAULT This Agreement will be in default should any of
the following events occur ("Event of Default"):
A) FAILURE TO COMPLY: If SUBRECIPIENT fails to comply with the
terms of this Agreement, the HOME Program Regulations, the
requirements of any applicable Annual Appropriations Acts, or any
terms of Notice of Funding Availability (NOFAs), grant agreements,
and awards whether stated in a Federal statute or regulation, an
assurance in a State plan or application, a notice of award or other
term or condition under this Agreement.
B) FAILURE TO USE FUNDS AS INTENDED: If SUBRECIPIENT fails
to use the funds for the Program as provided herein.
C) BANKRUPTCY: If SUBRECIPIENT has filed a petition under the
Bankruptcy Reform Act of 1978 (11 U.S.C., §§ 101 et seq.) or has
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taken or committed any act preparatory to the filing of any such
petition, or has become insolvent, or has committed any other act
of bankruptcy or insolvency.
6. RIGHTS AND OBLIGATIONS UPON EVENT OF DEFAULT The parties
shall have the following rights and obligations in the Event of Default:
A) NOTICE OF DEFAULT: Upon the occurrence of an Event of
Default described in Section 5.A or 5.13, CITY shall notify
SUBRECIPIENT in writing of such occurrence, including a
description of the Event of Default. Upon the occurrence of an
Event of Default described in Section 5.C, SUBRECIPIENT shall
notify CITY in writing of such occurrence, including a description of
the Event of Default.
B) CURE: SUBRECIPIENT shall be entitled to cure an Event of
Default as described in Sections 5.A and 5.13 above at any time
within three (3) months from the date on which the notice
described in Section 6.1 above is given to SUBRECIPIENT or to
commence to cure such default and diligently pursue such cure if
said cure cannot be completed in three (3) months; provided in
order to cure an Event of Default, SUBRECIPIENT shall be
required to reimburse CITY, within such three-month period, for
all reasonable expenses incurred by CITY in exercising its rights
and obligations, including funding and other obligations to HUD, in
connection with any such Event of Default. If SUBRECIPIENT so cures
any Event of Default, then this Agreement shall be reinstated and shall
remain in full force and effect as if such Event of Default had not
occurred.
7. REMEDIES
A) Remedies for Noncompliance: In case of an Event of Default that is
not timely cured, CITY shall have available any or all of the following
remedies:
1) Terminate this Agreement
2) Demand reimbursement pursuant to Section 6 above.
3) Suspend the current award for the SUBRECIPIENT'S
Program in whole or in part.
4) Take any other remedies that may be legally available.
8. TERMINATION the CITY may terminate this Agreement for any reason
with thirty(30) days prior written notice to the other party. Such termination
may be for convenience. Termination for convenience shall be carried out in
accordance with 24 CFR 92.504(c)(2)(ix) and 24 CFR 85.44. The
regulations found at 24 CFR 92.504(c)(2)(ix)and 24 CFR 85.43(c) shall apply
FY25-PY24 HOME—CDCB Homebuyer Agreement Page 9 of 18
to termination for cause upon an Event of Default as described in Section 5.
9. ASSIGNMENT PROHIBITION SUBRECIPIENT shall not assign its rights or
delegate its duties under this Agreement, without the prior written consent of
CITY, which consent may be withheld. Any sale, assignment, or other transfer
in violation of this Section 9 shall be null and void.
10. BINDING ON SUCCESSORS This Agreement shall bind and inure to the
benefit of the respective successors and assigns of the parties hereto that
are not prohibited by Section 9 above.
11. HOLD HARMLESS As an essential part of the consideration for this Agreement,
SUBRECIPIENT shall, in accordance with Exhibit C attached hereto and
incorporated herein and to the extent permitted by law, investigate, defend,
indemnify, and hold harmless CITY, its elected and appointed officials, officers,
employees, and agents, from and against any and all losses, damages,
liabilities, claims, demands, detriments, costs, charges, and expenses (including
reasonable attorneys' fees), and causes of action of whatsoever character,
which the CITY may incur, sustain, or be subjected to, related to, arising out of
or in anyway connected with this Agreement.
12. INSURANCE SUBRECIPIENT shall comply with the insurance and
indemnification provisions set forth in Exhibit C "Standard Indemnification
and Insurance Provisions" attached hereto and incorporated herein.
13. WORKERS' COMPENSATION SUBRECIPIENT shall provide Workers'
Compensation Insurance coverage for all of its employees involved in the
performance of this Agreement as set forth in Exhibit C "Standard
Indemnification and Insurance Provisions" attached hereto and incorporated
herein.
14. OTHER GOVERNMENT REQUIREMENTS SUBRECIPIENT agrees to
comply with all applicable federal, state and local laws, regulations, codes,
ordinances, guidelines, guidelines, directives, notices, bulletins, circulars,
policies, procedures and all applicable program requirements, and to all
amendments hereafter, including but not limited to the following:
A) The HOME Regulations found at 24 CFR Part 92, and any
amendments hereafter thereto, and
B) The requirements of 24 CFR 92.257 concerning religious or faith-
based organizations and agrees that funds provided under this
Agreement will not be utilized for inherently religious activities
prohibited by 24 CFR 92.257 including but not limited to worship,
religious instruction, or proselytization, and
C) The requirements of the Flood Disaster Protection Act of 1973 (42
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U.S.C., §§ 4001 et seq.) and the Coastal Barrier Resources Act (16
U.S.C., §§ 3501 et seq.), and
D) The provisions of the National Environmental Policy Act of 1969
(NEPA) (42 U.S.C., §§ 4321 et seq.), and applicable related Federal
laws and authorities at 24 CFR 50.4, and HUD's implementing
regulations at 24 CFR Part 58, and
E) The requirements of the Fair Housing Act (42 U.S.C., §§ 3601 et seq.)
and implementing regulations at 24 CFR Part 100 and Part 110;
Executive Order 11063 (Equal Opportunity in Housing) and
implementing regulations at 24 CFR Part 107; and Title VI of the Civil
Rights Act of 1964 (42 U.S.C., §§ 2000d et seq.) (Nondiscrimination
in Federally Assisted Programs) and implementing regulations issued
at 24 CFR Part 1 , and will affirmatively further fair housing and not
discriminate upon the basis of race, color, religion, ancestry, sex,
marital status, mental or physical disability, age, familial status, sexual
orientation, or national origin in the sale, lease, rental, use or
occupancy of dwellings receiving assistance pursuant to this
Agreement. The United States of America shall be deemed to be a
beneficiary of this provision both for its own right and also for the
purpose of protecting the interest of the community and other parties,
public or private, in whose favor or for whose benefit this provision has
been provided and shall have the right, in the event of any breach of
this provision, to maintain any actions or suits at law or equity or any
other proper proceedings to enforce the curing of such breach, and
F) The Age Discrimination Act of 1975 (42 U.S.C., §§ 6101 et seq.) and
implementing regulations at 24 CFR Part 146, which prohibit
discrimination because of age in programs and activities receiving
Federal financial assistance, and
G) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C., § 794), as
amended, and with implementing regulations at 24 CFR Part 8, which
prohibit discrimination based on handicap in Federally assisted and
conducted programs and activities, and
H) SUBRECIPIENT shall comply with 41 CFR Chapter 60, and 24 CFR
92.350, which references 24 CFR Part 5, subpart A, and
nondiscrimination requirements at 42 U.S.C., § 12832.
1) SUBRECIPIENT will not discriminate against any employee or
applicant for employment because of sex, race, religion, color or
national origin, ancestry, marital status, mental or physical
disability, age, or sexual orientation. SUBRECIPIENT will take
affinitive action to ensure that applicants are employed, and that
employees are treated during employment, without regard to their
sex, race, religion, color or national origin, ancestry, marital status,
mental or physical disability, age, or sexual orientation. Such
action shall include, but not be limited to the following:
FY25-PY24 HOME—CDCB Homebuyer Agreement Page 11 of 18
employment, upgrading, demotion, or transfer; recruitment,
recruitment advertising; layoff or termination; rate of pay orother
forms of compensation; and selection for training, including
apprenticeship. SUBRECIPIENT agrees to post in conspicuous
places, available to employees and applicants for employment,
notices setting forth the provisions of this non-discrimination
clause.
2) SUBRECIPIENT will, in all solicitations or advertisements for
employees placed byoron behalf of SUBRECIPIENT, state that
all qualified applicants will receive consideration foremployment
without regard to sex, race, religion, color or national origin,
ancestry, marital status, mental or physical disability, age, or
sexual orientation.
1) Applicability of Uniform Administrative Requirements
1) Governmental subrecipients shall abide by the policies,
guidelines, and requirements of the Uniform Administrative
Requirements, Cost Principles and Audit Requirements for
Federal Awards as indicated at 2 CFR Part 200, and
2) Non-profit subrecipients shall abide by the policies, guidelines
and requirements of the Uniform Administrative Requirements,
Cost Principles and Audit Requirements for Federal Awards as
indicated at 2 CFR Part 200, 24 CFR Part 84 (Uniform
Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals, and other Non-
Profit Organizations) as indicated at 24 CFR 92.505(b) as
follows: 84.2, 84.5, 84.13-16, 84.21-22, 84.26-28, 84.30-31,
84.34-37, 84.40-48, 84.51 , 84.60-62, 84.72 and 84.73, in
addition to 40 CFR Part 30, and,
J) The Drug-Free Workplace Act of 1988 (41 U.S.C., §§ 8102 et seq.)and
HUD's implementing regulations at 2 CFR Part 2429 in addition to the
CITY's Drug-Free Workplace Policy, and
K) The requirements of the Lead-Based Paint Poisoning Prevention Act
(42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing
regulations at 24 CFR Part 35, and
L) Conflict of interest provisions in accordance to Exhibit H and referred
to in 24 CFR 92.356, 24 CFR 85.36, 24 CFR 84.42, and Section 530
of the Notice of Program Guidelines 56 F.R. 4458, which provide that
no person who is an employee, agent, consultant, officer, or elected or
appointed official of the entity and who exercises or has exercised any
functions or responsibilities with respect to assisted activities, or who
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is in a position to participate in a decision-making process or gain
inside information with regard to such activities, may obtain a financial
interest or benefit from the activity, or have an interest in any contract,
subcontract, or agreement with respect thereto, or the proceeds
thereunder, either for himself or herself or for those with whom he or
she has family or business ties, during his or her tenure or for one year
thereafter, and
M) The requirements of Section 104(d) of the Housing and Community
Development Act of 1974 (42 U.S.C., §§ 5304), if applicable, or the
requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C, §§ 4601 et seq.).
N) SUBRECIPIENT will cause the foregoing provisions of this Section 14
to be inserted into all contracts and subcontracts for any work covered
by this Agreement so that such provisions will be binding upon such
contractors and subcontractors, provided that the foregoing provisions
shall not apply to contracts or subcontracts for standard commercial
supplies or raw materials.
15. WARRANTIES
Subrecipient warrants and represents to City the following:
(a) Subrecipient, is a nonprofit, is duly organized, validly existing, and in good
standing under the laws of the State of Texas and further has all corporate
power and authority to carry on its business as presently conducted in
Texas.
(b) Subrecipient has the authority to enter into and perform, and will perform,
the terms of this Agreement.
(c) Subrecipient has timely filed and will timely file all local, State, and Federal
tax reports and returns required by law to be filed and has timely paid and
will timely pay all assessments, fees, and other governmental charges,
including applicable ad valorem taxes, during the term of this Agreement.
(d) If an audit determines that the request for funds was defective under the
law or the terms of this agreement, Subrecipient agrees to either correct
and resubmit the request for funds within 60 days of notice of defect or
reimburse the City for the sums of money not authorized by law or this
Agreement.
(e) The parties executing this Agreement on behalf of Subrecipient are duly
authorized to execute this Agreement on behalf of Subrecipient.
(f) Subrecipient does not and agrees that it will not knowingly employ an
undocumented worker. If, after receiving payments under this Agreement,
FY25-PY24 HOME—CDCB Homebuyer Agreement Page 13 of 18
Subrecipient is convicted of a violation under 8 U.S.C. Section 1324a(f),
Subrecipient shall repay the payments received for that year not later than
the 120th day after the date Subrecipient has been notified of the violation.
This obligation will survive the termination of this Agreement.
16. CERTIFICATIONS SUBRECIPIENT certifies that:
A) No Federally appropriated funds have been paid or will be paid, by or
on behalf of the undersigned, for lobbying the Executive or Legislative
Branches of the Federal Government. (Refer to the government-wide
common rule governing the restrictions on lobbying, published as an
interim rule on February 26, 1990 (55 FR 6736) and supplemented by
a Notice published June 15, 1990 (55 FR 24540). For HUD, this rule
is found at 24 CFR Part 87.
B) In accordance with the Federal requirements set forth in 24 CFR Part
5, Subpart A, SUBRECIPIENT and its principals (a) are not presently
debarred, suspended, proposed for debarment or suspension,
declared ineligible, or involuntarily excluded from covered transactions
(see 24 CFR Part 24; 2 CFR Part 2424) by any Federal department or
agency; (b) have not within a three-year period preceding the effective
date of this Agreement been convicted of or had a civil judgment
rendered against them for commission of embezzlement, theft,
forgery, bribery, falsification or destruction of records, making false
statement or receiving stolen property; (c) are not presently indicted
for or otherwise criminally or civilly charged by a governmental entity
(Federal, State or local) with commission of any of the offenses
enumerated in (b) of this certification; and (d) have not within a three
year period preceding the effective date of this Agreement had one or
more public transactions (Federal, State or local) terminated for cause
or default. If SUBRECIPIENT is unable to certify to any other
statements in this certification, SUBRECIPIENT shall attach an
explanation to this Agreement.
17. NOTICE Whenever any notice is permitted or required by this Agreement, such
notice shall be deemed to have been given and received when personally
delivered, or three (3) days after it is mailed if mailed by United States mail,
certified, return receipt requested, to the parties at the addresses listed below or
such other addresses as the parties hereafter designate in writing:
To
SUBRECIPIENT: Community Development Corporation of Brownsville
Santa Fe Street
Corpus Christi, TX. 78404
To CITY: City of Corpus Christi
P.O. Box 9277
1201 Leopard Street, Corpus Christi, Texas
78469-9277
FY25-PY24 HOME—CDCB Homebuyer Agreement Page 14 of 18
18. GENERAL PROVISIONS
A) SEVERABILITY. In case any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement, but this Agreement
shall be construed as if such invalid, illegal or unenforceable provisions
had not been contained herein.
B) INTERPRETATION. ThisAgreement shall be interpreted in accordance
with and governed by the laws of the State of Texas. The language in
all parts of this Agreement shall be, in all cases, construed according
to itsfairmeaning and not strictly for or against CITY orSUBRECIPIENT.
C) SINGULAR AND PLURAL. As used herein, the singular of any word
includes the plural.
D) GOVERNING LAW AND VENUE. This Agreement shall be governed by
and construed in accordance with the laws of the State of Texas, and the
sole legal venue for construction of this agreement will be in a court in
Nueces County, Texas.
E) WAIVER OF PERFORMANCE. Failure of a party to insist upon the strict
performance of any of the provisions of this Agreement by the other
party,, or the failure of a party to exercise any right upon the default of the
other party, shall not constitute a waiver of such parties' rights to insist
and demand strict compliance by the other party with the terms of this
Agreement thereafter.
F) NO THIRD PARTY BENEFICIARIES. This Agreement is made and
entered into for the sole protection and benefit of the parties and their
successors and assigns. No other person shall have any right of action
based upon any provision of this Agreement.
G) COUNTERPARTS. This Agreement may be executed by the parties in
counterparts, which counterparts shall be constructed together and
have the same effect as if all the parties had entered the same
instrument.
H) CORPORATE AUTHORITY. The person(s) executing this Agreement
on behalf of each of the parties hereto represent and warrant that(i)such
party, if not an individual, is duly organized and existing, (ii)they are duly
authorized to execute and deliver this Agreement on behalf of said party,
(iii) by so executing this Agreement such party is formally bound to the
provisions of this Agreement, and (iv)entering into this Agreement does
not violate any provisions of any other agreement to which such party is
bound.
1) ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between CITY and SUBRECIPIENT with respect to the
subject matter hereof and supersedes all prior agreements and
negotiations, oral and written. This Agreement may not be amended or
modified in any respect whatsoever except by an instrument in writing,
approved by the CITY and signed by CITY and SUBRECIPIENT.
19. EFFECTIVE DATE. The effective date of this AGREEMENT shall be
05/19/9095 , such date being the date the City of Corpus Christi entered
into this AGREEMENT with SUBRECIPIENT and shall terminate on the day
of 12027.
EXECUTED by the Parties to this Subrecipient Agreement as provided below.
ATTEST: City of Corpus Christi
R,40-6c� Ha&rt� � A l�
Rebecca Huerta(May 12,2025 16:52 CDT) Daniel McGinn(pay 12,2025 11:40 CDT)
Rebecca Huerta, City Secretary Daniel McGinn, Director
Planning and Community Development
ATTEST: Community Development Corporation of
Brownsville
.
P)-- . . (0=
Chartes-lq Mitchell(May 12,2025 11:21 CDT) Charle-s-n Mitchell(May 12,202511:21 CDT)
(Corporate Seal)
Name:
Title:
APPROVED AS TO FORM: 05/12/2025
Jac u line Salinas-Baz n(May 12,2025 11:18 CDT)
Jacqueline Salinas-Bazars Ord. 033416 Authorized By
Assistant City Attorney Council 7-23-2024
R /f 5
RH RHSB
EXHIBITS
Exhibit A: Budget
Exhibit B: Project Schedule
Exhibit C: Standard Indemnification and Insurance Provisions
Exhibit D: Homebuyer Assistance Program Policies and Procedures
Exhibit E: Lead-Based Paint Disclosure and Remediation
Exhibit F: Homebuyer Affordability Analysis Worksheet and Instructions
Exhibit G: Homebuyer Assistance Contract and Form Deed of Trust
Exhibit H: Conflict of Interest
EXHIBIT A
PROGRAM BUDGET & SCHEDULE
Funding: FY25PY24 HOME Program
Organization: Community Development Corporation of Brownsville
Project Name: Corpus Christi HomebuyerAssistance Program
Prepared by: Community Development Corporation of Brownsville Rev. Date: 04/25/2025
PRELIMINARY PROGRAM BUDGET
Program Financial Resources:
(Funds available to complete your project)
AMOUNT
• Fund FY25PY24 HOME Program ..................................... $Community
• Other Committed Funding (Charity League) ..................... $ 0.00
• Capital Contribution from Agency................................ $ 0.00
Other( N/A ) ....................................................... $_0.00
• TOTAL FUNDS AVAILABLE FOR PROJECT.................... $ 300,000
Estimated Expenses to Deliver/Complete Program:
List estimated expenses to complete your iproiect such as:
Line Item HOME Grantee Total
Administrative Cost
Personnel $10,200 $10,200
Fringe Benefits
Utilities
Rent
Internet/Communications
Supplies/Materials
Direct Client Services $289,800 $289,800
Printing
Travel
Insurance
Professional Services
Food/Snacks (Beneficiaries Only)
Equipment/Computers
Capital Purchase
Other Non-Personnel
TOTAL $300,000 $300,000
NOTE: "Total Funds Available for Program" shall be equal to "Total Program Cost"
A FINALIZED Budget Schedule shall be submitted ten (10)days prior to program commencement,which must include a
budget with detailed cost of project and detailed schedule of program from start to completion date, to be substituted for
"EXHIBIT A"of your City Agreement.
EXHIBIT A-1
TIMELINE AND EXPENDITURES
Project No:Various
Project Title: City of Corpus Christi- Homebuyer Assistance Program
Agency:Community Development Corporation of Brownsville
Contract Period: May 1 st, 2025 - April 30th, 2027
Month Year Milestones Draw Amounts Outcomes
Program Marketingand cdcb begins building a pipeline of
May 2025 outreach Begins $ 0.00 clients
June 2025 4 new intake applications $ 0.00 N/A
3 HBA loans closed,3 ins ections
July 2025 completed p $ 0.00 N/A
August 2025 3 draw requests submitted $ 75'000 00 3newfirsttime homeowners
w created
September 2025 4 new intake applications $ 0.00 N/A
3 HBA loans closed,3 ins ections
October 2025 completed p $ 0.00 N/A
November 2025 3 draw requests submitted $ 75,000.00 3 new first time homeowners
created
December 2025 4 new intake applications $ 0.00 N/A
January 2026 3 HBA loans closed,3 $ 0 00 N/A
inspections completed
equests submitted,4 new 3 new first time homeowners
3 draw r
February& March 2026 intake applications $ 75,000.00 created
April 2026 3 HBA loans closed,3 $ 0 00 N/A
inspections completed
May 2026 3 draw requests submitted d 7C'000 00 3 newfirsttime homeowners
.I7 5 created
TOT $ 300,000.00 12 new Homeowners created
Add rows as necessary to reflect proiect contract period.
In addition to the information provided by here, the City may require a more detailed budget
breakdown than the one contained herein, and the Subrecipient shall provide such
supplementary budget information in a timely fashion in the form and content prescribed by
the City.
EXHIBIT B
HUD HOME Buyer Down Payment Assistance Program Schedule
Activity Duration Description
Preliminary evaluation by a mortgage
Lender Pre-Approval Ongoing lender to determine if you qualify for a
loan and how much you can borrow.
Application Period 1 month Open application period for eligible
buyers to submit their applications.
Review of applications to determine
Application Review 2 weeks eligibility based on income and other
criteria.
Mandatory homeownership
Homebuyer Education 1 month education course for eligible
a licants.
Property Search 2 months Buyers search for a home that
meets program requirements.
Approval of the buyer's loan,
Loan Approval/Review 2 weeks including down payment assistance.
Home Inspection & Appraisal 1 month Inspection and appraisal of the
selected property.
Review of potential environmental
Environmental Review 1 month impacts in accordance with National
Environmental Policy Act (NEPA)
and related laws and authorities.
Preparation of all necessary
Closing Preparation 1 month documents and finalizing details for
closin .
Closing 1 day Finalization of the home purchase
and disbursement of funds.
Follow-up with buyers to ensure
Post-Closing Follow-Up 1 month successful transition into
homeownership.
EXHIBIT C
SUBRECIPIENT INSURANCE DOCUMENTATION
Prior to the execution of the contract by CITY and before commencement of
any activities or work under this contract, SUBRECIPIENT has furnished original
proof of insurance to the CITY's Risk Management Department, including
completed/current Certificate(s) of Insurance, endorsements, exclusions, and/or
relevant extracts from the insurance policy, or copies of policies.
THE UNDERSTATED CERTIFIES THAT:
The SUBRECIPIENT will maintain the previously submitted insurance policies
approved by the CITY's Risk Management Department, in accordance with
insurance requirements listed in this AGREEMENT, for the entire duration of this
AGREEMENT and will notify the CITY to any changes in coverage.
(Community Development Corporation of Brownsville)
By. Charles-lq Mitchell(May 12,2025 11:21 CDT)
Signature
Printed Name and Title: C h a rl A c N h4 i tr_h A l l C F Q
Date Signed: 05/17/70?5
DATE(MM/DD/YYYY)
A�" CERTIFICATE OF LIABILITY INSURANCE 4/24/2025
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER CONTACT Judith Gomez
NAME:
Higginbotham Insurance Agency Inc. PHONE FAX 956-668-3510
1400 N McColl Rd Ste 105 A/C,No,Ext: 956-668-3510 A/c,No
McAllen TX 78501 ADDRESS: 19omez@higginbotham.net
INSURER(S)AFFORDING COVERAGE NAIC#
License#:2081754 INSURERA:Scottsdale Insurance Company 41297
INSURED COMMDEV-01 INSURERB: United Fire Lloyds 43559
Community Development Corporation of Brownsville INSURERC:Texas Mutual Insurance Company 22945
901 E. Levee Street
Brownsville TX 78520-5164 INSURERD:Lloyd's 15642
INSURER E:
INSURER F:
COVERAGES CERTIFICATE NUMBER:357517923 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR I ADDL SUBR POLICY EFF POLICY EXP
LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY)I (MM/DD/YYYY) LIMITS
A X COMMERCIAL GENERAL LIABILITY CPS8078748 9/30/2024 9/30/2025 EACH OCCURRENCE $1,000,000
I �J CLAIMS-MADE I X I OCCUR PREMISES(Ea oocE ence) $10Q000
MED EXP(Any one person) $5,000
PERSONAL&ADV INJURY $Excluded
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000
HPOLICY a ECT LOC PRODUCTS-COMP/OP AGG $Excluded
OTHER:
B AUTOMOBILE LIABILITY 60535583 9/30/2024 9/30/2025 COMBINED SINGLE LIMIT
(Ea accident) $1,000,000
v I ANY AUTO
AUTOS ONLY SCHEDULED BODILY INJURY(Per person) $
ONEDBODILY INJURY(Per accident) $
AUTOS
I u A HIRED ONLY a NON-OWNED
PROPERTY DAMAGE $Per
accident)
A UMBRELLA L1AB X OCCUR CXS4034171 9/30/2024 9/30/2025 EACH OCCURRENCE $5,000,000
X EXCESS LIAB I CLAIMS-MADE AGGREGATE $5,000,000
DED RETENTION$ $
C WORKERS COMPENSATION 0001161821 9/30/2024 9/30/2025 X PER
PRµ
AND EMPLOYERS'LIABILITY YIN
ANYPROPRIETOR/PARTNER/EXECUTIVE ❑ E.L.EACH ACCIDENT $1,000,000
OFFICER/M EMBER EXCLUDED? N/A
(Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $1,000,000
If yes,describe under
DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $1,000,000
D Fidelity/Crime;Other Causes MBBA-24-00090 9/30/2024 9/30/2025 Employee Dishonesty 500,000
Policy Aggregate 500,000
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 1 D1,Additional Remarks Schedule,may be attached if more space is required)
The Auto policy includes:
Business Auto Ultra Endorsement-Form CA 71 09 which provides Additional Insured Status and Waiver of Subrogation when required by contract
Primary And NonContributory-Other Insurance Condition-Form CA 04 49-Applies when required by contract
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
City of Corpus Christi ACCORDANCE WITH THE POLICY PROVISIONS.
Attn: Risk Manager
P.O. Box 9277 AUTHORIZED REPRESENTATIVE
Corpus Christi TX 78469-9277
@ 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD
EXHIBIT C
INSURANCE REQUIREMENTS
I. CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this contract until all insurance required has been obtained
and such insurance has been approved by the City. Contractor must not allow any subcontractor, to
commence work until all similar insurance required of any subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager and Contract Administer one (1) copy of Certificates
of Insurance with applicable policy endorsements showing the following minimum coverage by an
insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional
insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation
endorsement is required on all applicable policies. Endorsements must be provided with Certificate of
Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-day advance written notice of Bodily Injury and Property Damage
cancellation, non-renewal, material change Per occurrence - aggregate
or termination required on all certificates
and policies.
CRIME/EMPLOYEE DISHONESTY $300,000 Per Claims Made
Contractor shall name the City of Corpus
Christi, Texas as Loss Payee
C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager
with copies of all reports of any accidents within 10 days of the accident.
II. ADDITIONAL REQUIREMENTS
A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a
licensed insurance company. The coverage must be written on a policy and endorsements approved by the
Texas Department of Insurance. The workers' compensation coverage provided must be in statutory
amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All
States Endorsement shall be required if Contractor is not domiciled in the State of Texas.
B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any
extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by
companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of
no less than A- VII.
C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract
and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be
given to City at the following address:
City of Corpus Christi
Attn: Risk Manager
P.O. Box 9277
Corpus Christi, TX 78469-9277
D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to
contain or be endorsed to contain the following required provisions:
• List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement
with regard to operations, completed operations, and activities of or on behalf of the named insured
performed under contract with the City, with the exception of the workers' compensation policy;
• Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi
where the City is an additional insured shown on the policy;
• Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of
the City; and
• Provide thirty(30)calendar days advance written notice directly to City of any, cancellation,non-renewal,
material change or termination in coverage and not less than ten(10) calendar days advance written notice
for nonpayment of premium.
E. Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage,
Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City
shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time
during this contract. Failure to provide and to maintain the required insurance shall constitute a material
breach of this contract.
F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any
insurance or policy endorsements to the extent and within the time herein required, the City shall have the
right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to
Contractor hereunder until Contractor demonstrates compliance with the requirements hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be
held responsible for payments of damages to persons or property resulting from Contractor's or its
subcontractor's performance of the work covered under this contract.
H. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any
insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations
under this contract.
I. It is understood and agreed that the insurance required is in addition to and separate from any other
obligation contained in this contract.
2024 Insurance Requirements Exhibit
Professional Services—Crime-Employee Dishonesty
08/01/2024 Risk Management—Legal Dept.
Exhibit D
Come Dream Come Build
Home Buyer Assistance Program
Policies and Procedures
Revised 03.25
2 Exhibit D
Home Buyer Assistance Program Term Sheet
Total Amount of Funds Available: $300,000
Funding Source: City of Corpus Christi HOME Funds
Individual Loan Amount: Maximum: $25,000
Minimum: $1,000
Lender Eligibility: Shall be City of Corpus Christi lender and the
interest rate shall NOT exceed 2% of the
highest Freddie Mac rate or highest Treasury
rate quoted plus 200 basis points.
Type of Loan: 0% interest deferred loan (Deferred Forgivable 2nd
Lien) repayable upon resale, or completion of the
first lien within affordability period. Second lien
held by the City. Funds will be provided only when
used with mortgages from participating lenders.
Debt to Income Ratios: Homebuyers cannot exceed the following debt
to income ratios: New Home 35% (Mortgage
payment to income, 45% (Total fixed debt
payments to income). To prove buyer can
afford & sustain the payment throughout
affordability 10yrs.) Responsible Lending)
Borrower Eligibility: First-time Homebuyer (can't have owned a
home in the past three (3) years). The Buyer's
household income must not exceed 80% of
area median income (AMI). Must have a credit
score of 600 or greater.
Borrower Responsibility: Live in the home as principal place of
residence throughout duration of the
affordability period. Provide a minimum
Investment of $1,000 to be deposited at a
Title Company (If the client owns or is paying
on a lot and owes $5,000 or less, the lot may
be considered their
family participation.)
Property Requirements: Cost of housing capped at 95% of the median
area purchase price, as determined by HUD.
Homes must pass CDCB's inspection.
Geographic Area: Funding is available within the city limits of
Corpus Christi, Texas.
3 Exhibit D
First-Time buyer:
1) An individual who has had no ownership in a principal residence during the three year period
ending on the date of purchase of the property.
2) A single parent who has only owned with a former spouse while married.
3) An individual who is a displaced maker and has only owned with a spouse.
4) An individual who has only owned a principal residence not permanently affixed to a permanent
foundation in accordance with applicable regulations.
5) An individual who has only owned a property that was not in compliance with State, local
building codes and which cannot be brought into compliance for less than the cost of
constructing a permanent structure.
4 Exhibit D
PROGRAM OVERVIEW
As a result of current housing values, ownership is just out of the reach of many low and moderate-
income families. Although many of these families can qualify for a mortgage loan, they do not have the
required initial investment needed for mortgage loan closing and down payment. CDCB Home buyer
Assistance {HBA) Program is designed to assist these families to realize ownership of new or existing
single-family home by providing them with the needed down payment and closing cost assistance.
HBA funds may be used only for closing and/or down payment costs including principal reduction. The
CDCB uses funds to provide a limited number of deferred loans available each year; qualified
applicants will receive their financial award on a first come, first served basis. This program has been a
key in expanding levels of ownership, both among the general population and among groups which
historically have been denied the ability to purchase their own homes.
ELIGIBILITY:
To be eligible for participation in the HBA Program, a potential buyer must meet all of the following
criteria, which are reviewed and certified by CDCB program staff:
• The family's gross annual household income may not exceed eighty percent (80%) of the Area
Median Income adjusted for family size, established by the U.S. Department of Housing & Urban
Development{HUD Part 5 Income Definition).
• Participants shall, at a minimum, initially pay $1,000, which will cover the initial mortgage
application processing expense. Or if they owe $5,000 or less on a lot, the equity on that lot may
be used to meet the Family Participation requirement.
• Participants cannot currently own or have owned a home in the immediate prior three (3) years.
All residency documents must include the applicant's name and address and be dated 12
months prior.
Examples of proof of residency include:
• Lease agreement
• Valid Texas driver's license or ID card
• Bank statement
• Property tax statement or receipt
• Utility bill
• Employer statement with employment date
• The home to be purchased or constructed must be located within the city limits of Corpus
Christi, Texas and must be occupied as their principal residence.
• In order to prevent buyers from getting into a home they cannot afford, buyers cannot
exceed established debt to income ratios. Participants must qualify for a mortgage and with
underwriting ratios of no more than 35% - 45% for existing homes (Mortgage payment-to-
income/Total fixed debt payments-to- income). The "Buyer Affordability Analysis
Worksheet" attached as Exhibit E shall be used to calculate and document affordability.
5 Exhibit D
o The value of the property must not exceed (95%) of the median area purchase
price determined by HUD. HUD annually updates the median area purchase price.
(See Exhibit F).
o Must have a valid, pre-approved conditional mortgage commitment letter from the
lender stipulating the need for assistance.
o Must have a minimum one-year history of employment.
TYPE OF ASSISTANCE:
The HBA Program funds are originated as a second mortgage on the property, running concurrently
with the first mortgage. These costs are eligible as acquisition costs and may include the following
costs:
o Minimum required down payment to secure a mortgage loan.
o Required closing cost, not including discount points
o Required pre-paid hazard insurance premium and escrow
o Required pre-paid real property taxes.
o Necessary and reasonable principal reduction to ensure an affordable mortgage
payment
MAXIMUM ASSISTANCE:
Assistance shall not exceed a maximum of$25,000 dollars and shall be the minimum down payment
required for closing, following deduction of costs covered by family participation. Family participation
in the program will amount to a minimum of$1,000 dollars, to commence application process for
financing outside of closing. The level of assistance is based on the gap between the purchase price
of the home and the approved mortgage loan, not to exceed $20,000 in down payment and $5,000 in
closing costs.
Borrower Underwriting
To be eligible for participation in the HBA Program, a potential homebuyer must meet all of the
following criteria, which will be reviewed and certified by CDCB and approved by the City:
a) The family's gross annual household income may not exceed eighty percent (80%) of the Area
Median Income adjusted for family size, established by the U.S. Department of Housing &
Urban Development (HUD) (See Exhibit C).
b) Participants must have a credit score of 600 or greater.
Participants shall, at a minimum, initially pay $1,000, which will cover the initial mortgage
application processing expense. Or if they owe $5,000 or less on a lot, the equity on that lot
may be used to meet the Family Participation requirement. Documented costs (e.g. an
appraisal) "paid outside of closing" by the buyer will be credited toward this requirement.
Participant must also have minimum cash reserve available post purchase: must have
sufficient cash resources (including savings, checking's, money market, or other non-
retirements accounts) such that after closing there are financial resources of at least I time the
monthly housing expenses (including principal, interest, taxes, insurance.)
c) Obtain a mortgage loan that meets the Responsible Lending Policy. In order to prevent
homebuyers from getting into a home they cannot afford, homebuyers cannot exceed
established debt to income ratios. Participants must qualify for a mortgage and with
underwriting ratios of no more than 35/48 for new homes and 35/48 for existing homes
(Mortgage payment-to-income/Total fixed debt payments-to- income. At its sole discretion, the
City has the authority to approve a higher ratio for good cause. For underwriting, the rate
cannot exceed 2% of the highest Freddie Mac rate or highest treasury rate quoted. The
6 Exhibit D
monthly housing expenses (front-end ratio) is at least 35% of their monthly underwriting
Income. Even when the assisted buyers are willing to take on a larger monthly payment and a
lender Is willing to exceed these ratios, City of Corpus Christi has determined that Low Income
buyers are less likely to be able sustain homeownership over the period of affordability and will
put the HOME funds at unacceptable risk. The minimum front-end ratio is to avoid over-
subsidization of homebuyers (excessive assistance to households to with high levels of other
non-housing debt). In all cases, the buyer must still spend at least the percentage of their
Income listed above toward housing costs (minimum front-end ratio) without requiring
assistance In excess of the maximum assistance limit, even with reductions in mortgage
capacity due to this consideration of other expenses.
d) Invest liquid assets in excess of$25,000.00 toward the purchase of the home before receiving
HOME assistance. Liquid assets, however, exclude life insurance policies and only savings
held in a tax-preferred retirement account (e.g. pension, 401(k), IRA, etc.). college savings
plan (e.g. 529 account), or health savings account recognized by the Internal Revenue Service
e) Participants cannot currently own or have owned a home in the immediate prior three (3)
years.
f) The home to be purchased or constructed must be located within Corpus Christi city limits and
must be occupied as their principal residence. CDCB Staff will conduct occupancy verification
annually throughout the duration of the Affordability Period, which may include site visits from
CDCB staff. Participants must provide proof of occupancy by responding to CDCB requests to
provide copies of utility bills or other documentation to verify residency.
The "Homebuyer Affordability Analysis Worksheet." attached as Exhibit D, shall be used to
calculate and document affordability. For households at 60-80 percent AMI, HBA may be used
to get housing debt down to 25% of income; for households less than 60% AMI. HBA may be
used to get housing debt down to 20% AMI, households under 40% should be reviewed
carefully for low consumer debt.
g) The value of the property must not exceed (95%) of the median area purchase price for
homes. as determined by HUD. HUD annually updates the median area purchase price. (See
Exhibit C). The purchase of the home may not exceed the fair market value as determined by
a third-party appraisal.
h) Must have a valid, pre-approved conditional mortgage commitment letter from the lender
stipulating the need for assistance.
i) Must have a minimum one-year history of employment.
RECAPTURE/RESALE PROVISIONS (24 CFR 92.254(a)(5)(ii).
If the property owner (the original buyer) no longer occupies the home as its principal residence,
either voluntarily (sale) or involuntarily (foreclosure), before the end of the affordability period, the
funds that enabled the buyer to purchase the dwelling must be repaid to the CDCB or other funder
holding 2nd lien. Note, if the property owner fails to reside in the assisted unit as its principal residence
due to noncompliance, then the Buyer must repay the funds to CDCB or other 2nd lien holder per the
terms of the buyer Assistance Contract and the Deed of Trust and Note that will be executed at
closing.
In compliance with HUD 24 CFR 92.254, the City of Corpus Christi shall require that Resale
provisions be used in the event that only a Development Subsidy is used to make the home
affordable (i.e. funding construction to the developer). In a project where both Development and
Direct subsidies are provided, recapture provisions apply.
7 Exhibit D
Resale provisions require the homeowner to sell to another low-income homebuyer if applicable. The
resale requirement must ensure that the price at resale provides the original HOME-assisted owner a
fair return on investment and ensure that the housing will remain affordable to a reasonable range of
low-income homebuyers as defined below:
Affordable to range of low-income homebuyers (As it relates to the Resale Provision only): That
which is affordable to a family earning 80% AMI and below and that who do not pay any more than
35% their gross income for PITI (Principle, Interest, Tax, and Insurance).
Fair Return on Investment (As it relates to the Resale Provision only): A Homeowner can sell the
home during the affordability period according to the following chart:
Fair Return on Investment(as it relates to Resale Provisions only)
Years Lower Range Max Limit
Year 1-5 of Affordability A Homeowner can sell the Current(as of the date of sale)
Period home during the affordability Affordable Home Price as
period for no more than 15% established by HUD for the
over Nueces County Appraisal HOME Homeownership value
District appraisal value limits for the City of Corpus
Christi
Year 6-15 of Affordability No Cap on appreciation rate Current(as of the date of sale)
Period Affordable Home Price as
established by HUD for the
HOME Homeownership value
limits for the City of Corpus
Christi
Homeownership projects undertaken using the resale provision shall use deed restrictions, covenants
running with land, or other similar mechanisms per 92.254(a)(5)(i)(A) to ensure the resale requirements.
The period of affordability specified in the mortgage will be the minimum period for the project as specified
above. The period of affordability is based on the total amount of HOME funds invested in the housing.
Either recapture or resale provisions must be detailed and outlined in accordance with 24 CFR 92.254 in
marketing brochures, written agreements, and all legal documents with HOME funded projects. Either
recapture or resale may be used within a project, not both. Combining provisions to create "hybrids" is not
allowed.
LOAN TERMS:
The buyer Home Buyer Assistance Program assistance will be in the form of a deferred loan with zero
(0%) percent interest (Deferred Forgivable 211 Lien)for the duration of the affordability period. The loan,
as a second mortgage, will be secured by a second lien (Deed of Trust).
Transfer Due to Death. If the Property is transferred through probate, inheritance, devise, descent, or
operation of law due to the demise of HOMEOWNERS during the Covenant Period, the heir(s),
devisee(s), or inheritor(s) (the "Inheritor") of the Property must meet the current eligibility criteria to
participate in the HOME Program, including, but not limited to, income and occupancy requirements,
and if the Inheritor does not meet such criteria or does not remain in compliance with all of the terms
and conditions of the Loan Documents, the Inheritor must pay the entire outstanding balance of the
Loan, and CITY may invoke any other remedies permitted by Loan Documents without further notice or
demand.
Failure of the buyer to continuously occupy residence as principal residence during the Mortgage
Period will subject the buyer to non-compliance penalties. CDCB will first request that principal
8 Exhibit D
residency be reestablished. However, should the buyer continue to cease occupying residence, CDCB
will accelerate Second Note and demand payment on balance of the buyer assistance provided.
BUYER RESPONSIBILITIES:
• Attend HUD approved Homebuyer Education Class and receive certification from
the Community Development Corporation of Brownsville (CDCB)
• Complete HBA Intake and Application Forms,
• Provides residency documentation to CDCB staff as &when requested
• Provide income documentation on to CDCB, as required
• Obtain written acceptance into the program
• Select property for purchase
• Communicate to listing broker that the offer will be using HBA funds
• Select owners Insurance
• Upon the final offer being accepted, contact CDCB
• Attend closing to execute closing documents and any other required documents
• Stay current on all taxes and insurance policies
BUYER APPLICATION PROCESS
All requests for Home buyer Assistance will be processed on a first-come first-serve basis. The
participating buyer will then follow the HBA Program Application Process described below.
Approved Mortgages
In order to prevent buyers from getting into a home they cannot afford no mortgages will be approved
for the program that do not meet the following guidelines:
• Home buyers cannot exceed established debt to income ratios. Participants must qualify for a
mortgage and must meet underwriting ratios no higher than 35/45.
• All Mortgages must, at a minimum, comply with the (1) interagency Guidance on
Nontraditional Mortgage Products Risks, which was published on October 4,2006 and (2)
Statement on Subprime Mortgage Lending, which was published on July 10, 2007 (collectively,
the "interagency Guidance"). All participating Lenders will need to supply a signed statement
that the client has been approved for a mortgage that complies with the "interagency Guidance".
BUYER STEPS
Step 1: Lender Mortgage Approval and Referral to CDCB
To begin the buyer Assistance process, buyers must apply for mortgage approval.
The buyer must provide the following mortgage approval documents to the CDCB (as appropriate)for
initial client referral for the buyer Assistance Program:
• Referral Letter to CDCB
• Lender Commitment Letter to Family
• Copy of Loan Application
• Good Faith Estimate
• Underwriting/Pre-Qualifying Worksheet
• Truth and Lending Disclosure Statement
• Copy merged Credit Report generated by Lender
• Copy of Appraisal Report(as available)
9 Exhibit D
CDCB program staff will review the referral documents to determine if the loan is within the CDCB's
HBA guidelines. If the loan being offered to the buyer is within the CDCB's guidelines, the CDCB
program staff will collect income documentation from the buyer and determine if the buyer is income-
eligible, using the HUD Part 5 income determination procedures incorporated in the "HUD Community
Planning and Development (CPD) Income Calculator" to determine the buyer's income eligibility for the
buyer Assistance Program: www.onecpd.info/incomecalculator/.. The CDCB will contact the buyer by
mail and phone to let them know if they have met the income eligibility requirements for the HBA
Program. If the buyer is eligible, they will proceed with the process. If the buyer is ineligible, they will not
be able to participate in the program.
Step 2: Attend buyer Education Course
The buyer(s) must complete a pre-purchase buyer Education Course prior to loan closing in order to
further understand the home loan process and the responsibilities of home ownership. CDCB will serve
as the only acceptable certified buyer education provider in the CDCB and will be provided to the buyer
as part of the pre-qualification process. A Certificate of Completion of the course is required and must
be submitted to the CDCB program staff.
Step 3: Meet with CDCB program staff to complete buyer Assistance Program Application
The buyer will set up a time to meet with CDCB program staff to complete the buyer Assistance
application and review all program requirements. During the application process the following
documents are filled out and signed by the buyer:
• Application—The family information is collected, income eligibility is determined,
and the debt to income ratio is calculated.
• Conflict of Interest Affidavit- The applicants advise CDCB program staff of any
relation to any CDCB officials.
In addition, the buyer acknowledges receipt of a copy of the buyer Assistance Contract, which discloses
the occupancy rule and other requirements. The document will be executed by the buyer at closing.
The buyer must bring the following documents to the meeting with CDCB program staff in order to
complete the buyer Assistance Application:
• Income documentation (pay check stubs, etc.).
• Social Security Cards on all household members
• Birth Certificates on all household members
• INS Documents for legal aliens
• Unemployment Benefit Letter(if applicable)
• Workman's Compensation Benefits Letter(if applicable)
• Child Support Benefits Letter(if applicable)
• Social Security Benefits Letter(if applicable)
• Divorce Documents (if applicable)
Step 4: Find Eligible Property and Make Contingent Offer
The buyer finds a property for purchase within the target area and works with a real estate agent to
make a contingent offer on the property. At this time the needed funds will be placed on reserve (not
committed)for a period not to exceed 180 for new construction and 90 days for existing homes.
10 Exhibit D
Step 5: Work with Realtor and Lender to Get Property under Contract
Next, the buyer works to get the property under contract. The following steps will be taken on
Behalf of the buyer:
• Lender delivers an appraisal and Survey, Title Policy, Flood Certification, and
Credit Report to CDCB.
• Lender requests home inspection of the property by CDCB.
• CDCB inspector completes house inspection and CDCB program staff completes
Environmental Review for property.
• Home buyer requests quotes on owners' insurance and selects one for purchase.
Owners' insurance must be secured before closing.
• Lender submits the completed mortgage packet to CDCB program staff.
• CDCB program staff reviews the file using "First Time buyer File Check List" and
then signs and returns Funding Commitment form to lender, via FAX.
Step 6: Attend Closing at Title Company and Sign All Required Documentation
Home buyer completes the buyer Assistance process by attending the closing at the title company and
signing all required documents. The following list highlights the roles of the buyer, CDCB staff, lender
and Title Company.
• Home buyer signs the CDCB buyer Assistance Contract. The buyer Assistance
Contract is a binding agreement between the applicants and the CDCB.
• All required parties sign the Second Lien Note and Deed of Trust. Lender's
closing department works with required parties to complete and submit ALL
closing documents to the title company. This Second Lien Deed of Trust must be
filed by Title Company, insuring the CDCB's second lien position.
• CDCB will fund the closing costs to the title company
• Once all documents are received, the CDCB Coordinator will complete buyer's
file for record maintenance and close out the file.
11 Exhibit D
CDCB First Time buyer File Check List
(Place at the front of EACH Applicant's File)
APPLICANT NAME: Project Address:
DOCUMENT DATE TAKEN OR CHECKED
RECEIVED BY
Lender Request Letter
Title Company Information Title insurance schedule A AND
owners Insurance Policy
MCAW-(Mortgage Credit Analysis Worksheet)
buyer Affordability Analysis, Parts A and/or C
Loan Forgiveness Schedule
HUD 1-Check will not be released to Title Co.without
copies of ALL filed Documents
Earnest Money Contract
Power of Eminent Domain Acknowledgment&Notice to Seller
buyer Assistance Contract
Certification of Principle Residence
Property Appraisal(with photos and repair sheet)
Flood Certification
Survey
Loan Application(including Income Calculation Sheet)If
different from 1003
Good Faith Estimate
Credit Report
Verifications of Employment(for all Household members over
18years of age) plus 6 paycheck stubs
Certification of Zero Income Form (signed by persons over the
age of 18 in the household with zero income.)
Verification of Public Assistance
Verification of Child Support Payments
Last 3 years of W-2's and Tax returns
Bank statements for the last 3 months
Completion of buyer Training (signed Certificate)
Lead Based Paint Notification(If house built prior to 1978)
Evidence of Mortgage Bond Financing(TDHCA of Federal
Home Loan Bank)
12 Exhibit D
OTHER POLICIES AND PROCEDURES
Documentation and Record Keeping
A. Client Data
The CDCB shall maintain client data demonstrating client eligibility for services provided. Such
data shall include, but not be limited to, client name, address, income level or other basis for
determining eligibility, and description of service or benefit provided. The buyer Assistance
Contract between the CDCB and the Buyer shall, specifying the value of the property, the
principal residence requirement and the repayment provisions. In addition, the agreement must
specify the amount of funds, the form of assistance, the use of funds, and the time by which the
housing must be acquired.
B. Records to be maintained
CDCB, shall maintain all records as may be required to be kept pursuant to the terms of any
law, regulation or ordinance to which CDCB may be subject in the administration of the HBA
Program. Such records include, but are not limited to records for each Buyer, including but not
limited to source documentation used or relied upon to determine income eligibility, all written
agreements described above, and all financial transactions in any way related to the Program.
CDCB shall ensure that the use of funds is in accordance with generally accepted accounting
principles. CDCB shall retain all records for a period of at least five (5) years following a final
payment of buyer Assistance. CDCB shall conduct annual audits in accordance with OMB
Circular A-133 and 2 CFR 200. If a CDCB spends $1,000,000 or more within its accounting
year in federal funds, it shall be subject to a single-audit according to OMB Circular A-133 and
2 CFR 200.
CDCB shall maintain all records required by Federal regulations specified in 24 CFR 570.506.
Such records shall include but not be limited to:
1. Records providing a full description of each activity undertaken;
2. Records demonstrating that each activity undertaken benefits low-, moderate-, or
middle• income persons.
3. Records required determining the eligibility of activities and the eligibility of all
properties assisted;
4. Records required to document the purchase and sale amounts of each property,
discounts, and the sources and uses of funds for each activity;
5. Records documenting compliance with the fair housing and equal opportunity
requirements, including but not limited to the racial, ethnic, and gender
characteristics of persons who are applicants for, participants in, or beneficiaries
of the program;
6. Records documenting efforts to ensure that the initial successor in interest in a
foreclosed upon dwelling or residential real property has complied with the tenant
protection requirements.
13 Exhibit D
C. Retention
The CDCB shall retain all financial records, supporting documents, statistical records, and all
other records pertinent to the Agreement for a period of five (5) years. Notwithstanding the
above, if there is litigation, claims, audits, negotiations or other actions that involve any of the
records cited and that have started before the expiration of the five-year period, then such
records must be retained until completion of the actions and resolution of all issues, or the
expiration of the five-year period, whichever occurs later.
Lead-Based Paint Notification
The CDCB agrees that any construction or rehabilitation of residential structures with assistance
provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24
CFR 570.487 Or 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to
all PROGRAM-assisted housing and require that all owners, prospective owners, and tenants of
properties constructed prior to 1978 be properly notified that such properties may include lead-
based paint. Such notification shall point out the hazards of lead-based paint and explain the
symptoms, treatment and precautions that should be taken when dealing with lead-based paint
poisoning and the advisability and availability of blood level screening for children under seven.
The notice should also point out that if lead-based paint is found on the property, abatement
measures may be undertaken. The regulations further require that, depending on the amount of
Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement
may be conducted. Documentation shall be retained in the files for compliance to the above
statement. CDCB's staff will conduct home inspection which includes testing for Lead-Based for
properties constructed prior to 1978. Documentation shall be retained in the files for compliance
to the above statement.
Screening Prospective Applicants
Intake applications will be taken on a first come, first served basis at the CDCB's Office, 1022
Santa Fe St. Corpus Christi, TX. 78404, or at other locations as determined by CDCB. The only
Determining factors used will be the family income of the applicant and whether or not the
applicant can qualify for a mortgage. The Total income and eligible assets of all family members
over the age of eighteen in the household buying will be considered in determining whether the
income limits are met. The mortgage company accepting the application will verify employment,
income and determine the credit worthiness of the applicant as well as whether the applicant
meets underwriting criteria for purchasing the property. The buyer assistance will be tied to the
ADDRESS of the house being purchased rather than the applicant. Further, the mortgage
company will inform all eligible owners of their responsibilities under the program, the recapture
provisions.
D. Audits
CDCB shall conduct annual audits in accordance with 2 CFR 200, 24 CFR and 85.26, and OMB
Circular A-133. If CDCB spends $1,000,000 or more within its accounting year in federal funds, it
shall be subject to a single-audit according to 2 CFR 200 and OMB Circular A-133.
14 Exhibit D
E. Property Requirements
The property may be privately or publicly held prior to the sale to the first-time buyer. However,
the property may only be eligible for purchase if the owner is currently living in and wishes to sell
it. If the property is currently occupied by renters, and they are NOT the ones purchasing the
property, then the property may not immediately be eligible for purchase. City Staff must first
determine if any Uniform Relocation Assistance and Real Property Acquisition for Federal and
Federally Assisted Programs Regulations are affected. Any single-family dwelling, condominium
or townhouse property within the CDCB City Limits which will serve as the principal residence of
the purchaser may be used in the program.
The dwelling must be in compliance with HUD's Section 8 Housing Quality Standards (HQS),
local governing building codes and zoning ordinances.
Any Housing unit built before 1978 may have hazards associated with the presence of lead-based
paint. Therefore, no housing unit built prior to 1978 will be eligible for this program until the buyer
has been given and has signed a lead-based pain notification that states that there may well be
the presence of lead-based paint in the structure and give suggestions as to how the buyer might
abate those potential hazards. If the potential for a lead-based paint hazard is of major concern to
the buyer, CDCB would highly recommend that the buyer pursue purchasing a property built
AFTER 1978.
Housing units in areas where federal assistance is prohibited by the Coastal Barrier Resources
Act or in runway clear zones of civil or military airports are not eligible for the City's First-Time
Buyer Assistance Program. Houses must be covered by flood insurance throughout the
affordability period, if determined to be located in a regulated Special Flood Hazard Area.
Owners Insurance in the amount to cover the fair market value of the dwelling shall be required
during the five year affordability periods, effective from the date the buyer Assistance is provided.
EXHIBIT E
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards
Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is
notified that such property may present exposure to lead from lead-based paint that may place young children at risk
of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage,
including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead
poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is
required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections
in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection
for possible lead-based paint hazards is recommended prior to purchase.
Seller's Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing
(explain).
(ii) Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i) Seller has provided the purchaser with all available records and reports pertaining to lead-
based paint and/or lead-based paint hazards in the housing (list documents below).
(ii) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint
hazards in the housing.
Purchaser's Acknowledgment (initial)
(c) Purchaser has received copies of all information listed above.
(d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home.
(e) Purchaser has (check (i) or(ii) below):
(i) received a 10-day opportunity(or mutually agreed upon period) to conduct a risk assess-
ment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or
(ii) waived the opportunity to conduct a risk assessment or inspection for the presence of
lead-based paint and/or lead-based paint hazards.
Agent's Acknowledgment (initial)
(fl Agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d and is
aware of his/her responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the
information they have provided is true and accurate.
Seller Date Seller Date
Purchaser Date Purchaser Date
Agent Date Agent Date
Page 1 of 1
EXHIBIT G
COMMUNITY DEVELOPMENT CORPORATION OF BROWNSVILLE
HOMEBUYER ASSISTANCE CONTRACT
This Homebuyer Assistance Contract (hereafter referred to as CONTRACT) is entered into this
,between the Community Development Corporation of Brownsville(hereafter
referred to as CDCB), and (hereafter referred to as BUYER)
Whereas, BUYER has requested financial assistance in the amount of$ (HOME
Direct Subsidy Amount) (hereafter referred to as HOME ASSISTANCE) and not to exceed
$25,000 from CDCB to be used by the BUYER for down payment, closing costs,prepaid
expenses and/or principal reduction for the purchase of a home located at:
., Corpus Christi., Texas 784
Whereas, HOME ASSISTANCE is provided to CDCB for disbursement in accordance with the
requirements of the HOME Investment Partnerships (HOME)Program,per the federal
regulations at 24 CFR Part 92; and
Whereas, the CDCB is required to enter into a written agreement with the BUYER that
describes the terms of such assistance,per 24 CFR 92.504(c)(5)(1);
Whereas, HOME ASSISTANCE will be awarded to BUYER, subject to CDCB'S HOME
Program Policies, in the form of a deferred forgivable loan; and
Whereas, BUYER,based on the information furnished to CDCB, qualifies for HOME
ASSISTANCE under the CDCB'S HOME Program;
NOW THEREFORE, CDCB and BUYER agree as follows:
1. BUYER represents and warrants that all information furnished to CDCB in or as a part of
BUYER'S application for financial assistance in the Homebuyer Program is true and correct.
2. CDCB has determined that the residence identified herein, for which HOME ASSISTANCE
is requested, meets the definition of"modest housing,"per 24 CFR 92.254(a)(2)(iii) as
represented by the appraised value,which is less than or equal to 95% of area median sales price,
as follows:
a. Effective September 1, 2024 HUD has determined that the maximum appraised value for
a HOME-assisted single-family resident for homeownership is $238,000.00 for an
existing home; and
b. If the home of the household assisted by this agreement is an existing home, the appraised
value is $
Page 1 of 6
3. BUYER agrees to execute a second Note and a second Deed of Trust identifying CDCB as
the grantee to secure this loan. BUYER has 30 days from date of this agreement to close on the
purchase of the residence herein identified, or this contract is nullified.
4. This assistance is being provided under the HOME recapture provisions as described at 24
CFR 92.254(a)(5)(ii). The term of the second Note and second Deed of Trust shall be in effect
for TEN (10)years (hereafter referred to as AFFORDABILITY PERIOD AS INDICATED IN
THE HUD AFFORDABILITY CHART BELOW).
If the total HOME direct The period of
subsidy in the unit is: affordability is:
Under$14,999 5 years
Between $15,000 and $40,000 10 years
Over$40,000 15 years
5. BUYER will maintain property herein identified as BUYER'S PRINCIPAL RESIDENCE
for the entire AFFORDABILITY PERIOD per the HOME requirements at 92.254(a)(3).
6. During the AFFORDABILITY PERIOD, HOME ASSISTANCE will be forgiven by
CDCB in equal increments based on the length of the AFFORDABILITY PERIOD, on each
anniversary date of the signing of closing documents. Forgiveness will be based on
determination by the CDCB that the BUYER is continuously occupying the property as its
principal residence; as part of this determination, the BUYER may be required to certify
principal residency to CDCB annually during AFFORDABILITY PERIOD.
7. In the event that BUYER fails to occupy the property or through a voluntary or involuntary
sale during AFFORDABILITY PERIOD, BUYER shall repay THE FULL OUTSTANDING
BALANCE (Prorated based on annual forgiveness of Loan as stated in paragraph 6 above
Forgiveness schedule attached as Exhibit A, and herein after referred to as Outstanding Balance)
of HOME ASSISTANCE.
8. In the event of a voluntary or involuntary sale of residence by the BUYER or BUYER ceases
to continuously use residence as BUYER'S principal residence during the AFFORDABILITY
PERIOD, BUYER will REPAY THE OUTSTANDING HOME ASSISTANCE, in
accordance with CDCB'S HOME Program recapture policy, which is calculated by the CDCB
using the"owner investment returned first"method of recapture,per 92.254(a)(5)(ii)(A)(4), and
described as follows:
Page 2 of 6
a. Upon sale, rent or by any means that BUYER no longer occupies home as principal
residence, BUYER will repay the outstanding balance of HOME ASSISTANCE.If
property is sold through an arm's length transaction at market value, the repayment
will be subject to net proceeds of sale:
i. Net proceeds will be calculated as the sales price minus superior non-HOME
loan repayments and any BUYER-paid closing costs.
ii. From net proceeds, BUYER/owner/seller will be allowed first to recover their
investment, which includes BUYER/owner/seller's original down payment (not
including any down payment assistance)plus the principal that
BUYER/owner/seller has amortized on superior non-HOME loan senior debt.
iii. Then, to the extent net proceeds are available, the full amount of the HOME
ASSISTANCE, as recorded in the second note, will be repaid. However, in cases
where there are no net proceeds or the net proceeds are insufficient to repay the
HOME ASSISTANCE, the homeowner is not liable for payment of the HOME
ASSISTANCE (recorded in the second Note and second Deed of Trust)beyond
the amount of net proceeds that remain.
iv. Finally, if any proceeds remain available after full satisfaction of HOME
ASSISTANCE, these funds may be retained by the BUYER/owner/seller.
v. The above limitation of repayment to net proceeds notwithstanding, if the
CDCB determines that the sale has been at less-than-market value to a related or
other interested party, the CDCB may require the full repayment of the
outstanding balance, at its sole and absolute discretion.
b. AFFORDABILITY PERIOD will terminate upon transfer of title and payment of any
amount due, including HOME ASSISTANCE.
9. Failure of BUYER to continuously occupy residence as their principal residence during
AFFORDABILITY PERIOD will subject BUYER to CDCB non-compliance penalties as
established in CDCB'S HOME Program policies. CDCB will first request principal residency be
reestablished and determine new anniversary date for HOME ASSISTANCE forgiveness.
However, should BUYER continue to cease occupying residence, CDCB will accelerate Second
Note and demand payment on balance of HOME ASSISTANCE or suspend forgiveness of the
second Deed of Trust indefinitely, at its sole and absolute discretion.
Page 3 of 6
10. Failure to pay HOME ASSISTANCE in accordance with CONTRACT and/or failure to
comply with loan documents and/or failure to comply with provisions of the Note and/or Deed of
Trust documents may result in the foreclosure of CDCB'S lien against the property and the loss
of BUYER'S residence and property.
11. This CONTRACT creates a binding agreement between you as the BUYER and The CDCB
of Brownsville. BUYER represents and warrants to The CDCB of Brownsville that BUYER has
reviewed CONTRACT, understands it, and is executing it freely and voluntarily. Executed and
effective as of the date and year first written above.
Community Development Corporation of Brownsville
Charles N.Mitchell
Executive Director
BUYER signature
STATE OF TEXAS §
COUNTY OF NUECES §
BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this date personally
appeared and
known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to
me that they executed the same for the purposes and consideration therein expressed.
GIVEN TO ME UNDER MY HAND AND SEAL OF OFFICE, THIS DAY of
20_
(SEAL)
Notary Public
Page 4 of 6
STATE OF TEXAS §
COUNTY OF NUECES §
BEFORE ME,the undersigned, a Notary Public on this day personally appeared
and known to me
to be the person and officer whose name is subscribed to the
foregoing instrument and acknowledged to me that the same was the act of the said Community
Development Corporation of Brownsville, a non-profit corporation, and that she or he had executed the
same as the act of such non-profit corporation for the purpose and consideration therein expressed,an in
the capacity therein stated.
GIVEN TO ME UNDER MY HAND AND SEAL OF OFFICE,THIS DAY of ,20_.
(SEAL)
Notary Public
Page 5 of 6
ATTACHMENT A
Forgiveness Schedule
Page 6 of 6
Ce.
EXHIBIT H
CITY OF CORPUS CHRISTI - DISCLOSURE OF INTERESTS
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to
do business with the City to provide the following information. Every question must be
answered. If the question is not applicable, answer with "NA." See the definitions for the
Disclosure of Interest in Section II - General Information.
COMPANY NAME:
Community Development Corporation of Brownsville
P. O. BOX: N/A
STREET ADDRESS: 901 E.Levee St. CITY: Brownsville ZIP: 78520
FIRM IS: 1. Corporation ✓ 2. Partnership n 3. Sole Owner ❑
4. Association 5. Other
DISCLOSURE QUESTIONS
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each "employee" of the City of Corpus Christi having an "ownership
interest" constituting 3% or more of the ownership in the above named "firm."
Name Job Title and City Department (if
known)
N/A N/A
2. State the names of each "official" of the City of Corpus Christi having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm."
Name Title
N/A N/A
3. State the names of each "board member" of the City of Corpus Christi having an "ownership
interest" constituting 3% or more of the ownership in the above named "firm."
Name Board, Commission or Committee
N/A N/A
EXHIBIT I (contd.)
4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi
who worked on any matter related to the subject of this contract and has an "ownership
interest" constituting 3% or more of the ownership in the above named "firm."
Name Consultant
N/A N/A
FILING REQUIREMENTS
If a person who requests official action on a matter knows that the requested action will
confer an economic benefit on any City official or employee that is distinguishable from the
effect that the action will have on members of the public in general or a substantial segment
thereof, you shall disclose that fact in a signed writing official or employee in the matter is
apparent. The disclosure shall also be made in a signed writing filed with the City Secretary.
[Ethics Ordinance Section 2-349 (d)]
CERTIFICATION
I certify that all information provided is true and correct as of the date of this statement,
that I have not knowingly withheld disclosure of any information requested; and that
supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as
changes occur.
Certifying Person: Title:
Nick Mitchell-Bennett Chief Executive Officer
(Type or Print)
Signature of Certifying Date:
Person: E)=
Charte—s'R Mitchell(May 12,2025 11:21 CDT) 05/19/9095
DEFINITIONS
a. "Board member." A member of any board, commission, or committee appointed by
the City Council of the City of Corpus Christi, Texas.
b. "Economic benefit". An action that is likely to affect an economic interest if it is likely to
have an effect on that interest that is distinguishable from its effect on members of the
public in general or a substantial segment thereof.
c. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full
or part-time basis, but not as an independent contractor.
EXHIBIT I (contd.)
d. "Firm." Any entity operated for economic gain, whether professional, industrial or
commercial, and whether established to produce or deal with a product or service, including
but not limited to, entities operated in the form of sole proprietorship, as self-employed
person, partnership,
corporation,joint stock company,joint venture, receivership or trust, and entities which for
purposes of taxation are treated as non-profit organizations.
e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager,
Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the
City of Corpus Christi, Texas.
f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in
a firm, including when such interest is held through an agent, trust, estate, or holding entity.
"Constructively held" refers to holdings or control established through voting trusts, proxies,
or special terms of venture or partnership agreements."
g. "Consultant." Any person or firm, such as engineers and architects, hired by the City of
Corpus Christi for the purpose of professional consultation and recommendation.
The City of Corpus Christi
Planning&Community Development Department
Identification of Agency Contract Administrators
The Community Development Block Grant(CDBG)
Name of Organization: Community Development Corporation of Brownsville
The following persons are authorized to execute and agreement on behalf of the organization:
Name Title Phone Email
Nick Mitchell-Bennett Chief Executive Officer 956-541-4955 nmitchell@cdcb.org
Edna Oceguera Chief Operating Officer 956-541-4955 eoceguera@cdcb.org
The following employees or officers of the organization are authorized to submit payment requests and respond to questions
regarding fiscal and budgeting matters pertaining to the grant:
Name Title Phone Email
Dennise Silva Finance Manager 956-541-4955 dsilva@cdcb.org
Michelle Cano Grants Reimbursement Clerk 956-541-4955 mcano@cdcb.org
The following employees are directly responsible for program administration and reporting:
Name Title Phone Email
Linda Marin Director of Homeowenrship 956-541-4955 Imarin@cdcb.org
Klarissa Garcia Grants Coordinator 956-524-4448 kgarcia@cdcb.org