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HomeMy WebLinkAbout026238 RES - 04/26/2005 1 RESOLUTION APPROVING THE EXECUTION OF AN AFFORDABLE HOUSING PROGRAM AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ("CORPORATION") AND THE CITY OF CORPUS CHRISTI ("CITY") TO ALLOW THE CORPORATION TO GRANT $130,000 OF AFFORDABLE HOUSING FUNDS TO THE CITY FOR NEW CONSTRUCTION HOMEBUYER ASSISTANCE AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE PROGRAM AGREEMENT ON BEHALF OF THE CITY WHEREAS, the Texas Legislature in Section 4A of Article 5190,6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable Housing, which authorized the use of a portion of the sales and use tax approved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council ("City Council") and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a request for proposals for affordable housing projects as that term is defined in Title 42 of the United States Code, Section 12745, in accordance with the requirement in the Texas Development Corporation Act of 1979; WHEREAS, the City of Corpus Christi submitted a proposal to the Board to request $130,000 in forgivable loan grant funds for down payment and closing cost assistance for purchases of new construction; and WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Christi that City be awarded affordable housing funds, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Affordable Housing City new construction home buyer assistance. DOC f ,) L' ., ';) 8 J..uo-", 2 SECTION 1. That the City Council authorizes the execution of an affordable housing program agreement ("Program Agreement") between the Corporation and the City to allow the Corporation to provide $130,000 to the City for a new construction homebuyer assistance program, A copy of the Program Agreement in substantial form is attached as Exhibit A. The executed Program Agreement will be filed in the Office of the Secretary, SECTION 2. That the City Manager is authorized to execute the Program Agreement referenced above on behalf of the City, ATTE~ Armando Chapa City Secretary APPROVED: do day of JtrJ By: 'iA/Yz, ~.; Lisa Aguilar Assistant City Attorney for City Attorney ,2005, Affordable Housing City new construction homebuyer assistance. DOC Corpus Christi, Texas^. .. ~i.Otl- Day of U 'f!\ll ,2005 The above resolution was passed by the following vote: Rex Kinnison " Ok,V (~f- L_V,)' ( \:(yL/ at '0-- ,] [lLJt:, UiJk. a,\y ./ GtUtct-- Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly John E. Marez Jesse Noyola Mark Scott nt)/;.' "",-,: ~ '_ {} _..J '.... E: Y- ti \ L1, I -f I~ AFFORDABLE HOUSING PROGRAM AGREEMENT CITY OF CORPUS CHRISTI NEW CONSTRUCTION HOMEBUYER ASSISTANCE PROGRAM This Affordable Housing Program Agreement ("Program Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the City of Corpus Christi ("City") a Texas home rule municipality. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable Housing, which authorized the use of a portion of the sales and use tax approved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council ("City Council") and filed with the State Comptroller of Texas, effective April 1 , 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a request for proposals for affordable housing projects; WHEREAS, the City through its Neighborhood Services Department manages several programs to assist eligible citizens in purchase of affordable housing; WHEREAS, the City submitted a proposal to the Board to request grant funds for a forgivable loan program, to be combined with the funds provided by the Corpus Christi Community Development Corporation's current New Construction Homebuyer Assistance Program; WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Christi that the City be awarded affordable housing funds, by execution of this Program Agreement, to accomplish the affordable housing project described in this agreement and in the City's proposal In consideration of the covenants, promises, and conditions stated in this Program Agreement, the Corporation and the City agree as follows: 1. Program Agreement to Implement Affordable Housing Project. This Program Agreement between the Corporation and the City is executed to implement the promotion and development of an affordable housing project proposed by the City in response to the Board's request for proposals ("Project Response"), The Project Response submitted by the City titled "Project: New Construction Homebuyer Assistance Program" ("Project") is attached to this Program Agreement as Exhibit C and is incorporated in this Program Agreement by reference, 2. Effective Date. The effective date of this Program Agreement is the date on which the City Council grants approval to the Corporation for this Project, so long as all parties have executed this Program Agreement. 3. Term. The term of this Program Agreement extends twelve (12) months from the date the last party executes this document. 4. Services to be Provided by City. a. The City, through the City's City Manager or his designee ("City Manager"), shall administer funding and perform contract administration responsibilities, as outlined in this Program Agreement, for the Corporation. b, Eligible homeowner ("Homeowner") may apply to the City to receive a deferred forgivable loan of range of $7,500 to $10,000 of the funds provided under this Program Agreement for down payment and closing costs to purchase new single-family owner- occupied home described in this section, Said home must meets the guidelines and criteria outlined in the Corporation's Request for Proposals for Affordable Housing. Said home must also meet definition of "affordable housing" found in Title 42 of the United States Code, Section 12745, in accordance with the requirement in the Texas Development Corporation Act of 1979. c. The funds provided under this agreement to Homeowner shall be combined with Corpus Christi Community Development Corporation's New Construction Homebuyer Assistance Program so that the Homeowner receives a total of $15,000 to $20,000 in the form of a 0% deferred forgivable loan. d. For each year that the Homeowner occupies the home as his or her primary residence, one thousand dollars of the loan shall be forgiven. The City shall require Homeowners who receive the funds provided under this Program Agreement to execute the Real Estate Note and Deed of Trust attached as Exhibits A and B to secure repayment of outstanding loan amount to Corporation in the event the home is sold or transferred and an outstanding loan amount is due. The City shall file the original executed documents in the official public records of Nueces County. After recording, the City must ensure that the original executed and filed documents are returned to the Corporation, The Director may authorize modifications to Exhibits A and B to accomplish purpose of this Program Agreement. e. Prior to the distribution of funds provided under this Program Agreement, the Director of the City's Neighborhood Services Department or the Director's designee ("Director") shall review the anticipated purchase transaction as it pertains to eligibility, location and amount. The Director shall confirm execution of the documents attached as Exhibits A and B prior to release of funds. f. The City shall provide homeownership counseling to all qualified Homeowners of homes purchased with funds provided under this Program Agreement. g. The City shall recruit potential homebuyers for affordable housing ownership pursuant to this Program Agreement. The Director of shall ensure that each potential homebuyer's family qualifies as a low-to-moderate income family in accordance with Federal, State and City housing laws, rules, and regulations. 5. Payment of Funds. a. The Corporation authorizes the City to grant, from allocated sales tax revenues, up to $130,000 for down payment and closing costs for eligible homebuyers pursuant to this Program Agreement. Eligible homebuyers may qualify for a forgivable loan of funds provided under this Program Agreement of maximum of $10,000, b. Any funds provided by the Corporation under the provisions of this Program Agreement are subject to the receipt of sales taxes, by the City, from the Office of the Comptroller of the State of Texas and payment of the sales taxes to the Corporation by the City. c. Payment of the funds will be made by the City directly to the title company involved in the closing transaction. Supporting documentation, such as closing and settlement forms, must be provided to the City Director prior to processing a request for loan. 6. Documentation and Reports. a. The City shall maintain all documentation relating to the receipt and expenditure of the funds provided under this Program Agreement for a period of three years following the expiration of this Program Agreement or for such longer period as may be required by federal or State law. Additionally, the City shall keep records that document the provision and extent of home- buyer counseling that was provided to each qualified homebuyer. Each counseling record must be signed by the homebuyers and the City upon the completion of counseling. b, The City shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Program Agreement, during regular business hours, for the purpose of inspection and copying by the Corporation's designee, c. Director shall submit a performance report ("Report") to the Corporation at least once each quarter and a final Report within 30 days of the expiration of this Program Agreement. The Report must contain all relevant details pertaining to home purchases and include any supporting documentation required to substantiate the written narrative contained in the Report. 7. Amendments or Modifications. No amendments or modifications to this Program Agreement may be made, nor any provision waived, unless the amendment or modification is made in writing and signed by persons duly authorized to sign agreements on behalf of all parties. 8. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Program Agreement or the application of this Program Agreement to any person or circumstance is, to any extent, held illegal, invalid, or un-enforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Program Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Program Agreement that every section, paragraph, subdivision, clause, provision, phrase, and word of this Program Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Program Agreement, then the remainder of this Program Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Program Agreement automatically. 9. Compliance with Laws. The parties shall comply with all applicable federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to performance under this Program Agreement. 10. Jurisdiction and Venue. a. This Program Agreement will be governed by and construed in accordance with the laws of the State of Texas, b. All actions brought to enforce compliance with this Program Agreement must be brought in Nueces County. Texas, where this Program Agreement was entered into and must be performed. 11. Acknowledgment and Construction of Ambiguities. The parties expressly agree that each has independently read and does understand this Program Agreement and each party agrees to be bound by the terms, covenants, and conditions contained in this Program Agreement. Any ambiguities in this Program Agreement may not be construed against the drafter. 12. Warranties. The City warrants and represents to Corporation the following: a. The City has the authority to enter into and perform, and will perform, the terms of this Program Agreement. c, The City has timely filed and will timely file all local, State, and Federal tax reports and returns required by law to be filed and all taxes, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, during the term of this Program Agreement. d. The City has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Program Agreement must be utilized solely for purposes authorized under State law and by the terms of this Program Agreement. e, If an audit determines that the funds were not used for authorized purposes, the City agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement.. f. The parties executing this Program Agreement on behalf of the City are duly authorized to execute this Program Agreement. 13. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Program Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Program Agreement. b, No waiver of any covenant or condition, or the breach of any covenant or condition of this Program Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Program Agreement. c. Any waiver or indulgence of default may not be considered an estoppel against the Corporation, d, It is expressly understood that if at any time the City is in default in any of its conditions or covenants of this Program Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Program Agreement on account of the default. 14. Notices. a. Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 If to City: City of Corpus Christi Attn.: Director of Neighborhood Services Department P.O. Box 9277 Corpus Christi, Texas 78469-9277 City of Corpus Christi Attn,: City Manager P,O, Box 9277 Corpus Christi, Texas 78469-9277 c, Notice is effective upon deposit in the United States mail in the manner provided above. 15. Incorporation of other documents. The Corpus Christi Business & Job Development Corporation 4a Board Affordable Housing Request for Proposals issued October 22, 2004 are incorporated into this Program Agreement. 16. Relationship of Parties. In performing this Program Agreement, the Corporation and the City shall act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 17. Nonassignment. This Program Agreement may not be assigned, mortgaged, pledged, or transferred without the prior written consent of the other parties to this Program Agreement. 18. Non-discrimination. The City may not discriminate nor permit discrimination against any person or group of persons on the grounds of race, gender, disability, religion, age, or national origin in any manner prohibited by the laws of the United States or the State of Texas. 19. Captions. The captions in this Program Agreement are for convenience only and are not a part of this Program Agreement. The captions do not in any way limit or amplify the terms and provisions of this Program Agreement. 20. Entire Agreement. This Program Agreement and the referenced and incorporated documents constitute the entire agreement between the Corporation and the City for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Program Agreement, unless contained in this Program Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Program Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the each party's required performance under this Program Agreement. CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION Signature Title Printed name: Date: ACKNOWLEDGMENT STATE OF TEXAS ~ 9 ~ KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES This instrument was acknowledged before me on , 2005, by as the (title) of the Corpus Christi Business and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation. (seal) NOTARY PUBLIC, State ofTexas ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary George K, Noe City Manager Date: Date: APPROVED AS TO FORM: Lisa Aguilar Assistant City Attorney for the City Attorney